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|Friday, August 22, 2014|
BY CLIFF HOCKLEY | OB GUEST CONTRIBUTOR
A wealthy grandmother dies leaving a $3 million commercial building to her heirs without a plan; five family partners share interest in a $5 million apartment building, and one of the partners goes through a divorce while another gets into a terrible car accident. Situations like these can affect any group of investors, but when business intersects with family, a host of situations can arise. Without a clear vision and careful planning, hard-earned investments can become stressful burdens.
The foundation of a strong financial plan lies in understanding how the assets in question can benefit the stakeholders according to their specific financial goals. For real estate investments, owners typically derive value in four ways:
The personal financial situation of each investor determines the extent to which they can derive value, which can make real estate a smart move, even when return rates seem low compared to other types of investments. For instance, consider a choice between a commercial building with a 6.5% cap rate and a well-managed hedge fund earning an average of 10% (assuming similar risk). While the immediate cash flow of the stocks exceeds that of the real estate, factoring in appreciation and depreciation can boost the actual return considerably, depending on the profile of the investor.
A strategic plan is necessary and should address a number of critical questions, including:
These questions can only be answered when the family agrees on the goals of the investment. Each owner should use an understanding of his/her own financial position to frame his/her goals in terms of the potential benefits of a real estate investment. Important factors to consider include:
Just like in any business, a clear set of goals implemented by an effective strategic plan will maximize the long-term earning potential of the group. No matter the goals of the investment, however, families should remember to treat the business as a business. When personal agendas cloud the judgment of those in charge, investments and relationships both suffer. By understanding the benefits of real estate investments, families can agree upon goals that will make their investments work for them.
Cliff Hockley is president of Bluestone & Hockley Real Estate Services
Thursday, March 26, 2015
Cycling to work is all the rage. But not everyone wants to arrive at the office messy, sweaty — and unfashionable.
Friday, March 27, 2015
BY ROBERT MULLIN
A new energy-sharing agreement sparks concerns about independence and collaboration in the region's utility industry.
Monday, February 23, 2015
Yeah, we know: Oregonians are way too cool for umbrellas. But today’s stylish, high-tech models will soften the resistance of the most rain hardened.
Thursday, March 19, 2015
BY JACOB PALMER | DIGITAL NEWS EDITOR
There are 278 companies licensed to operate as brewery, according to the Oregon Liquor Control Commission. Here are three new beer-making hubs slated to open soon.
Friday, February 27, 2015
BY OB STAFF
Oregon Business held its 22nd annual 100 Best Companies to Work For in Oregon celebration Thursday night in the Oregon Convention Center.
Friday, March 27, 2015
BY LINDA BAKER
My daughter turned 18 last week, and for her birthday I got her a Car2Go membership. Not to label myself a disruptor, but it felt like a groundbreaking moment. The two of us, mother and child, were participating in a new teen rite of passage: Instead of handing over the car keys, I handed over a car-sharing card — with the caveat that she not use the gift as her own personal car service.
Friday, March 27, 2015
BY COURTNEY SHERWOOD | Photos by Jason E. Kaplan
Pacific Seafood, one of the world’s largest processors, is rebranding as a more transparent and consumer-friendly operation. A controversial CEO and monopoly accusations from coastal fishermen complicate the tale.
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A new report highlights how Oregon bankers are giving back to their communities.
Since 1932 Tidewater Transportation & Terminals (operating as Tidewater Barge Lines and Tidewater Terminal Company) has operated a multicommodity transportation and terminal company based in Vancouver, Washington. The friendly expression on the company’s shipping containers reflects the attitude of about 330 safety and community-conscious employees but belies how complicated the barge business really is.
The Port of The Dalles has run marine facilities since the 1930s, but they are part of a larger mission to strengthen the local economy. They focus on regional economic development with a strong bent toward adding good-paying jobs in high tech, manufacturing and other industries.
The Atkinson Graduate School of Management at Willamette University has maintained its business accreditation by AACSB International—The Association to Advance Collegiate Schools of Business.
Like the advent of the locomotive, the cloud creates business opportunities that simply weren’t possible before now. Get up to speed fast in May at an exciting cloud-empowered Portland event.
Registration is now open for Portland Business Alliance’s Annual Meeting, one of the largest business gatherings in Portland each year.