Leo Wells Articles and Videos

Leo Wells Salutes Entrepreneurs: Ehab Hanna

Tue, 19 Oct 2010 00:00:00 EST

Ehab Hanna left his native Egypt in search of religious freedom and a better opportunity.

While I have often written about individuals who have been recognized by organizations such as Ernst & Young for their entrepreneurial accomplishments, I think it is significant to note that there are successful entrepreneurs all around us who have never been formally recognized or publicly celebrated. Chances are you cross paths with many such individuals on an everyday basis. Such was the case for me on a recent trip to the West Coast when I met Ehab Hanna.

After graduating from college in Cairo, Ehab Hanna worked as an air traffic controller in his native Egypt. Raised a Coptic Orthodox Christian in a predominantly Muslim nation, he often encountered religious favoritism and longed for an environment where he could both practice his faith and advance his career.

In 1994, a friend shared with him an advertisement published by the United States Embassy concerning a diversity visa program sponsored by the National Visa Center that annually provided some 55,000 green cards to non–U.S. citizens by random selection. He learned more about the program on the U.S. State Department website and shortly thereafter submitted his request. According to Ehab, the Visa Center received over 3 million applicants from Egypt alone. Some 6–7 months later, he received notice that he had been selected.

In July of 1995 Ehab arrived in New York with only $400 in his pocket. For a time, he worked the night shift in a plastics factory. He initially wanted to resume his career as an air traffic controller, but discovered that U.S. citizenship was required. Given the length of time necessary to secure citizenship, and his limited English skills at that point in time, Ehab began to investigate other opportunities and became a franchisee of a New York–based limousine company. He eventually became a U.S. citizen in 2001.

Former colleagues laughed when he said he wanted to go into business for himself, but in 2005 Ehab moved to San Francisco and started his own company, Merit Limousine. Today, his company employs 12 full– and part–time drivers and owns 14 vehicles. Through affiliates, Merit Limousine currently serves customers all over the United States, and annual revenues approach $800,000. Plans call for Merit Limousine to provide international service by year's end.

I had the pleasure of meeting Ehab on a recent trip to San Francisco when he picked me up at the airport. (Yes, he still drives on occasion!) It was a privilege to make his acquaintance and to hear his personal story.

My congratulations go out to Ehab Hanna for realizing the American dream, and for demonstrating that opportunity still exists for those with ingenuity and perseverance, even in these troubled economic times. Native–born U.S. citizens would do well to emulate his formula for success!

Leo Wells Salutes Entrepreneurs: Stella Moga–Kennedy

Thu, 16 Sep 2010 00:00:00 EST

Stella Moga–Kennedy fled communist Romania to live the American dream–and has done America proud.

For generations, people all over the world have looked to the United States as the land of opportunity. I'm reminded of those famous words from Emma Lazarus' poem at the base of the Statue of Liberty in New York: "Give me your tired, your poor, your huddled masses yearning to breathe free." With those words America has opened her arms to immigrants from every corner of the globe. The story of Stella Moga–Kennedy, an Ernst and Young regional Entrepreneur of the Year winner in 2009, makes me proud that invitation still endures.

Moga–Kennedy battled with the communist Romanian government for five years to obtain a passport that would allow her to flee to the U.S. After their intentions became known, she and her husband faced almost daily harassment by the secret police until she was able to leave Romania in 1979. When they were finally granted permission to leave, all their possessions were seized by the state.

With her husband and daughter, Moga–Kennedy arrived in the U.S. speaking no English and having no money–but with one considerable asset: a master's degree in education. At first she took low–paying jobs to make ends meet, but she quickly learned English and found a job teaching French at a local Montessori school. Some years later, she was searching for a day–care center for her son Alex, but was disappointed in the quality of those she was able to find in the Cleveland, Ohio area. So in 1982, she founded Le Chaperon Rouge ("the Little Red Riding Hood") in the basement of a church. The school opened with only three children, but in nine months more than 80 children were enrolled.

Today, Le Chaperon Rouge has nine locations with 180 employees and over 1,000 students, from babies to fifth–graders. Annual revenues are approximately $7 million. Perhaps even more impressive is the fact that Le Chaperon Rouge has offered free childcare for the unemployed. Parents may bring their children to Le Chaperon Rouge at no charge on days when they have a job interview.

It would appear that a key element in Moga–Kennedy's success has been her attention to quality. Children at Le Chaperon Rouge are taught in small classrooms, grouped by age and aptitude. They are introduced to subjects as diverse as gymnastics, French, and computer skills. They are also served nutritious meals prepared on site. Le Chaperon Rouge aims to provide the fundamentals of a solid preschool education while integrating the extras that further enhance a child's ability and desire to learn.

