Jan. 15, 2009 Edition

Project A Professional Image

You’ll buy and sell more when you use the national image you’ve already paid for!
By Ernie Hughes

Have you ever seen Dr. John Hayes not wearing a HomeVestors shirt? I haven’t. In fact, I am told by the lovely Mrs. Hayes that John wears HomeVestors sleeping shorts. The man lives and breathes HomeVestors. Why not? If you want to promote an image, you must project that image.

Since I am speaking of projecting an image, let me share with you a story about image.

Long ago and early on in my real estate career, I learned some very valuable lessons concerning image.

There is no doubt in my mind that fate had a hand in meeting the late Ken D’Angelo. Soon after our meeting, Ken recruited me to go to work at a “hole in the wall” real estate office in far east Dallas where he held his real estate license. We were one of many small, independent offices that did not have a recognized name; nor did we project a very professional image.

A professional image has always been important to Ernie Hughes.

While enrolled in a local real estate school to obtain my license, I did odd jobs for the real estate company. I painted houses, did repair work and collected rent for the two brokers that owned the company.

Ken and I became fast friends. Ken always offered assistance to anyone in need, even at his young age of 23. I was broke and without a car at the time, so the weekly dinners at Ken’s house, sometimes a ride to and from the various houses I was painting, and the 10,000 pair of eyelashes that he and his dad gave me to sell (false eyelashes were big in the early 70s) provided me with pocket money, a polyester suit and platform shoes to present a professional image when I obtained my real estate license. It was the 70s and polyester and platforms were big back then.

Developing a lifetime friendship and business relationship with Ken D’Angelo must have been destiny. Little did I realize at the time that Ken and I had high yellow/red personality profiles and that the Four Strengths Personality Profile would help in our real estate careers. That did not come until several years later when we met Ken Channell.

Both of us quickly realized there was something missing from our association with the real estate company where we worked. It did not have the professional image that Ken and I wanted to project. It was our desire to become hugely successful and we were willing to do whatever it took to achieve our goals.

In 1976, franchised real estate companies were gaining in popularity. Century 21, Realty World and Red Carpet Realtors were quickly becoming real estate power-houses and projected a national image that Ken and I were looking for. Ken and I, along with six real estate agents we quickly recruited, looked very sharp in our Red Carpet blazers. We were great stewards for the Red Carpet image. Cal Wilkins and Bobby Roan (now two of Homevestors’ powerhouse offices) soon became Red Carpet brokers, too. The Red Carpet image grew locally as our three companies, and many other real estate companies, became Red Carpet offices.

Fast forward to 1978. ERA (Electronic Realty Associates) had the latest in real estate technology (i.e. dot matrix fax transmittals – black & white pictures of houses). Ken and I were enamored by this new upstart company and the new technology.

In May 1978, we became the first of many Red Carpet offices to leave the red blazer behind and traded it in for an electric blue blazer and ERA. We were already successful as Red Carpet Realtors and became even more successful with our ERA Hughes-D’Angelo Realtors. Our East Dallas office was one of the biggest and most successful in the North Texas region.

You may ask what this story has to do with professionalism and projecting an image. HomeVestors has probably spent the least amount in advertising to create the biggest success of projecting a national image in the history of advertising. Yet many franchisees, employees, buyers, sellers, rehab supervisors and dig lead locators do not project the HomeVestors brand recognition. Therefore, we do not monopolize on what is so obvious – the Power of the HomeVestors of America, Inc. brand.

These are some of the reasons why ERA Hughes-D’Angelo was so successful:

• All agents were required to wear career apparel everyday.
• All agents displayed magnetic car signs with the company name on their automobiles.
• All agents were required to farm (digging for leads) everyday, every week. Agents even sent weekly newsletters to their neighborhoods.
• All agents were required to distribute 10 business cards everyday.
• All agents were required to attend weekly sales meetings (Mondays at 8 AM).
• All agents were required to tour the houses listed the week before – we really looked sharp with 58 agents in 10-12 cars, all dressed in electric blue blazers, rolling up into a neighborhood to tour houses. Our phones were ringing from people that wanted to list their houses with us.
• All agents were required to answer the telephones using a script.
• All agents were required to use the Listing Flip Chart Presentation with sellers.
• All agents were required to attend weekly training sessions.
• All agents recruited new agents - they were paid an incentive to do so.
• All agents were required to have fun working with Ken and me, and they did.

