Growth is something we should all focus on.  For MERIX, we’re focused on growth in terms of numbers and market share but also professional and personal growth, creative and strategic growth – for MERIX growth is our Kool-aid.  When looking for inspiration and what growth means for MERIX, I didn’t have to look far.

We’ve had the opportunity to get to know (and I use that term very lightly) the professional alpine skier – Larisa Yurkiw.  Her goal of competing at the Olympic games was shattered due to a severe knee injury which severely set her back (watch her inspiring video below).  She pushed through and is now working harder than possible to achieve her dream of being a medal contender in Sochi 2014.  She’s got guts and she has the heart of a champion. All she wants is another shot at the Olympics, and a chance to represent Canada.  Larisa embodies the type of resilience and spirit that is akin to MERIX.  We may be a small fish swimming amongst the whales and we realize have hurdles to jump and hills to climb – but we’re not afraid of hard work, taking risks and finding solutions – MERIX isn’t going anywhere.

Through our winter campaign we’ve stood behind her and tracked her progress.  We would like to thank our MERIX originators who have generously supported this cause, with your help we have raised $5000!

Larisa has generously agreed to share a few of her own thoughts on the topic…

I’m writing this from Squaw Valley, California.  It’s an absolute dream here.  Often the perception of the glamorous lives of athletes is inaccurate.. but not here.  Today we ski raced in the morning and played beach volleyball this afternoon.  I have a heart full of gratitude for the opportunity to spend a week with great teammates and the chance to use up a handful of nerves for the races.

As I think of ways to explain my personal growth, having heard this is a current theme for MERIX Financial, my mind wanders to what I didn’t do.  That’s the truth.  I’m my worst critic.  I know this unrelenting pursuit of ‘more’ has driven me hard to achieve my goals.  But I am slowly learning to be a better friend to myself.

This past season has begun to teach me about soaring in a whole new light.  I’m growing because I’m friends with the challenges that have been my teachers.  They’ve hurt me and often shifted my focus in a negative way… but, for the most part, they are positively affecting my life.  It has taken a long time to recognize why words like perseverance and courage had to be redefined for me… I thought I knew enough about them, but growth is so powerful.  For me, growth is movement.  Everything from moving through a frustrating weekend of racing to moving through a turn on my skis at 130km/h, opportunities present themselves everywhere.

On paper, I would think some of my staff have seen little to no growth in me since my injury and 2-year break from sport.  On paper.  But I know that it was my injury, precisely, that guided me to learn lessons, meet certain people and look a little further within, that has made me so much more powerful.  With a few more lessons on patience, I’m going to find out real soon how far I’ve come and how far I can go with this journey.

MERIX, thank you for joining me on this adventure.  I feel confident that each of you can relate on many levels.  Let’s see how far we can go!

 - Larisa

http://www.larisayurkiw.com

https://twitter.com/larisaYurkiw

“People left good paying jobs to be a part of this company when it was nothing more than a concept… Investors took a gamble on our business plan but more importantly the people behind the business plan.”

There’s not much happening on my end. Of course I say that with tongue firmly planted in cheek. By now I assume you’ve heard that controlling interest in both MERIX Financial, and Paradigm Quest, changed hands last week. It took a couple of days for it to actually sink in that the sale process was really over. The process had been going on for a better part of a year. It was all consuming, and all distracting. But now it’s finally done and we can all refocuses our energy on growing both MERIX Financial and Paradigm Quest.

Before moving forward I wanted to share some thoughts with you, and to acknowledge some people who played a role in the success of both MERIX Financial and Paradigm Quest. First and foremost, Kathy Gregory. The creation of MERIX and Paradigm was first formulated on the back of napkins, over a few libations. This was long before these entities were called MERIX and Paradigm. Back then we referred to these companies as Sales Co. and Process Co. From a napkin to a fully baked business plan was the next step. At that point Kathy made one of the most important hires for both companies, our CFO, Donald Zuill. Kathy, Donald and I believed to our very core that this plan would work but now all we had to do was convince some folks with money, real money. Kathy and Donald did just that. A group of individuals came together to create an entity which is known today as FFP, Five Fathom Partners. FFP took a gamble on a business plan but more importantly the people behind the business plan. To FFP, particularly John Donald, thank you for you belief in the plan, and us. We will always wear the shareholder value we created like a badge of honour. We said we would not fail you, and we take great pride in holding up our end of the bargain.

