By Jamie Gorski

Why do winners win? How do you become a self-made winner?

Winners work hard at learning from other winners. It is up to you to learn from these examples and become a self-made winner. Here’s what I’ve learned from other winners.

1.    Persistence

“Keep on going and the chances are you will stumble on something, perhaps when you least expect it.  I have never heard of anyone stumbling on something sitting down.”  - Charles F. Kettering, Vice President of General Motors

Winners refuse to see obstacles as one solid barrier, but as a combination of small hurdles.  This positive outlook allows them to develop higher levels of persistence and to tap their inner strength leading to greater degrees of success.

Who in this industry typifies this persistence?  Tami Siewruk who created her own opportunities and launched a marketing company that literally changed our industry.

2.    Attitude

“Nothing can stop the person with the right mental attitude from achieving his/her goal:  nothing can help the person with the wrong mental attitude.”  - Thomas Jefferson

Positive spirit precedes positive results.  Winners assume the mental attitude that it is impossible to fail.   Losers often judge their efforts with pessimistic reasoning instead of reinforcing their efforts with optimistic hope.

Who in our business typifies this positive outlook?  Anne Sadovsky, whose positive spirit enabled her to find solutions to challenges and allowed her to tear down barriers to emerge as a major player in our industry.

3.    Effort

“The kind of people I look for to fill top management spots are eager beavers, the mavericks.  These are the people who try to do more than they’re expected to do – they always reach.”  - Lee Iacocca, Chrysler Chairman

Winners know that without extra effort it is impossible to win.  Extra effort does not always mean you have to work harder than anyone else.  Extra effort can come from working smarter, not harder.

Who exemplifies this better than Bill Norwell, Senior Vice President of Draper & Kramer?  Bill not only works harder than anyone else, he works smarter, holding on to his vision and creating unheard of opportunities.

4.    Courage

“To be courageous requires no exceptional qualifications, no magic formula, no special combination of time, place, and circumstance.  It is an opportunity that sooner or later is presented to us all.”  - John F. Kennedy

The famous football coach Vince Lombardi once told his team courage equals mental toughness.  Martin Luther King saw courage as “… an inner resolution to go forward in spite of obstacles and frightening situations.”

Who in our industry demonstrates courage?  Mindy Williams, President of Let’s Party, a resident retention company, had the courage to be creative and to bring her big idea to life.

5.    Competition

“Far better it is to dare mighty things, to win glorious triumphs, even though checkered by failure, than to take rank with those poor spirits who neither enjoy much nor suffer much, because they live in the gray twilight that knows not victory nor defeat.”  - Theodore Roosevelt

Winners realize competition is the only way to get better, to get tougher, and to taste the sweetness of success.  Avoiding competition means you will never find out how good you truly are.

Jennifer Nevitt, President & founder of Bravo Strategic Marketing, knows that you cannot prove you are the best unless you have competition.  Jennifer Nevitt is motivated by competition allowing her to reach challenging goals and to accomplish the impossible.

6.    Adversity

“Success grows out of struggles to overcome difficulties.  If there were no difficulties, there would be no success.”  - Samuel Smiles, Author

B.   F. Skinner, the noted psychologist once suggested the way to look at failure:  “A failure is not always a mistake; it may simply be the best one can do under the circumstances.  The real mistake is to stop trying.”

Adversity is nothing more than a wake-up call for creativity.  Several individuals in our industry have overcome difficulties leading them to succeed.  Toni Blake, President of Blake Productions, Anne Sadovsky of Anne Sadovsky & Company, and Dana Fox Lynde, Idea Broker, to name a few.

7.    Gratitude

“There is as much greatness of mind in acknowledging a good turn as in doing it.”  - Seneca

Cicero stated “Gratitude is not only the greatest of virtues, but he parent of all the other.”

My first entry into this business began on a small community, located in a difficult neighborhood in Baltimore.  My husband and I, expecting our first child, had recently moved form Ohio to Maryland for his new job.  Unfortunately, the company my husband worked for dissolved shortly after our move.  We were in the frightening position of no jobs or income.  As we began our search for employment, I informed all the employers of my pregnancy.  None were willing to take a chance on hiring me because of this – until I interviewed with a small management company.  I was given a job as a groundsperson in a garden apartment community.  I continued my career in property management through positions as leasing consultant, assistant manager, manager, director of marketing, marketing analyst, and vice president.

I do truly realize that without the assistance and guidance of others I would not be in my present position today.  I am grateful to those of you mentioned in this article, and to Jeff and Ashley Gorski, Nancy Brown, Chris Cole, Kim and Sue Haggerty, John Kurtz, Jim and Beth Montrella, Scott Sterling, Mara Tripp, Lisa Trosien, Alex Welker, Nancy Whitney, and Debbie Whitt.