Along the way, Moga–Kennedy learned what most successful business people eventually discover: if they're going to maximize their success, they must learn to delegate. (I know from my own experience the critical importance of hiring great people and letting them to do what they do best!) When she finally took a leap of faith and hired an executive director she suddenly found herself able to develop new curriculum, and she even found time to write a book, Stella's Way, the inspirational story of her journey. In the last five years, her company has doubled its number of locations and employees, no small accomplishment in this time of economic recession.

My congratulations go out to Stella Moga–Kennedy, her family and her company for realizing the American dream, and for showing others that it is possible.

Leo Wells Salutes Entrepreneurs: Jane Wurwand

Fri, 26 Mar 2010 00:00:00 EST

The importance of persistence in the face of adversity.

I have observed that well–meaning individuals often attempt to discourage budding entrepreneurs from pursuing their vision. This seems to be especially true in challenging economic times such as those we are experiencing today. Of course, those of you who know me have heard me say repeatedly that our present time is potentially ripe with opportunity for those with vision, and for those who have managed their resources prudently.

Perhaps this dichotomy is understandable when you consider that most people are, by nature, risk–averse. Entrepreneurs, on the other hand, are natural risk–takers. As a result, they often see opportunities that others miss, even in the midst of economic hardship and despite opposition. Later on, others are left to wonder "Why didn't I think of that?"

Jane Wurwand, founder and owner of Dermalogica, is a living illustration of this mindset. I don't know much about skin care products, but I appreciate entrepreneurial spirit, and the ability to "make lemonade out of lemons." As she once put it, "If you can identify a pain in your industry, you have identified an opportunity."

When Wurwand decided to open a school for skin therapists in 1986, friends told her it was a crazy idea that would never work. Ignoring this advice, she and her future husband borrowed $14,000 to secure a five–year lease on a 1,000–square foot space in Los Angeles. She didn't own a car, so the school had to be close enough to her apartment for her to walk to work.

The school was a success, and Wurwand began to consider comments such as "It will never work" as a yardstick for measuring the potential of new ideas. Two years after the school opened, she realized there were no skin care products on the market that were compatible with the curriculum they had created. In defiance of industry experts who said it couldn't be done, she launched a line of skin care products that were missing the harmful ingredients found in many popular skin care brands.

Twenty–four years later, the Dermalogica line is an unqualified success. Additionally, Wurwand helped create a network of independent skin therapists and in the process has helped thousands of women worldwide to become successful entrepreneurs. She has continued to follow her instincts and she has refused to make decisions based solely on what others in her industry were doing.

An important part of her business philosophy – and a key part of mine, as well – is listening to customers. In her case, it's helped guide the creation of her product lines.

Another concept we both hold in high esteem is the desire to hire great people. In times of rapid growth, you need people who are 100 percent committed to the mission at hand. Under–performing people will slow growth, and they endanger the success and well–being of your exemplary employees.

My congratulations go out to Jane Wurwand and her company. May they enjoy many years of success!

Leo Wells Salutes Entrepreneurs: Ruth Callanta

Tue, 09 Feb 2010 00:00:00 EST

Through an innovative blend of business and faith, Ruth Callanta is supporting small business growth and community transformation in the Philippines.

As the Ernst & Young 2003 Entrepreneur of the Year in the financial services category, I follow the annual Ernst & Young entrepreneur awards with great interest. I am especially impressed when someone starts a business that also has a positive impact on society. One such individual is Ruth Callanta, Ernst & Young's 2005 "Woman Entrepreneur of the Year" for the Philippines.

Ruth Callanta is the founder and president of the Center for Community Transformation (CCT). CCT serves Philippine entrepreneurs by providing "microloans." Averaging just over $100 each, these small loans are not cost–effective for commercial banks. Yet they're enough to help hardworking individualsstart small businesses that generate income for education, nutrition, healthcare, and other life essentials.

Raised in a middle–class Philippine home, Ms. Callanta became impassioned to serve the poor of her country at an early age. After completing a masters' program at the Asian Institute of Management, she worked with several national and international development organizations. However, none of these organizations seemed able to make significant headway in breaking the cycle of poverty, despite their considerable resources. Ms. Callanta eventually became convinced that the only way to achieve true, sustainable change was through a "moral value transformation."

