Billionaire Blueprint

Here's a review of a book by a local Miami developer. The image below was sent to me by a reader, Harry Emilio Gottlieb, who "annotated" the cover.


Powerhouse Principles: The Billionaire Blueprint for Real Estate Success. Jorge Perez. Celebra. 288 pages.

If Jorge Perez were not a successful Miami-based developer, I'd probably never open this book. No knock on him, but most tomes professing ''this is how I did it; this is how you can do it'' are boring and loaded with self-righteous pontification, glad-handing, name-dropping and other effluvia.

Though reading Perez's book was initially a bit of a rough slog, I hung in there and survived. Actually, it wasn't that bad. (And it's probably worth mentioning that this is a review of a book, and not of a man, his reputation or accomplishments.)

Perez describes himself as a salesman, and he's likely a terrific talker, so the text seems like it was dictated, then transcribed and edited. That's good and bad. Most of Perez's verbal idiosyncrasies and repetitions were probably excised, though several may remain, as the editing is a little loose. Regardless, once one adjusts to its rhythm, it's a breezy read, but tighter editing and the imposition of a bit more structure would have improved it.

As the book stands, it's hard to see a consistent thread or narrative spine, other than Perez's positive tone. Indeed, the author's enthusiasm for his profession and his role in it is palpable, and he obviously delights in offering an expansive review of his projects and the wisdom he gleaned from them.

I enjoyed reading about efforts to develop properties in areas that conventional wisdom had determined as being unworthy, like Little Havana, or unlikely, like Brickell. But I didn't see anything that was terribly revelatory or newsworthy.

Regarding the title, as a ''blueprint,'' it's a bit like the prep for a rhinoceros stew recipe; ''first, catch a rhino.'' Uh, right. While it may be possible, as Perez declares, for almost anyone to achieve what he has, in reality few can and fewer do.

As a set of principles, the text may ramble a bit, but the author is very consistent in his admonitions and exhortations for conducting business in an honest, ethical and upright manner. He also advocates smart things like striving to create a perception of value, establishing personal connections with vendors and business partners by leaving some money on the table, and preparing meticulously before making any offer.

Most, if not all, of the advice is pretty bulletproof and unimpeachable, but it's doubtful that he would recommend doing something illegal or unethical in print.

In real estate, the most important thing is location, and in investments, it's probably timing. Given the current moribund state of the market, it would have been worthwhile to have Perez's insights on this issue, especially for ways investors might salvage projects for which financing has evaporated or, worse, situations where they've become ''upside down,'' owing more than the property's current market value.

For real-estate investors and professionals who track Perez's projects, this book will prove worthy of attention, and perhaps even inspire some annotation. But for those of us whose holdings consist of their family residences — in partnership with a bank — it may prove somewhat less riveting.

Published 5/5/08 in The Miami Herald

What's a maverick? Origin of a brand

In common parlance, it's a rebel or someone who goes their own way.

My pal Brenda told me about this NPR feature that gave the derivation of the term "maverick."

Seems there was a guy named "Maverick" (just like there was one named "Boycott" — didja know that?).

Samuel Maverick didn't want to brand his cattle (it was Texas in the 1800s and he had cattle, naturally) because he said it was cruel to the animals.

But other ranchers accused him of just wanting to claim all the unbranded cattle as his own.

Interesting, in light of the fact that one presidential candidate is trying to co-opt the other's theme, "Change."

So John McCain IS a maverick.

Another taste of Todd

"Gun," from the forthcoming album, Arena.

Deep Purple: Call your office.

More Music Biz Lessons

Wisdom from The Turtles' Mark and Howard (a/k/a Flo & Eddie).

Kids, don't try this at home... or anywhere.

Books & Books and... Movies?

Miami bookseller Mitchell Kaplan of Books & Books is renowned and celebrated as an innovator and pioneer in a business that's either evolving or dying. Take your pick.

He's evolving, though, as confirmed by a recent report that he's involved in shepherding the adaptation of a book into a film.

Here's a profile I wrote last year, coinciding with Books & Books' 25th anniversary and the annual Miami Book Fair, which originally appeared on Moli.com.

Outside the Box
By Richard Pachter
Florida books retailer carves out niche market

Big Box Retailers are also known as Category Killers, and for good reason. The proliferation of Home Depot and Lowe's has driven the neighborhood hardware store nearly to extinction. Sporting goods, toys, housewares, bedding — you name it; giant super-stores replaced neighborhood shops in malls and shopping centers all over the country. Smaller, locally owned retailers still exist, but in some categories, they are nearly nonexistent. Still, a few have managed to not only hang on, they've managed to carve out a niche by doing what the Big Box stores can't: provide more personalized service or a specialized or unique line of products, or interact with the community in an intimate way.

In many communities, few independent booksellers remain in the wake of Borders, Barnes & Noble, and Books A-Million. In fact, there are so few independent booksellers, each time one of these venerable institutions bites the dust, Publisher's Weekly, the book industry trade publication, notes its passing.

Yet some independent stores remain open, and a handful even thrive. In Coral Gables, near Miami, Books & Books, a diverse bookstore, is a mandatory stop for authors on tour in the Southeast. Its founder, Mitchell Kaplan, 52, is hailed as a visionary for bucking the trend by creating a successful bookselling environment that reflects the diversity of the community. He recently celebrated the 25th anniversary of its opening with an all-star gathering of more than 60 authors at a dinner to benefit the local library.