From a MERIX perspective, I want to thank a few individuals for their faith in our vision, and to put it quite humbly, your faith in me. You left good paying jobs to be a part of this company when it was nothing more than a concept. To Andy Kuyper, Lori Smith, Jill Paish and Lloyd Pritchard, it was my pleasure to have shared this part of the journey with all of you. To all of our loyal supporters, and particularly those who were early adopters to the trailer fee model, I thank you for your faith, and for demonstrating to the industry that the trailer fee model is sustainable. You helped to change the industry. Many lenders in the industry now pay on renewals. That didn’t happen because lenders wanted to be more generous. It happened because you helped to legitimize the trailer fee model. Now it’s time to move forward. To those who still wish to debate the safety of trailer fees, clearly there’s nothing I can say or do to change your mind. So I won’t bother trying. After all these years what more can we say or do demonstrate trailer fees are safe. So we’re going to focus on the segment of the market place that does get it. Oh, and one more thing – to our competitors who tried to create uncertainty in the market by suggesting that brokers trailer fees were at risk with MERIX because of the impending sale, all is fair in love and war. And I would like to thank you for stoking our internal fire. We’re coming!

Until next time,

Cheers

Much has been written and said about mortgage debt and affordability recently.  No point in belaboring what has and has not been done to address this issue. I’m sure there will be plenty of that in the future, as well ample hang ringing about the so-called condo bubble, specifically in Vancouver and Toronto.

Manhattan Living...

The so-called “condo crisis” (oh, how the mere thought of it makes the press salivate) in Vancouver and Toronto came to mind after I read an article in the Wall Street Journal. The article focused on the cost of condos in Manhattan. The current median price of a condo in Manhattan is the lowest it’s has been since 2004. Could Manhattan’s experience be a harbinger of what’s to come for Vancouver and Toronto?  If it is then maybe the 36 people in Toronto who don’t own a condo already should go and get one.

According to the Canadian Real Estate Association, the average home price for the month of December in Toronto was $501,361, and in Vancouver it was $730, 912.  Remember this includes dirt to go along with the walls.  In Manhattan the average condo price in 2012 was $835,000.  However, adjusted for inflation it was the lowest since 2004.  Can you imagine the headlines if Toronto was similar to Manhattan’s reality?  The median price in Manhattan for a 2 bedroom condo was $1.26 million, 3 bedroom was $2.37 million and a 4 bedroom was $4.75 million. Adjusted for inflation these are the lowest prices since 2004. According to the Wall Street Journal article there’s a disconnect between buyers and investment indicators.  Buyers are saying there’s not enough affordable housing and yet when you take inflation into account prices have actually declined.  So is it a good time to buy a condo in Manhattan?  I’m not familiar with the Manhattan’s housing cycle so I’m not sure, but what I can say is this: at an average price of $2.37 million for a 3 bedroom condo in Manhattan, I think Toronto is a good buy.

Some might be aghast that I would compare Manhattan to Toronto.  Well, Toronto is the 4th largest market between the US and Canada.  Therefore, I think it’s valid to look at values on a comparative basis.  That’s exactly what foreign investors did when buying property in Vancouver and Toronto. As absurd as we think our prices may be, the investor from Hong Kong looks at our market and thinks of great value.  As we all know value is driven in large part by consumer perception.  The perception of Vancouver and Toronto is that consumers buying condos are doing so at their own peril.  Yet in Manhattan, home buyers lament the high cost and scarcity, all the while being told now is a good time to buy.  It’s interesting how some things never change.  Here’s a headline that helped shape New Yorkers perception of their condo market, “Great Scarcity in Apartments…Never before has there been such scarcity of apartments on Manhattan Island.”  That headline came from the New York Times, in 1916!

Until Next Time

Cheers

“The greatest gift we can give our supporters is an opportunity to learn.”

