Forcing Appreciation On Multifamily Properties With a Value Added Strategy

Some Before and After Pictures of Apartment Building Renovations

I like to buy apartment buildings in need of improvements, but usually not in need of major renovations. Poor management and distracted property owners often lead to deferred maintenance…simple fixes that can dramatically force appreciation by raising income and lowering expenses.

When you raise the Net Operating Income on a multifamily property (typically called NOI = Income – Expenses), you raise the value on a property. Here are some tips on how to strategically renovate a multifamily property for profit.

Major Apartment Building Renovations:

Some property renovations are costly and should be considered when you negotiate the purchase price.

Tips:

• I negotiated a seller credit for repairs for the major renovations that needed to be done on this 29 unit apartment building. During contract negotiations the seller agreed to a repair credit to redo all of the asphalt, sidewalks, courtyard and roof.
• This apartment complex is in the vicinity of a busy street. When we purchased the building the “courtyard” was a loading only zone in the back of the complex. By creating a courtyard with landscaping, barbecue area and seating for the residents, we created a quiet space the residents could enjoy. This became a marketing tool when listing the units for rent.
• This property had poor drainage after heavy rains. The new asphalt and sidewalks assured water drained away from the property and ultimately out to the city street.
• Garbage trucks used the driveway on the North side of the property. To prevent damage to typical asphalt driveways we poured concrete on that section of the drive. Heavy garbage trucks will destroy asphalt.
• We installed a bright white Durolast roofing system which had several advantages. The new roofing system came with a 15 year warranty that was transferable to new owners when we flipped the property. This was a huge selling point. New roofs are a major expense.
• Buildings with air conditioning can receive an efficiency rebate from the local energy company when they install a Durolast roofing system.

Cosmetic Apartment Building Renovations:

Not all renovations are costly. Plan for these simple improvements in your acquisition budget.

Tips:

• This laundry room renovation was a simple one yet it had a significant impact on income. A friendly, clean environment ensured the residents actually used the facility.
• Many apartment complexes come with a laundry lease in place where the owner splits the profits 50-50 with a professional laundry company. These leases run with the property, not the owner. Renegotiating the lease, or canceling before lease end, can lead to a large increase in income.

• Great first impressions are a  must. When a prospective resident enters your building you are looking for the “Wow” factor.
• Wood floors, period carpeting (as in this 1950′s apartment building) are a relatively inexpensive way to attract the right demographic of renters and to lease units quickly.
• In this property we also installed an entryway security system. It’s an inexpensive, telephone based door locking system used by residents to allow entry to visitors.
• Interior hall properties (versus exterior walk ups) can be used as a marketing tool to attract residents. You are providing an extra layer of security to the community by providing an extra set of locking doors to apartment unit entry.

• Knowing your particular “market sizzle”, will help you rent apartment units for top dollar and will help you make your renovation decisions easily.
• This apartment building is located in a market where wood floors are the top priority to residents. This particular property had oak floors throughout, but the wood floors had been covered with carpeting for decades. Of course, we knew the wood was there before we bought the property. Refinishing the floors to their original beauty was our top priority when renovating and updating the apartment units.
• A simple two tone paint job, new lighting, and the installation of ceiling fans was all that was required to create a beautiful living space for our residents.

I hope this post has inspired you to invest in apartment buildings of any size. If you’re interested in learning more, be sure to get advance notice of my upcoming book, Investing In Apartment Buildings: Forcing Appreciation On Multifamily Properties Using A Value Added Strategy! (Click the link.)

Oh! And be sure to hop over to my mentoring page for more real estate investing resources: Apartment Investing Mentoring

Or, leave a comment below!

Related posts:

1. Top Tips for Real Estate Investing
2. Investing in Apartment Buildings – Some Mostly Free Resources

In the event you haven’t already noticed, I’m kind of on a summer schedule here.

Unbelievably, this is my 250th post … in just over 16 months.

While I take my little hiatus feel free to look around and see what you might have missed. Some of my favorite posts are over on the sidebar under Readers’ Favorites. You’ll see some really great comments too!

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For now…

I hope you’re having a great summer. I’d really love to know what you’re doing. Please say hello! (It’s super easy, just click on the word “comment” next to my byline.)

I’ll go first. Here’s a little update on what we’re doing:

My husband and I are heading to an alumni gathering of entrepreneurs in San Diego in a couple of weeks. At a spa, no less! (We’re not exactly spa people.)

We’re also planning at least one white water rafting trip sometime in August. You may know we have our own raft… and rafting friends. Now, THIS beats a spa experience every day.

The apartment market around here is hot, so I’m spending a little more time on acquisition and asset management.

I’ve been taking on some new coaching clients. Enough for a summer schedule. Oh, and congratulations to the winners of my contest! (btw – It’s not too late to play, sleepy heads.) I get the awesome opportunity to work with Leanne Chesser over at Wham Solution and with my blogging friend Derek Potocki over at Goalsblogger. Your answers rocked!

We are having our 120 year old Victorian home painted (as I write this). I’ll post some before and after shots. Choosing colors, and deciding on color placement, has revitalized my semi-dormant graphic designer side:)

Jack, our new kitty, and Morgan are getting along famously. Hooray! I really thought it would take Morgan some time to warm up to Jack. Yes, he’s little kitten maniac, but she’s handling it brilliantly!