Inspired by this conviction, Ms. Callanta founded CCT in 1992. Initially, however, less than half of CCT's borrowers repaid their loans. It took several years and the help of The Haggai Institute, an Atlanta–based training agency, for CCT to successfully integrate faith–based teaching with its microloan program. CCT borrowers are now required to participate in weekly accountability groups. At these meetings, borrowers can make loan payments and savings installments, and they receive Biblically–based training, encouragement, and financial education.

Today, CCT boasts an astounding loan repayment rate of 98%, and the organization now serves over 70,000 active borrowers through 145 branches in 49 cities throughout the Philippines. In addition to small business loans for things like mini–grocery stores, clothing stands, and mobile phone stations, CCT also offers a host of other programs and services, such as:

Job placement
Entrepreneur training
Servant leadership training
Distribution of low–cost medicines and commodities
Educational assistance to children of its community partners
Health care through the establishment of community clinics

Besides helping Philippine entrepreneurs, CCT also serves four major poverty groups: street–dwellers, indigenous peoples, factory workers, and sacadas (landless agricultural workers).

Ruth Callanta set out to break the cycle of poverty in her homeland, and for thousands of Filipinos, her enterprise has been an astounding success. I join Ernst & Young in saluting her ingenuity, passion, and dedication to serving entrepreneurs throughout the Philippines.

Leo Wells Salutes Entrepreneurs: Vikram Mehta

Mon, 30 Nov 2009 00:00:00 EST

Vikram Mehta, Ernst & Young Entrepreneur of the Year Award national finalist for 2009 in the "Emerging" category, has an inspiring story–and some commonality with other successful entrepreneurs

On the surface, it looks like another of those fairy tale business stories: a man comes from humble beginnings–in this case, from India–and rises to become a high–tech innovator and business leader. But upon closer inspection, Vikram Mehta, Ernst & Young Entrepreneur of the Year national finalist for 2009 in the "Emerging" category, is not the subject of a fairy tale at all, but the star of a story of hard work and dogged persistence.

Mr. Mehta founded his company, BLADE Network Technologies, headquartered in Santa Clara, California, in early 2006, and they quickly became a leader in computer network infrastructure for data centers. For those of us who are non–technical, "network infrastructure" refers to all those boxes, switches, and cables that transport data – in this case between blade servers and storage systems for companies such as IBM, Hewlett–Packard, NEC, and many others.

For several years prior to the founding of BLADE, Mr. Mehta was employed at Nortel, another technology company. While at Nortel, he co–founded Nortel's Blade Server Switch Business Unit, which he led from its inception in 2001 to June 2005. During his time there, he saw the opportunity for a new kind of intelligent "circulatory system" for data centers, but could not convince Nortel to back the project, even after securing buy–in from IBM.

Mr. Mehta joined Garnett & Helfrich Capital as CEO–in–residence in July 2005, and crafted the alliance between Nortel and Garnett & Helfrich Capital to establish BLADE Network Technologies as an independent company. Every member of Mehta's original Nortel division followed him, and his perseverance inspired IBM and Hewlett–Packard to take a chance on the new venture as well.

BLADE recently reported the best quarterly results in the company's history, and now reaches nearly 7 million ports, connecting storage systems in data centers worldwide across more than 20 industries, including the number one retailer, stock exchange, and financial services companies. BLADE's Ethernet switches are installed at over 300 of the FORTUNE 500 companies.

Mr. Mehta shares several qualities in common with other top business visionaries, not the least of which is his ability to assemble a great team. In fact, in his own blog on the BLADE Network Technologies Web site, he states that his Entrepreneur of the Year Award is actually all about "the team of the year." He fully credits his engineers, operations, and sales and marketing professionals for building an outstanding product, a leading company, and winning this award.

I've said many times that building a highly successful company has everything to do with the people who work there. You seek the very best, and you treat them like the gold that they are.

As a former winner of the Ernst & Young Entrepreneur of the Year Award in the Financial Services category, my congratulations go out to Mr. Mehta. May he and his team have many successful years to come.

Commercial Real Estate – Not All is Gloom and Doom

Wed, 07 Oct 2009 00:00:00 EST

By Leo Wells, President, Wells Real Estate Funds

In order to understand our current economic situation, you need to go all the way back to the start of the 2001 recession. At that time, the Federal Reserve took steps to begin lowering the federal funds rate – the short–term interest rate at which banks can lend money to each other. In fact, the Fed lowered the rate 13 times from January 2001 to June 2003, taking it from 6.5% down to 1%.¹

An abundance of cheap debt caused the demand for housing to boom and real estate values to skyrocket. Unfortunately, much of this debt was in the form of adjustable–rate loans. When the Federal Reserve subsequently raised the fed funds rate 17 times between mid–2004 and mid–2006,¹ the interest on these adjustable rate loans increased, and refinancing became increasingly difficult.

