The short par 3 looks simple, but plays tough. It’s the number 7 handicap hole for the men. It gives up a lot of birdies, but also lots of fives and sixes. It’s all carry over a pond to an undulating green. Bunkers on both sides, and an environmental area in back, protect the small, 1500’ green.
Buzz hated this hole and was complaining long before his pitching wedge dribbled into the right-side sand trap. With the pin on the right, he was only 20 feet from the hole, but looking at a likely bogey. Bradford chose 8-iron and hit to the center of the green. Smart shot!
As they walked to the green, Dave thought back to the first time he met Ken.
Tuesday, Bradford arrived early at his new offices. The “executive office suites” had served him well, but his business had grown. The new offices had 10,000 sq. ft. with an option to expand. Last month they had hired three new people and were looking for more.
Sally was already there working with Joan, her new leasing assistant. The leasing business had grown rapidly. Sally could now concentrate more on developing new business.
Grace, an experienced woman with three grand children, was the new secretary and office manager. She would handle most of the day-to-day workload that Mary had been stuck with. Mary was still helping out part-time, but doing most of her work was from home on her computer.
Eric Jenkins had 15 years experience in the commercial mortgage business and brought several lender contacts and clients with him. Bradford saw this as their fasted growth area. Eric was a good hire.
Sunday’s Tampa Tribune included Mary’s advertisement for experienced, professional help. There were numerous responses. Bradford was still looking for another leasing person and one or two people on the commercial mortgage side of the business. Considering Mario’s offer, it looked like they would need someone soon.
Bradford spent the next half hour checking email. There were several messages; the most interesting was from Joe Fredericks whom he had met at the Buccaneers football game. He called and left a message.
Joe called back around 11:00. “Dave, Joe Fredericks here. I’m surprised you are at work. I thought you would still be on vacation, spending Mary’s winnings from the football pool.”
”Very funny, you saw as much of her winnings as I did. It’s great you called. Fred asked me yesterday if we had ever gotten together. You must have heard us talking. What’s on your mind?
“Dave, how about you and Mary coming over to Daytona Beach and being our guests this weekend? We could talk a little business and Mary could enjoy the beach and spa. How’s your schedule look?”
“I would love to Joe, but I’m not sure when Mary could get away. I could make it Thursday afternoon. I have a 9:00 AM meeting in Lake Buena Vista, which is about half way. I could drive over after the meeting. How does that sound?”
“Sounds good, but tell Mary she has an open invitation to a world class spa. Try to get here by 1:00 PM and we will have lunch with Ken Reid, my CFO. In the meantime, give me your email address and Ken will send you the financial statements. Call Ken directly if you have any questions. See you Thursday.”
An hour later a “beep” indicated that Ken’s email had arrived. The email had an attachment for each of their seven hotels plus a consolidated statement. Bradford looked up their website and discovered that all seven hotels were oceanfront. He would be working late tonight.
By 11:00 PM it was apparent that Joe’s loan would not be easy. Joe was pushing the envelope. He essentially wanted the largest loan possible at the lowest rate with the most flexibility. Doesn’t everyone?
Dave had several questions for Ken, but decided to save them for Thursday. There was a lot of research to do before the meeting.
Bradford arrived in Daytona Beach, Thursday, at precisely 1:00. Joe was in a meeting but Ken came out to the lobby and introduced himself. He was not your typical CFO. Ken looked more like golf pro than a CPA; tall, slim, casual clothing, longish hair and an informal manner. Bradford would find out later that this initial impression was quite accurate.
Dave and went back to Ken’s office and talked for 30 minutes. Ken answered a few business-related questions, but spent most of the time talking about the stock market and golf trophies on his credenza. Ken was knowledgeable and easy to talk with.
Joe came in and greeted Bradford warmly. “How are you, Dave, it’s good to see you again. Are you ready for lunch? Let’s go downstairs and talk a little business, but keep in mind, there are no free lunches.” We laughed and headed downstairs.
“Dave, we have four hotels that we need to refinance quickly. Three of the four are on a single bridge loan with Credit Suisse that balloons in 90 days. We pay a significant penalty to add another year. We also need to walk away from closing with some cash in our pocket. I have my eye on two waterfront properties just north of here that I can get at rock bottom prices.”
“Ken indicates you are looking to get loan at 75 to 80% Loan to Value. Isn’t that pushing it a little?”
“Sure, but 80% LTV gets me the $5M I need; 75% isn’t enough. I am confident you have sources that will do it. Am I right?”
