April 2019 Housing Minute

Pending home sales rose 3.8% from last month and REALTORS® name the top markets Millennials are moving to, with Madison, Wis. coming in at number one.

Crisis communicator: A board president’s coordinated strategy during Hurricane Irma

Michael Kulich, the overall winner of CAI’s 2018 Outstanding Homeowner Leader award, went above and beyond to help the Turtle Creek Homeowners Association in Orlando, Fla., deal with Hurricane Irma’s destruction. As president of Turtle Creek when the storm struck, Kulich led efforts to develop and implement the community’s disaster plan, and during Irma, he turned his home into a “war room” to give board members and vendors a space to provide the community with updates and review action plans.

When the skies cleared, Kulich—a management consultant by trade—took time off from his day job to coordinate vendor activities and lead the cleanup until the community was back on its feet.

What should homeowners do before and after a hurricane?

Residents should stock up on critical supplies and identify how to stay connected to the police and the association. It’s equally important for residents to be patient after the storm passes. Turtle Creek residents were eager to begin the cleanup process after Irma. While their intentions were good, it’s better to pause, confirm everyone is safe, and confirm it’s safe to begin clearing debris.

Michael Kulich

What must a community disaster plan include?

Our plan focused on preparing our infrastructure and homeowners for potential damage and partnering with local vendors and government officials to establish communications lines for continuous updates. Between computers and cell phones, Turtle Creek board members were in constant communication with local government officials, local law enforcement, and utility companies. This approach allowed us to gather pictures of the damage and have video conferences with our landscaping vendor to develop a cleanup plan. We were back to normal operations within a couple of weeks as opposed to months.

What makes a community leader effective?

Communication is an essential quality. As a board member, I use MailChimp for email updates, Twitter, and I recently launched a YouTube channel to livestream our board meetings. Residents appreciate our efforts to keep them informed, as it lends itself to another trait of a successful community leader: transparency. Operating an association board shouldn’t be a mystery. Residents should feel welcome to attend all activities, and feedback should be encouraged.

Why do you volunteer?

Volunteering gives me an opportunity to remove myself from the daily grind and focus my time and energy helping someone else. Since high school, I’ve made it a priority to find a cause or an organization where I can volunteer.

What do you enjoy about serving on your board?

As president, I find the ability to address a homeowner’s concern and find a resolution extremely rewarding. But my main source of enjoyment stems from the relationships I’ve built with our homeowners and local vendors.

What else do you enjoy?

Traveling with my wife and daughter and adding to my sports card collection. Lately, my free time is spent writing. I’m creating my first blog, which focuses on community association topics and trends.

April is National Volunteer Month. Read our articles about preparing for a volunteer role and five steps for effective community leadership. And you can read about the inspiring work done by a homeowner leader who put his community toward a path of financial stability.

The post Crisis communicator: A board president’s coordinated strategy during Hurricane Irma appeared first on Ungated: Community Associations Institute Blog.

5 Steps to Creating the Perfect Outdoor Living Room

Submitted by the Outdoor Power Equipment Institute (OPEI) 1. Declutter & Clean The first step to sprucing up the outdoor living room is to clear dirt and clutter from the space. Store lawn equipment, children’s toys, and pet play things in a shed or garage. Give the entire area a good scrub down, sweeping away dust […]

BiggerPockets Podcast 327: The “Buy, Rehab, Rent, Refinance, Repeat” Method Made Simple With David Greene

It’s here—THE book on BRRRR! And who better to write it than the leading authority on this strategy: our co-host David Greene.In this episode, he breaks down exactly how to “Buy, Rehab, Rent, Refinance, and Repeat” your way to wealth.David reveals how BRRRR allows him to force equity, leverage the talents of others, and recycle his capital so he didn’t have to keep working 100-hour weeks as a police officer.You’ll learn about the velocity of money, the “core four” players every BRRRR investor needs on his or her team, and the way to eliminate fear by taking a cold, hard look at the numbers.David also explains how this strategy can reduce capital expenditures and how to come to the bargaining table with a cash offer that puts you in the driver’s seat.He also addresses some common objections, including the notion that it’s difficult to influence the appraised value of your rehabbed property. Plus, you won’t want to miss the “Deal Deep Dive” where David goes into detail about one of his recent real-life BRRRR deals.Whether you’re brand new to this method of investing or are looking to fine-tune your BRRRR skills, this episode will provide you with a ton of value. Still, we only cover part of what’s in David’s book, so check it out on the BiggerPockets Bookstore.

