My Blog

Ad Astra Rocket Center is 10 minutes from the Guanacaste Country Club

craig@craigwilliamson.com — Fri, 30 Jul 2010 19:07:00 GMT

Thanks to the presence of some of the most innovative companies in the world today Costa Rica has become a major player in high-technology manufacturing, medical technology manufacturing, professional services and believe it or not, the development of advanced plasma rocket propulsion technology for space travel!

Since the year 2000 the number of companies in Costa Rica's manufacturing sector has increased by 83%, Costa Rica's medical devices sector has increased by 288% and the services sector has increased by 1,760%

Ad Astra is a rocket propulsion company dedicated to the development of advanced plasma rocket propulsion technology. It was started by Franklin Ramón Chang Díaz a Costa Rican-American engineer, physicist and former NASA astronaut who is a veteran of seven Space Shuttle missions. His ambitious goal is to revolutionize space transportation and exploration, through the development and commercialization of the VASIMR® engine and related technologies.

The American Institute of Aeronautics and Astronautics named the Variable Specific Impulse Magnetoplasma Rocket (VASIMR) among the top 10 emerging aerospace technologies of 2009 and aerospace experts believe that a 200 Mega Watt VASIMR® powered space ship could make the trip to Mars in as few as 39 days.

In an effort to help bolster this new industry, Costa Rica's President Laura Chinchilla is seeking to attract more investment from aerospace companies and this week signed a decree creating the National Council of Aerospace Industry which will be chaired by Clotilde Fonseca, Minister of Science and Technology.

In an interview this week, the World Bank Director for Central America Laura Frigenti was asked about the the prospects for Costa Rica this year, she answered: "They are very good. We at the World Bank, look at Costa Rica with a lot of admiration. It is a country that has much to offer the world in terms of good policies, results, particularly in the areas of social policy, debt and openness to foreign direct investment."

And you saw in the news this week that out of 65 countries, a young Tico - Rafael Angel Rodríguez Arguedas - just won the Gold medal in the World Olympics for Chemistry? He beat other very talented contenders from countries that have typically performed well in this field including the USA, Brazil, Mexico and Argentina.

Good things are happening in Costa Rica, come be a part of it!

More ...

Tags: ad astra,costa rica

Belize, a place full of magic

craig@craigwilliamson.com — Wed, 10 Dec 2008 16:59:00 GMT

Being on the road most of the time has its advantages and disadvantages. The advantages are that my Master Franchises include what would be considered the paradise of the Western Hemisphere. In expanding the ERA brand in Latin America, one needs to immerse oneself into a wide variety of cultures. The first stop, Belize, is a wonderfully confusing and synergistic mix of Native Indian, Spanish, African, and even Western European, Chinese, and very traditional Mennonites from North America. Now, this is only the beginning. There is this magical mix of Creole, Mayan, Rasta, and Punta with the native Mayan as an underlying current. I find it to be the most interesting mix of friendly, joyful, and intelligent people along the Caribbean. Ask the typical Belizean and they will have a rather interesting and mixed explanation of being both Caribbean and Central American. Ask Spanish Central America and they will be “on the fence” if Belize is included in Central America.

For the record, technically and geographically, it is both Central American and Caribbean which, personally, I find to be a passionate, conflicting mix. It makes for interesting Creole/Spanish/English discussions that, although lively and entertaining, achieve less than total understanding.

Make no mistake: there is an intelligent, educated, and ambitious generation emerging in this small but ecologically and socially responsible country. As a developer, I find the permitting process much like Costa Rica. The number ONE priority is the care and sustainability of the native trees, flora, wildlife, etc. Just ask any major yachting or cruise company. Any damage done to the second largest LIVE coral reef in the world, which lines the north-to-south offshore shelf of Belize, is met with severe penalties as it should be. In some cases, it is necessary to confiscate the vessel if there is extensive damage that continues beyond stern warnings and geographical limitations. Personally, I have free dived these reefs many times, and ALL dive masters emphasize the need to leave all coral undisturbed—no touching and monitor your depths diligently. These are fragile pieces of artwork created over years and sustain a critical part of the Caribbean ecosystem.

Whenever I visit, which is often because Belize is one of the places I keep a second home, I make a point to grab a Ponga (a specially designed fishing boat) and first visit the normal spots. Blue Hole, Shark Ray Alley, Ambergris Caye, etc. In these areas, it is actually possible, and part of the experience, to swim and interact with sharks. Now, before you panic, these are “Nurse Sharks”, shaped like and of shark anatomy, but they are actually bottom feeders much like catfish. The only warning is to keep your fingers protected—they may look like little fish, and these ARE STILL SHARKS.

Then, one hour of Caribbean snapper fishing—thats all it takes. Three hooks on your line, your captain will find a school, cast at the “snapper boil” (the water disturbed by their feeding), and they will hit your bait before it even hits the water! Three at a time, 60 fish in 20 minutes, it’s the way fishing should be. NOT boring. And, on the way to the next stop, they catch “Flying Fish”—picture this—a net 5 feet high from bow to stern. Then, just drive through the boiling, flying fish torpedoes. Keep your head down and clean them as fast as you can, which means scaling and gutting. That’s it. Caribbeans eat fish with the head attached because the eye balls are a delicacy. Yikes.