I’m playing a lot of golf with my husband. And I have standing golf date with my mom on Friday afternoons.

We’re going to some Rockies games.

And you’ll always find me playing the piano. In the summer I feel like the neighborhood is my audience (doors and windows are open). By the way, my worst critic is my bird Charlie. He squawks every time I hit a sour note. It’s amazing how he knows when something is out of tune!

We’ll be hanging out with friends and family. BBQs, laughs and good old summer fun. Hiking, camping, bike rides… maybe a concert. Before we know it the snow will be flying. Let’s make the most of it!

Your turn! What are you doing this summer? What’s your idea of the best summer ever?

No related posts.

Earlier this week I wrote a post titled So. You Want to Be a Millionaire. Get the Right Coach. In my post I mentioned there was a multi-million dollar tip for you. In fact, there were over a dozen tips.

Millionaire Maker Contest:

If you can spot at least 8 millionaire maker tips in my post, you win!

Your prize:

One-hour free coaching with me. I’m an awesome coach. So, hop to it!

Special bonus prize:

If you can name all 12 millionaire maker tips in the post, we’ll coach for two hours. Free! And I’ll make it even easier. Your tips do not necessarily have to be the 12 I see. If you see a tip in the post that didn’t make my list, and you make a case for why it’s a million dollar tip, I’ll count it.

What are you waiting for? Taking action is always a good thing. (That’s a little hint.)

Read this post:

So. You Want to Be a Millionaire. Get the Right Coach.

Come back and leave your list of millionaire maker tips in the comments. (To leave a comment simply click on “comments” next to my author byline under the post headline.)

Ready? Go!

Millionaire Maker Tips Contest Rules:

If you list a tip someone has already mentioned in an earlier comment, briefly describe why you think the tip qualifies. (In other words, you can copy, but you’ve got to back it up.) There’s no limit on the number of winners. Entries must be submitted by July 31, 2011 to qualify.

See? The early bird really does catch the worm. Er, coach.

Related posts:

1. 30 Tax Tips in 33 Minutes
2. So. You Want to Be a Millionaire. Get the Right Coach.

There’s a million dollar—no, a multi-million dollar—tip in this post. Actually there’s more than one. Get ready. I’m going to talk to you about your mindset.

We’ve been having a little discussion around here lately about coaching. Specifically we’ve been talking about the kind of coaching people want. I’ve been speaking with a lot of colleagues about this too. And surprisingly (to me) it seems most people are looking for a coach who will tell them what to do…step by step.

The online conversation is here:

What Would You Be Doing Right Now if You Had a Coach?

Your Mind vs. Paint by Numbers

So, let me throw a little gas on the fire.

And I’ll fly in the face of what most people are saying while I’m at it. Step by step coaching is nice… but it won’t turn you into a millionaire.

How you think will.

I agree that step-by-step coaching can be effective. The idea of “building success, upon success, upon success” as a good friend says, is a powerful motivator. Yet how you think, and what you bring to the table in terms of mindset, will magnify your small successes ten, one hundred, even a thousand fold.

Let’s buy an apartment building.

Think about it this way. What if you wanted to buy an apartment building but you knew your funds were limited?

Say you go ahead and hire a coach to direct you on how to buy an apartment complex. So far so good. (And I will stress that it is important to become educated in any new endeavor before blindly jumping in.)

You start looking for apartment deals with your new found real estate investing knowledge. Your coach helps you learn to run the numbers on deals. She helps you study the market. She suggests some online sites where you can find real estate listings. And ultimately, with the funds at hand, you end up buying a fourplex… a four-unit property rather than the large apartment building you envisioned.

You’re the disappointed owner of a fourplex. You hired a coach that did what you expected. She coached you on how to do everything yourself. By yourself. Step by step.

But there were limitations.

Now let’s really buy an apartment building.

Let’s say you hire a coach who understands that your psychology plays as big a role as your newly acquired fundamental knowledge of deal analysis and real estate acquisition.

This coach has you start looking at big deals immediately. And making offers on those properties. She has you start interviewing and meeting top real estate professionals in your market. Professionals dealing exclusively in multi-family investing.

You start building a team. This is not a do it yourself endeavor.

You connect with mentors in the field. With brokers. With other apartment owners. With vendors. And contractors.

Rather than find a property on LoopNet (the multifamily equivalent of the MLS) you source deals that haven’t been shopped around yet. And through your connections and networking, you find a great off market apartment deal.

But wait a minute! Didn’t I say earlier that you had limited funds? I did. You heard me right. Here’s the beautiful thing about this story. Coach number two had you thinking in terms of abundance. In terms of building a team. Not going solo. She had you connect with professionals that brought very specific knowledge to the table.

She showed you how to believe big. How to surround yourself with other people who had the knowledge you lack. She didn’t expect you to know how to do everything yourself. She didn’t expect you to DO everything yourself. She showed you that you could fund a big deal with other people’s money. The big OPM.

And here’s what a lot of beginner entrepreneurs never realize.

When you find, or create, a great opportunity (business, real estate, you name it) the money will find you. People don’t pass on great deals.

