Dana Frank of TD Frank Family Properties: 5 Things You Need To Run A Highly Successful Family Business
Research. The foundation of any successful endeavor is research. If we are looking to invest in a piece of property, we research all factors that might impact our investment. We tend to focus on value-added properties rather than new buildings and create our own equity, so we investigate the market, rent trends, and any conditions that may enhance or devalue an asset.
As a part of our series about 5 Things You Need To Run A Highly Successful Family Business, I had the pleasure of interviewing Dana Frank.
Dana Frank has been the General Managing Partner of her family’s 3rd generation company, TD Frank Family Properties, for the last 25 years. She continues to expand their investments with prime real estate properties in Washington state and Arizona, dedicating her life to helping low-income families find housing.
Thank you so much for joining us in this interview series! Before we dive in, our readers would love to learn a bit more about you. Can you tell us a story about what brought you to this specific career path?
My career path was essentially predetermined. I was born into a family deeply entrenched in the rental business. From an early age, there was never a question of pursuing any other profession. Growing up surrounded by the ins and outs of property management, I developed a genuine passion for providing housing. Realizing that people will always need a place to live further solidified my commitment to this field. So, in many ways, you could say that my career path chose me, and I’ve wholeheartedly embraced it ever since.
Can you tell us a bit about your family business and your role in it?
I am the General Managing Partner of a third-generation family-owned and operated apartment rental business in Seattle, Washington. The business was started by my father’s improbable decision to purchase his first investment property in 1950.
Can you share the most interesting story that happened to you since you began this career?
This business has been the culmination of my life’s work, the sole professional endeavor I’ve undertaken apart from a brief role as Chief Marketing Officer for the Newark Bears Baseball Team. Throughout the years, we’ve weathered storms that would have sunk lesser enterprises: my parents’ divorce after three decades, a perilous receivership that brought us to the brink of bankruptcy, dauntingly high interest rates, the challenges of redlining, economic recessions, the upheaval of a pandemic, tenant conflicts, and the constraints of ever-evolving rental laws that often left us feeling powerless.
Yet, through every trial, my mother, my lifelong partner, my adult children, and I have remained steadfast, knowing that persistence ultimately prevails. As housing providers, we’ve learned to wear many hats, including that of counselors.
One particular incident springs to mind: the rental of an apartment to what appeared to be a highly qualified couple — one employed at Microsoft, the other at Amazon. They boasted ample income and impeccable credit, making us readily accept their application. However, soon after they moved in, complaints from other residents in the complex began to surface regarding a nauseating stench of urine permeating the stairwell.
Despite thorough searches, we found no evidence of dogs or any other logical explanation. Resorting to installing a hidden camera, we were shocked to discover “Mr. Microsoft” descending the stairs at dawn. His pants dropped, unabashedly dousing the area with urine as though he were a sprinkler.
Confronting him after work, he confessed to a condition known as Urolagnia — a proclivity involving public urination. This revelation was as astonishing to us as it was to his new wife, who had been unaware until then.
Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?
At 25, I joined forces with my mother following my parents’ divorce. The aftermath left us drained from a drawn-out court battle, and our properties suffered neglect during receivership. Determined to revitalize our assets, we decided to renovate one of our single-family homes, intending to sell it and reinvest the proceeds into our larger buildings. Naively, I placed my trust in contractors while my mother and I embarked on a trip to visit my sister in Germany. Returning home brimming with optimism, two weeks later, we were met with a harsh reality: the contractor had vanished with our funds, leaving behind nothing but empty promises. It was a costly lesson about the importance of being present and vigilant in overseeing our projects!
What do you think makes your company stand out? Can you share a story?
Being a housing provider is a relationship business. Being that we are family-owned and operated, we are very close with our residents. Some families have resided in our properties for as long as 50 years. When people come to rent from us, they know that it’s not just for profit; we care. We have watched residents raise their children to adulthood, and many ultimately buy their own homes. Knowing we have made a difference in someone’s life is the most satisfying reward. We send holiday cards and make our presence known by visiting the properties and engaging with our residents daily.
Are you working on any exciting new projects now? How do you think that will help people?
Yes! I’m thrilled to release my first book, Get Up and Get On It — A Black Entrepreneur’s Lessons on Creating Legacy and Wealth, on Juneteenth. I’m overjoyed to share the journey and tools I’ve learned with other inspiring entrepreneurs. My resounding theme is that anyone can change the narrative despite what their birth circumstances dictate.