After the normal tourist experience though, my recommendation to anyone visiting Belize City would be a little known, almost secret spot offshore. Way off shore. It's called “Miami Beach”. Ask any fisherman, and he will take you there. Prepare well as it's far offshore. Bring your cooler, BBQ grill, meat, plantains, etc.

Miami Beach is a magical place as well. Well offshore, with no sight of land, it is a submerged island. Pure white sand just 12 inches under the surface over an area of at least a square mile. So, picture this: no site of land, boat pulls up on sand that is just a foot deep, everyone gets out and drops their beers in the water. Now, they don’t move because they are bobbing on the sand. Then the grilling begins, of course with the grill also sitting in the sand, 12 inches deep in the clearest, cleanest, “bluest” Caribbean water you can imagine. After the consumption of all the beer, rum, food, etc, it's “siesta” time.

Imagine, no land as far as you can see. White “sugar” sand with no weeds, 12 inches of 84 degree water with high salt content because of the evaporation. Sit down, lay back, close your eyes, and the water is the same temperature as the air. Lift you hands out of the water, and it feels the same. Back in the water, same. Then, take a peek at your friends. They're all doing the same thing. You fall asleep after gently bobbing on the sand below with no possibility of going under.

If you do nothing else while you are in Belize, find a fisherman, ask him about “Miami Beach”, and plan a restful, healing afternoon in that magical place. And eat everything that you and your crew have caught. Fish ALWAYS tastes better grilled on the boat or beach.

Ok, back in CR again now, my first love. Next week, 4 days on the Mexican Yucatan Peninsula. Stay tuned.

More ...

Design for Natural Cooling of Exterior Gathering Areas

craig@craigwilliamson.com — Thu, 27 Nov 2008 18:31:00 GMT

One of the most underutilized facilities on a property, whether it's a business or residence, are the ones outdoors. The phrase “weather permitting” is one you will find attached to several outdoor activities and events. There are several different methods used to combat the rain, wind, and sun and make exterior gathering areas usable for more days out of the year. Gazebos and canopies provide shelter from the sun and rain. Screens act as a windbreaker and keep out the bugs. Temperature, though, is difficult to control without placing so many physical barriers that your exterior area becomes interior. If it's too hot, people tend to stay indoors.

Costa Rica's tropical climate can be uncomfortable to those not adjusted to it. Exceptionally humid days compound the effect, and the heat will feel absolutely oppressive. The key to minimizing the heat is to view it as it relates to people. While the actual temperature outside can be high, the perceived temperature is what matters to those using the facility. Sweating is the natural defense of the body to being exposed to uncomfortable temperatures, but it also leads to discomfort and makes the perceived temperature rise.

The first and foremost defense against the head is to block or reduce direct sunlight. It's a well-known fact that being in the shade feels cooler than being in sunlight. Building a gazebo or having a permanently affixed canopy will achieve this goal. Additionally, some landscaping will be of benefit to this area. Strategic placement of trees around your outdoor area can provide shade not only to people under them, but it the air beneath them is cooler. The presence of shade is also psychologically beneficial as it is associated with relief from the sun.

Air management is also crucial to the effort. Hot air rises, and cool air sinks. Much like a house, all of the heat will be at the top, and you should provide a way for it to escape. Otherwise, body heat builds up beneath the ceiling. Also take into consideration that while you may be shielded from the sun beneath a structure, the structure is absorbing the heat and can transfer it down to you indirectly. A pathway to let that air escape will reduce the humidity and the heat.

When we sweat, the water evaporates and carries excess heat with it. Air currents amplify the effects of this process and reduce the perceived temperature. While stiff winds can cause problems for outdoor gatherings, a gentle breeze will make a hot day much more bearable. Use this to your advantage by placing your exterior gathering areas where they have access to the wind. If you have a problem with too much wind, you can place a windbreaker to slow it down while still receiving the benefits. You can consider wood, stone, or metal latticework depending on your architecture and aesthetic preferences. Even a tightly spaced wrought-iron fence can be used to reduce some of the wind, and you can plant ivy for added effect.

If the heat is still too high, you can consider employing some green technology. Since people lose a lot of water through sweat, offering a source of cool water can do wonders. Alternatively, a few companies are producing solar-powered misting machines which pump a very fine, cool mist into the air and have another mechanism to draw it (and the heat) out. A simpler option is to use a solar-powered fan to increase the airflow. You can't control the sun, wind, or humidity, but if you keep their effects on the body in mind, you can alter how they are sensed by people using the facility.

More ...

About Sustainable Energy Sources – Sun, Water, Wind

craig@craigwilliamson.com — Thu, 20 Nov 2008 23:07:00 GMT

While people, in general, would prefer to live green and embrace green technology, it's unlikely that they would welcome a situation without the modern conveniences that we've grown accustomed to. When you flip a switch, you expect a light to go on. It can be disconcerting when it doesn't happen because most people are used to being connected to a power grid with a seemingly endless supply of energy. That being said, some of your customers might worry about connection to an alternative-source grid or being a freestanding entity.

The main concern of the average person, when contemplating a home on a green power grid or a self-sufficient home, is that the natural resource being tapped is unstable or won't produce enough power to meet their needs. While solar panels are usually attached to a battery for night-time use, the weather is a mitigating factor. If the power is used at night and there's a few rainy days in a row, even a massive battery system will eventually run out. Wind turbines can suffer from a lack of weather, so to speak. If it's not sufficiently windy that day, power isn't generated. Barring drought, water power is a reasonably safe bet, but its availability is limited.