"I never planned to become a merchant prince," joked Kaplan in a recent interview. "I'm not even sure I would even be a merchant at all if I weren't a bookseller. But having a place that is part of the community was always something I wanted to do. Creating something that people love and that brings them together means a lot to me. And to do so with books is even better."

How has Kaplan managed to stay in business, given the proliferation of competition from the big chains? What's his plan?

"Nothing of what I've done is by a business plan," he told South Florida Sun-Sentinel books editor Chauncey Mabe. "I was an English major who didn't know what sales tax was before I got into this business. Basically I've learned this business just by doing. I had a sense of purpose and a sense of mission and a sense of passion. I had a very strong sense of what an independent bookstore ought to be. That's what informed everything I've done for the past 25 years."

For someone with no plan, Kaplan's done extremely well. In addition to his Coral Gables location, he also has stores in Miami Beach and trendy Bal Harbour, and Kaplan will soon open a new store in the Caribbean on Camana Bay, an upscale retail and residential project on Grand Cayman island. That joint venture, Kaplan said, is the way to go. "I'm not an avaricious person and have no interest in opening a bunch of stores for the sake of business alone. It has to make sense and add something to the community."

Author Russell Banks recently wrote.: "Sure, all bookstores, whether chains or independents, provide a service; they sell books (and associated products, including espresso and whole grain muffins and scones). But the rare ones, like Books & Books … can make a city into a place where you want to live. ... And it's not about the books or the associated products — we can find those most anywhere in America nowadays. It's about the specific community of writers and readers that has been nourished and sustained by Books & Books over the last 25 years, the folks who gather there to talk shop and exchange gossip and real estate tips and recommend titles new and old that may never appear on the Best Seller lists. One likes to think that a city has at least one place where its collective wisdom resides, where its imagination and self-knowledge are protected and shared with anyone who comes through the gate looking for them. For twenty-five years now, for those of us who love Miami, that place has been Books & Books, and the keeper of the gate has been Mitchell Kaplan."

RIP Don LaFontaine, the King of VO

Here's a a shot of Don and the Entertainment Tonight hosts, along with ET announcer (and my pal) Randy Thomas.

And a great, fun video from a few years back.

Weekly Biz Bookage

Harnessing power of the crowd
Aggregating the intelligence inherent in amateur enthusiasm and professional knowledge leads to innovation.
BY RICHARD PACHTER

Crowdsourcing: Why the Power of the Crowd is Driving the Future of Business. Crown Business. Jeff Howe. 320 pages.

Jeff Howe's new book belongs in the same section of your library as The Wisdom Of Crowds, The Starfish and the Spider, Wikinomics, Small Pieces Loosely Joined and Seth Godin's forthcoming Tribes. The subject is group intelligence, or as Howe, a writer for Wired and other publications, calls it, "crowdsourcing.''

It's not the greatest name in the world, but it'll do. More accurately, it's ''aggregated intelligence'' since it's really the product of a bunch of individuals and not a ''crowd.'' And it's at its most powerful when disparate and diverse elements and interests come together (virtually) to solve or just work on a single issue.

But nomenclature aside, Howe is an interesting writer and fine reporter. The text follows his intellectual curiosity as he seeks ways that a diverse multitude acts in concert to predict winners of political contests, solve scientific challenges, distribute music, design clothing and conduct all manner of commerce.

It's interesting to me, because some of his findings are decidedly counterintuitive. For example, non-experts in a variety of fields — engineering, for example — can find solutions to problems that may elude dedicated professionals. In many professions, including journalism, debates about professionals and amateurs abound. Howe establishes that amateur enthusiasts have historically made major contributions to their respective fields. In many instances, their work surpassed the efforts of dedicated professionals. But then, as now, professionals resisted, ridiculed and attempted to devalue the work of nonprofessionals.

Howe writes: "Although the technologies behind this latest surge in amateur activity are new, the impulse itself has a venerable history. More than a century of a professionalized academy has helped obscure the amateur roots of the arts and sciences, which evolved through the accomplishments of men and women who wore the mantle of amateur with great pride, and would have considered being called a professional an insult.''

I hasten to add, though, that enthusiasm doesn't magically impart knowledge and competence. But it's a great start. In fact, among the examples of aggregated intelligence Howe cites is the analysis and summaries done by a ''crowd'' of volunteers who scrutinized Justice Department e-mails and memos, which resulted in Josh Marshall and his Talking Points Memo website (http://www.talkingpointsmemo.com) being honored with the George Polk Award for Legal Reporting for its ''tenacious investigative reporting'' in uncovering the rampant politicization of the appointment and retention of U.S. attorneys by the Bush Administration, a conspiracy that had escaped the professional "mainstream media.''

Whether they're political bloggers, after-hours amateur computer researchers, virtual collaborators or fans, engaging the power and enthusiasm of these ''crowds'' is a challenge that many legacy companies like IBM, Procter & Gamble have embraced. And a growing number of new enterprises — YouTube, Facebook, iStock, Marketocracy — were built the same way.