History has not dealt kindly with the aftermath of protracted periods of low risk premiums. -- Alan Greenspan
I think this pretty much summarizes what the real estate industry is in for in 08. It is payback time for all those novice investors who were out doing real estate as a side business and making millions (at least on paper).
Our jobs will be to clean up the mess and make a tidy profit while also making sure not to overestimate ourselves. The fall in the market will likely be deep and could extend for many years. We need to project our deals accordingly.
With the proper balance between aggressive buying and taper projections the coming years should be some of the best for NWJ/Signature.
Let's Make It Happen.
Nickolas W. Jekogian
Monday, January 14, 2008
Monday, January 7, 2008
Prosperous and Rewarding 2008
"The key is not the will to win...everybody has that. It is the will to prepare to win that is important." - Bobby Knight, Texas Tech men's basketball coach
We have spent the past few years creating a great company. We are now in a position to grow quickly through acquisitions while also creating value in the existing portfolio. The market is coming back into alignment with profitability.
In ‘08 we will no longer be forced to look at 5 cap deals and walk away from the deal. The competition, primarily novice investors and condo converters with be sidelined for the foreseeable future. The major players are focused on larger deals now so we have a huge opportunity to advance towards our $1 Billion goal. As long as we stick with our model we will get there.As for our management side the last few years have been a time of restructure and creation. We spent a substantial amount of money and time creating a brand that our residents can feel connected to.
In 2008 we will continue to reinforce that connection. Our management teams are in place and will continue the great work that they have been doing for us in the past while also evolving into the service based company we are aspiring to be.I look forward to a prosperous and rewarding 2008 for the entire NWJ/Signature community.
Nickolas W. Jekogian
We have spent the past few years creating a great company. We are now in a position to grow quickly through acquisitions while also creating value in the existing portfolio. The market is coming back into alignment with profitability.
In ‘08 we will no longer be forced to look at 5 cap deals and walk away from the deal. The competition, primarily novice investors and condo converters with be sidelined for the foreseeable future. The major players are focused on larger deals now so we have a huge opportunity to advance towards our $1 Billion goal. As long as we stick with our model we will get there.As for our management side the last few years have been a time of restructure and creation. We spent a substantial amount of money and time creating a brand that our residents can feel connected to.
In 2008 we will continue to reinforce that connection. Our management teams are in place and will continue the great work that they have been doing for us in the past while also evolving into the service based company we are aspiring to be.I look forward to a prosperous and rewarding 2008 for the entire NWJ/Signature community.
Nickolas W. Jekogian
Monday, October 1, 2007
NWJ/Signature Vision and Values
NWJ/Signature’s VISION
To create a well-known, sought-after living experience
that exceeds our residents’ expectations. We strive to
create a profitable brand, which will be achieved by
delivering excellent customer service and value.
NWJ/Signature’s MISSION
To consistently provide a tenant living experience which
exceeds our residents’ expectations.
NWJ/Signature’s VALUES
Integrity: Do the right thing – always!
Respect: Value others, and treat others as you would be treated.
Collaboration: Working together works!
Customer-focused: Exceed expectations of our customers and communities.
Performance: Demonstrate pride and passion for our work; Deliver
consistent and measurable results; Reward success
NWJ/Signature’s GOALS
· Great places to live
· Great places to work
· Great people
· Build a stronger NWJ/Signature
· Live NWJ/Signature values
NWJ/Signature’s TEAM MEMBER OBJECTIVES
If you: Become and remain effective in your job responsibilities
· “Wow” your customers
· Help NWJ/Signature grow and improve our business
· Work together
NWJ/Signature will: Invest in your growth and development
· Reward you fairly for your contribution
· Provide a respectful, caring leadership team and working environment
· Partner with you to help realize your potential
To create a well-known, sought-after living experience
that exceeds our residents’ expectations. We strive to
create a profitable brand, which will be achieved by
delivering excellent customer service and value.
NWJ/Signature’s MISSION
To consistently provide a tenant living experience which
exceeds our residents’ expectations.
NWJ/Signature’s VALUES
Integrity: Do the right thing – always!
Respect: Value others, and treat others as you would be treated.
Collaboration: Working together works!
Customer-focused: Exceed expectations of our customers and communities.