Let's look at the different sources for green energy, examine the pros and cons, and consider a few methods to ensure the continuity of power.

Solar Power

Solar power is one of the most popular and widely used green technologies. There have been astounding advances in solar panel design which have increased their efficiency and reduced the necessary size. The reason they're so popular is that they can be placed on practically any surface that receives sunlight, and the space required to implement the power system for a home is minimal.

Several homes across the world are partially or predominantly powered by solar panels attached to the roof. Their primary drawbacks include weather damage and the inability to generate power at night. With a large enough implementation, however, the solar system can generate an excess of power which is stored in batteries, so power continues throughout the night. Even so, several homeowners prefer to be hooked into a traditional power grid so that they will have power even in circumstances where the solar panels are ineffective. An arrangement is often made to feed excess power on sunny days back into the community's grid in exchange for an equal amount of power later at no cost. In effect, it neutralizes the environmental effect of drawing from a fossil fuel grid.

Most of the time, solar panels are used to provide localized power. The panel is attached to the building it provides power for. There are, like wind and water power, large installations of panels in solar fields, but that requires a large plot of land which is free of vegetation and wildlife. As such, olar fields are usually placed in arid areas where development is unlikely.

There are a few other photovoltaic technologies still in development, but they're currently not practical for commercial use.

Wind Power

Wind turbines are growing in popularity for green power companies and consumers. They provide clean energy without the emissions of fossil fuel plants, and wind is an abundant, widely available source. Due to the maintenance required to keep a turbine in working order, they are less likely to be used in an independent power system. Due to the moving parts in a turbine, they require inspection, lubrication, and replacement parts. Some choose to use a very small turbine to offset the cost of power and carbon footprint of their homes, but the amount of these turbines required to provide consistent power prevents most from relying solely on independent wind power.

One of the major drawbacks of wind power is that it is highly inconsistent. As a general ball-park figure, over half of the power will be generated in less than 20% of the operation time. Short, heavy gusts of wind are the primary workhorse, and the calmer winds provide much less power than is necessary to keep a constant supply to customers. It is very unlikely that any wind farm will produce power to its full capacity, so the availability of electricity can be spotty if too much is drawn from the grid.

As a result of its inherent supply instability, the amount of turbines is often increased to ensure availability or to compensate for expansion. That can require quite a bit of land, and that land becomes unusable for other developments. Also, turbines can be an eyesore, and people just don't want to look at them. Those facts have prompted several companies to do offshore wind farms. Turbines are placed out at sea where they won't be seen and will have maximum access to the wind.

Water Power

Hydroelectric power has been in use for a long time. Large rivers are often dammed to collect the kinetic energy of the water and convert it into electricity. These plants can often supply a large population with consistent power, but once a plant is at capacity, there are very few options to increase output aside from installing higher efficiency generators. Hydroelectric power varies in availability even though it can be routed over long distances. If the dam is at production capacity, you're not going to get on that grid unless you're putting power in.

If an appropriately sized water source is available to you, there are certainly options to utilize it for both mechanical and electric power. Water wheels have been in use for centuries to power mechanical devices, and they can certainly be used to run a generator. Another option is to use the water power to pump river or ground water through a filtration system and into homes. Again, the moving parts require maintenance, and the average homeowner would be ill-equipped and disinclined to repair it, but it is an option.

There are also relatively new technologies that utilize tides and ocean waves to generate power. As these methods grow into maturity, I'm sure they will see wide use across the world in coastal areas.

Comprehensive Power Plan

Now that we've seen these three systems, we know that none of them are 100 percent consistent. There is plenty of power to be had, but it might be necessary to draw from multiple sources to ensure that power is available at all times. Otherwise, people are much less likely to purchase a home in a green development. Ideally, a house can be designed to incorporate solar panels and become mostly self-sufficient. To ensure self-sufficiency, further power can be drawn from a wind farm or dam to cover all the bases on cloudy weeks. A well-planned green power development will make sure that their customers have a reliable source of electricity, so if the power plan has tapped into all of the available resources, you shouldn't worry about the availability of power. It's green, it's clean, and it no longer comes with all the hassle.

More ...

GCC Green Solution – LEED Platinum

craig@craigwilliamson.com — Mon, 17 Nov 2008 18:52:00 GMT

What's the difference between a LEED Certified development and one that's LEED Platinum Certified? Quite a bit. LEED certification comes in varied levels as judged by a LEED inspector. There is a checklist for developers to follow for acquiring points, and the LEED inspector verifies that the proper procedures and materials have been used. Once the total number of points has been determined, the development is assigned a level of certification ranging from the bottom, simply LEED Certified, all the way to the top of the scale, LEED Platinum.

There are different subsets of certified developments including homes, schools, commercial buildings, and more. While you can apply for LEED certification after construction has begun, it is prudent to start the process before you break down as LEED Platinum requires a start-to-finish inspection of the building process. It requires that all aspects be examined including: “sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality” (www.costaricagbc.org). Let's look at a few of the considerations for becoming LEED Platinum certified.

Pre-Planning and Site Selection

To begin, you should contact a LEED inspector and read through the guidelines that stipulate what is required to acquire the points you need for LEED Platinum. There are factors that you may not initially think of when planning your development, so going straight to the source, your local LEED inspector, will assist you immensely.

