Time is one of the most important elements to have on your side. Time offers everyone huge leverage. If an investor or developer seeks to acquire a portfolio of projects, our greatest benefit is to work with them at the earliest possible stage, to provide leadership and a high-level understanding of the many and varied issues they may be facing and explain how this can impact project development. At this stage we can conduct what we call “predictive interventions.” This simply means identifying the many “what ifs” that may arise and develop risk mitigation strategies to prevent or alleviate problems before they become a crisis.
Not long ago, we performed title due diligence for a client and we found that there was a break in the chain of title for vesting. This meant they we were unable to substantiate the ownership of the property. A new patent was going to be required from the Bureau of Land Management followed by a quiet title action to allow for insurable title. The costs were projected to be several hundred thousand dollars and it was going to take two to three years to get all of that resolved. The developer may say this project is not going to be developed for five years so we have plenty of time, the ROI is going to be great and it’s a risk we’re willing to take. No problem. Or they may say “no”, the project must be in the ground in two years that is not going to work. Therefore, having this information allows the developer to make an informed decision on the viability of the project.
Site control is the foundational piece of projects. Site control involves review of the agreements and the title. Are you working with surveyors and identifying the landscape of the property? This must all pass the due diligence test to get title insurance.
Unexpected issues are always going to arise. Front-end due diligence and risk analysis at the early stage of project development, will provide all stakeholders with a clear understanding of the issues allowing for informed decisions on how they can be most effectively resolved.