In 1950, my father came of age in Detroit, and his options were limited as a young black man during Jim Crow Laws and segregation. My grandfather suggested my father get a “good job” at Chrysler or Ford. Daddy looked at his peers, putting in a double shift and coming home exhausted at the end of two weeks with barely enough of a paycheck to put a decent meal on the table. He left Detroit with his dreams and his drums, came to Seattle, and bought his first investment on contract. For 19 years, my parents bought property without any bank funding until 1969, when Black-owned Liberty Bank gave them their first loan. My book shares my parents’ tools and strategies to create generational wealth.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?
I have too many mentors whom I call “Fire Starters” to list. Fire Starters don’t accept the narrative their birth circumstances dictated. I honestly have been blessed within my own family and don’t need to look much further. My grandmother was a lifelong domestic, and my grandfather was a carpenter. They raised eight highly accomplished individuals who all became game-changers. My uncles include a Federal Judge, Richard Jones, and music maestro, Quincy Jones. My aunt Mardra Jay was the first African American flight attendant Alaska Airlines hired and retired. My mother, at age 92, has been my biggest hero, and she still gets up and gets on it every day. My husband, Eric Mendelsohn, is a CEO, and he has one of the strongest work ethics I have witnessed as he oversees a public company.
I strongly believe in finding mentors, leaning in, and learning from them. In my book, I share stories of some of my mentors, such as Gary Veloric, founder of J G Wentworth, Donald Thompson, CEO of Senior Living Communities, and Rosemarie Francis, author of The Better Life Book.
How have you used your success to bring goodness to the world?
I always say you cannot receive with a clenched fist. My philanthropic efforts have been some of the most rewarding components of my life. I have been on the board of MoPop — The Museum of Popular Culture for nine years, and supporting the younger demographic in the arts has been incredible. My passion is aimed at helping young people. I am on the Advisory Board of Treehouse for Foster Kids and have hosted a holiday gift drive for nearly twenty years. Bringing people together for a cause for others makes everyone feel worthy. One summer, I coached underprivileged kids in learning tennis. We never know what talents you might discover. There is always an opportunity to step up and help change the trajectory of someone’s future.
Ok thank you for that. Let’s now pivot to the main parts of our interview. How do you define a family business? How is a family business different from a regular business?
I feel so fortunate to work with my family. Family business is working with those related to you, with whom you have the same value system and goals. I find it the most rewarding part of my life that I have been a part of a statistic that says only 12% of family businesses survive until the third generation. My family has beaten those odds through hard work, respect, and dedication. I was raised with the wise words of my grandfather, ‘Once a job has begun, do your best until it’s done. Be the labor, great or small, do your best or not at all.’ Therefore, if you are going to apply your best, why build for someone else when you can make for your own?
In your opinion or experience, what are the unique advantages that family owned businesses have?
Working with my family has allowed us to build generational wealth and legacy. Each day, as I work with my mother and now adult son and daughter, I am reminded of the quote, “Plant a tree today, so even though you may not live to enjoy the shade, your children and their children will.”
I’m about to become a grandmother for the first time. And when I envision carrying my grandson through the halls of apartment buildings that his great-grandparents purchased against all odds over 70 years ago, the sense of pride and prosperity for the next generation is immeasurable. There is also a sense of security knowing that you are not raising “trust fund” babies but instilling a work ethic that if the next generation maintains, their future is solid.
What are the unique drawbacks or blindspots that family owned businesses have?
There are certainly blurred lines when it comes to working with family. Growing up, my parents worked hard to instill a work ethic in my siblings and me from an early age. We worked together from our home office, so there was no escaping.
When I was 16, I got my driver’s license; it was a blessing and a curse. My father collected cars, and my chosen vehicle was a white, vintage, 1965 Mustang convertible with a hood scoop! The curse was that I became the gopher, as the youngest in our family rental business. I was showing apartments, doing move-ins, going to the bank, picking up paint and supplies, and spending the entire day with the exterminator going into all our buildings looking for pests. On the first of the month, I could be left cleaning a unit, prepping it for rent.
One sunny summer morning, my father woke me to make picket signs and take his crew down to demonstrate in front of the bank. The bank again declined his loan based on redlining, a practice of not allowing funding into black neighborhoods. I was hot and humiliated and walked off the picket line to join my friends for retail therapy.
My retirement lasted one week when my father summoned me to the office. He had a gift wrapped for me. I assumed it was his apology for wearing me out. When I opened the box, to my shock and fury, there was a McDonald’s uniform. Daddy smiled and said, “The option is yours: work for yourself or build for someone else.” The lesson landed.
What are some of the common mistakes you have seen family businesses make? What would you recommend to avoid those errors?
Don’t just assume that family members are committed to joining the family business. It’s imperative that if all parties are on board, you treat your business as any professional company and have partnership agreements in place. Each partner should be held accountable for showing up and doing their job. Nepotism has no place in any workplace.
What advice would you give to other CEOs or founders of family businesses to help their employees to thrive?