Where you place your development is very important. You shouldn't build in wetlands or in places where it would greatly disturb the natural wildlife. That would cost you a great deal of points. A great deal of time should be devoted to the planning stage of your development, and that will reduce most of the headaches later on. For example, in the architectural design stage of planning, you want to maximize your usable space by eliminating all functional obsolescences so that the overall footprint of the building takes up less space. That alone will reduce your costs of construction as well as adding points when you consider climate control, building materials, and sustainable energy options.

Even access to public transportation, alternative fuel sources, and bicycle lanes are a factor in accumulating points.

Water and Energy

Throughout a LEED construction process, efficiency is key. Water and Energy should be supplied by local and renewable sources. Reducing and recycling wastewater, stormwater management, and water-efficient landscaping will add quite a few points. Pulling your power from renewable sources by employing solar panels and wind-generated electricity are also very important.

Water and energy management are where technological advances will assist you the most, so keep up with the latest news on this front. Water heaters, for example, are being produced in smaller size and higher efficiency. The old model of water heater keeps a large quantity of water at a specified temperature, and it must continually refill and reheat the water. It requires a lot of space, and it wastes energy. For a home, you can employ a much smaller heater which can be mounted on a wall. It heats the water as necessary and doesn't expend energy unless hot water it required. That also benefits the homeowner by reducing operating costs and providing a consistent source of hot water.

Materials and Resources

The highest levels of LEED certification require that you use the appropriate materials in the construction process and eliminate waste. Anything that can be recycled in the construction process, and during operation of the building, must be collected. You should use certified wood, local materials, and renewable materials in your construction.

The reason you use local materials is to reduce the fuel expended to bring the materials to your site and therefore transportation costs. Many of the materials which are discarded in normal developments can be reused for your next development or stored and sent to a recycling center. The guidelines for this area of LEED certification can save you quite a bit of money in development costs, and it's worth a lot of points in the certification process, so pay special attention to what you can do in this area.

Operation and Innovation

When everything is put together, there's still a little left to be done. Equipment should be in place on the property to monitor the energy and resource efficiency. Also, the indoor environment quality will be considered. Management of tobacco smoke, carbon dioxide, and even use of daylight are used to determine the indoor quality. The main point of this area is to ensure that the health of the building's occupants is protected and all resources are consumed at maximum efficiency throughout the life of the building.

LEED certification also takes into consideration any innovation you've made in the design and building process. If you find a better way to do something and share it with everyone else, you'll accumulate points. Employ the latest technology and use the latest in green design and green building techniques, and if you can find any ways to make them better, do it!

LEED Platinum certification is a long road, but it's worth it for a variety of reasons. First and foremost, LEED Platinum places your development at the highest quality for efficiency and health, so the end result is that the profits you can reap are much higher. Your development will also be set apart as a leader in green development, so that is free publicity. Striving for Platinum certification will guide you in reducing construction costs, raising property value, and preserving the environment we share. It has its challenges, but it's definitely worth it.

More ...

Who’s On First – The Initial Team Breakdown and First Steps

craig@craigwilliamson.com — Mon, 17 Nov 2008 18:36:00 GMT

You have a place, a plan, and a team of motivated professionals ready to start your development. However, you're not quite ready to break ground yet. You need to rally the troops, organize some teams, and make sure that the plan you've created can be executed efficiently. Even if you have a top-notch development and support team with previous experience in developing real estate in Costa Rica, it's not a good idea to send them out on their own without direction. If you're in charge of the development, then you better be at the helm of the ship the whole time. Development in Costa Rica is much like anywhere else, so these rules will translate easily to other areas.

We'll continue to assume that you're developing a residential community in an entirely blank area. First things first, you need to divide your pool of labor into teams. To think of it in military terms, your entire human resources pool is a company. It's convenient because it's your company, and that correlates in essence to a military “company”. You're in charge of the entire company, and you need to divide it up into working units with competent leadership.

The company is broken up into platoons. Depending on what types of work your company engages in, you will have a few different platoons which could include your office personnel, construction personnel, marketing personnel, and real estate sales agents. Make sure you appoint someone at the top of these groups who will personally report to you. It also assists you in issuing orders all the way down to the bottom.

The next level of division includes the squads. Each squad should have a supervisor who will report back to the department head who will, in turn, compile the data and give it to you. The squad will be responsible for completing individual tasks. This is the system which will best streamline your operation and allow you to execute your plan concisely rather than letting loose a few hundred workers.

We will focus on development and construction right now. Once you've divided your team and established a hierarchy of leadership, you need to lay the groundwork at the site to allow you to move forward. First, you should contact the city or local authority to make sure you're properly zoned, you have the necessary permits, and you're authorized to connect to the roads. Failure to follow the proper channels and gain necessary permissions will cause immense problems later. There are a variety of ways your project can not only be delayed but destroyed if you do not comply with the laws of the area. You should have one of your “squads” in the office working on this as the first thing.

While they do that, establish a priority list of tasks that need to be accomplished and in what order. One useful way to organize this is in the academic “outline” format. Here's an example of the outline format:

I. Develop Section 1

1. Prepare the plots

a. Remove the undergrowth

b. Level the ground

2. Build a house on a plot

a. Lay a foundation

b. Build the house

II. Develop Section 2

That's an overly simplified outline, and yours should contain as much more detail. However, this will be the master plan that you can give to your department heads, and they can assign the sub-points to teams as needed.