Turnaround leader: How a board president revitalized a community in financial disarray

When Michael Shucart took the helm as president of Leisure Town Home Association’s board more than five years ago, financial disarray and outdated amenities plagued the 1,150-home community in Vacaville, Calif. Now, the retired banker is credited with putting Leisure Town back on a path to success.

Development of the 55-and-older community first began in the early 1960s, and the association had gone without a professional community manager for more than 50 years. There had been little resolve from the board to raise assessments and make improvements. “The community was left deferring maintenance with little in the reserves for replacement or repairs,” says Shucart.

Undoing decades of neglect, Shucart developed a list of priorities “to help define our vision” after consulting with the community’s 1,800 residents. The board developed a plan to overcome years of deferred maintenance.

Michael Shucart

Drawing from his experience as a banker specializing in wholesale mortgages, Shucart also reviewed each line in the association’s budget for cost-saving measures. He saw that the reserve study replacement costs were unrealistic and that vendor contracts could be improved.

“I realized all of our vendors were friends of friends. As a result, most of them were not giving us favorable conditions,” says Shucart.

In addition, after more than five decades without a manager, the board decided to hire a full-time, on-site manager to fill the void in day-to-day operations.

Through these steps and a few others, the community recently unveiled updated amenities including a new bocce court, a lawn bowling field, a remodeled swimming pool, and a new fitness center for residents. 

Because of the contributions that have improved Leisure Town’s financial standing and infrastructure, Shucart was named Homeowner Leader of the Year by CAI’s Northern California Chapter in 2018.

Shucart credits the success of Leisure Town’s turnaround to the collaboration with the other members of the board. He also points out that effective leadership “starts with identifying the concerns of membership, putting a plan together that addresses those issues, and working together in the best interests of the association toward a solution.”

But the work is far from over. Shucart has already set future goals to address at Leisure Town. “We are figuring out how to deal with the closure of our golf course, trying to bring in recycled water to use for the roughly 17 acres of green space, and installing new solar panels to offset the cost of electric usage,” he says.

April is National Volunteer Month. Read our articles about preparing for a volunteer role and five steps for effective community leadership. And stay tuned for another look at inspiring work done by a homeowner leader.

The post Turnaround leader: How a board president revitalized a community in financial disarray appeared first on Ungated: Community Associations Institute Blog.

Made in the HOA: 5 steps for effective community association leadership

Some volunteers who have served on a community association board have realized that much of what works for them in their day job doesn’t work as well in the context of board governance. That’s because, in an association, no single person is in charge. Decisions are made by the consensus of board members, so the chain of command is horizontal and less hierarchical.

The best board members understand this very different paradigm. They also prepare for the role and follow the steps below.

Embrace group decision-making

The individual director typically has no power. Once directors embrace the framework of the board as decision-maker, they understand that they cannot make individual promises. This restraint can be very freeing since no individual is responsible for the association and its actions.

Know limitations

A director’s role is in the title; he or she is a person who gives direction. Directors are not normally required or expected to act. The board directs its manager, employees, and service providers to act through association policy and individual decisions.

A director has got to know his or her limitations. The best accept that they do not know everything; they rely upon managers, consultants, and committees. Such directors handle board disagreements much better by accepting the possibility that another sees or knows something that they do not.

Prepare for meetings

The dynamic between group decision-making and relying on experts should be on full display during association meetings.

The most productive and efficient meetings are the result of committed and prepared volunteers, normally assisted by a great manager. To help bring about the best board meetings as a director:

  • Read the agenda packet.
  • Stay on topic.
  • Talk to the board, not the audience.
  • Ask the manager for input on most motions.
  • Encourage open forum as an important part of meetings, and pay attention.
  • Don’t comment on every motion.
  • Respect your board colleagues.

Handle disputes without hostility

During your board service, there will occasionally be violations of the governing documents or other un-neighborly conduct. Try to work things out. Gentle escalation is almost always preferable to “going legal” right out of the gate.

