What happens if you call your asset a community instead of an apartment building, and you refer to the renters as members instead? Redefining the real estate language alone is so powerful. There’s a whole lot more to the real estate or housing industry that we actually need to reinvent. And it doesn’t hurt to get a pint of inspiration from today’s guest!
In this conversation, Erik Cabral chats with Howard Primer, the founder of The Primer Group and The Primer Ethic™. Howard is a nationally recognized attorney, successful entrepreneur, and keynote speaker. As a change agent, Howard has challenged and inspired people, companies, and governments to make a purposeful change on behalf of the world.
Howard believes that inspiration, coupled with implementation, is where true power comes from. Truly committed to transforming the housing industry in a meaningful way, Howard has worked with thousands of people – doing it one community at a time, one relationship at a time.
Here are some power takeaways from today’s conversation:
Howard’s eureka moment
The match and bonfire analogy
Howard’s contribution to Howard Schultz and Bill Gates
His introduction to the housing industry
The need to reinvent housing
Decreasing turnover issue in the multifamily industry
Buying C/D assets in A markets
Changing the language to raise your value
Valuing relationships over transactionsThe Match and Bonfire Analogy
Howard gives this match and bonfire analogy where the match is the inspiration. Once it's lit, it's gone. Nobody pays attention to it anymore. The bonfire, on the other hand, becomes the dominant influence and things of that nature. Everybody focuses on the bonfire and they benefit from it.
Inspiration is a wonderful thing, but it's just a match. Whereas, implementation is the way that the match manifests itself to create greater outcomes.
Reinventing Housing & The Multifamily Industry
The housing industry – both single-family and rental housing – has become the world's worst commodity, because the people who are ultimately the consumers of this product are ignored in the process.
Now, we're at a point where housing is in extraordinary distress. And as we've gotten more and more digital, people are being isolated from one another, not to mention how the pandemic has exacerbated that. Therefore, we need to reinvent the housing industry. It needs to be focused not on the asset of the physical thing, but on the consumer using that housing, to enhance their quality of life.
Buying C/D Assets in A Markets
Consider a business model where you’re buying B minus, C, or D assets in A markets. The older assets in that area are usually referred to as C assets in the A area. It's located in a great location. But because of when it was built, the way it was managed by the people who built it, and they didn't really care about keeping it up, it tended to evolve into degrading quality.
Focusing on Relationships, Not Transactions
What happens if you change how you approach real estate investing? Instead of calling your asset an apartment complex, use the word “community.” Instead of calling people renters, treat them as members. It’s all about the idea of penetrating a commonplace experience and redefining it into something that’s not commonplace.
https://howardprimer.com/