Summary
- I’m not calling out these two companies below because they’re not perfect according to some intense, unrealistic measurement.
- I’m calling them out because the “cracks” I’m detecting seem like the type that could only get bigger from here.
- "The road to long-term investment success runs through risk control more than through aggressiveness." – Howard Marks.
- This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. Get started today »
To my regular readers, I apologize about what will no doubt be repetitive information for you. But it’s very relevant to the topic at hand.
For a two decade-plus period of my previous life, I was a real estate developer. After growing up in a real estate-minded family, it only seemed natural – not to mention profitable – to build on those roots. And sure enough, right up until the housing market crash of 2008, it paid off exactly as planned.
We’re talking about going from student loans to building up a net worth of around $30 million.
That’s because I was one busy businessman for a while there. There was always someone seeking out my services, which, incidentally, centered around developing free-standing and multi-tenant commercial properties.
As with any worthwhile venture, there always were details to be noticed and angles to be analyzed. That and stories to tell.
Oh, the stories I could come home with on any given week.
One of them involved a PetSmart building I developed as part of a new shopping center. The lease agreement was one of the most precise (read: picky) contracts I’d ever seen at that point in my career.
It had some extraordinary details. Let me tell you.
That included the demand for a crack-free concrete slab for the floor. If that sounds reasonable at first glance, that’s not how I saw it at the time. And with good reason too.
Photo Source
No Cracks Allowed
Do you know how difficult it is to pour that much concrete without a single crack? At the time the request was made, I truly thought it was impossible.
Now, you can have individual squares poured out as solid, fissure-free units. In fact, that’s what you should do.
But you don’t create it as one single, expansive piece. Therefore, there will be some kind of minor separation between the parts that make up the whole.
Nonetheless, the tenant refused to budge on that requirement, unwilling to take any chances in this regard. If I wanted the business, I had to do so on its terms.
In the end, I decided to look into it. Perhaps it was out of curiosity. Perhaps it was a drive to always improve on my craft.
One way or the other though, I got to digging into the subject, asking around and doing my due diligence. It took me some time, but I did eventually learn about laser screeds.
That’s something I’ll let Mr. “Joe Rozmiarek, Licensed Professional Engineer” on Quora describe. His answer matches my own experience… but I think he probably explains it better than I could:
“A laser screed is a machine used to both level and vibrate concrete used in floors. The method is typically used in large floor pours, such as retail or warehouse structures.
“A laser-emitting device is placed on a static location outside the pour. Two laser receivers on the ends of the screed align themselves with the laser to keep a floor pour level during placement. An auger inside the screed levels and vibrates the concrete as the screed pulls over the wet surface, similar to any hand-screed operations.”
Quite the nifty device, I’ve got to say, despite its main drawbacks – which are described down below.
...Originally Posted On Seeking Alpha
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