ERA Hughes-D’Angelo projected the professional image that Ken and I wanted to project a few years before while working for a small, independent company. The image we created paid off many times in many ways.

So why aren’t you using the brand to project the image that HomeVestors has created?

HVA has created a powerful image for you to use. Quit acting like a small, independent company. Project the image that you pay for and have earned the right to use. If you are the leader of your company, start leading. Make your goal for 2009 the best that you can be by using the brand, image and the tools that HomeVestors of America has created for you.

. . . Ernie Hughes manages HVA’s corps of Franchise Systems Managers and also coaches Development Agents.

Now Is The Time To Become Politically Active

Tips on how to sponsor fundraisers and connect with politicians and decision makers
By Leah Templeton

Franchisee Fran Yerardi and HVA President and CEO John Hayes hosted a political fundraiser for Congressman Barney Frank last year.

It was a room full of influential investors, brokers, bankers, realtors, lawyers, politicians and mortgage lenders… and HVA was front and center. That was the scene at an October fundraiser that franchisee Fran Yerardi of Baystate Properties Real Estate in Boston, MA organized in conjunction with the Boston Chamber of Commerce.

The breakfast supported Congressman Barney Frank, a Boston native who has been in Congress since 1981 and is currently Chairman of the Financial Services Committee. HVA and the Boston Ad Council teamed to sponsor the event where the crowd included prominent decision makers who may have heard about HVA, but until that day, had no direct contact with the company.

“The breakfast paid off in numerous ways,” said HomeVestors President and CEO John Hayes. “To begin, this was the first time I've had a powerful U.S. Congressman sit and listen to me talk about HomeVestors and the needs of the investor community at large. That alone was worth the investment.”

The breakfast provided the opportunity to meet and greet with attendees and explain how HVA’s services can benefit the community.

“We need more opportunities like this,” said Hayes. “Attendees approached Fran all morning requesting meetings and asking for information. Fran is an amazing networker and his connections are priceless. Every franchisee can learn from Fran’s networking skills.”

As Day on the Hill approaches, opportunities like this are invaluable. Now is the time to organize similar events in your local market; but where to begin? Partnering with the Chamber is a start, but there are multiple avenues to try.

Here are a few tips from Yerardi on how to make the right contacts and create a successful event

• Get active with the Chamber of Commerce. The Chamber wants your business. They want you to be active and get involved. I’d advise joining a government relations or member networking committee. Chambers are a great place to network with potential investors, meet politicians and raise your credibility. Use the meetings as an opportunity to educate others on what’s really going on in the real estate market.
• Contact your state or local politician. Write a letter to your state or local politicians. Explain what HVA does and how the company works to revitalize communities. Send a copy of the HomeVestors magazine along with your letter.
• Meet with a politician. Attend a politician’s fundraiser or event in your market. Arrive 15 minutes before the event starts. Most likely no one else will be there but the politician and key staff. Introduce yourself and start building that relationship.
• Don’t ask politicians for favors. Everyone is there to ask that politician for something. Don’t show up and request their assistance, show up and offer to help. Most likely they have a voter in their district that’s been affected by the foreclosure market. Put a positive spin on that situation. Tell them you have a house in the area and offer to help put that voter in a rental home. Offering a proactive solution will help make a stronger impression.
• Focus on small events. Offer to speak on behalf of HomeVestors if an event draws less than 30 people. If it gets much larger than that, contact Dr. Hayes about possibly attending and speaking. As president and CEO of HomeVestors, Dr. Hayes brings heightened credibility to a function. 
• Be a premiere sponsor. Only sponsor an event where HVA is the premiere sponsor. If you can’t be a major sponsor, then serve on the event committee to maximize the impact.
• Take your time. The event we put together for Congressman Barney Frank gave us credibility. Now we’re working on a fundraiser for his favorite charity. It takes time to develop relationships and get your foot in the door. Let it build.