Once your office team has done all of the footwork and secured the paperwork, you should do your final cost analysis, make any adjustments necessary, and prepare for the physical work to begin. Now you need to create a logistical framework. One of the first things you need to establish is a rudimentary road system so that vehicles won't have to trudge through undergrowth and mud. Raised, gravel roads will be sufficient and can later be paved over once you're no longer running heavy machinery. Along with this, have squad working on utilities and one working on marking and preparing plots. This gives you a glimpse at the shape of your community and divides the work into sections you can tackle.

Now, you have all of the groundwork laid, and you're ready to bring your idea to life. You can dictate to your department heads what needs to be done, and they can assign their squads to tasks as per your priority list.

More ...

Project Definition – Components of a Successful Project Concept

craig@craigwilliamson.com — Fri, 07 Nov 2008 16:56:00 GMT

When planning any size of project, the key component is research. You should know who you're selling to, what they want, and where they would like it to be located. For example, if you're planning on a building a high-end community, you wouldn't want to place it in an economically depressed area unless you were absolutely positive that there are certain redeeming factors that would attract your desired demographic to your development. Also, you must consider whether your project is a long or short-term investment and whether your infrastructure can handle it.

Let's suppose you've found an attractive stretch of land which is in the path of growth of a moderate-sized city in Costa Rica. We will also assume that you're planning on building a residential community on that property. No matter the type of development you are planning or the location, the same factors will come into play and should be carefully examined.

Once you have a location and an idea, it's time to do some research to develop that idea into an economically feasible plan by creating a project definition. The big question is this: what kind of community should you build? Should it be a luxurious, gated community with expansive lawns and large houses? Would you be better off creating an affordable rental community?

In the United States, several developers found themselves in a bind because they bought large amounts of real estate on credit, built far too many houses, and then couldn't sell them because the local economy couldn't support them. They had to resort to renting their high-dollar homes for cut-rate prices just to keep their businesses afloat, and even then, many are leaking assets like a sieve. Simply put, they did not do the proper research into the areas they were building, and they assumed an upward trend in the economy and growth.

In our hypothetical development, we're going to avoid that trap by looking closely at the business infrastructure of our medium-sized city. Let's say, for a moment, that the city was heavily invested in the service industry. It is based on restaurants and tourism. Now, to support that kind of industry, the majority of the people in the city would be on the lower rungs of the economic ladder, and they would be unable to purchase a moderate or high-end home. A minority of successful business owners would exist, but they would most likely bought homes already. There is always the possibility that tourists would see the development and be able to afford high-end homes, but it's a gamble. In this instance, a rental development would be the most profitable to you because it would be the most beneficial to the community. Alternatively, you could segregate the development between rental homes and homes for sale to reserve some for luck-of-the-draw buyers.

Since we assumed that the real estate is in the path of growth, we'll now also assume that the local economy is a healthy mix of corporate, industrial, and services. That provides a broad spectrum of buyers, and you could estimate the average salary of the area to arrive at a conclusion for your price range. One you have a price-range confirmed, you have established that the local infrastructure can support your development. Jobs will be available for people moving into the area, and those already employed here may be interested in your homes. Now, you must see what the local people want. Do they want a green development? Condos? Homes? Consider what is available in terms of entertainment in the area as well. If the predominant activities are rock climbing and surfing, you certainly wouldn't want to build a condo for retirees. Take everything about the area into consideration. You can't change the people, entertainment, and economy of the city, but you can use every facet of it to your advantage in your project planning.

We will assume that our medium-sized, mixed-economy city has a wide variety of entertainment and that jobs are quickly growing in all sectors. That's an ideal situation. So, as a result, we're going to build medium-sized homes with correlated price tags, and we'll market broadly. Now comes the question of whether this development is going to be short-term or long-term. What's the difference between the two?

Short-term investments are were you gather assets to purchase real estate and build on credit or you already have the funds on hand. The idea is that you will make an empty, ready-to-go community spring up out of nowhere. Long-term investments involve you building homes slowly and growing the community as you go. Each has its benefits and downfalls. For example, you could be completely wrong on the placement of your short-term investment and end up with a bunch of empty houses that won't sell. You would be stuck in the same situation as the developers in the United States. For long-term investments, you could build slowly and get beat out by someone who instantly raised a community close to yours, stealing your customer base.

Consider which investment model your own infrastructure can support. If you create the community all at once, would it ruin you if you didn't sell any homes for a year? Five years? If you are going for the long-term, are you likely to be beat out by someone else and be left holding undeveloped land? You can strike a balance between the two by raising large sections of the community to test the water and saving the rest of the property. One scenario is that you find you've hit capacity for that community, so now you have a section of real estate which can be developed for businesses to serve that community. That could result in significantly higher profits than you had originally planned on.

The key to creating a successful project definition is to know everything you possibly can about every part of the economy, people, and trends around you. Also develop contingency plans to repurpose your investment in the case of a potential windfall or a sudden downtrend. Never jump the gun on a development even if it means you may miss what may appear to be a hot deal. It's always better to spend time planning because the knowledge of the area will be exponentially beneficial in your current development as well as any you do in the future.

More ...