This mismanagement of debt ultimately resulted in a record number of home foreclosures, the demise and restructuring of many financial institutions, and a virtual freeze on available credit. The freeze on credit quickly spread beyond home loans to encompass commercial loans as well. The inability to obtain new commercial loans or to refinance existing loans has impacted virtually all areas of the U.S. economy.

What does all this mean for commercial real estate? For those who must engage in a transaction today, either as a landlord, borrower, or seller, the situation will generally be less favorable than 12 months ago. Tenants are demanding better terms, lenders are largely on the sidelines, and the combination of those things means buyers are paying less.

On the positive side, buyers who have cash potentially stand to benefit. Buyers with cash are actually well–positioned to prosper in today's environment, as many current owners may ultimately be forced to sell their best assets at bargain prices if debt service cannot be satisfactorily renegotiated. So for those who have pursued a prudent course over the years, there is potential for great opportunities.

1"Federal Funds Target Rate History," www.fedprimerate.com

Leo Wells on Kicking the Can

Wed, 12 May 2010 00:00:00 EST

Leo Wells discusses commercial real estate lending.

Leo Wells discusses Foreign buyers of U.S. Real Estate.

Tue, 04 May 2010 00:00:00 EST

Leo Wells discusses Foreign buyers of U.S. Real Estate.

Leo Wells' First Quarter 2010 Update on Commercial Real Estate

Thu, 01 Apr 2010 00:00:00 EST

Leo Wells' First Quarter 2010 Update on Commercial Real Estate

Leo Wells on Customer Service

Wed, 30 Dec 2009 00:00:00 EST

Leo Wells discusses the application of customer service in today's business environment.

Leo Wells on Ethics

Wed, 04 Nov 2009 00:00:00 EST

Leo Wells discusses the application of ethics in today's business environment.

Leo Wells on Leverage

Fri, 23 Oct 2009 00:00:00 EST

Leo Wells discusses the challenges associated with using leverage.

Leo Wells Awarded an Honorary Doctorate from Carver Bible College

Wed, 09 Jun 2010 00:00:00 EST

Wells receives the award at a special ceremony at Wells Real Estate Funds

In recognition of his support, Carver Bible College awarded Leo Wells lll, CEO of Wells Real Estate Funds, an honorary doctorate of divinity degree. The award was made by Rev. Robert W. Crummie, Th.M., president of Carver Bible College, in a special ceremony held at a Wells Real Estate Funds employee meeting in suburban Atlanta. Other Carver facu

lty members in attendance include Anthony Dixon, Chairman, Board of Trustees; Sujaya James, Ph.D., vice president for academic affairs, academic dean; and Carla Crummie, M.A., acting advancement officer. Also in attendance was Dr. Jean Dorlus, president of the Evangelical Theological Seminary of Port–au–Prince, Haiti.

Leo Wells and his wife Angie have provided financial assistance for a number of Carver's international students. Wells is currently spearheading efforts to relocate 19 students to Carver from the Evangelical Seminary of Port–au–Prince, which was destroyed in the January earthquake. Two of these students are already on Carver's campus. Wells will charter a plane to transport the other 17 students to the U.S. as soon as they receive their visas. The trip also will be used to take much–needed supplies to Haiti.

Quotes:

Reverend Crummie: "We are grateful to Leo Wells for his commitment to Carver and for his servant leadership and philanthropic influence on so many fronts, both domestic and international."

Leo Wells: "Carver Bible College does important work in the community and around the world and I am extremely honored to be recognized with this doctor of divinity degree."

About Carver Bible College

Carver Bible College was established in the tradition of Moody Bible Institute of Chicago to meet the need for an institution of higher learning for African–Americans desiring biblical and theological training. Since 1943, more than 700 men and women have graduated and serve the world over in countries such as Kenya, Ghana, Jamaica, and throughout the United States. http://www.carver.edu/

About Leo Wells

Leo Wells III is the founder and president of Wells Real Estate Funds. He has been motivated by the entrepreneurial spirit since he was very young, and the success of his business is a tribute to his personal and business philosophy. http://www.leowells.com/
http://www.leowellsblog.com/

Leo Wells Speaks on Debt and the Recession

Mon, 01 Feb 2010 00:00:00 EST

Wells shares his views at Terry Third Thursday, the breakfast speaker series at University of Georgia's Terry College of Business

ATLANTA, GA (Marketwire – February 1, 2010) – Leo Wells, founder and president of Wells Real Estate Funds, spoke to a standing–room–only crowd last week at Terry Third Thursday, the breakfast speaker series of his alma mater, the University of Georgia's Terry College of Business. Mr. Wells, a 1967 Terry graduate in economics, picked a provocative topic: "Why I Love This Recession."

