viking role pat olafson
Cbox 473, HCR 33, Spruce Head, ME 04859 reative Consensus, Inc. phone: 207-596-6373 fax: 207-596-0538 email: cci@midcoast.com
VIKING INVESTMENTS (Principals)
Leonard Greenhalgh
Dartmouth College
ROLE FOR PAT OLAFSON
You run Viking Investments, a U.S. corporation that has been primarily involved in real estate development. Your investments and development projects tend to be concentrated in the area surrounding Edgewater,
Illinois, an affluent town in a rural area. Viking is one of six major developers in the local area, who occasionally have to compete with out-of-state developers who are attracted by the affluence and abundance of acreage at reasonable prices.
The comfortable times for real estate sales have come to an end. The market has become weak as a result of a regional economic recession. New housing starts have plummeted, and houses remain unsold even when prices are slashed. The pressures on Viking have grown steadily over the past six months. It is becoming increasingly difficult to develop properties in the face of more and more stringent zoning regulations, to obtain working capital, and to sell properties at a reasonable price during the intense competition that attends a slump in the real estate market. Environmental regulations further complicate real estate development, and even though you see the societal wisdom of the new regulations, it’s a further constraint on your business.
One bright spot is that because of the bad market conditions, there are some fabulous deals to be had.
One of these is an out-of-state lakefront property that can be had for $200,000 if Viking moves fast.
Undeveloped, it is worth $250,000 in a normal market, and there is considerable development potential. Viking has a $200,000 loan coming due in 30 days from WoodCrafters, a proprietorship owned by
Sandy Wood. The loan yields 10 percent interest, but the lakeside property has so much upside potential that Viking would have
VIKING INVESTMENTS (Principals)
Leonard Greenhalgh
Dartmouth College
ROLE FOR PAT OLAFSON
You run Viking Investments, a U.S. corporation that has been primarily involved in real estate development. Your investments and development projects tend to be concentrated in the area surrounding Edgewater,
Illinois, an affluent town in a rural area. Viking is one of six major developers in the local area, who occasionally have to compete with out-of-state developers who are attracted by the affluence and abundance of acreage at reasonable prices.
The comfortable times for real estate sales have come to an end. The market has become weak as a result of a regional economic recession. New housing starts have plummeted, and houses remain unsold even when prices are slashed. The pressures on Viking have grown steadily over the past six months. It is becoming increasingly difficult to develop properties in the face of more and more stringent zoning regulations, to obtain working capital, and to sell properties at a reasonable price during the intense competition that attends a slump in the real estate market. Environmental regulations further complicate real estate development, and even though you see the societal wisdom of the new regulations, it’s a further constraint on your business.
One bright spot is that because of the bad market conditions, there are some fabulous deals to be had.
One of these is an out-of-state lakefront property that can be had for $200,000 if Viking moves fast.
Undeveloped, it is worth $250,000 in a normal market, and there is considerable development potential. Viking has a $200,000 loan coming due in 30 days from WoodCrafters, a proprietorship owned by
Sandy Wood. The loan yields 10 percent interest, but the lakeside property has so much upside potential that Viking would have