Prince: What about the advisory side of your business?
Garcia: On the advisory side of the business, the clients are a variety of developers and construction companies. After all those years successfully running a major company, I’ve learned a few things that convert into success in the construction business.

I also was involved in developing some new and innovative methodologies. For example, my associates and I at the construction and cement company developed a number of processes resulting in corporate operations becoming more efficient and leaner. The result is significant cost savings to the client coupled with better margins for the construction company. Being able to take these processes and help companies use them is something my former competitors find very appealing.

While I’ve done a few conventional consulting projects, most of the advisory work I do is tied to commercial real estate development projects that carry success fees. So, while I consider them to be “consulting engagements,” they’re usually part development project.  

Prince: Of the two sides to your firm, which is the more interesting and which is the one to which you devote more of your time?
Garcia: The commercial real estate development projects and advising to construction companies can be very interesting, and I plan to continue doing both. However, because of my extensive professional and political network throughout the U.S., but especially in the Midwest and Texas, the development projects have the greatest upside potential. While they’re often the most challenging, I’ve always seemed to thrive on challenges.

Prince: How is business?
Garcia: Many developers and construction companies are still feeling the pain of the recent recession. Throughout much of the country, real estate development hasn’t bounced back, and there aren’t many signs it’s going to bounce back in the near future.

Having pointed out the overall state of affairs, in my situation, business is booming. I have more exceedingly attractive opportunities coming my way than I can possibly handle. I mentioned I toyed with the idea of semi-retirement, where I would only work on local projects I was backing 100%. It turns out that semi-retirement was not for me. Since I officially opened up my new firm and let the word out about what I would be doing, I get new calls regularly from potential advisory clients. I’m also getting an increasing number of calls from potential investors looking for advice on projects they’re either involved with or are considering, along with interest in co-investment opportunities.

Prince: Are there any other real-estate-oriented projects you’re involved with?
Garcia: In my mind, there’s no question that high-quality education is essential for young people to succeed today. Take it a step further: The future of our country is dependent on these people. I strongly believe the answer to the education problems facing the country today is charter schools. I’m really quite passionate about charter schools.

I’m on the board of two award-winning charter schools. Based on my experiences, with the assistance of other dedicated supporters, we’ve developed and continually refine a very flexible and customizable program of best practices that we’re committed to sharing.

When it comes to development projects, I’m working closely with a very wealthy family to establish a $150 million fund that will help finance building more than 100 charter schools throughout the U.S. The wealthy family will be putting in about half the money and there are a number of billionaires who have expressed interest. The fund is conservatively projected to have a return in the 8% to 15% range. Not only is the fund probably going to be highly profitable, but also the result—all the charter schools—will make a significant difference for the future of our country. 

 

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