|
HVA's CEO shares observations and opinions from recent travels During the past few weeks, various speaking engagements have led me to three Florida markets -- Tampa, St. Petersburg, and Orlando -- and a Mastermind led me to St. Louis, MO. One of the things I enjoy about these trips is the chance to talk one-on-one with our franchisees. I make a habit of listening to them and picking up ideas, observations, and opinions that I can pass along to you. Here are several points that I'd like to share with you from these markets: Tampa/St. Pete benefits from the wisdom of long-term franchisees. The Mize family opened Tampa nearly eight years ago, followed a year later by the Carcary family. Then, on the St. Pete side, Johnny Buczynski planted the HVA flag more than six years ago. These franchisees have had some ups and downs, and are currently fighting their way through a storm. Lots of foreclosures in the market. "For Sale" signs everywhere. Insurance costs and property taxes are driving people out of the state. But spend an afternoon with these veteran franchisees, along with Bob St. Pierre, who has operated in an adjacent Junior Market for six years, and you'll return home inspired. It would be easy for this group to retrench, but instead they are progressing. They know they're in a buyer's market, and they also know that savvy investors buy in a buyer's market. Shaun and Shona Carcary have added team members, enhanced their skills, and now boast a closing ratio in excess of 7%. Bryan Mize and Bob St. Pierre are searching for additional team members. Johnny B. has recruited a new partner. Is the market depressed? Oh yes. Are these franchisees depressed? Oh no. That's not to say they're not hurting, but they're smart. They know that real estate markets rise and fall, and they are prepared to ride the waves.
There are plenty of opportunities to buy in Tampa/St. Pete (almost everywhere in Florida, in fact) and not as many to sell. So what's a franchisee to do? Buy deeper, of course! And they are -- but they also recognize that buying deeper requires enhanced skills. Some of the franchisees have learned these skills in the Buyer's Boot Camp and by working with their Franchise Systems Managers. Franchisees who sell the most in the market are also generating opportunities to sell.
The Tampa/St. Pete Ad Council recognizes the need to increase its buy-closing ratio. One way to do that, of course, is to add Buyers to the market. And one way to do that, of course, is to sell more franchises. I'm pleased to see that this Council wants to do both. There are currently six franchise offices in the market, and we're recruiting three more. Know anyone who wants to work and live in beautiful Tampa/St. Pete? If so, it could be worth $10,000 to you -- check with Franchise Development.
Father and son Ed and Steve Rogner are keeping the HomeVestors flag planted in Orlando, but just barely. They're looking for help, and fortunately a second Orlando franchise completed training last week. Billboards that used to cost $500/month now cost $800 to $1,000/month, making it almost impossible to buy outdoor in that market. The Rogners have learned the value of direct mail, plus they now understand more than ever how important it is to develop an investor database.
You gotta love St. Louis! I love it for the history, architecture, bakeries, Italian restaurants, ballparks, the Arch, and especially HVA's Ad Council. Our franchisees in St. Louis are among the best in the nation. They've had some struggles recently, and it led to some turnover, but this may be the most positive group of franchisees anywhere. Go spend a day or two with them and you'll come away with a new appreciation for your business, your market, and HomeVestors.
"It's all up here," Bob DeClue told me while pointing to his head. "That's where you win or lose in this business." This market doesn't tolerate complaining. Bob has a business coach who does not allow him to complain. "I can't imagine complaining to her about the market, the advertising, the leads, no equity, or whatever. Who wants to hear it? Why bother? Either do something about it or shut up." With that kind of attitude, it's easy for me to love Bob DeClue.
While driving me through St. Louis so that I could visit another franchise office, Bob told me that he woke up about six months ago and realized he had to concentrate on selling houses. "We had no problem buying houses, never have," he explained. "But then suddenly, it all stopped. And we got clobbered financially with the inventory." Given that same situation, how many franchisees would simply stop buying, thinking that would solve their problem? Unfortunately, too many! But not Bob. He instinctively understands that the worst decision he could make would be to stop buying. His mother, who is his equal partner and works alongside him, said, "If you want to sell houses, you need to attract buyers. If you want to attract buyers, you need inventory." Bob sat down and wrote a seven-page report about how to sell houses, then he got his team of 17 people together and told them what they would be doing going forward. Did it work? Call Bob and ask him! But please don't bother complaining about any of your problems when you call him. . . .
Bob DeClue isn't the only franchisee who has figured out how to sell houses in St. Louis. Star franchisee Scott Dolson sells his rehabs within about 30 days of listing them. How? By making sure that he delivers "the best rehab" in the marketplace, and by concentrating on marketing the properties. He's currently looking for another team member, someone to head up Investor Relations so that he can sell more houses. Of 100 properties acquired, Scott rehabs 36. So he needs someone to concentrate on selling the other 64, minus a few that he'll keep for his rental portfolio. Don't be surprised to hear that he's selling properties in less than 20 days of listing them, even in a buyer's market.
If there was ever a franchisee who had a reason to throw in the towel, it's Keith Immken in St. Louis. He had two of the worst partnership problems, which led to severe financial problems. But once again, complaining and quitting are not popular in St. Louis. Keith has worked through the monumental problems and is cranking up his business -- he recently converted a home into an office on a busy street, painted it yellow and is now working with the city to get a signage permit. He's jumping through hoops, but this kid is good at jumping! He knows how to get it done. In spite of the adversity, he bought 48 houses in the last 12-month period. Oh, yeah, he sold 53!
Drive around St. Louis and count the billboards. I was there four days and on any given trip around town I saw at least two billboards, no matter which direction I was driving. HomeVestors' presence is huge. It's not just a great lead generator for the market, it's a defense. St. Louis has out-lasted its major competitors, including some who were established before HVA arrived in the market, and some who ripped off our advertising campaigns (until HVA Legal chased them down and stopped them in their tracks). Archie Buys Houses, 1-800-No-Agent, No Ugly Offers -- they disappeared with the recent cold and challenging market. Billboards have always been the backbone of an HVA market. No billboards, or too few billboards, and your market feeds into the hands of the competition. Don't let it happen to you!
This week, I'm headed to Ohio, where I'll speak to an investor group in Cleveland; the week after, I'll be in Memphis to conduct a franchise development seminar and welcome our newest Franchisee Mastermind. I'm looking forward to spending some time with our franchisees in both markets, and coming home with more insights to share with all of you. . . . Want John Hayes to speak to an investor group in your market? Call Gregg Stengel at 972.761.0046, ext. 189. John is booked for upcoming seminars in Cleveland, Memphis, Newark, New York City, Atlantic City, and Detroit.
|