Wells explained that despite the hardships brought about by the economic turndown, one positive note has emerged for business leaders and consumers alike: new lessons in the dangers of debt. Those not owing money on cars or homes – or speculative business ventures – have far less concern over the recession than those saddled with excessive debt, he noted.

A 30–year veteran of the real estate brokerage, sales, and management industries, Leo Wells was honored in 2006 with the Distinguished Alumni Award from the Terry College. He also was the national winner of the 2003 Ernst & Young Entrepreneur of the Year Award in the financial services category.

In 2009, his company was named Atlanta's "Best Place to Work" among mid–sized companies by the Atlanta Business Chronicle, and Mr. Wells was elected to the Board of Governors for the National Association of Real Estate Investment Trusts. Also in 2009, the Southeastern Chapter of the Real Estate Investment Advisory Council inducted Mr. Wells into its Hall of Distinction at Georgia State University.

Quotes: Leo Wells

"Sometimes life's greatest lessons are the hardest to learn. Times are currently difficult, but we still have much for which we can be thankful"

"I am optimistic about the future. While we're waiting for better times, however, we can learn from this recession, and be better prepared for the future."

"This recession has taught us some new lesson on the dangers of debt. Those who don't owe money on cars, houses and credit cards are in pretty good shape."

Video of Leo Wells' remarks may be seen on YouTube http://www.youtube.com/watch?v=WGYDVC_flgs

Contact

Kelly Nugent

Rubenstein Associates

(212) 843–8069

knugent@rubenstein.com

Leo Wells Named to "Hall of Distinction"

Fri, 18 Dec 2009 00:00:00 EST

Fifth Inductee from REIAC and Georgia State University

ATLANTA (Dec. 18, 2009) – Leo Wells, president and founder of Wells Real Estate Funds, was inducted Thursday into the Hall of Distinction by the Southeastern chapter of the Real Estate Investment Advisory Council and Georgia State University.

The award, REIAC Southeast's highest honor, is presented "to recognize the people and commercial real estate projects that have made the most dramatic impact on Metro Atlanta."

Mr. Wells is just the fifth executive to receive the award, which was presented by last year's recipient, Hal Barry, chairman of Barry Real Estate Companies. Previous inductees include Jim Jacoby of Jacoby Development, Jim Borders of Novare Group and Steve Selig of Selig Enterprises.

"This honor is really a tribute to the nearly 400 employees who serve our investors and our tenants every day," Mr. Wells said. "The Atlanta real estate community is our home. It's here where we got our start, and where we still have some of our finest real estate."

Mr. Wells founded Wells Real Estate Funds in 1984. He is a member of the Board of Governors of NAREIT^®, the National Association of Real Estate Investment Trusts^®, and is a national winner of the Ernst & Young Entrepreneur of the Year Award for financial services, and a recipient of the Distinguished Alumni Award from the University of Georgia's Terry College of Business.

REIAC is a national nonprofit trade association serving the commercial real estate industry. For more information on REIAC, visit www.REIAC.com.

Leo Wells, President, Wells Real Estate Funds, Elected to NAREIT® Board

Tue, 10 Nov 2009 00:00:00 EST

Leadership Organization for REIT Industry

NORCROSS, Ga. (Nov. 10, 2009) – Leo Wells, president and founder of Wells Real Estate Funds, has been elected to the Board of Governors of NAREIT^®, the National Association of Real Estate Investment Trusts^®.

Mr. Wells' election was announced at NAREIT's annual convention, in Phoenix.

"Our company has been a member and supporter of NAREIT for years, and I'm honored and excited to join the Board of Governors," Mr. Wells said. "I hope to help the organization continue to provide leadership for our industry."

Mr. Wells is one of only a few board members who manage nontraded REITs – real estate companies whose shares do not trade on the major exchanges.

"The REIT industry has grown tremendously in just a generation, both in publicly traded companies and in nontraded REITs," he said. "I'm looking forward to working with NAREIT members across the industry, as we look to the next era in commercial real estate investing."

NAREIT is the worldwide representative voice for REITs and publicly traded real estate companies with an interest in U.S. real estate and capital markets. NAREIT's members are REITs and other businesses throughout the world that own, operate and finance income–producing real estate, as well as those firms and individuals who advise, study and service those businesses. For more information, visit www.REIT.com.