Defining Sustainable Development: Environmental, Economic, and Social

craig@craigwilliamson.com — Fri, 07 Nov 2008 16:52:00 GMT

When attempting to create a sustainable development, there are three primary factors you must consider. The environmental, social, and economic implications of a development must be balanced to provide the optimal condition. Each arm of a sustainable development must be addressed, and there's much more to it than just building a green home which addresses the issues of environmental sustainability. In this post, I'm going to examine each arm of sustainable development in its extreme and bring them together in balance at the end.

The Environmental Arm

This is the first thing that comes to mind when sustainability is discussed. The extreme of this arm is an absolutely “green home” which strives for zero impact on the surrounding environment. An absolute green home can be imagined as one which is closely integrated with the environment. It uses completely biodegradable building materials, disturbs none of the wildlife, uses unobtrusive technology such as passive solar, and produces zero waste. All of that at the cost of comfort to the occupant. It is an attempt to use as few resources and as little space as physically possible so that they can be replenished, and it will leave no discernible mark when the occupant is gone.

When focusing on just the environmental aspect, cost and comfort go out the window, so we won't look at those quite yet. It can be assumed that the cost will rise and comfort will fall. Those are the sacrifices necessary to live in an extreme situation. The positive aspect of this arm is that the occupant would live in complete harmony with his or her environment, and the impact of their life on the area would be zero to negligible. The health of the occupant will also be improved as it will not suffer from the emission problems many cities have.

The Economic Arm

The goal of purely economic building is to throw up a structure as quickly as possible with as little cost to the developer as can be achieved. It just has to stand long enough for the buyer to purchase it. In this arm, we are completely discounting the environmental and social implications of doing business in this way. Naturally, if you're building with only cost and speed in mind, you would have little concern for the health and safety of the occupants nor the ecosystem.

This arm is all about maximizing your immediate profit. To clear out large plots of land, you would slash-and-burn until you had a wide expanse of land that you could fill shoulder to shoulder with shacks. This is a popular model for a certain segment of developers, the fly-by-night variety, because it's all about the money they can make today instead of building a reputation for the future.

The Social Arm

The social aspect of development is the central piece which ties together the economic and environmental arms. The extreme of this arm is that you build a large, affordable house which is extremely comfortable. The developer makes no profit, and the environment surrounding the property is destroyed. It's all about making the customer happy right now without any thought to the future.

This is a bad way to build because it will waste material and resources. Ultimately, the operating costs of the home will be enormous, and the health of the occupant will suffer because of the lack of concern for the surrounding area. It's also a horrible model for a business to run on because they will go bankrupt quickly.

Defining Sustainable Development

Now that we're familiar with the extremes of each arm, let's look at the middle ground. A sustainable development is one where the buyer is comfortable, the impact on the environment is low, and the profit to the developer is high. Resources are used logically, and they are replenished naturally. All around, a sustainable development is a green home which is also a dream home.

The word, “sustainable” is tagged on to all sorts of other terms now, but the most important sustainability is the total sustainability of all parties involved. A sustainable development is one where all of the parties walk away happy, and they remain that way in the long term. It unifies the concern of your customers with concern for your business and provides a way that both can survive and thrive by preserving the ecosystem which supports us all.

If I had to sum it up in a sentence, it would be this: Sustainable development is a building practice which strikes a balance between providing our desires for the present and our needs in the future.

More ...

Settle Down – Common Sense for Costa Rica Real Estate Buyers

craig@craigwilliamson.com — Thu, 06 Nov 2008 02:52:00 GMT

After reading Jesse Bogan's article, “Trouble in Paradise”, on the Forbes website, I was dismayed by the inaccurate portrayal regarding the amount of squatters in Costa Rica and the laws regarding them. The cases mentioned were anomalies that could have been prevented if the offended parties had followed the proper procedures and taken precautions which would be considered basic in any real estate transaction of that nature. They are not representative of the vast number of real estate transactions which take place in Costa Rica every year, and I would like to lay to rest some of the concerns raised by Bogan in that article by examining a selection of those cases, showing where the buyer could have prevented the issue, and briefly covering some ways you should protect your investment if you choose to buy real estate in Costa Rica.

In that article, Bogan names several cases where squatters have settled on a piece of land and caused trouble for the owner—then proceeds to report on one-sided opinions which blow a few isolated cases far out of proportion. While squatters do exist in every country and have been given certain rights, they are not a widespread epidemic that plagues every land owner in Costa Rica. In fact, the cases mentioned by Bogan are extremes caused by neglect and poor management of investments.

The laws regarding squatters were put into place to prevent a scenario which could be highly detrimental to the Costa Rican economy: a small majority buying up all of the land and holding it hostage until they can flip deteriorated properties at inflated rates. As stated in the Civil Code of Costa Rica, squatters can claim land which is uncultivated, unimproved, and otherwise unoccupied for an extended period of time. If they are allowed to stay on the land for ten years without contest, have peacefully occupied it, and have made improvements to it, they can file for ownership of the land. Before scoffing at the law as a free-land pass for squatters, you should ask yourself who would make a major monetary investment without monitoring it closely.

The isolated cases mentioned by Bogan are cases where the landowners did not take care of their land with due diligence. Let's examine the examples used in the article and see where they could have prevented the problem.

H. Craig Carter purchased 180 acres in 1993. His intent was to build luxury condos on this property, yet squatters had time to establish 20 shacks and cultivate the land. He believes that the plot is worth $4 million in contrast to the $50,000 he and his group paid for it. If the land had been properly monitored before the construction started, he would have known that squatters were on his land. Early detection is of the utmost importance, and if he reported them, the squatters would have been ousted by the police before there was any need to take it to the courts. Early detection is a cure-all for the vast majority of squatter cases, the tool most landowners employ to protect their investment.