Don’t assume the violating homeowners are disrespecting the board. They might not understand their rights and responsibilities. Give them a chance to do the right thing.

In addition, don’t be too quick to take sides in a dispute between residents, unless there is independent corroboration of the problem. Encourage residents to work things out as neighbors.

Recruit replacements

Finally, begin identifying and preparing your replacement on the board. Volunteer service should not be a life sentence. Committees are a great place to identify people who not only have the interest but will demonstrate commitment to the association and proper attitudes of service and governance.

April is National Volunteer Month. Stay tuned for a look at some of the inspiring work done by homeowner leaders.

The post Made in the HOA: 5 steps for effective community association leadership appeared first on Ungated: Community Associations Institute Blog.

A nice approach: Finding success in your community and in business

Disputes and disagreements between board members, residents, community managers, staff members, and business partners are an inevitable part of living in a community association. While generating an atmosphere of kindness and respect might seem easier said than done, it can make for a more collaborative and positive environment for all, says advertising leader and best-selling author Linda Kaplan Thaler.

Thaler, who is CEO and president of Kaplan Thaler Productions, has carried the belief throughout her professional career that being nice pays off. Thaler’s advertising agency became famous for developing the Kodak Moments campaign, catapulting Clairol Herbal Essences into notoriety with a series of ads inspired by the iconic deli scene from “When Harry Met Sally,” and turning “I don’t want to grow up, I’m a Toys R Us kid” into one of the most recognizable jingles in the world.

Linda Kaplan Thaler

She says that her parents, especially her father, instilled the importance of being mindful and respectful of others. While working on a book that demonstrates this philosophy, The Power of Nice: How to Conquer the Business World with Kindness, she interviewed leaders and CEOs who noted their key to higher productivity and profit margins was practicing kindness.

“We don’t have enough people out there, enough leaders out there, who are really espousing this belief that being nice is really a tool for success. You are not filling people’s champagne glass. You are not a doormat,” Thaler emphasizes. “It is a fine strength when you can allow people in to collaborate. At the end of the day, people will work much harder if they feel acknowledged and if they feel like part of the process.”

The same applies to community associations. Thaler believes that codes of civility are a great way to get people toward a path of being nice to one another. “You can’t have a culture, or an association, or a group of homeowners who will feel comfortable with each other if incivility is allowed, if disrespect is allowed,” she explains.

But actions always go beyond words, and community associations can practice what they preach in simple ways. “Listening is such a huge part of creating a culture where people are nice to each other, where people are kind to each other, because they feel like they are being heard,” Thaler says, adding that listening is also critical to creating empathy and connecting with people.

“The other thing is that you can deflect a lot of tension with humor. When we make another person laugh, we are basically creating a bond,” she notes, saying that humor can be a tool before communicating decisions that may not sit well with many people. “I think it’s very important to use humor in a way that says, ‘It’s going to be OK.’ ”

Thaler will be one of the keynote speakers at the 2019 CAI Annual Conference and Exposition: Community NOW, May 15-18, in Orlando.

The post A nice approach: Finding success in your community and in business appeared first on Ungated: Community Associations Institute Blog.

BiggerPockets Podcast 326: Health, (Big) Wealth, and Total Accountability With David Osborn, Pat Hiban, Tim Rhode (and Josh!)

What does true wealth mean to you? Maybe it’s having control over your time or having the means to donate part of your income to charity. Maybe it means feeling healthy enough to jump out of bed and attack the day.In today’s episode, Brandon, David, and Josh (remember him?) speak with three financially independent investors about what motivated each of them to work so hard toward their goals.Early in their careers, David Osborn, Pat Hiban, and Tim Rhode realized they shared a common goal: to steadily accumulate streams of passive—or as they call it—“horizontal” income. So they got together and made a serious commitment, vowing to hold each other accountable every step of the way—even if it meant dishing out some tough love.In this episode, you’ll learn how finding an accountability partner can change the trajectory of your career and life, and how giving time and money can not only make you feel better but also make you more wealthy. You’ll also learn how David, Pat, and Tim built dozens of streams of income by living below their means, connecting with the right people, and taking advantage of opportunities.This is a must-listen if you’ve ever asked the question, “Why am I working so hard, anyway?” You’ll come away from this episode motivated to hold yourself and your loved ones accountable so you can reach your goals together.