Lead by example. The reason I chose the title of my book, Get Up and Get On It, is that every day, 24/7, I get up and get on it! If it’s Sunday and an apartment needs a showing, I go along with my son or daughter to show. If an apartment needs detailing and cleaning and we are short on time, we all get busy and get our hands dirty. I allow each individual to thrive where they shine. My son is brilliant at dealing with political aspects and keeping us up to date on ever-changing laws. My daughter is our computer, social media, and advertising manager. My mom has a keen eye for design. I’m a people person, so I engage mainly with our residents.
And we have fun! Keep a sense of humor, and don’t sweat the small stuff.
How do you define “Leadership”? Can you explain what you mean with a story or example?
Successful leadership is seen in our long-term success, which includes our maintenance team, which has served with us for over twenty-five years. As a leader, I am highly energetic and believe my attitude is contagious. When I find myself in a tough decision, I do my due diligence, weigh options with my family and team, and ultimately make the best decision to support the whole.
We once had a hoarder who would not allow us access to his apartment. He was a long-term resident when we purchased the building. One month, he was late on his rent, and when we knocked on his door, we could hear him shout out in duress. We had the fire department kick the door in and found him lying in rubbish, and his living conditions were appalling. Each room was filled from the floor to the ceiling with debris. The extensive damage was tens of thousands of dollars. We had no choice but to get this mentally ill man hospitalized and to undertake the cleanup. We all put on hazmat suits and joined the hired cleaners. My children were not thrilled being exposed to the filth and unsanitary conditions, but as a leader, I knew it was vital that we all jump in to resolve this issue and that the resident would not be allowed to return.
What are the “5 Things You Need To Run A Highly Successful Family Business”?
I call my 5 things R.E.A.L.S.
- R — Research. The foundation of any successful endeavor is research. If we are looking to invest in a piece of property, we research all factors that might impact our investment. We tend to focus on value-added properties rather than new buildings and create our own equity, so we investigate the market, rent trends, and any conditions that may enhance or devalue an asset.
- E- Expand your network. When my parents started investing in the 1950s, they did not have capital. They sought out and partnered with business owners in the community who put up the down payment, and my parents did the maintenance and books. As the building increased in value, they refinanced, bought their partners out, and moved on to the next deal. I am a member of numerous social clubs as well as non-profits. By expanding my network, I have connected with many like-minded individuals who have become dear friends and partnered on deals.
- A- Amplify injustice- A closed mouth does not get fed. If you are being discriminated against or treated unjustly, you must speak up! Go to the press, your local City Council, and the government. Although I wouldn’t say I liked picking banks as a youngster, I now respect my father’s vision by exposing redlining and being a part of the Community Reinvestment Act to cease this discriminatory practice.
- L-Leverage. My network is my net worth. Leveraging your relationships for introductions, opening doors, and as potential cash partners can be a game changer. Leverage banking relationships, and don’t be afraid to ask your banker to lunch. After my parent’s divorce, our business was in dire straits due to a court-appointed receiver who rented to any able-bodied applicant willing to pay the first month’s rent. When our estate was returned, it was in extreme disrepair. I went to the bank and requested a moratorium on mortgage payments to allow the cash flow to go towards rebuilding. The bank granted us a six-month stay on payments, and we were able to rebuild stronger than before.
- S- Stay the course. Persistence really does pay. As you see, I live by and love quotes such as, “Success only comes before work in the dictionary.” In 1990, we faced a recession, interest rates in the high 9 percentage rate, and high vacancy factors. We got creative and subdivided properties into multiple rental units to make our obligations. Even though times were tough, we didn’t quit.
We are very blessed that some of the biggest names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch with, and why? He or she might just see this if we tag them :-)
Firstly, I’d be honored to share my story with Shonda Rhimes. Her book, “Year of Yes: How to Dance it Out, Stand in the Sun and Be Your Own Person,” deeply resonated with me at this point in my life. Next, Tyler Perry’s journey, characterized by his resilience, determination, and impactful contributions through his art, inspires me immensely. Lastly, while I’ve had the privilege of meeting Oprah Winfrey on several occasions, the prospect of a one-on-one conversation with her is incredibly appealing. Her wisdom, insights, and unmatched ability to amplify every story make her an ideal choice for a meaningful exchange.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)
Let’s mandate financial literacy in all schools, starting in early education. Daymond John wrote the foreword to my book, and his children’s book, Little Daymond Learns to Earn should be in every school library. I am appalled that high school students are graduating without knowledge on how to write a check, balance a checkbook, or the importance of good credit. We need to have more mentors teaching words that I live by: Cash erodes, and equity grows, and that is how you create generational wealth.
How can our readers further follow your work online?
Thank you so much for joining us. This was very inspirational.