The two parcels that Jean Marie Meadows bought were legally owned by people other than the person she thought was selling them to her. One was part of a public park, and the other belonged to Daniel Fowlie. After questioning her agent about it, she proceeded to purchase another parcel through him. This case is one of monumentally poor judgment in choosing who you do business with. If an agent has obviously betrayed your trust, do not continue to use that agent. When purchasing real estate anywhere, verify that the agent you are working with is licensed, trained, and credible. Also, verify ownership of the land. There are many cases in the United States of people reselling and renting apartments or houses they do not own. It's a sad fact that con artists may use your property to do that. To prevent being harmed on the other side of this deal, having your land sold illegitimately, make sure that there is constant monitoring or work being done on your property. Con artists need a reliably vacant and dormant property to pull of this scam, and they can not run their scam if there is activity on the property.

Robert Sprague bought 2.5 acres and invited squatters to live on it. The land was sold from under him. This case is another of fraud as opposed to squatting, but it also shows that you should not invite squatters to live on your land. If you can not be present to care for the land, you should hire a reputable company to watch your property for you and do the necessary upkeep. Keep your receipts and watch the company closely. If someone lives on the land, it makes it easier for them to convince others that they are the owners and legally able to sell your real estate. You should also personally check up on or send a trusted representative to check up on your land, document any improvements you've made, and have copies of those documents sent to the local government for their records. If you absolutely require that someone live on the land, you must pay them a wage so that they are an official employee, keep receipts and records of everything you can, and check up on them frequently. Have them sign a legal document with a witness which explains the situation, and have a copy sent to the local government as proof.

The case of Herradura is that the land was bought around 30 years ago, and it wasn't cultivated or cared for. It was intended to be a cooperative, yet the landowners stopped visiting and never developed on the land. Many years later, squatters appeared. In this case, the guard in charge of the land notified the police of what he claimed to be a hostile takeover ten months after the fact. Also, the squatters claimed that the guard is the one who sold them the land. Again, this is a case of neglect where the foreign owners did not watch their investment personally and did not keep tabs on the person charged with caring for it. If they had been actively involved in developing their coop, they would have been able to remove the squatters without an issue. It should also be noted that entering into such a generalized business agreement without a strong, centralized core is a bad idea. If the other owners choose to never visit, develop, or care for their property, your property's value depreciates, and the squatter issue will be compounded.

All of the cases mentioned in Bogan's article are caused by poor business decisions. They do not exemplify a rampant squatter problem in Costa Rica. Rather, they serve as a warning that you should not purchase real estate when you are unwilling or unable to develop and care for it. There are cases of squatters in the United States and across the world. There are also cases of con artists who sell or rent properties they do not own, so neither issue is specific to the laws and customs of Costa Rican real estate. A prospective buyer simply needs to make informed decisions regarding their real estate purchases. In any investment you make, you are responsible for ensuring its safety, but Costa Rica is as safe as most countries to purchase real estate in.

Bogan's article claims that land owners have little recourse when it comes to squatters. On the contrary, common sense business practices can prevent squatters from occupying and taking ownership of your land. To maintain ownership of the land, you should make improvements to show that it is not being left to rot. Plant trees, clear the underbrush, and mend any fences regularly enough to show that you are keeping the property in order. Also, you should post signs to inform trespassers that they're not welcome on the land. Record keeping is also very important. Be able to provide receipts, titles, and photo-documentation of improvements to the land to make a clear-cut case that you have kept up with it and that it has been occupied by you (and not the squatters) when you take the case to court. The most important thing is to personally examine your real estate or have a trusted representative do so. When you detect squatters in the first few months, or weeks ideally, you can easily have the police remove them for you.

The most important thing to remember is to only buy through licensed and trained real estate agents. You shouldn't purchase real estate in any country unless you have fully researched the person selling it to you, the previous owners of the land, and the condition you're receiving it in, so why would it be any different in Costa Rica? There are an incredible amount of success stories about companies who have bought, and/or branded real estate in Costa Rica including: Four Seasons, Regent, Mandarin Oriental, Hilton, Hyatt, Marriott, St Regis, Best Western, Jack Parker Group, CIMA, and Bridgestone, and hundreds of North American and European Developers, small, medium and large.

These companies have researched, developed, and built on that land. They've sold it to happy customers, employed local and foreign workers, and have been beneficial to the Costa Rican economy. Anyone you have living on the land or making improvements on it should be thoroughly documented and researched. The process of a thorough background check and rigorous documentation is enough to discourage even the most bold con artists. This is the very same steps you would take in a North American Real Estate purchase…why would you approach this any differently in Costa Rica.

If you're considering buying and developing land in Costa Rica as your retirement home, you shouldn't worry about squatters if you are taking the proper precautions to prevent it. Squatters are more of a problem to people who are trying to “Quick Flip” land for a fast buck, and even in those cases, it's rare to see them. To avoid scam artists, investigate your real estate agent to verify that they are legitimate and trustworthy, and are affiliated with a strong brand. Finally, make sure you understand the laws of Costa Rica and comply with them. If you follow those guidelines, you shouldn't have a problem.

More ...