The lessons on why winners win are easy to understand.  They are hard to put into practice – but not impossible.  Among the many, many rewards are higher success.  Reach for it!

Jamie Gorski is Senior Vice President, Corporate Marketing for The Bozzuto Group where she provides strategic marketing direction for the entire company, overseeing all advertising, marketing and public relations efforts for each of Bozzuto’s six integrated companies – Acquisitions, Construction, Development, Homebuilding, Land Development and Property Management. Jamie brings more than 25 years of multifamily marketing experience to Bozzuto, including five years as chief marketing officer for Kettler.  Prior to Kettler, she served as vice president of marketing for Archstone-Smith and for Charles E. Smith Residential. Jamie’s expertise includes strategic planning, brand development, standards implementation, Internet marketing and statistical market analysis.  She has extensive experience overseeing major initiatives such as redeveloping corporate web sites and re-imaging campaigns and is an expert in advancing advertising and collateral and in improving corporate and site-specific visual identities. Jamie has won numerous marketing awards, including 30 Pillars of the Industry Awards from the National Association of Home Builders (NAHB).  She received a B.S. in mathematics from Ohio State University, where she was captain of the swim team, a Big Ten Champion and an NCAA National finalist.  Jamie and her family reside in Annapolis, Maryland.

By Bradford K. Marting and Jennifer A. Nevitt Casey

Establishing prices for apartments has become an often debated topic of late.  Whatever system used to evaluate and set rent levels is considered a pricing model.  There are manual systems, automated systems, and hybrid systems.  Pricing models support various strategies at different times based on particular market conditions, property conditions, and personal paradigms and prejudices.  However, one thing can generally be agreed upon – it can be brutal out there right now.

One well known pricing strategy is known as the “takedown.”  A takedown is when an extreme price reduction is applied to a specific apartment type by floor level and can range anywhere from a 10% to 20% price reduction from the current market rent.  Usually, takedowns are used for a period of hours or days in order to quickly absorb an oversupply of a specific product type and, a decade ago, they were never intended to be considered a permanent solution to oversupply.

However, in the past year, takedown pricing has become more extreme, more universal, and threatening to become more permanent.   During inflationary times, pricing models focused on finding the inefficiencies in capturing income.   Utilizing the same rule sets and algorithms during deflationary times can result in very different outcomes and can be financially destructive to the investment property.  What is meant by financially destructive?  If takedown pricing is held for too long a period of time while occupancies by unit types are in fact increasing at lowered rent levels, the ability of investors and owners to make their mortgage payments can become difficult or even impossible.  Yes, impossible.

In the past, competing properties typically would try to gain market share by matching or beating each others’ lowered rents and concessions.  Add to this price war the effort to secure longer lease terms than the typical 12 months and you have a long-term recipe for financial disaster.  This constant matching of current price or special discounting programs is only causing a downward spiral for the entire industry to a point where recovery will be prolonged.  In the past decade, fluctuations of pricing from 8 to 15% discounting ranges specific to unit types or floor levels have been recoverable income offenses if used for brief periods.   However, 20%-35% takedown pricing on all unit types across-the-board for extending periods of time will prove to be destructive, possibly resulting in massive commercial loan defaults in the near term.

If apartment investors are looking for 8% returns and income streams have declined by 25%, not only is there no money to pay the mortgage payment and tax bills, but no cash for the desired return.  In fact, if there is no positive cash flow, the investor will be forced to contribute additional funds just to keep the property operating.  They will be forced to make a difficult decision of putting additional money into a losing business or allowing the property to be foreclosed or taken back by the lender.

There is little question that new situations require new thinking and tools such as the “Marting Nevitt Survival Plan.”   The plan reveals the breakeven points and the point of no return (no pun intended).  After studying the pricing dynamics in major markets over the past six months, it is clear that pricing models are falling below the point of no return with no voice of reason to assist corporate decision makers in setting a boundary for income reduction that will force their assets into loan default.

Manual pricing models continue to have limitations based upon personal paradigms, prejudices, and unparalleled financial interests with the investment objectives.  It is not unusual for the leasing team members not to be able to meet the financial requirements to qualify to live where they work.  In other words, they cannot afford what they are expected to sell.  Therefore, because they are likely paying much less rent at a lesser property, they may feel the product they are leasing is already “overpriced” and resistant to raising prices.  There can also be resistance to raising prices from the onsite leasing teams because they perceive it as making their job of selling more difficult.  And this can be true.   This can result in resentment against management and a reduction in productivity.

Automated pricing models are relatively new compared to manual pricing models.  There are but a few even commercially available.  The premise makes logical sense and time will tell how successful they will be.  Removing the human fear of adjusting rents either too high or too low is a substantial benefit of software.  As with any new technology, it has its supporters and critics.

