Commercial Real Estate Strategy Tips

Out-Of-The-Box Thinking

by Marvin Levin

The expression "out-of-the-box thinking" became popularized by a puzzle in the James Adams text entitled “Creative Blockbusting.”

At the beginning of the text, the author shows the “nine dot” problem and declares that it can be connected with four connected straight lines.  The nine dots appeared as follows:

Well, don’t try it if you have a low frustration level.  It simply cannot be done if you “stay within the box.” 

However, it can be done if you think “outside the box.”  Here is the solution:

Mr. Adams sets forth in his most insightful text numerous mental habits that inhibit creative thinking, and thinking “inside the box” is one of the first.

I thought about outside-the-box thinking a few years ago when I visited my friend and colleague in Atlanta, Georgia.  John is the largest builder and manager of apartment buildings in Atlanta.  At that time, he managed the Kingston Apartments, a 400-unit aluminum-sided family apartment project for one of our public funds.  Because it was more than 20 years old, the building exterior certainly had a decrepit look.  The kids had dented and scratched the siding in numerous places.  It could not be painted because the color could not be easily matched. 

Another unsightly condition was that the bottom 12 inches of the borderline fence had turned black from dry rot because the sprinkler system had continuously splashed water on the fence for 20 years.  Together with the siding, we were looking at a multi-hundred thousand dollar repair bill.

John told me not to worry because he could solve both problems for less than $10,000.  “Impossible,” I replied.

Well, it was possible if you think outside the box.  Before you read on, ask yourself if you have some ideas.

John’s ideas were as follows:

1. For the scratched/dented aluminum signing, remove individual pieces and take them to an automobile paint shop to remove the dents and match the paint.  That is their principal business and they were able to do it perfectly for nominal dollars.
   
   
2. For the dry rotted fence, he asked one of the maintenance people on the project to use idle time to cut off the bottom 15 inches with a skill saw.

contact me.If you come across a real estate rehab challenge, please