But you’ve got to believe it.

Your awesome coach helped you think in terms of abundance. She didn’t offer do it yourself, step-by-step coaching. She helped you think in terms of building a team. In terms of overcoming great fear. In terms of being more capable than you would have ever believed possible. Of doing bigger deals.

So, ask yourself this. Which coach would you rather hire? The one who is going to show you baby steps to a fourplex? Or the one who’s going to scare the cr*p out of you? And in so doing show you how to operate with a mindset that you can apply to any endeavor you want, any time in the future?

Okay… it’s your turn. Can’t wait to hear what you all think of this post!

Related posts:

1. Starting a New Business: Where Oh Where Do You Begin?
2. What Would You Be Doing Right Now if You Had a Coach?

Three weeks ago we added a new employee to our team. But he had no name.

It’s a funny thing though. I kind of knew his name all along. My husband, Richard, took some convincing… now he’s fully on board! (And he played a key role in figuring out his last name.)

Meet Jack:

Jack Blue to be more specific. (And when we’re feeling really chummy, he’s JB.)

Jack’s been learning the trade since we first introduced him to you. And he’s acquired some great skills. Things like swatting at the cursor on our computer screens. Stealing our chairs the minute we get up. He makes a pretty good paper weight too.

And then of course, there’s the thing he does best:

He’s pretty great at power naps… while still expecting his hourly rate.

Not a bad idea!

Oh! and a very special thanks to all of you who gave us some great ideas for names! We loved every single one of them. You guys are amazingly creative.

Related posts:

1. If we don’t feel valued, we walk.
2. Will You Help Us Name Our New Employee?

In a recent post, I asked the question “If you hired a coach today, what’s the number one thing you would work on?” I also conducted ‘live’ interviews, where I asked, “What are you looking for in a coach?” and, “Have you ever had a coach before?”

Surprising Answers

To my great surprise, very few of those I talked to had an interest in coaching around psychology. They wanted a coach who would:

• Tell them what to do.
• Give them a step by step game plan.

In other words, they were looking for direction. A girlfriend told me, “Look I don’t want to talk about how I think or where I’m coming from in my heart and mind, I just want someone to tell me what to do.”

A friend from one of my mastermind groups told me she didn’t want to hear how she could “get out of her own way.”

Most people I talked to wanted step-by-step coaching.

Yet…

Your Mind is Your Greatest Asset

I believe our subconscious drives our decision making. And I believe our mind is our biggest asset. This is exactly what I write about. I do everything in my power to give a voice to the idea that we create through our thoughts and we deliver results by possessing the right mindset.

So, my little ask campaign* has me stumped. (*see footnote)

The Easy Road

Most of you know I’ve been coaching for years. And I love step by step coaching. It’s easy to do. In fact, it’s too easy. For both the coach and the coachee.

The challenge is in finding what’s really holding you back from greatness. A coach can’t help you find an answer if they’re telling you what to do. And if we’re not getting help from our coaches on how to think, where are we getting it? Napoleon Hill knew our success was a direct result of how we thought… back in 1937. Has something changed? Are processes simply an easier way to exist?

I may begin a coaching relationship with a step by step process, heavy in accountability, but I promise by the end of the coaching process my clients know how to move on their own. So my question today is this: Do we really want a paint by numbers existence?

I’d love to know your thoughts on this.

(And yes, this discussion walks a thin line between the role of a coach and a consultant. I get that:) I’ll save that topic for another post… )

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footnote:

*Ask Campaigns

An ask campaign is one where you ask your clients what they’re looking for. It’s that simple.

But most businesses don’t do it.

My conversations and interviews about coaching are part of a typical ask campaign. Want to know what your clients are willing (and dying) to pay for? Ask them! How can you provide solutions to problems if you don’t know what problems your clients are facing? Have you created a product or service that no one wants? Better to find out early in the game, not later.

Have you conducted an ask campaign for your business? When? Times change. Needs shift. Desires are fickle.

You may be surprised by the answers you get. And it’s really simple to do. You can ask via email, or post your questions (or surveys… another great tool!) on your website or blog, or you can do a simple one on one conversation with your existing clients. This is a great tip.

Related posts:

1. The Heart of a Lion and the Mind of a Sheep
2. What Would You Be Doing Right Now if You Had a Coach?

I had a very interesting conversation with one of my mastermind groups this morning.

I asked them,

“If you hired a coach today, what’s the number one thing you would work on?”

I’ll share the results (and why I asked the question) in a later post, but first…

how would you answer this question?

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I would love to hear from you! You can leave a comment by clicking on the word “comments” below the post headline.

No related posts.

“But I’ve always done it this way!”

Oh wait, that’s not what I meant. I’m confusing things that work (or may not work) with the fear of failing if I should try something new.

“Yes, risk taking is inherently failure-prone.  Otherwise, it would be called sure-thing-taking.” ~Tim McMahon

There is no such thing as a sure bet. Take that shot. If you’re doing something because you believe it’s the only way, take a hint from our new kitten. He didn’t use the stairs; he jumped 7 feet from the edge of the loft.

What big leap can you make today? Are you willing to do something new… today? What?

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Oh! One other thing. Check out today’s related post (What Can You Learn From a Team at Harvard Business School? A Lot.) — you will be inspired.