The hybrid pricing model is a mixture of both manual and automated pricing models.  The automated model is allowed to run its program and make pricing recommendations. The recommended prices are then scrutinized or challenged by humans.  The result is that the automated recommended price will either be accepted or overridden.  Some companies are even creating job positions where reviewing prices is the sole responsibility.

No matter which pricing model you choose, it is imperative to understand basic real estate investment theory and the ultimate affect it can have on a multifamily real estate investment.  Pricing too high can result in higher vacancy, which can lead to financial ruin.  Pricing too low can result in prolonged lower cash flows, which can also lead to financial ruin.  Fortunately, there is a sweet spot somewhere between the two.  Utilizing new technologies and new tools can provide you with a competitive advantage necessary for survival and success.

Don't miss Brad and Jennifer's workshops on March 23rd and 24th in Dallas

Revenue Management – Basics-Day One

Pricing is key to successful marketing, but can be one of the most difficult aspects of the marketing process. This session delivers essential skills and knowledge needed to optimize your pricing while minimizing costly trial and error. You’ll learn the fundamentals of ‘Power Pricing,’ gain an understanding of pricing dynamics and key metrics used to set up a manual pricing model, and walk away with the skills and knowledge you need to set up an individual manual pricing model for your product.

Revenue Management – Advanced-Day Two

This session goes beyond the fundamentals of ‘Power Pricing’ to deliver the knowledge and skills needed to execute and maintain your manual pricing model to increase cash flow and the overall value of your organization. Learn how to use reports and graphs to more effectively communicate with your team and stakeholders and confidently manage your organization’s revenue. (Prerequisite: Revenue Management – Basics)

Our workshops are designed to deliver the skills you need to compete in today’s challenging environment. Choose from Power Pricing: Revenue  Management BASICS or ADVANCED courses, individually priced so you can attend the course-level that you need most, or choose BOTH! To take advantage of discounted individual course pricing:

Power Pricing BASICS ONLY – MARCH 23 – ONLY $175
Pricing is key to successful marketing, but can be one of the most difficult aspects of the process. This session delivers the skills and knowledge you need to optimize pricing while minimizing costly trial and error. Learn the fundamentals of Power Pricing; gain an understanding of pricing dynamics and key metrics; and how to set up an individual manual pricing model for your product!

Power Pricing ADVANCED ONLY – MAR 24 – ONLY $175
Go beyond the fundamentals and learn how to execute and maintain your manual pricing model to increase cash flow and the overall value of your organization; use reports and graphs to more effectively communicate with your team and stakeholders; and confidently manage your organization’s revenue.

BASICS+ADVANCED! (2 DAYS) – MAR 23-24 – ONLY $304!

DON’T MISS IT! Register to attend these workshops .

Workshop Leaders:

Brad Marting

Mr. Marting is a professional speaker, trainer, and consultant for OptiYield, a consulting company specializing in profit optimization for real estate investments. His formal education includes a Bachelor of Science degree in Business and a Masters of Business Administration degree.  He is a licensed real estate broker and holds designations as a Certified Property Manager, Certified Commercial Investment Member, Certified Apartment Property Supervisor and an Accredited Apartment Association Instructor.  He has more than 30 years of real estate experience and has served as an officer and past chapter president for both IREM® and NAA®.  In 2009, he was the Chairperson for the Income & Expense survey for residential real estate assets for IREM®.  He is an award-winning author for his article in the Journal of Property Management on Yield Management and was co-founder and co-inventor of YieldStar®, a rent optimization system.  He has acquired, managed, sold and consulted on more than three-billion dollars of real estate investments.

Jennifer Nevitt Casey

Since 1993, Jennifer Nevitt Casey, Chief Executive Officer of Bravo Strategic Marketing, Inc., has developed return-on-investment strategies for multifamily real estate investment portfolios with a capitalized value exceeding $6 billion. She is also a highly successful income growth strategist for residential assets and considered one of the nation’s most innovative real estate marketers.  She is also President of Rohman Management and a Partner in Rohman Development, a New York City-based real estate development firm formed by a group of veteran professionals targeting the southeastern United States as its focus point for apartment development.   She provides consultation on product design, the importance of a development’s timing, correct market positioning and proven successful leasing and for-sale marketing strategies.  She is a contributing author of the Urban Land Institute’s book, “Developing Multifamily Housing,” and co-author or the National Association of Home Builder’s book, “How to Excel at Leasing Apartments.”  Her credits also include inventor and founder of YieldStar Technology, LLC, a yield management, B2B software application that optimizes revenue for the multifamily real estate industry and whose assets were acquired by RealPage.  A dynamic speaker known for captivating audiences, she has trained over 20,000 professionals within the multifamily industry and sales teams for newly constructed condominiums and single family homes.