Aug. 15, 2006 Edition

Fighting The "F Word"

How franchisee involvement can help By Gregg Stengel The "F word." We all know what it means to HomeVestors: Flipping. But among politicians, attorneys general, the media, and some members of the general public, flipping is equated with another F word: Fraud. Real estate fraud is increasing, along with an equally sizeable increase in media coverage about homeowners who are scammed by real estate investors. How can our industry, and especially HomeVestors, avoid being associated with unscrupulous investors who make flipping into something illegal? Can we encourage the media in their investigative reporting to tell our side of the story? "We need to take action now," says HVA CEO John Hayes. "It's up to us to eradicate the one-sided media coverage of 'flipping' and the scam artists who pose as real estate investors." When Michigan lawmakers recently issued a press release that said flipping involves "purchasing property and artificially inflating its value through false appraisals," Hayes contacted Michigan media and explained that what the lawmakers described was not flipping, but fraud! Mark Andresky He was then interviewed by the real estate editor of the Grand Rapids Press for an article that appeared on Sunday, July 23. The article also quotes Grand Rapids, MI franchisee Mark Andresky, Charlevoix Property Investments. Hayes explained that while he supports a proposed Michigan bill to crack down on real estate fraud, he said that people need to know there's nothing illegal about buying a house in an ugly situation, repairing it and quickly reselling it at a fair price. Hayes plans to continue his campaign to inform consumers, media and politicians about HomeVestors' side of the story . . . rebuilding neighborhoods while operating ethically. "We have a business model that serves the investor and the neighborhood. While I don't like the word 'flipping,' rehabbing a house and selling it for a profit is not against the law as some in the media and legislatures would have you believe. If we don't take steps now to inform the public that what we do is not fraudulent, then we will have to suffer serious consequences because some of this legislation is going to be damaging," Hayes said. According to Hayes, there is a great opportunity for franchisees to become involved in helping tell the HomeVestors side of the story. "We need all franchisees to take an active role with us and NARHRI to help spot potential legislation not favorable to our industry. If a franchisee sees or hears something about pending legislation or fraudulent real estate activity, let us know about it. Write letters to the editor, anything that lobbies for positive coverage. Our PR firm stands ready to help us. Let's tell our side of the story. We'd like franchisees to talk about the positives they are doing in their city and to particular neighborhoods to rebuild and rehab." HomeVestors is in the process of completing a credibility magazine that will help inform politicians and media that HomeVestors is a stable and reputable house buying company celebrating its 10th anniversary. To read the Grand Rapids Press article, click on the In The News link (under About Us) at HomeVestors.com. . . . Gregg Stengel is the marketing publications manager for HomeVestors. He may be reached at 972-761-0046, ext. 189.

Pittsburgh Franchisees To The Rescue

Partners apprehend thug By Gregg Stengel HomeVestors franchisees Ed Hirzel and Andy Redlinger of RHO Properties, Pittsburgh, PA, were at the right place at the right time for an elderly woman outside a Burger King® restaurant earlier this summer. On their way to a 12:30 buy appointment, Ed and Andy were ready to enjoy their gourmet Whopper® sandwich. Little did they know that their lunch hour would be interrupted by a four-block foot chase with a criminal. Andy Redlinger (left) and Ed Hirzel saved the day! "We were getting ready to eat when we saw a guy accost an elderly woman outside the restaurant," Ed said. "We couldn't believe it, so we started chasing the guy. We finally caught up with him about four blocks down the street, and by that time the police came to our rescue and took him downtown." The Good Samaritans were heroes to the elderly woman and to the community, and were honored with a special city proclamation naming a day in their honor for helping stamp out crime in the community. "We understand that the thug pled guilty and receive a four to six month sentence, so that's worthwhile," said Ed. And just as important, Ed and Andy were still able to make their buy appointment. "It's a good feeling knowing that we were able to help someone out of a really ugly situation, just like we do with houses," Ed said. . . . Gregg Stengel is marketing publications manager for HomeVestors. He may be reached at 972-761-0046.

Legacy Franchisees Gather in Nashville

HVA's leading franchisees share ideas, help provide direction FAC Rep Charles Rutland and FAC Chairman John Holman share ideas about HVA's future. HomeVestors' Legacy Franchisees and Ad Council Presidents met in Nashville during the second weekend of August for networking, team building, and strategic planning, all part of HVA's annual Leadership Invitational. Legacy Franchisees include the top echelon of HVA's Best Customers and Top Closers, along with members of the Franchise Advisory Council (FAC). Approximately 56 offices qualified for this special designation and nearly 50 franchisees participated in the Leadership Invitational. The names of the Legacy Franchisees will be posted on the Awards page of the Franchise Owners' Web site. "Great organizations build leaders and in turn the leaders build greater organizations," said HVA President & CEO John P. Hayes as he kicked off the Nashville event. Hayes conducted most of the meeting sessions and was joined by other members of HVA's Leadership Team. The purpose of the Leadership Invitational is threefold: First, it's a good way to acknowledge HVA's Best Customers and Top Closers. The top 20 from each list were invited to participate in the event. "These franchisees," said Hayes, "are to be congratulated because they are the best practitioners of the HVA system. We rely on them to help us lead HomeVestors into the future." Second, the event is an opportunity to acknowledge FAC members and Ad Council Presidents who volunteer their time and make a significant commitment to the leadership of HomeVestors. And third, the Leadership Invitational provides time for franchisees and corporate staff to collaborate on HomeVestors' future and to set some strategic objectives. Legacy Franchisees perform their HomeVestors-themed song. "It's an honor to be called a Legacy Franchisee, and it also comes with great responsibility," commented Hayes. "Legacy Franchisees have certain responsibilities, including being of service to others—other franchisees, consumers, vendors, investors, and members of HVA's corporate staff. It goes without saying that Legacy Franchisees also need to remain in good standing with HomeVestors." Day one of the Leadership Invitational included a 90-minute presentation by Jay Papasan, co-author (with Gary Keller, founder of Keller Williams Real Estate) of The Millionaire Real Estate Investor. Many of the attendees commented that Papasan's presentation was one of the best they heard. It helped them re-strategize their businesses. Each of the attendees received an autographed copy of the book. That evening, the Legacy Franchisees were introduced to five professional songwriters who helped them write and produce their own songs. The songs were recorded on a CD, which also was given to each participant. You'll hear more about the songs in the near future! Legacy Franchisees worked in teams to strategize, brainstorm and enjoy team-building activities. Days two and three of the event included numerous challenges for the franchisees to discuss and analyze in small groups. At the end of the meeting, the franchisees voted on the top strategic objectives for HVA to pursue in 2007. The strategic objectives will be the subject of a future Vestor's Voice article. Networking occurred throughout the weekend and was perhaps the greatest benefit to the franchisees who attended. Three franchisees, as of July 30, had closed more than 100 properties and two of them attended the event: Colin Reilly, Harvest Properties, and Mark Mattlage, Cal Mat Properties. Attendees looked forward to networking with these two as well as other top franchisees during breaks and meals. HVA's Legacy Franchisees will meet later this year at the annual convention. HVA is organizing a unique event for them on Friday night of the convention. Hayes said, "It's important to note that this is not a closed group, but it is a special group. Any franchisee who is among the top echelon of Best Customers or Closers by September 30, 2006, will be included among the Legacy Franchisees to be honored at convention. FAC members are also included."