FTIL 15 – Buying your own island (Part 3 of 3 part series)

Lanai

Leave it to Larry Ellison, the billionaire founder and CEO of Oracle, to make the news with trophy acquisitions – trimaran (and bankrolling the entire team) that won the America’s Cup; a fully functional fighter jet; Japanese-style personal estate in Northern California; etc.  While his recent endeavors to purchase a professional basketball team has hit a few snags, the Maui News reported that he has closed a deal to purchase 98% of Lanai for 500~600MM from an entity controlled by David Murdock (I actually had no idea that Lanai is privately owned until now…)   I guess 780 acre James Island for sale by the McCaw family is not splashy enough for the 3rd richest person in the US.   Neil Abercrombie, the state’s governor commented, “it is my understanding that Mr. Ellison has had long standing interest in Lanai.  His passion for nature, particularly the ocean is well known specifically in the realm of America’s Cup sailing.”  Well, let’s just hope Ellison does not close down pineapple plantations in favor of real estate developments like Murdoch did…

FTIL 12 – Buying Your Own Island (Part 2 of 3 part series)

This is a follow-up to FTIL #7 published back in April. The McCaws of cell phone fame (Craig McCaw founded McCaw Cellular and Clearwire) have listed the family’s 780-acre private island also known to the locals as James Island off the coast of Vancouver, BC for a mere… drumroll please, 75MM. The island among other things, used to host a former WWII-era dynamite plant and at one point had population of 800+. For the hefty price tag, amenities are aplenty…

  • Four-bedroom, 5K sq. ft. main residence
  • Six guest cottages
  • Gym, store, staff accommodations
  • Airstrip
  • And most importantly… Jack Nicklaus-designed golf course

The family explained their motivation for the sale – “they have the perfect storm of kids’ activities and no one wants to be left behind.” Huh? Anyway, does anyone have spare $75MM to make the purchase? Especially given the current economic conditions, there’s room to negotiate… Happy hunting!

James Island

FTIL 7 – Buying Your Own Island (Part 1 of 3 part series)

buy your own island

If you Google “private island sale,” 52MM results return in less than a second.  It is a thriving industry indeed…  There are tons of brokerage houses – asides from more well known, full service shops like Private Island Online and Vladi Private Islands, there are tons of niche dealers specializing in specific regions like the Caribbean, Virgin Islands, Canada, Bahamas, Europe, etc.  Vladi boasts a database of more than 10,000 private islands worldwide and claims to have brokered over 1,000 transactions in the last 30 years.  The prices range from $25,000 to $50MM, although typical tranactions range between $200K and $800K.  Here are some special requirements or steps you should follow before plopping down the cash.

  • The island should not be too far from general population in case of emergency
  • Fresh, drinking water must be available
  • The host country must be politically stable
  • The land itself should be suitable for development, unless you intend to use it for otherwise
  • Use a good lawyer – ensure the title is free and unencumbered and pre-ownership is clear in a Registry of Deeds

Lastly, drive before you buy.  Stay a day or two on the island to ensure no surprises.  There are bargains to be had.  The cheapest island sold in 2007 according to public records was an eighth acre in Lake Charlotte, Nova Scotia, Canada for $1,500.  Happy hunting…

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Frustrating encounter with the USPS

usps_logo

Many of you don’t know me personally. While I write about buying islands and linen pants, I’m really a numbers guy.  I tend to lead and manage by the book (and as my partners claim, I keep them and the rest of the team in line). When I encounter a lack of process and transparency, my head spins. Such is the case with a recent order from Amazon that the United States Postal Service (USPS) managed to butcher.

Here’s my tale, with apologies in advance to hard working carriers out there, after placing an order with Amazon “delivered” by the USPS. The story starts with an online tracking effort via Amazon that shows USPS attempted to deliver the package on 11/16 and 11/17th and could not. Of course this is impossible since we have 24 hour doorman and receiving room in our apartment in downtown Chicago. Then USPS says they delivered it on the 19th but there is no sign of the package. With this information, I decide to stop by the main post office on Dearborn (downtown Chicago) on the 20th (Tuesday of Thanksgiving week) and ask to see the supervisor after the front desk clerks prove useless.  The USPS team then gives me an inside look. They send me to the loading dock in the back.  After talking to 2 or 3 mail carriers, finally I get hold of the supervisor (Mr. A) who says that he’s about to leave so come back tomorrow morning at 8AM.  I show up at the loading dock at 8AM on the 21st (day before Thanksgiving) only to find out that Mr. A did not show up for work – another carrier tells me to come back after Thanksgiving. I show up at the loading dock 8AM on the 26th (Monday after Thanksgiving) and another carrier tells me – I can’t make this up even if I wanted to — that Mr. A has retired.  By now, I’m livid based on the time wasted. I ask to see Mr. A’s replacement and a carrier sends me upstairs distribution area to see a supervisor named Mr. B. It is there that I learn that apparently I’m not supposed to upstairs under any circumstances due to Home Land Security concerns. Hence my walking through the distribution center unescorted (without a badge) ruffles some feathers. Regardless, Mr. B hears my story (he was actually trying to be helpful – even gave me his personal cell number) and tracks down a carrier named Mr. C who swears up and down that he has delivered the package to my building. Mr. B asks me to wait a week until they sort it out internally.  Well, I wait a week. And there’s still no package and my calls to USPS are not returned. By now, I am done with showing up at the dock at 8AM routine too. Enough.

I contact Amazon’s customer service this morning – an interesting process by the way because there is no 800 number given on the site, only after you plug in the order number and answer a bunch of questions, the site asks you to plug in your number and press either call me now or call me in 5 min button.  I press the “call me now” button and some lady from an Indian call center rings me exactly a second or two later.  I explain the story to her. She checks my accounts and sees that we have ordered an absolutely ton of stuff from Amazon the last 10 years (and have never had issues) and promptly offers next day delivery on replacement goods.  One call from Bangalore (Amazon): problem solved. Countless run-ins and phone calls with USPS: nothing. When interacting with USPS employees on US soil, I felt like I was talking to a wall.  Amazon on the other hand, leveraged technology and friendly, a low-cost Indian customer service center and solved the problem in 5 minutes, thus keeping me as a loyal customer at the end of the day.

Is it time to retire the USPS or can anyone fix this great institution of ours?