Sunday, June 27, 2010

Gene Kansas visits Yellowstone National Park

A Visit To Yellowstone

The day started at 9:00ish at the “Eagle Bend” Ranch of Jennifer Moses and family in Livingston, Montana, on a hill overlooking the Yellowstone River. The ranch home is in a valley with the fast, muddy river bounding the western property line, with horse and cow pastures surrounding the other borders leading to slow-rising, green-meadowed mountains, some still snow-peaked. Megan and I borrowed Chuck Childers’, another guest staying for the week, Subaru station wagon and headed out toward town. This was the first time I had been in a station wagon since high school and our first time away from the rest of the group, creating both the sense of nostalgia and a much needed break from close quarters and odd personalities.

Livingston is actually North on Hwy 89, with the park being South. We had to fuel up on iced lattes from Jumping Trout Java, a cute coffee “hut” in a parking lot outside of a K-Mart-style store, so that we could make the trip without ripping each other’s heads off. I got an Everything bagel and downed the coffee quickly. Back on the road, I was hoping that the landscape would change drastically. Montana has been nice, but in my mind’s eye, I had imagined lush, hilly country with beautiful trout-filled rivers carving their way back and forth like a scene from A River Runs Through It. Where we were in Montana was wide and open and seemed like a great place if you were a cow.

My wishes were soon granted. We arrived at the Northwestern Gate of Yellowstone National Park (and the Roosevelt Tower) about 45 minutes – 1 hour after departing from the c-hut. We filled up for gas before entering the 2.2 million acres of National Park preserved in 1872, by mandate of Ulysses S. Grant. The foresight of anyone to save this land at a time when land was green, abundant and virtually undeveloped in this part of the world is genius and probably widely under-appreciated.

We were told that a full day in Yellowstone, named for its high cliffs of yellow, mineral rich rocks, takes about 8-10 hours. This is true. We did not want to rush. We headed South to Mammoth, which is about 3 miles in, and stopped at the general store for some quick tourist shopping and to pick up essentials like gum, Chex Mix ®, and Snapple. The park was regulated and patrolled by the U.S. Military for a period of about 30 years in the early days to stop poaching and trapping, and the architectural effect of that occupation is still seen today with public and private structures including homes for park rangers, a post office, and barrack-style buildings housing administrative personnel and paying visitors. Once outside of Mammoth, and heading South, the landscape changes (as it does throughout the day) drastically and the scene that I had been looking for was found.

Yellowstone is 95% in Wyoming, 3% in Montana, and 2% in Idaho. This was my first time in both MT and WY; we missed Idaho. The path we chose headed South to Norris, East to Canyon Village, South again to Fishing Village, West to W. Thumb, North to Madison and then to Norris, back to Canyon, North to Tower Fall and finally completing the “figure 8” journey through Roosevelt and on to Mammoth. Each town is 11-21 miles apart, so we drove approximately 185 miles. It was by far the most beautiful drive I’ve ever been on. It was also one of the funniest. Youth (a.k.a Megan) and I cracked each other up endlessly, varying our characters and impersonations almost as quickly as the landscape changed. From elderly woman, to young child, to New Orleans’ yat and so on. To an objective, outside observer the perception would surely have vacillated between deliriousness and insanity.

As for the non-human wildlife, the park is home to bears, bison, moose, elk, deer, wolves, eagles, and chipmunks to name a few. The first explorers must have been overwhelmed by the animals and the natural, surreal sites like boiling rivers, geysers, colorful pools, 1000’ high waterfalls, peaceful meadows, tremendous Lake Yellowstone, petrified trees, hills, valleys, big beautiful sky, open range, and dense forest. The water elements only make up 5% of the park, but help put perspective on the mountains and land. Some of the water is peaceful and pleasant, while other can scald a person to death in seconds. These geyser basins, while colorful and unique, were my least favorite site. A buffalo being only 8’ from the car got my attention, and the streams winding their way through the forests memorized me and stole my heart.

The grizzly bear we saw was probably 400 yards away, which was a distance that added enough to our comfort level. We had binoculars so we could watch from a safe vista. I was surprised to see a bear, as they are rare, but it was cool and joined by two cubs. We also got to see a huge bull elk standing in a river whose horns were so big it looked like it could topple over. Our favorite sighting was Alvin The Chipmunk. He must be fast, because we saw him over 50 times that day and throughout the park.

At about 6:30, we exited the park and I quickly entered a saloon. Downing my Moose Drool beer, I really felt happy. It was the day of a lifetime. I have wanted to see this country my whole life, and I was completely impressed, amazed and exhilarated. That’s Yellowstone, and now that’s a good thing.

Sunday, April 18, 2010

Don't Distress

Distressed properties are the next bubble to burst. You read it here first.

Like other get-rich-quick booms of the past (see The Gold Rush of 1848, the Internet Boom & Bust of 1990's, and most recently the Mortgage Boom & Bust) that everyone flocks to, this too will go bust. The people who make the money are not the people hoping for gold, it's the guy repairing the wagon wheel, the web hosting company, and the closing attorneys (well, at least for a while there). Don't get fooled into thinking that you are going to make a ton of money just because you are buying distressed. What you're really doing is buying stress.

Why? Because these properties are, for the most point, distressed for a reason. Distress is a bad thing. Maybe it's a bad location, a bad condition, a bad loan, a bad tenant, bad cash flow, or just a plain bad deal. Just because something is priced low does not mean it is a good deal. Of course, there are a few low-priced deals out there that do make sense. But, heading out West, so to speak, without the proper guide will just get you shot in the back with an arrow.

At Gene Kansas Commercial, we are going contrarian to the general public and the "gold diggers" and instead are focused on good, solid assets. We work on good properties, with good management, and in good locations. On top of them being better long-term investments, they're just more fun to be around. Of course, there are also fewer people trying to find and acquire good properties too...ever heard of supply & demand? Just sayin'.