“I’ll do my best, Joe. If we get you 80%, is the lunch free?”
“It’s free, and I’ll throw in a lifetime membership to our spa for you and Mary. In fact, I have you scheduled for a Swedish massage at 5:00 this afternoon after Ken gives you the grand tour. We have seven oceanfront properties, all here in Daytona Beach. That’s our market niche. Dave, I really appreciate your being here and I look forward to getting that extra $6-7 Million.”
That was Joe, always pushing the envelope.
The hotels were all within a 5-mile strip along Daytona Beach’s oceanfront. All of them were Four Star hotels, except for the “Plaza” where Dave was staying. There was a Holiday Inn, Travel lodge, Best Western and three independents.
They completed their tour of the properties and got back to Ken’s office around 4:30, just in time to make Dave’s 5 o’clock spa appointment. “Did you remember to bring your golf clubs, Dave?”
“I did, what do you have in mind?”
“We have a 9 AM tee time at the LPGA Headquarters, 10 miles north of Daytona Beach. Let’s meet there about 8:00 and have some breakfast. I’d pick you up but it will be easier for you to head back to Tampa when we finish rather than come back here.”
“Sounds good; see you tomorrow.”
Bradford arrived at the golf course at 7:45 AM. Ken was already there hitting balls on the practice range. Dave watched his easy, almost lazy swing, and knew Ken was a golfer. Everything was effortless, but the ball seemed to fly off his club. Dave grabbed a few balls and tried to copy Ken’s easy tempo. It wasn’t as easy as Ken made it look.
“Let’s grab a quick breakfast before we wear ourselves out,” Ken suggested. Three LPGA pros were also having breakfast. “This is where the ladies come to practice, rehabilitate injuries or to work with their private coaches,” Ken explained.
They played the Dunes, one of the two professional layouts at the LPGA site. Fairways were in beautiful shape although the greens were still rough because they had been “punched” the previous week. Ken shot 75 from the tips while Dave shot 93 from the blue tees. Dave actually hit the ball pretty well, but couldn’t make any putts. The greens were tip dwarf grass and difficult to read.
“Dave, you will never be a good putter if you can’t read grain in Florida, The cardinal rule is that the grass will follow the sun. A putt that breaks to the east in the morning will tend to break the opposite way in the afternoon.”
“I wish that was my only problem, Ken. As you can see, I also have problems getting off the tee and with my irons; other than that, I’m ready to turn pro.”
“Don’t be so hard on yourself, Dave; your swing isn’t too bad. I bet with a couple of lessons you could be breaking 80 in no time. Let’s get a quick bite to eat before you head home and I’ll suggest a couple things you might work on.”
Bradford was an eager listener and Ken kept his suggest
ions simple. Most golfers are confused after a golf lesson, but Dave began his trip back to Tampa with a new confidence in his golf game. It was the turning point in Dave’s transition from an 18 handicap golfer to a single digit handicap.
The three hour ride back to Tampa became a four hour ride when Dave ran into the early rush hour traffic on I-4 in Orlando. It gave him time to reflect on what he learned in the last two days. Refinancing Joe’s hotels and getting the extra $5M cash wouldn’t be easy, but doable. There were a couple lenders he knew that might get this done. On a more personal note, Dave sensed there might be little friction beneath the surface between Joe and Ken. They were both strong personalities. What was he doing in a small town like Daytona Beach?
Buzz was still complaining as he climbed into the perfectly manicured sand trap. The lie was good and he had an excellent chance to get up and down for a par three. He opened the face of the sand wedge and swung easily, striking the sand a couple inches behind the ball. Buzz held his breath as the ball exploded out of the sand. He raised his arms to celebrate as the ball landed three feet short and dribbled down to the hole. It hung precariously on the lip and no amount of cursing would make it fall. Buzz settled for his par three.
Bradford’s putt was makeable; 18 feet with a slight left to right break. It looked perfect until the last moment when it turned right towards the water. Dave tapped in for par on a hole that a moment before seemed like he would win. That’s golf.
Bradford stayed behind to study the green and determine why it had turned. It wasn’t the slope of the green; it was the grain. He could see the grass shine from above the hole, meaning the grain will take it that way when a putt loses speed. He vowed to be more thorough when reading putts. Sorry Ken.
Sam headed for the same public telephone he had used six months ago. This time he had better news. He dialed the phone number and left a simple message; “Everything is well on the home front.”
The drug shipments had resumed.
Chapter 13
Par 4 – 375 yard
Ken’s Story