Performance: Demonstrate pride and passion for our work; Deliver
consistent and measurable results; Reward success
NWJ/Signature’s GOALS
· Great places to live
· Great places to work
· Great people
· Build a stronger NWJ/Signature
· Live NWJ/Signature values
NWJ/Signature’s TEAM MEMBER OBJECTIVES
If you: Become and remain effective in your job responsibilities
· “Wow” your customers
· Help NWJ/Signature grow and improve our business
· Work together
NWJ/Signature will: Invest in your growth and development
· Reward you fairly for your contribution
· Provide a respectful, caring leadership team and working environment
· Partner with you to help realize your potential
Friday, September 14, 2007
One of my favorite quotes
"It's like the famous story of the three bricklayers: The first says, 'I'm laying bricks.' The second says, 'I'm making a wall." And the third says, 'I'm building a cathedral.'"
Everyone has a job to do but those that are most productive and happiest are the ones that understand the goal their efforts are going towards.
We are growing a company that will be one of the largest owners of apartments in the world. We are literally doing this brick by brick. You are all a big part of the process and a greater part of the result.
I meet with inverstors all the time that are amazed by our organization. The ability to buy non-institutional buildings at below market price, rehab units efficiently, finance competitively, and run them like a major institutional assets is a feat accomplished by very few. We have created a blue ocean strategy for ourselves.
Again you are all part of this growth.
Nickolas W. Jekogian
917 763 3500
Sent via BlackBerry from Cingular Wireless
Everyone has a job to do but those that are most productive and happiest are the ones that understand the goal their efforts are going towards.
We are growing a company that will be one of the largest owners of apartments in the world. We are literally doing this brick by brick. You are all a big part of the process and a greater part of the result.
I meet with inverstors all the time that are amazed by our organization. The ability to buy non-institutional buildings at below market price, rehab units efficiently, finance competitively, and run them like a major institutional assets is a feat accomplished by very few. We have created a blue ocean strategy for ourselves.
Again you are all part of this growth.
Nickolas W. Jekogian
917 763 3500
Sent via BlackBerry from Cingular Wireless
Tuesday, September 4, 2007
Changing Market
"Never interfere with an enemey who is in the process of committing suicide." - Napoleon Bonaparte (1768-1821)
This is a good quote today because so many deals were done over the past few years that really made no sense. We knew that and stayed away and now the problems are coming to a head. Unsold condos, short term loans that can't be refinanced and increased cap rates on properties are just a few issues we will see for the next few years. These will be excellent buying opportunities for us.
These times are very similar to the early 90s when I first started in the apartment business. No one wanted to be in the real estate business at that time. Sellers were taking significant losses on their sales and there were few buyers out competing for the properties. These are the times when you want to be a buyer.
Also, with new more conservative lending criteria novice landlords will have a difficult time financing deals. And with no subprime financing our resident base that was leaving in droves to find the so called "American Dream" will now be required to save untill they have a substantial (20%) down payment. This means longer term residents and higher occupancy rates for our properties.
Income based buying (our model) is going to be the only option for the next few years. Our buying opportunities look good but we must also be cautious. No one knows how big this problem is or when the real estate recovery may start.
Nickolas W. Jekogian
917 763 3500
Sent via BlackBerry from Cingular Wireless
This is a good quote today because so many deals were done over the past few years that really made no sense. We knew that and stayed away and now the problems are coming to a head. Unsold condos, short term loans that can't be refinanced and increased cap rates on properties are just a few issues we will see for the next few years. These will be excellent buying opportunities for us.
These times are very similar to the early 90s when I first started in the apartment business. No one wanted to be in the real estate business at that time. Sellers were taking significant losses on their sales and there were few buyers out competing for the properties. These are the times when you want to be a buyer.
Also, with new more conservative lending criteria novice landlords will have a difficult time financing deals. And with no subprime financing our resident base that was leaving in droves to find the so called "American Dream" will now be required to save untill they have a substantial (20%) down payment. This means longer term residents and higher occupancy rates for our properties.
Income based buying (our model) is going to be the only option for the next few years. Our buying opportunities look good but we must also be cautious. No one knows how big this problem is or when the real estate recovery may start.
Nickolas W. Jekogian
917 763 3500
Sent via BlackBerry from Cingular Wireless
Monday, August 6, 2007
Good Quote
I learned that the only way you are going to get anywhere in life
is to work hard at it. Whether you're a musician, a writer, an athlete or
a businessman, there is no getting around it. If you do, you'll win. If
you don't you won't.
is to work hard at it. Whether you're a musician, a writer, an athlete or
a businessman, there is no getting around it. If you do, you'll win. If
you don't you won't.
Bruce Jenner
(1949-, American track athlete, author, speaker
Nickolas W. Jekogian
917 763 3500
Sent via BlackBerry from Cingular Wireless
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