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Related posts:

1. Starting a New Business: Where Oh Where Do You Begin?
2. What Can You Learn From a Team at Harvard Business School? A Lot.

I wrote a post in March. It was called “Being Right”.

Here it is, the entire post:

“ ‘Sometimes it’s harder on a person to be right than it is to be wrong.’

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What does this mean to you?

And, can you be wrong about something right now?”

That’s it. Guess what? It received zero comments. In fact, even my related posts plugin refused to find a single related post. Huh.

This post has sort of haunted me.

Just as the quote did when I first read it.

Here’s what I think.

Sometimes I want to be right so bad, I’ll push an issue long past its shelf life. I’ll make arguments for my side until it feels like it’s the only thing I think about. I’ll re-visit conversations and become increasingly, agitate-idly (not a word, I know), soooo not going to drop it.

But… wouldn’t it be easier, or saner, to let it go? (I know, I’m still making words up, but you get the idea.)

When I think about this quote, I think about:

• Giving an inch.
• Having an ability to see the other side.
• Possessing the graciousness to acquiesce.
• Being able to say, “You’re right!”

The result? Wow, life can be so much easier.

To me, this quote says, “don’t dig your heels in so deep a Mac truck couldn’t get you to budge”.

It’s okay to be wrong. (Even if maybe — just possibly — you’re not. But who’s to say, really?) Wouldn’t it be easier to cry “Uncle” sometimes?

You do realize, don’t you, how liberating it is to say, “Hey, I just may be wrong about this.”

For the sake of sanity? Or creativity? Or innovation?

Try this,

“You know, I really think I’m right but that’s okay, I’ve been known to be wrong before.”

Rarely is something solved singularly (is that the correct use of an adverb? I could be wrong). And thank God for that. There are so many ways to do a single thing well. And correctly, or right.

For example, in your business you may have a certain way of doing things. Yet… wouldn’t your team be empowered if you let them find their own solution to a problem? To let them innovate if it supports the larger vision or strategy? Isn’t it okay if they take another route to a solution that works?

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Finally, the very first thing that popped into my mind when I read this quote was the idea that the next time I argue about something with my husband, it would be so much better to say,

“You’re right. I’m wrong.”

Easy, isn’t it?

Your turn. Can you be wrong about something right now? Have you ever suffered by being right? Have you dropped something just for the sake of making life more pleasant?

Related posts:

1. Asking Someone to Mentor You and Part II of the Joel Comm Project
2. Owning a Part Time Business While Working Nine to Five

And now, for something totally different.

With the increase in traffic to my blog, we decided to add another member to the team.

Here kitty, kitty, kitty…

Meet:

We love him and we’re thrilled to have him join us, but… he doesn’t have a name.

Yet.

He doesn’t exactly come when we call. He doesn’t even know we’re talking to him when we assign tasks. But maybe that’s deliberate : )

So we’re putting this out to you guys. Will you help us name him?

The terms and conditions of his employment are still under negotiation and he’s already sleeping on the job!

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For those of you who visit here often you know this is a BIG deal! We had to put Mister C down in January. He was my big time blogging buddy. And my husband’s pal.

(The post at this link was dedicated to Mister C.)

There was only one Mr. C, which is why we decided against getting another black kitten, as much as we love black cats. But there are a ton of other great colors for kittens, and gray is a very nice color indeed.  The woman at the shelter told us his computer skills were pretty good.

Now, if we can only teach him how to type…and get him a name then we’ll be in business!  We look forward to your comments.

Please share this with your family and friends. The more the merrier!

R & T

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I usually wake up in the morning thinking, “How can I think differently today?”

Partly because that’s just what I do. And partly because I write a blog about how to think like an entrepreneur. And to me that means thinking about things that would never occur to the majority.

I hate routine. Routine anything.

Here’s what you can do…

Be YOU, but a super condensed version of you.

Campbell’s soup without a can of water mixed in. Exaggerate your personality. Why not try it for a day? I have three sisters and when I hang out with any of them I can make them laugh all day long. Why? Because I don’t hold back. I’m totally goofy. I try to make them laugh. I say things off the top of my head. I make faces and I make fun of myself.

Does this work with my brothers? Sometimes, but they think they’re pretty cool. They’d rather be the funny ones. Does this work on everyone else? You’d be AMAZED at how people respond. This one little thing can change your life.

Talk to the radio, TV or Internet.

Tell the side of the story they’re not telling. This is one I really love. I play devil’s advocate all the time. Otherwise I’d go crazy. Don’t buy everything you read and hear. Ask “what if”. What if the story you just heard on the radio was a crock of sh*t? There are always two sides to a story. What do you imagine the other side would say?

This is the best way to completely change your thinking. Even if you agree… disagree for a change. How else can you come up with new ideas? Do you really want someone to spoon feed you with their ideas?

It helps to do this out loud. In the mirror. You may be saying some outrageous things… it really helps to have someone to look at, even if it’s just you.

Test an idea or project.

If you’re working on a book and you’re tired of working on it… stop. Pick your best chapter and send it to someone you like and trust. Ask for feedback. Give your product away for free to the first 10 people who want it and ask them what they think.