I’m always on the lookout for way to bring value to our customers, beyond the standard products and services; not an easy task, especially if you’re looking for originality.  What’s original today?  See, it’s not easy.  In our industry it’s become common place to equate corporate customer appreciation with socializing events and off-site adventures.  I understand why organizations do this.  Saying thank you to your customers by taking them too far off destinations, mingling and bonding, has its merits.  But how do you come up with something just a little bit different?  My view on customers appreciation trips may be a little jaded but it’s my way of thinking and I just can’t shake it.  It goes something like this – MERIX pays our customers a lot of money in trailer fess.  My hope is that our customers earn obscene sums of money, and they can use some of that money to travel anywhere they want in the world, with people they actually like.  With that in mind how can we put our twist on a customer appreciation event?  Best place to start for me was to think of my own personal experiences, and what event or trip stood out for me; I kept coming back to one.

For a number of years Genworth Financial would invite a number of their customers to attend the “World Business Forum” in New York.  It was a trip I looked forward to every year.  I felt privileged to be asked to attend.  The invited guests were business heads representing the lending industry.  To be in their company was a privilege, but to be able to attend an event such as the World Business Forum was also a great educational opportunity for me.  It was an opportunity that I always relished, and is demonstrated by the fact that I continued to attended, along with the MERIX Senior Leadership Team, long after Genworth stopped making it an annual event.  The value I derived had nothing to do with the fact that the the dime was on someone else.  The experience is well worth the money, my own money.  Combine the fact that educational experience is held in one of the greatest cities in the world, New York, woohoo! 

So if this trip had such an effect on me, why beat myself over the head to come up with something totally original?  For years I wanted to do this, and this is the year.  We’re announcing that we’re going to be taking a number of our supports, who reached status with MERIX Financial, to the World Business Forum in New York this October.  The greatest gift we can give our supporters is an opportunity to learn; to open their minds to other ways of doing things.  The speakers at the World Business Forum are not motivational speakers.  The speakers at the World Business Forum are the champions of industries.  They don’t just teach, they do.  Presidents, CEOs, activists, authors, leadership of all stripes speak at this event.  They share their stories, their success’ and their concerns.  The best part of attending for me is the humbling experience I go through.  If I start to believe my own press clipping, well, being surrounded by that much success and brain power makes me realize I’m a guppy in the grand scheme of things.  At the conclusion of the World Business Forum I reminded that I have to up my game, and MERIX wants to help our supports up their game as well.  Oh yeah, and have a blast in New York.  To our loyal supporters, hope to see you in New York.

Until next time,

Cheers.

“The only thing that is constant is change.”

Welcome back all and I hope you all enjoyed the Christmas season.  I know that may be somewhat politically incorrect to evoke Christ’s name during and after the holiday season.  Here’s my view on that, oh well.  I celebrate Christmas and if I say Merry Christmas, and someone responds by saying Happy  Hanukkah or Happy Big Bang Theory Day, I won’t be offended.  So let’s dispense with political correctness of Christmas past and focus on the future.

Things to look for in 2013?
As a start who will be in charge at the Bank of Canada.  Mark Carney’s reign is coming to end by mid-year so it will be interesting to see who his replacement will be; someone with “star power”?  Or a bureaucrat who goes about his business in the shadows?  The Globe is reporting that the Finance Department is not saddened about Carney’s departure.   According to the Globe, “Though the finance minister has worked closely with Carney and had helped catapult him into the exalted job of central bank chief in 2007, the once-tight relationship deteriorated in the following years as Carney’s star power threatened to leave Ottawa’s political class in the shadows, sources said“.  How juicy, how Entertainment Tonight.  I can see how Minister Flaherty might have been a little perturbed.  The Minister is an elected official whom the voters can turn on if things don’t go according to plan.  On the other hand the head of the Bank of Canada takes no political risk and benefits from a bigger payday in another country. 

Another thing I will be watching for is the treatment of CMHC in the press. When and why did it become fashionable to treat CMHC like a Pinnate?  I get it, when you get big enough you take your blows deserved or not.  When you’re big enough you become a lightning rod (for illustration look to the dominant technology provider in the broker space, as well as the National Association).  But CMHC has been around since 1946, dedicated to home ownership in Canada, and yet now the scope of their responsibility is being questioned in the press.  By appearance this looks to be a case of fixing something that isn’t broken.   Or it could simply be a case of CMHC running up against powerful enemies who whisper sweet nothings into the ears of the press?

Of course we’ll all be watching for signs that economies, be it ours or around the world, are starting start to garner some momentum. Then again that’s old news, that watch began in 2008.  I have no doubt that 2013 will be another interesting year for all of us.  The only thing that is constant is change.

Until next time,

Cheers.