THE OKLAHOMAN - Real Estate; Feb 12, 2005;



Home Creations is moving on up thanks to 'STEPS'

The company's philosophy empowers competitiveness

By Beverly Bryant, Special Correspondent

MOORE -- Home Creations, one of Oklahoma's leading homebuilding companies, is stepping up in the national rankings of 400 giant home builders. It's because of a philosophy of being "STEPS" above the competition, said Jalal Farzaneh, president, who owns the company with his brother, Mohammad Farzaneh.

    " 'STEPS' stands for 'Safer homes, Top quality and service, Easy financing, People and our System,' " Jalal Farzaneh said.

    The first "step," building safer homes, came about after the May 3, 1999, tornado that devastated much of Moore as it cut a long path across Oklahoma. The disaster moved Home Creations into a different league, Farzaneh said.

    "That was a turning point for Home Creations. Before that, we were building 60 to 70 to 80 homes a year," he said.

    After the tornado, Farzaneh said he studied the homes that were destroyed adjacent to those that were hit directly by the twister.

    "I took Harold Conner, who was the director of construction science at the University of Oklahoma, to look at what was happening. We looked at all the homes and realized a lot of those homes that were not in the center of tornadoes were damaged because they did not have high wind safety features," Farzaneh said. "He recommended that we use tornado straps to connect the rafters to the top plate.

    "When high winds come, the first thing that collapses is the roof. But to make sure the top plate is not going with the roof, we use OSB (oriented strand board) sheeting to connect the top plate with the bottom plate.

    "He said that now that you have the roof secured to the top plate, and that's connected to the bottom plate, then you have to connect the bottom plate to the foundation with anchor bolts. We were the first volume builder to start using this system regardless of the size of the home we were building."

    He said this method of integrating the structure from top to bottom significantly strengthens a home and increases its ability to stand up to high winds.

    "Previously, when they put the rafter up, they cut a notch to fit it over the top plate," Farzaneh said. "At best, they would fire a nail and hope it connected to the top plate. Once you have the tornado strap, you have four nails going in sideways at a sheer position through the rafter and another four nails in a sheer position going through the top plate.


    "It would take a massive force to cut those loose. The rafter would shatter first."

    It wasn't long before Oklahoma's weather put the theory to a test, Farzaneh said.

    The 2003 tornado "went through an area where we had a house under construction" near Interstate 240 and Sooner Road, he said. "Amazingly, the damage wasn't enough to report it to the insurance company. Some shingles blew away. Our homes had no damage, while a nearby bank was blown away."

    Home Creations has put together small sample bags showing the components the company uses to minimize wind damage.

    "We now have packages at the home show and show people that this could save their lives," he said.

    When it comes to the second "step," top quality and service, Farzaneh listed several upgraded features found in Home Creations homes.

    "We just raised the bar ever since we started building in mass quantities," he said. "All the qualities we are improving, everyone else has to follow. When we switched from single-knob Delta faucets, everyone had to follow. When we went to low-e glass vinyl windows, even on low-end homes, others did, too. We wanted to give everyone 12-SEER air conditioning, fiberglass doors and structured wiring with full telephone and cable outlets."

    Farzaneh said the improvements have changed how the company competes in the housing market.

    "Our competition is no longer local competition," he said. "We're competing with the national giant builders. We're the 340th largest home builder in a list of 400 giant home builders nationwide. We are synchronizing our quality nationwide."

    The "E" step is for easy financing, Farzaneh said.

    Jan Astani, marketing director for Home Creations, said the company works with four preferred lenders.

    "If our buyers go through any of those lenders, we will pay 100 percent of their closing costs," she said.

    "People" make up the company's fourth step.

    "Frankly, we could not grow beyond building 30 homes a year if it was just me and Mohammad," Farzaneh said. "Our goal is to build 600 homes in 2005."

    For the past three years, the company has had a management team concept. The team, which consists of 12 people, meets once a week and collectively brings topics to the table to discuss and decide.

    "Majority rules," Farzaneh said.

    "That's why our company works and grows," said Kevin Hopkins, customer care-warranty manager. "Mohammad and Jalal's involvement with other things sometimes keeps them out of the daily contact with customers, vendors and suppliers. They let the people who have to deal with those parts of the business make decisions about that part of the company."

    Farzaneh said he and his brother have changed their roles in the company structure.

    "Now, if you took Jalal and Mohammad out of the company, the company may have a hiccup, but it would continue to function," he said. "Five years ago if you took us out of it, the company would cease."

    Farzaneh said that while the company's people made growth possible, its business system helps keep things running smoothly, and it's what he calls the last of the "steps."

    "Mohammad's son, M.J., helped put the system together," Farzaneh said. "Our plates are full. M.J. helped put together a system to keep everything running."

    The business system is a process that begins after a customer signs a contract for

a custom home, with a pre-construction meeting with the company's architectural department.

    "Once all the changes are made on the plan, they sign the plan, and then they go through color selection in the design center," he said.

    The color sheet and the floor plan go to the estimating department, which then sends it to the information systems department, where purchase orders and work orders are generated.

    Astani said the design center is a onestop shop.

    "They have scheduled time with a design coordinator to choose the amenities for their new home," she said. "They choose carpet, lighting, tile -- there are hundreds of choices. To help, there's a kitchen and a bath set up here."

    Home Creations is building in neighborhoods from Edmond to Noble, Yukon-Mustang to Midwest City, Farzaneh said.

    "We're growing to both the east and west areas around Oklahoma City. We're opening up about 18 different communities this year," he said.
 


Kevin Hopkins, director of customer care for Home Creations, inspects a window on a new home in Moore.
BY STEVE GOOCH, THE OKLAHOMAN



Left: This view shows the living room of the Home Creations model home in The Apples addition in Moore. Home Creations is one of the leading building companies in the Oklahoma City area.
BY STEVE GOOCH, THE OKLAHOMAN








This house by Home Creations is at 200 SW 40 in The Apples addition in Moore.
BY STEVE GOOCH, THE OKLAHOMAN



Left: A long counter provides a kind of border for an otherwise open kitchen in a Home Creations model home in Moore.
BY STEVE GOOCH, THE OKLAHOMAN