Monday, August 11, 2008

Olympics - China's coming out party

I am sure most of you watched the Olympics this weekend and were as impressed as I was by the opening ceremony. I was amazed by the scale of the event like no other. From my standpoint it was the message that China was sending to its people as well as the world; with teamwork we can accomplish anything and we will!
China's greatest resource is its people. Over a Billion strong. If the people of China continue to work as a united group it is going to accomplish things as a country that the US can not even imagine.

Human resources (good people) are a better asset to have then natural resources like (oil, productive farms, etc) because good people working together will create amazing and powerful things.

I was especially impressed by the one act in the opening ceremony where there were thousands of boxes moving up and down to symbolize the creation of the mountains. What was incredible to me was seeing at the end that it was not a mechanical computerized system creating this image, but instead it was completely driven by thousands of people. That is teamwork!

The analogy I see with our company is that we have so many good people and as long as we work together as a team we can and will move mountains.

Thanks for making it happen.
Nick

Thursday, August 7, 2008

Can You Become a Creature of New Habits?

Can You Become a Creature of New Habits? By JANET RAE-DUPREE

HABITS are a funny thing. We reach for them mindlessly, setting our brains on auto-pilot and
relaxing into the unconscious comfort of familiar routine. “Not choice, but habit rules the
unreflecting herd,” William Wordsworth said in the 19th century. In the ever-changing 21st
century, even the word “habit” carries a negative connotation.

So it seems antithetical to talk about habits in the same context as creativity and innovation. But
brain researchers have discovered that when we consciously develop new habits, we create parallel synaptic paths, and even entirely new brain cells, that can jump our trains of thought onto new, innovative tracks.

Rather than dismissing ourselves as unchangeable creatures of habit, we can instead direct our
own change by consciously developing new habits. In fact, the more new things we try — the more we step outside our comfort zone — the more inherently creative we become, both in the
workplace and in our personal lives.

But don’t bother trying to kill off old habits; once those ruts of procedure are worn into the
hippocampus, they’re there to stay. Instead, the new habits we deliberately ingrain into ourselves create parallel pathways that can bypass those old roads.

“The first thing needed for innovation is a fascination with wonder,” says Dawna Markova, author of “The Open Mind” and an executive change consultant for Professional Thinking Partners. “But we are taught instead to ‘decide,’ just as our president calls himself ‘the Decider.’ ” She adds, however, that “to decide is to kill off all possibilities but one. A good innovational thinker is always exploring the many other possibilities.”

All of us work through problems in ways of which we’re unaware, she says. Researchers in the late 1960s discovered that humans are born with the capacity to approach challenges in four primary ways: analytically, procedurally, relationally (or collaboratively) and innovatively. At puberty, however, the brain shuts down half of that capacity, preserving only those modes of thought that have seemed most valuable during the first decade or so of life.

The current emphasis on standardized testing highlights analysis and procedure, meaning that few of us inherently use our innovative and collaborative modes of thought. “This breaks the major of us inherently use our innovative and collaborative modes of thought. “This breaks the major rule in the American belief system — that anyone can do anything,” explains M. J. Ryan, author of the 2006 book “This Year I Will...” and Ms. Markova’s business partner. “That’s a lie that we have perpetuated, and it fosters mediocrity. Knowing what you’re good at and doing even more of it creates excellence.”

This is where developing new habits comes in. If you’re an analytical or procedural thinker, you
learn in different ways than someone who is inherently innovative or collaborative. Figure out
what has worked for you when you’ve learned in the past, and you can draw your own map for
developing additional skills and behaviors for the future.

“I apprentice myself to someone when I want to learn something new or develop a new habit,” Ms. Ryan says. “Other people read a book about it or take a course. If you have a pathway to learning, use it because that’s going to be easier than creating an entirely new pathway in your brain.” Ms. Ryan and Ms. Markova have found what they call three zones of existence: comfort, stretch and stress. Comfort is the realm of existing habit. Stress occurs when a challenge is so far beyond current experience as to be overwhelming. It’s that stretch zone in the middle — activities that feel a bit awkward and unfamiliar — where true change occurs.

“Getting into the stretch zone is good for you,” Ms. Ryan says in “This Year I Will... .” “It helps keep your brain healthy. It turns out that unless we continue to learn new things, which challenges our brains to create new pathways, they literally begin to atrophy, which may result in dementia, Alzheimer’s and other brain diseases. Continuously stretching ourselves will even help us lose weight, according to one study. Researchers who asked folks to do something different every day — listen to a new radio station, for instance — found that they lost and kept off weight. No one is sure why, but scientists speculate that getting out of routines makes us more aware in general.”

She recommends practicing a Japanese technique called kaizen, which calls for tiny, continuous
improvements.