A little feedback can totally rejuvenate you. It can re-inspire you to work on, and improve, something you might be getting really tired of. Have you ever worked on something until you’re sick of trying to perfect it? Let someone else help.

**Break the rules**

Wear shoes that don’t match.

Or show up to a meeting, or your office, wearing socks, no shoes. The person who points it out just opened the door for a great conversation.

Leave your bed unmade.

And if that’s normal for you, then make your bed. If you’re a neat freak, like me, leaving a messy room can give you permission to act like a completely different person. It can be liberating to break the rules. Even if they’re rules you made (or had ingrained into you at an early age).

Part your hair on the other side.

You’ll feel funny. You’ll probably look great. And no one will really notice anyway. Except you. And that’s the point.

Take another route.

Take the scenic route to wherever you’re going today. If you work at home, walk around the block to get to your office. Ride your bike. Ever notice how different the world looks, and smells, as it passes by — from the seat of motorcycle?

Eat something bizarre for breakfast.

Or lunch. I drink my coffee with cream. But when I serve it black, every time I take a sip I’m like, “Oh yeah… this IS different. It’s awful.” But for the hour it takes me to drink an entire mug, as it grows colder and colder, I remember I’m supposed to tackle everything I’m doing with a new and fresh perspective.

Ok this is why this is important.

When you let apology, reticence, habit or routine be a part of how you move through your day, you can’t possibly be creative. It becomes harder and harder to have original thoughts. Routine is… well, it’s just a total party downer. Unfun.

Your turn. How do you change the way you think? Do you love a routine or are you totally cool stepping away from habitual behaviors? Let go… comment like you’ve never commented before:)

No related posts.

How’s your day going?

Seriously… I really want to know. How are you? What are you doing?

• What’s the one thing you’ll work on today that you’ll love doing?
• What’s that one thing you’re putting off?

Right now, I’m writing this post, which is a hell of a lot of fun.

And I get to support my friend Melanie Kissell who is participating in a guest post blog contest! This link will take you to her awesome post, 5 Tantalizing Ways To Expose Yourself On Social Media. Check it out. It’s really, really good!

You can help her win by sharing the post with your social media friends and by leaving a comment under her post.

Then…

there’s that one thing I’m not looking forward to… and it has to get done today. Actually it should have been done yesterday, but I thought yesterday was Monday. I kind of screwed that up. I even missed a call I was supposed to be on. And my friend has not emailed me back to tell me she forgives me (*yet*).

I have a pile of mail that’s a mile high. That’s the not fun part of my day today:( It’s what I get for letting it pile up. Actually that’s how I always do it… works better than dropping everything every time the letter carrier delivers the mail. And of course, I’ve been on vacation… yuck, it’s not always fun to come back to the office is it?

But it’s still a pile of mail that’s threatening to topple over on my desk and bury me avalanche style.

So how do you take a not so perfect day and make it great? You look for something perfect or flawless in everything you do. In everyone you talk to.

For example, I know that in my pile of mail there are at least two SOC cards. How do I know? Well it’s that telltale blue ink on the envelope. And while they are automatically generated, someone did take the time to put me in their database. That’s sort of nice.

It certainly adds a smile or two to a pile of invoices and marketing letters. And junk.

And that makes the pile perfect.

Supporting my friend Melanie is the icing on the cake. You’ll love her post, why not go take a look, tweet, share and comment? Thank you.

Hey, and leave a comment telling us about your day! How do you see something perfect in everything around you?

No related posts.

Last week I published a post called 12 Great Quotes to Help You Think Like an Entrepreneur.

This was my very favorite quote:

“Inside my empty bottle I was constructing a lighthouse while all the others were making ships.” — Charles Simic

Wow.

When I first found the quote and decided to include it in my list of 12, I hopped online and did a little research. I always do this when I publish quotes by previously unknown (to me) people. After all, they could be famous for their exploits as a Nazi war criminal…or simply a really bad person who is quoted often, but for dubious reasons.

That’s when I say, “Next.”

However, in Mr. Simics case, I was extremely impressed. What a remarkable story and bio.

Wikipedia refers to him as a Serbian-American poet born May 9, 1938. And I found this little gem in the article:

“Critics have often referred to Simic poems as “tightly constructed Chinese puzzle boxes.”

This statement sums up his talents beautifully…for his quote above is amazingly complex in its simplicity. Think about it. All the others were making ships. Not a bad thing to own a ship and be the captain of your own destiny.

But Simic built a lighthouse

A lighthouse that affected all of those individual ship owners with its guidance to safe harbors. It offered a solution to thousands. It solved a problem faced by the masses at sea. This goes way beyond owning a single ship.

So, how does this idea help you?

Well … let’s take real estate as an example. I own a real investing company. I’ve bought and sold commercial and residential properties for years. But do you know what? Owning an apartment building or a single family property is like owning a ship.

What if we owned the lighthouse?

The perfect story of someone who built a lighthouse

Trey White is a billionaire with a great story. He is the Founder and Chairman of Evolv Health and he is an extraordinary entrepreneur. My husband and I have met Trey on several occasions. When I first met Trey I fell in love with his story.