. . . Leah Templeton is an account executive with HomeVestors' public relations agency BizCom Associates.

From Boston To Florida, HVA Welcomes Four New Franchisees

Register your franchise prospects online
By Jason Killough

Jason Killough

Since our December article in The Vestor’s Voice®, the Franchise Development team has sold four new franchises, including one to Michael Yerardi, the cousin of Fran Yerardi, a Boston-area full-service franchisee and Development Agent (DA).

Please welcome:

Kim Kurnow, Pensacola, FL
Don Reid Jr., Richmond, VA
Michael Yerardi, Boston, MA
Derek Maksy, Boston, MA

Nine DAs have been recruited to support new Associate Franchisees (AFs). Of those nine, two already support two AFs. The other seven each support one.

We are also pleased to welcome Tim Risley in Phoenix, AZ as HVA’s 25^th DA. If you are interested in becoming a DA, please contact Jason Killough at jason.killough@homevestors.com.

Stuart Miller will conduct AF recruitment seminars with DAs in the following markets in January:

• Boston, MA January 19-20
• Hartford, CT, January 21-22
• Oklahoma City, OK, January 23
• Philadelphia, PA, January 27
• Newark, NJ, January 28

New AF Discovery Day Webinar Every Wednesday

As a reminder, HVA has a weekly Associate Franchise Discovery Day Webinar every Wednesday at 2 p.m. CST that lasts around one hour and 15 minutes. The AF Webinar Discovery Day helps a prospect alleviate travel expenses to Dallas for a Discovery Day. Discovery Day prospects must have completed a Request for Franchise Consideration (RFC) prior to attending the Webinar. If you have a prospect for the Discovery Day Webinar, please contact Sherry Wallace at sherry.wallace@homevestors.com or 972.619.0089.

Franchise Development also offers an overview Webinar for the full service and AF franchises every Tuesday at 4 p.m. CST. This session lasts 30 minutes. To register, visit the "Own a Franchise" section of HomeVestors.com, and click on "Upcoming Events/Webinars."

New Associate Franchise Referral Program

Franchise Development is excited to announce we are extending the $10,000 cash or ad credit promotion for each full service franchisee that you refer in 2009.

Development will also pay $500 cash or an ad credit to any franchisee that refers a new Associate Franchisee.

Please contact Sherry Wallace at 972.619.0089 or sherry.wallace@homevestors.com for details.

You can now easily register your full service or Associate Franchise prospect on our Web site. Click on the box in the upper right hand corner of the franchisee Web page to register your lead.

. . . Jason Killough is vice president of franchise development for HomeVestors. He can be reached at  jason.killough@homevestors.com.

Stack The Pipe

Take advantage of the New Year by following up on past appointments
By Alan Stewart

Alan Stewart

Well, the holidays are over and the outcome of the presidential election is behind us. Gas prices are down and interest rates are the lowest in three decades. I’m not saying we are out of the woods, but I am saying that people are starting to move around again. After hibernating for three months, they are getting fidgety and looking to deal with that problem property that’s been weighing them down.

The start of the New Year is the perfect time for franchisees to follow up on all past appointments from recent months. I’m talking about those homeowners who did nothing through the fall and winter months but may now be ready to take the next step to unload that problem property.

They are out there, and a phone call from you will be music to their ears. Even if they are not ready until April or May, you need to start the dialog and rapport building now. The person that establishes frequent, non bothersome contact with any homeowner will be the one to buy the house.

But before you start making cold calls, keep in mind some tips for communication with the seller.

• When you contact the homeowner make sure you have developed strong listening ability traits. It’s important to not only listen, but be able to offer your help in their situation.
• Make a point to discuss non-real estate items. Make general and friendly conversation. And if you are not capable of that or too busy, then give that seat to someone else on the bus.