“Whenever we initiate change, even a positive one, we activate fear in our emotional brain,” Ms.
Ryan notes in her book. “If the fear is big enough, the fight-or-flight response will go off and we’ll
run from what we’re trying to do. The small steps in kaizen don’t set off fight or flight, but rather
keep us in the thinking brain, where we have access to our creativity and playfulness.”
Simultaneously, take a look at how colleagues approach challenges, Ms. Markova suggests. We
tend to believe that those who think the way we do are smarter than those who don’t. That can be fatal in business, particularly for executives who surround themselves with like-thinkers. If
seniority and promotion are based on similarity to those at the top, chances are strong that the
company lacks intellectual diversity.

“Try lacing your hands together,” Ms. Markova says. “You habitually do it one way. Now try doing it with the other thumb on top. Feels awkward, doesn’t it? That’s the valuable moment we call confusion, when we fuse the old with the new.”

AFTER the churn of confusion, she says, the brain begins organizing the new input, ultimately
creating new synaptic connections if the process is repeated enough.
But if, during creation of that new habit, the “Great Decider” steps in to protest against taking the unfamiliar path, “you get convergence and we keep doing the same thing over and over again,” she says. “You cannot have innovation,” she adds, “unless you are willing and able to move through the unknown and go from curiosity to wonder.”

Monday, August 4, 2008

Pressure

"Pressure is a word that is misused in our vocabulary. When you start thinking of pressure, it's because you've started to think of failure." - Tommy LaSorda, LA Dodgers manager

"Good luck is what happens when preparation meets opportunity." - Darrel Royal, Univ. of Texas football coach

"If what you did yesterday seems big, you haven't done anything today." - Lou Holtz, Univ. of South Carolina football coach

"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

The next 45 days are probably going to be the busiest in the history of our company.By Sept 15th we will:
  • Close on a $75M acquisition.
  • Sign agreements of sale on an additional 2,000 units
  • Lease up 300 units.
  • Settle a $12M insurance claim
  • Finance more than $100M in debt (in a very bad debt market)
  • Raise $14M in equity capital.

That's a lot of work in a very short period of time but when I look at the dynamic organization we have created I am confident that we will succeed. Thinking outside the box and Wowing people with our attitude of success is what makes us different. Like many great sports teams we have spent time practicing and perfecting ourselves so when the opportunities arise we can take advantageous. So we earned the pressure and opportunity to perform this month.With everyones dedication and extra effort this next few weeks is going to be an incredible success.

We will succeed.

Let's Make It Happen.

Monday, July 28, 2008

Crunch Time!!!

Sorry I missed last weeks post. I had finished a very wet and cold Ironman race late in the night before and didn't get back in an area with cell/internet service until late monday.

This week's topic is about Crunch Time. It happens in our business every year at the end of summer. Leasing season is ending and we need units filled before the phone stops ringing. Our annual profitability is made or broken in these 4 weeks. If we are left with vacancies we will not likely fill them until early next year and with profit margins as tight as ours that means the difference between a profit and loss this year.

With that said I ask everyone to step up their efforts over the next 4 weeks to get us to 100% occupancy in each and every market. We can do it.

If anyone has already reached this goal in their market and has time on their hands please discuss with your supervisor how you can help in other markets. We are still looking for additional leasing agents and management help throughout the country.

"Energy and persistence conquer all things."

Ordinary people believe only in the possible.
Extraordinary people visualize not what is possible or probable,
but rather what is impossible.
And by visualizing the impossible, they begin to see it as possible.
-Cherie Carter-Scott (American Author, Speaker, Trainer)

Thanks everyone for making the impossible happen!

Nick

Monday, July 14, 2008

Ceo mmr - NWJ/Signature Update

A lot has been happening. On the acquisitions side we have activity for new deals in almost every market we are working in. Kansas city, El Paso, Durham, Omaha, Albqr, even NYC city. The acquisitions group has really been turning up opportunities under there new sales manager and motivational guide, Jon Colton. The call volume has increased significantly (by many multiples greater) and the results are starting to show in LOIs and A/S. Good job guys keep it up!

The Portfolio division signed NWJ cos largest deal to date with the takeover of Wilshire Enterprises a publicly traded company. This deal will add 1000 units to the NWJ/Signature portfolio plus give us a few retail/office properties which we intend to sell in the near future. This deal has opened up conversations with a few other companies and it looks like we are now getting traction in this division and more deals to come.

Lender direct division is really seeing a lot of activity; John Stanton and John Coffen have the job of flying around the country seeing failed apartment projects. We have been putting our bids in and are getting close on a few deals. Steve Wissak is also working his connections in the NY capital markets to take advantage of the fire sales going on of debt. We are currently close to a deal that could eventually add 3000 units to the portfolio, at a price that is $60M less than the price paid 18 months ago. I will update you further on this deal as obviously it will affect everyone in the organization.

