Wednesday, December 3, 2014

Wise Council-Before its to late....




Infrastructure Building programs-Boom or Bust?




Many people believe they are positioned to initiate major building projects as part of either a Private Placement program or some kind of public exchange of foreign currency. There are indeed a lot of great ideas floating around various sources, but most of the people involved have never worked with an architect, selected a contractor or ever been involved in the decision making required with such efforts. This lack of experience all but guarantees difficulties on multiple levels. 


To begin with keep in mind that what ever you build you have to maintain, staff and pay all the operational bills including utility costs. That means that you have to “endow” its operations or be saddled with fund raising efforts for ever. As much as 75% of your money needs to be set aside for investments that yield 5-10% safely. You need to have a handle on this before you ever attempt to build anything. Other wise you find yourself in bankruptcy even if you successfully run the design/construction gauntlet. You have to develop your endowment plans as you design your infrastructure project. Otherwise it simply will not work.