Environmental and Social Responsibility – Why Here, Why Now?

craig@craigwilliamson.com — Wed, 05 Nov 2008 20:48:00 GMT

The words “environmental responsibility” may invoke thoughts of donating your time and resources to making the world a better place for yourself and those around you, doing your part to preserve the natural beauty of the land. While that is certainly an aspect of environmental responsibility, there are many benefits for businesses, homeowners, and developers to invest in eco-friendly Real Estate. Central America is the perfect place to start, and the best time to get started is now.

The Benefits of Environmental and Social Responsibility

When considering a location for development, one of the most attractive factors is the aesthetic quality of the land surrounding the property. Most homeowners would place their dream home on a beach, overlooking a canyon, or placed in some other beautiful location which is untouched by the relentless flow of glass, concrete, and steel. However, proximity to businesses and work is an equally important factor. So, how do you balance natural beauty with modern convenience? It would appear that they are mutually exclusive.

It is certainly possible to have both, and that is the goal of environmental responsibility. The key is to use the currently available technology and development techniques to preserve the area while integrating your development into it. By doing so, you are creating a perfect place for your customers.

What does that mean to you? That means more sales at a higher profit. Several developers I've spoken with are wary of the green initiative because they believe that it's the “right thing to do”, but that their business will suffer from the cost of building green. It is seen as a profitless chore as opposed to business opportunity. Many developers don't know that the added cost in green development, which may be lower than you think, will easily be recouped later. In fact, you will garner a greater profit from going green than you will by sticking with old techniques.

By adhering to the guidelines of environmentally responsible development, you will open yourself to a new and quickly expanding market. This market is full of people who are exclusively looking to purchase green Real Estate. They want solar power, clean water, grass, trees, and wildlife on their property. Those people are willing to pay a premium for those benefits, and it's completely possible for them to have it if you build it. Even if a buyer isn't exclusively searching for green property, it certainly is an added bonus that is well worth the extra cost and definitely will not put them off. That translates to more money in your pocket, less risk, and the satisfaction of doing the right thing.

The Green Building Council of Costa Rica and LEED Certification

The Green Building Council of Costa Rica (www.costaricagbc.org) is an organization which promotes green building practices and LEED certification of properties. It encourages sustainable development of green homes and businesses as well as continued education for developers in LEED building practices. It is modeled after the United States' Green Building Council, and follows many of the same practices. My goal is to use the GBCCR as a template to create and assist Green Building Councils across Central America and promote green building and sustainable practices in other countries.

To become a member of the Green Building Council of Costa Rica, visit the website and follow the instructions there. There are also accreditation courses available for those interested in becoming a LEED Accredited Professional. The advantage to being a LEED AC is that you are taught all of the requirements to develop LEED Platinum properties, and you are set apart as one of the highest quality green builders in Costa Rica.

LEED stands for Leadership in Energy and Environmental Design, and it is a rating system which certifies developments with an environmental rating. People from all stages of development are involved from the architects to builders to interior designers. The qualifications for the ratings are developed by a volunteer committee comprised of working professionals who come to a consensus regarding different practices and establish best practices. They contact third party advisory groups to provide technical data and reports to establish what constitutes as best practices.

For a development to be LEED certified, it must follow the guidelines set by the LEED committee in development as well as operation. The property must, of course, be a green property, but there are different levels of “greenness.” These are identified by the LEED rating which ranges from the lowest, “LEED Certified”, to the highest, “LEED Platinum”.

To make a property LEED certified in Costa Rica, a developer must contact the Green Building Council of Costa Rica and apply for certification early in the process. That allows the GBCCR to monitor the building process and building techniques used.

Why Here? Why Now?

Costa Rica contains 6% of the biodiversity in the world. For the amount of land, that is an enormous amount of species. All across Central America, there is a massive trend towards preserving the ecosystem and developing green. Costa Rica, especially, is a hotspot for investment potential for businesses and homeowners alike.

Our location is one that allows for an exceptional opportunity: provide modern amenities and convenient locations in a place whose beauty is unmatched. For example, the Guanacaste Country Club (www.guanacastecc.com) is a LEED Platinum certified community which provides its residents with every modern convenience and fantastic natural beauty in a convenient location. It is such a successful development because it gives customers exactly what they are looking for.

The development trends are spreading out in every direction and consumers are hungrily buying up lots, so the risk of development is minimized. Naturally, you want to develop in a place which is growing, and that's precisely what is happening now.

Now is the perfect time to get into green building. Those before you have shown that the model is highly profitable and stable, yet it is not too late to establish yourself as one of the major players in the green industry. As an example of an industry in this phase, let's look at search engines. When Google started, it was certainly not the first search engine. It had plenty of competition from Yahoo, Ask Jeeves, and several others. However, by acting when they did and innovating in the field, they have become the number one search engine on the internet, and competing with them as a brand new company would certainly be a daunting task. The reason the other search engines are still around is that they established a customer base early on.

Green developers have the same opportunity as Google. You can become a major player in the industry by adapting to the trends now instead of waiting until you are forced to. The laws are changing to push for industry standards regarding eco-friendly practices, and it is much more difficult to completely restructure your operation to comply with the laws than it is to start now and make the change on your own terms. Even if your goal isn't to become the Google of Real Estate, you will at least secure your position with your own customer base by implementing green procedures now.

The place is here, and the time is now. Look into it, and you'll see that it's the best move you can make for your company now and in the future.

More ...