The following quote from the Evolv Corporate Team page tells it best:

Mr. White’s philosophy is defined by investing in forward-thinking solutions with an eye toward technology and first-to-market advantages… To date, he has placed capital of more than $1.5B into companies he founded or co-founded.

Mr. White co-founded NewHomeSearch, a revolutionary electronic real estate listing service for Realtors® and new home builders, gained 100% penetration in the Dallas market within two years of inception and grew to ten markets with an innovative client-server-based application. NewHomeSearch, renamed HomeBuilder.com in 1996, created the first Internet portal for searching real estate listings, quickly expanded to seventy-five markets and became the official Web site of the National Association of Homebuilders. Mr. White oversaw the merger of HomeBuilder.com with Realtor.com and participated in taking the two companies public as HomeStore.com, raised $800M in two offerings, drove stock to $160 per share and resulted in a $9B market cap at its peak.”

See what I mean about building a lighthouse?

Trey made a fortune by thinking beyond owning a single ship.

Your turn.

Take a minute and think about your business endeavors. Are you the captain of a ship or have you built a lighthouse? What does the Charles Simic quote mean to you? Can you think of other modern day examples that illustrate the concept of a constructing a lighthouse versus a ship?

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2. Are You Consciously Creating the Results You Want?

a.k.a.

referral systems

revenue sharing

cross industry marketing

joint venturingIt’s basically I’ll reward your business for each customer you bring me as a result of your marketing efforts.

Or,

• You help me penetrate a new market.
• I help you do an add-on business (to what you already do).
• You piggyback on my sales efforts, my established goodwill and my existing relationships.

Whatever you call it, however you look at it… you should be asking yourself, “Why am I not doing this right now????” (And if you are? You are one smart cookie!)

Ready for a great story about affiliate marketing? Visit my friend Eugene’s site and read his post, Cupcake Marketing: Affiliate Marketing Beyond the Internet.

Take a look.

Leave a comment:)

Think.

Let’s make friends in business. When I love and trust you… and you recommend someone to me, I realize exactly how much time you just saved me. I’m thrilled if you get a referral fee!

Your turn. What amazing affiliate relationships have you been involved with? Care to share?

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This is the final installment of my vacation posts. I’ll catch up with you later this week:) Thanks for all of the great comments!

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1. How to Give a Great Sales Pitch!
2. Neverware: A Great Story of a Young Entrepreneur

1. George Burns

“Don’t stay in bed, unless you can make money in bed.”

2. Charles Simic

“Inside my empty bottle I was constructing a lighthouse while all the others were making ships.”

3. Alan Greenspan

“I have found no greater satisfaction than achieving success through honest dealing and strict adherence to the view that, for you to gain, those you deal with should gain as well.”

4. Lilly Tomlin

“The trouble with the rat race is that even if you win, you’re still a rat.”

5. Tom Peters

“The best kept secret in the global economy today is this: When your service is AWESOME you get so stinking rich you have to buy new bags to carry all the money home.”

6. Charles Dickens

“Few great men would have got past personnel.”

7. Sam Walton

“The key to success is to get out into the store and listen to what the associates have to say. It’s terribly important for everyone to get involved. Our best ideas come from clerks and stock boys.”

8. Vince Lombardi

“People who work together will win, whether it be against complex football defenses, or the problems of modern society.”

9. Bill Gates

“You’re most unhappy customers are your greatest source of learning.”

10. Albert Einstein

“The significant problems we face today cannot be solved at the same level of thinking we were at when we created them.”

11. Peter Drucker

“So much of what we call management consists in making it difficult for people to work.”

12. Cynthia Heimel

“When in doubt, make a fool of yourself. There is a microscopically thin line between being brilliantly creative and acting like the most gigantic idiot on earth. So what the hell, leap.”

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This is another vacation post… you know I LOVE your comments. Talk to you next week:)

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1. 30 Tips to Becoming a Great Leader
2. Neverware: A Great Story of a Young Entrepreneur

For those of you who listen to NPR (National Public Radio) the name Eleanor Beardsley will be a familiar one. You know it’s her on the radio almost immediately. She has a distinctive ‘style’ of delivery.

For those of you who haven’t heard her radio reports, she speaks in a deep, growly, drawn-out-word voice… like, “This is Elllllleanorrrrrrrr Beeeeardsleeeeeey, reeeporrrrrting frommmm [fill in the blank].”

Unfortunately, her style sounds exactly like an affectation — or a somewhat misguided interpretation of how a radio journalist should sound.

I’ve also noticed over the past few years there are a lot of young women reporters arriving on the scene who sound exactly like Eleanor. It’s a veritable cadre of young women journalists who seem to have attended the Eleanor Beardsley School of Radio Broadcast. (Okay, I made that up… but you get the idea.)

Now here’s the really interesting thing.

A couple of months ago I was listening to Eleanor give a broadcast from Tunisia – right smack in the middle of riots, fire bombs and mass demonstrations. Security forces were fighting protestors. It was a mad house. Throughout her report, Eleanor kept her professionalism in spite of her obvious high anxiety. I felt like I was right there with her.

But I didn’t know it was her, until she signed off with her name.

She sounded like a completely different person.