The idea is to start stacking the pipe with inventory to sell this spring.

…Alan Stewart is an HVA franchise systems manager. He can be reached at Alan.Stewart@homevestors.com.

The Bible And Borrowing: Ancient Wisdom For Today’s Issues - Part 2

Franchisee J. Barry Watts continues his examination of the Bible’s perspective on borrowing money
By J. Barry Watts

Editor’s Note: Please see the previous issue of The Vestor’s Voice® for Part 1 of this series of articles. As you read the articles, we welcome your comments, which you can post on the Message Board at HomeVestors.com.

J. Barry Watts

Debt is something that is owed. Therefore, all of us are technically in debt all the time. We owe the electric company for the power that kept our lamp burning last night, and on Tuesday, we owe our employees for Monday’s work. So in a literal sense, it is not possible to avoid debt unless we pay all of our bills (including laborers we hire) in advance. Of course, that isn’t practical because we know of many people who would stiff us rather than produce the work for which we had prepaid.

Perhaps a more practical definition of debt is “an obligation that is not covered by a corresponding asset.” That means that owing $60,000 on a house that could be sold for $100,000 isn’t debt, but owing $15,000 on a car worth only $10,000 is debt. So the question is: Do I owe more than the assets securing the loan are worth? If so, you are in debt.

In the history of commerce, no one has ever been forced into foreclosure by not borrowing. When we borrow, we open doors to opportunity and calamity, so if we choose to borrow we must be sure we do so wisely and be sure we are opening the right doors and leaving the wrong ones closed. In a large sense borrowing presumes on the future.

The Bible clearly teaches that we don’t know what the future will bring. In James 4:14 it says “you don’t know what your life will be like tomorrow.” That’s why it is important that we think with wise and prudent minds, that we don’t strive to get rich quick by taking imprudent risks because we have a love for money, that we seek the advice of wise people, and that we ask God through prayer for his direction with full confidence that He wants to answer even more than we want to hear, and why we make sure that what we’ve borrowed is secured by an asset worth more than the debt. That way if our view of the future doesn’t come to pass the lender can take the asset and sell it to satisfy the loan.

Is Borrowing Wrong?

Borrowing isn’t a new notion. From the earliest of times people borrowed from each other. In the Bible, references to borrowing predate the Ten Commandments. Early in the book of Exodus you begin to find references to and rules for the relationship between borrowers and lenders.

King Solomon, known for his wisdom, kept a book of wisdom which we today know as Proverbs. In the 22^nd chapter and the 7^th verse he wrote “The rich rules over the poor and the borrower becomes the lenders slave.” Well duh! We know that the “haves” possess more than the “have nots” and that the “have nots” typically work for the “haves.” Who has a better balance sheet? You, or the employee of your drywall subcontractor? There is a reason Momma wanted you to grow up and be a doctor instead of a ditch digger. It’s the “rich vs. poor” thing.

We all understand that it is also better to be the person who loans money than the person who borrows it. In our analogy, the lender would be a “have” and the borrower would be a “have not.” Surely we aspire to the lender’s position. But life isn’t lived in aspiration, it’s lived where we are today. Where most franchisees find themselves is with a great vision far bigger than their supply of capital, and thus the requirement to borrow if they are going to bring those visions to reality.

Is that borrowing a sin? No. The Bible never says borrowing is a sin. However, it does always position borrowing in a less than ideal light. That makes sense, too. It would be better if borrowing weren’t necessary.

Romans 13:8 says “Owe nothing to anyone except to love one another…..” Often this passage is misunderstood to prohibit borrowing, but that reading is out of context. The context of that passage is actually more clearly understood to be saying “pay what you owe” rather than “don’t owe.” In context is says, “pay your taxes, respect authority, honor the honorable, don’t withhold anyone what is due them but rather give it to them. Leave yourself owing no one anything but love--an obligation so enormous and reoccurring that you can never consider it fully paid.”

. . . In the next issue, Barry will offer his personal conclusions about borrowing.