On the operations side everything keeps getting better and better. I am delighted when I read the economic news and see things getting worse and worse in the housing market because the longer it lasts the greater impact it will have on the national opinion renting or buying. The past 5 yrs everyone wanted to own but my feeling is that going forward for a good part of the next generation residents will think twice about jumping into home ownership. That means longer term renters, more renters, and happy residents. Renting really is the most economical way for a young family, not to mention a single person, to live.

We are already seeing the effects. Our 100% occupancy club already includes Richmond, Baltimore, and Kansas City-Plaza area. The other markets seem to be moving strongly towards that goal and I expect by next months update that almost all our markets will be a part of the 100% occupancy club. Great job everyone, especially all the leasing agents under Ian Fraenkel, You are making it happen.

July 1st marked a milestone for us with the start of our Signature Community management group. We now manage almost 3000 apartment units under one organization. I welcome aboard Nick Moos and his team in Kansas city and Indy. We are creating a world class management organization.

The Stabilization group under Mike Greenzang and Mike Deitric has made huge strides in turning around our projects. Park Greenwood was completed in record breaking time and now Waldo is at the final stages of its transformation. Great job everyone involved in these transactions. What we need to realize is that stabilization is not just about construction its leasing, managing, marketing and asset management all accelerated into a very short period of time. Thanks to everyone involved in these transformations.

On the finance side we still continue to receive commitments on financing and expect to refinance Waldo once we hit our 90% occupancy target. The financing has definitely become more difficult but due to our management experience lenders are feeling comfortable continuing to lend on our projects.

On the equity investor front we continue to attract a strong investor base due to the strong returns we have provided on Park Greenwood and the anticipated returns on Waldo and the new projects. Investors are driven to our deals because of our track record and the great things that everyone is doing with the Signature brand, keep up the good work.

The next few years should be incredible growth opportunities, thanks to everyone for making this happen.


-Nick

Tuesday, July 1, 2008

What It Takes...

You set your goals, developed a short term strategy and found a place where you can make a difference in the organization now its time for the hard work. There is no easy way to put this you have to work hard if you want to succeed. Doesn't matter if you want to be a movie star or a real estate owner the only way to make it is by working hard.

When I graduated college I knew that I wasn't going to hit my goals without putting in the time. So I worked lots of hours, normally 8am until 10pm. I worked on weekends, in my free time I read business magazines and real estate publications so I could learn what I needed to know. It was hard work and I had to give up a lot of other things but it paid off. I made money, grew a company, met a lot of interesting people along the way, hired great people, and forged long term relationships. These early years where the foundation of this company.

One thing that helps me get through it all is that I love every second of it. If you don't love what you are doing you will never make it through the days, weeks, years that are necessary to succeed. You must find what you love to do or find a way to love what you are doing.

A few quotes that I find appropriate:

"Energy and persistence conquer all things."

"Some of us will do our jobs well and some will not, but we will be judged by only one thing: the result." - Vince Lombardi

All successful people, men and women, are big dreamers. They imagine what their future could be, ideal in every respect, and then they work every day toward their distant vision, that goal or purpose.

Brian Tracy
(American Trainer, Speaker, Author, Businessman)
"You live longer once you realize that any time spent being unhappy is wasted."

Ruth E. Renkl
"It takes time to succeed because success is merely the natural reward of taking time to do anything well."

Joseph Ross
"Great things are only possible with outrageous requests."

Thea Alexander
(American Science Fiction Writer)
"First, say to yourself what you would be, and then do what you have to do."
Epictetus

"Don't let what you cannot do interfere with what you can do." - John Wooden

"Three great essentials to achieve anything worthwhile are, first, hard work; second, stick-to-itiveness; third, common sense." - Thomas Jefferson

"Live as if you were to die tomorrow." - Latin proverb

There's often no way you can look into the game of life and determine whether or not you'll get that big break tomorrow or whether it will take another week, month, year or even longer. But it will come!

Zig Ziglar
(1933-, American Sales Trainer, Author, Motivational Speaker)

"I could work harder than everyone." - Jerry Rice

"Do your homework because kids in India are." - Jim Tunney

"The reason why so little is done is generally because so little is attempted." - Samuel Smiles (1812-1904, Scottish author)

"Step by step. I can't think of any other way of accomplishing anything." - Michael Jordan

"Nature gave us two ends: one to sit on and one to think with. Ever since then, man's success or failure has been dependent on the one he used most." - Robert Albert Bach

"If we did all the things we are capable of doing, we would literally astound ourselves." - Thomas Edison (1847-1931

"Anything in life worth having is worth working for." - Andrew Carnegie (1835-1919), Scottish industrialist & philanthropist; founder, Carnegie Steel Co.

"The fruits of life fall into the hands of those who climb the tree and pick them." - Earl Tupper (1907-1983), American businessman; inventor of Tupperware


Just remember its up to you to make it happen.

Nick