The affectation in her voice was gone. She simply sounded like I would imagine she normally talks. To her friends. To her colleagues. In the height of anxiety and chaos, she forgot how she was ‘supposed to sound’. She accidentally found her true voice.

It inspired me to learn more about her.

I hopped online to see what she looked like. I was totally surprised. She didn’t look at all like I expected her to look. She was young… and attractive. Until then I had imagined a hardened veteran of decades of reporting. Someone who looked lived in. Someone who had seen it all and had become unfeeling and removed from what she reported on.

She found her voice during this broadcast because she was truly living in the moment. She was telling a story she was experiencing first hand.

And that is the key to finding your voice.

Eleanor has, sadly, returned to her original broadcast voice.

***But she had that one moment of brilliance***

And I’ll never forget it.

Your turn. Who do you know (person or company) who has totally missed the boat in how they approach their audience? Can you think of companies or individuals who understand the idea of coming across as real people?

For some reason the Pistachio ads come to mind… Get crackin’:)

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I’m going to be camping in Canyonlands NP this week. I’ll be reading your comments if I can catch some cell service:) — keep ‘em coming! And I’ll be publishing the posts I wrote last week… when I find high ground. Talk to you when I get back.

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“Everything that irritates us about others can lead us to an understanding of ourselves.” — Carl Jung

My husband loves attending seminars – of all kinds. Business seminars, personal growth weekends, networking events; over the years he’s introduced me to some life changing experiences. (Thanks Richard.)

I remember in the early years of our marriage, he wanted me to attend a personal growth seminar. I dug in my heels and said, “No, you can go to this one without me.” My gut reaction was that it was some kind of cult… after all what kind of group keeps you working 18 hours straight in a hotel room with a bunch of strangers? It sounded like a serious sleep deprivation technique–with the ultimate goal of brainwashing the participants.

Ultimately I attended my own session. Then I went on to participate in almost every other seminar they offered… with my husband. We did ropes courses, mountain climbing, solo overnight camping and team exercises based on pure trust… it was amazing.

I’ve been thinking lately about another event we attended together.

During the event we were asked,

“What if, when you react to someone in a judgmental manner, you’re doing it because the other person is mirroring something about yourself you’d really rather avoid?”

Our host introduced the idea that when we have someone in our life who truly irritates us, our higher self just might have been the one who invited the other person to show up and push our buttons. What would Jung think of this?

He suggested we look at this as a gift from the other person and as an opportunity to see something in ourselves we might be avoiding.

Here’s an example.

Your results really bother me.

Have you ever reacted to someone’s success in a judgmental way? It’s easy to fall into that trap. It’s easy to say, “Well sure those numbers are great, but I would never do what he’s doing”.

Instead, why not stop and ask, “What is it about the other person’s success really bothers me?

Perhaps the other person is doing nothing wrong… just going about things in a way you don’t embrace. So what is it about the other guy’s success? Does he or she work harder? Are they doing a ton of marketing? Do they have a better product? Are they making more money?

Is it because they are promoting themselves at every opportunity… and you don’t? Hmmm. Maybe it’s time to think, “Why not promote the heck out of myself?”

We have a golden opportunity to learn from our reaction to other people. And we can choose to see our response to the other guy as a gift.

Your turn. What pushes your buttons? Where do you see an opportunity to learn from the stuff that really irritates you? Who can’t you stand, and why? What annoys you… and what can you learn about yourself from it?

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What does transparently competitive behavior cost you?

Here’s what I mean by this.

A person is transparently competitive when they:

• Visit someone’s home to attend a network marketing event and they promote their own networking business to the participants.
• Visit another person’s business (brick and mortar, or online) and they promote their own product or service… without shame.
• Disagree with the other guy in an attempt to demonstrate their own superiority.

And while their intentions may be noble (in their mind), their actions say otherwise. I mean, they may have no real malicious intent to do someone harm, yet actions like these demonstrate a grievous lack of good judgment.

I’m an advocate for:

• Being gracious for an invitation to participate.
• Recognizing the best in people by pointing out a job well done.
• Showing pride in your friends, contemporaries, colleagues, team members and yes, even your ‘competition’.
• Offering kindness and respect.
• Extending compliments.
• Showing gratitude for another person’s contribution to the world… whether that person be a friend, an acquaintance, or a total stranger.
• Promoting your competition.
• Giving thanks for knowledge shared.
• Being a perfect guest.

Anything less can be costly. To your reputation. To your image. And to your bottom line.

All of this is just plain good sense… or is it? I’m sometimes appalled by the behavior of others, especially so in the online world (and by extension email, texting, comments, etc.).

Perhaps it’s a wonderful idea to take a step back and do an honest introspection on how we are being. What are we trying to create?

Your turn. What would you add to my list of how to demonstrate excellence in business? And in life, for that matter?

*********

Wondering how this way of thinking can explode your business? Let’s talk.

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Years ago my husband practically begged me to close my successful headhunting business. Successful in the sense that I was making money. But I just couldn’t stop bringing work home with me. I lived it. I breathed it. The ups. The downs. Sales can be like that. You live or die based on the decisions of others and sometimes it’s completely out of your hands.

And in the case of executive recruiting I had two sides making decisions — the employer and the prospective employee. Recruiting was an incredibly tough business.

Back to school.

Ultimately I listened to my husband and decided to change careers. Now what? Here was an opportunity to start fresh. So, I thought long and hard about what I had done in the past. What was I really passionate about? Because I was always good at art in high school and in college, and I truly loved it, I decided to attend art school.

On the first day of school, the instructors gathered all of the new students in a large hall. We were promptly told that although we might have been in the top of our classes at our old schools, we would be lucky to receive a “C” average upon graduating their school.

Although I hadn’t been in school for 10 years, I was determined to leave with an “A” average. And I did. With honors. But in order to accomplish this, I was usually at my drafting table until 1 or 2 o’clock in the morning. Art school practically killed me. Or so it felt at the time.

When I graduated it was only to discover I could not get a job and I was woefully unprepared to strike out on my own. Most studios had just moved to electronic design and I had no formal computer graphics training — even though I’d just paid a fortune (in student loans) to attend a top art school. Computers came on the scene practically overnight.

So it was back to school… again.

And more grueling hours. And more debt. With another round of job interviews on the horizon. I had not had a W2 job for years and I wasn’t looking forward to the prospect. At all.

One of the reasons I worked so hard in school was so that I could strike out on my own and start my own design business. I also discovered it was easier said than done.

Fortunately, before I took the plunge and started my own business, one of my computer graphics instructors, who loved my design work, talked her partner into bringing me into their business… as a full partner.

Those hours and hours of study and work paid off.

But here’s the interesting thing.

Until then, it hadn’t occurred to me that I might partner with other designers.

I was looking at it as if I would have to hit the pavement looking for a job (or clients) when I graduated. I really didn’t want to get hired by a design studio where I had to start at the bottom and work my way up. And this would have been my first real W2 job in a decade.

Some would say I was in the right place at the right time. And I would agree. In part.

But just think for a minute.

My instructor realized that partnering would make her business stronger.  She had the idea that teaming up with other talent would make for a better design studio.

This was a learning experience I never forgot. Since that time I’ve built numerous successful businesses based on the concept of partnership.

So here’s my question for you. Who can you partner with today? Have you considered bringing your skills and talents to a collaborative partnership?

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I tend to be a bit of a perfectionist in how I do business. That might be a total understatement.

Say I have a meeting across town. I usually leave my office early just in case I run into traffic, or I get lost. Nine times out of ten I arrive early but I always bring work along via my smartphone or laptop.

I sit in my car and work.

I hate being late to meetings. I also expect other people to come to meetings on time. One of the downfalls of being a perfectionist, I suppose.

What I often fail to do is realize there are legitimate reasons the other person might be late.

Fortunately I’m married to a really great guy with loads of compassion. He usually manages to bring me down to earth. For years he’s told me, “Don’t make stuff up. You have no idea what might be going on in the other’s person’s life. What if they had to go to the hospital because someone in their family had an accident?” Things like that.

After years of marriage, it’s finally starting to sink in. Richard is so levelheaded. He usually sees both sides of a story. As a criminal defense attorney and as a trial lawyer he has to see both sides of a story – he always recognizes there are two sides in play.

Or maybe he was just born with a degree of compassion I seem to lack sometimes.

And I am learning. Slowly. I still have knee jerk reactions but I’m finally able to step back and at least try to see both sides.

I had a perfect opportunity to practice this the other day. Monday morning I sent an email to my new property manager suggesting a meeting over at our apartment building. Our to-do list is about a mile long.

To my surprise, instead of hearing back from Mike, I received an ‘out of office email’ stating he had a family emergency and would be unavailable for the next week.

My first reaction was, “And when, exactly, was he planning to tell me he’d be out of pocket for a week? Who’s on whose payroll here anyway? Is there anyone on the job right now?” Frankly I was pretty unhappy with him for not firing off a quick email or text telling me he’d be gone.

See what I mean? Knee jerk reaction.

Yet…

We fired our previous property manager for gross negligence. Mike is fully aware of the entire story. He knows it will take time for me to have full trust in him and to be completely confident that we have the right guy on the job. Emergencies come up but communication remains a high priority.

Then I thought of what my husband would say. He’d say, “Who knows what’s happening? Mike probably has someone taking over for him while he’s gone.”

For now, I can think good thoughts and pray Mike’s family is okay. I can show a little compassion.

I’ve also scheduled a meeting at the property with another member of his team. My husband might be right. I may find that Mike’s work has been delegated and things are actually happening over there.

Ultimately it’s my job to be sure.

*********

After writing this post I met up with our leasing agent, Ian, over at the property. Turns out he’s been sending some urgent messages to Mike, with apologies for disturbing him during an emergency. Nonetheless, he needed to make some time sensitive decisions and he did not have the authority to do so without Mike’s consent. Mike was not getting back with him.

Ian also didn’t know he could come to me for decisions. A critical oversight. On my part.

This development adds another dimension to my story. The question of delegation. And, as I’ve said, ultimately the buck stops at my door.

Does your team know they can come to you in the absence of their direct supervisor? Do you have plans in place when emergencies come up?

If not, I hope you let my story be your inspiration to put some plans in place.

Your turn.

Does this remind you of any times where you were faced with a similar dilemma? What’s your best advice on great communication in business?

No related posts.