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As a property management business owner, how do you find the best people to build an effective sales team? In this episode of the #DoorGrowShow Podcast, property management growth expert Jason Hull sits down with Bob Lachance, founder of REVA Global, to talk about how you can utilize virtual assistants for lead generation and growth. You'll Learn [01:22] Identifying a Need in the Real Estate Industry [08:53] How to Utilize VAs in Your Business [14:35] Creating a Hiring System in Your Business [19:30] Using VAs for Lead Generation  Tweetables “When marketing consistently goes out, what we find is all those leads end up piling up.” “Over 70% of all sales never happen on the first touch.” “People want to do business with people they see, feel, touch, and like.” “Property management can definitely be death by a thousand cuts.” Resources DoorGrow and Scale Mastermind DoorGrow Academy DoorGrow on YouTube DoorGrowClub DoorGrowLive TalkRoute Referral Link Transcript [00:00:00] Bob: Virtual assistants are a big part of anyone's business. In my opinion today, I think you got to start looking at that because small businesses, a lot of times, especially when we start, we are on a tight budget.  [00:00:12] Jason: Welcome DoorGrow property managers to the DoorGrow Show. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others impact lives, and you are interested in growing in business and life, and you're open to doing things a bit differently, then you are a DoorGrow property manager DoorGrow property managers love the opportunities daily variety unique challenges and freedom that property management brings. Many in real estate think you're crazy for doing it. You think they're crazy for not because you realize that property management is the ultimate high trust gateway to real estate deals, relationships and residual income. At DoorGrow, we are on a mission to transform property management business owners and their businesses. We want to transform the industry, eliminate the BS, build awareness, change perception, expand the market, and help the best property management entrepreneurs win. I'm your host, property management growth expert, Jason Hull, the founder and CEO of DoorGrow. [00:01:10] Jason: Now let's get into the show. And today's guest is Bob. Do you say Lachance?  [00:01:18] Jason: Lachance. Yep. Lachance.  [00:01:20] Jason: I nailed it. All right. So Bob, great to have you on the show. And, Bob, you are helping people discover the top marketing channels that can maximize lead generation when working with VAs. And so we're going to chat a bit about that today before we get into that, tell everybody a little bit about you, how you got into entrepreneurism and what led you to what you're doing now.  [00:01:43] Bob: Yeah. So right now I'll just start right now. I have a real estate investment company as well. And I have a virtual assistant staffing company, so I use my VAs in my own business. So I have a rental portfolio as well as a buy sell fix flip company here in Connecticut, doing a couple of different states, but I started back about 20, 21 years ago now back in 2004. [00:02:06] Bob: I played professional hockey prior to that for eight years and then got into real estate. And you know, from real estate, helped start an education program while I was, you know, working on properties. I did a lot of, you know, fixed flip wholesaling, all that kind of good stuff. This is, again, I'm dating myself, but this is back in 2004. [00:02:25] Bob: And through the process, when I helped start this education company there was a huge need in the industry, just like you, right? You see a need out there. And I'm a lot like you on that side of it, helping people and figuring out, you know, where they could. Create passive income or income in general. [00:02:42] Bob: So, during the coaching program, while I was in it, I realized there was a huge need. Majority of the students that I coached didn't have the time to actually put into their real estate business because they were either working part time or full time. They just needed to, you know, they needed help. And for years, upon years, I was looking for a solution for that. [00:03:01] Bob: Whether it was a product I didn't know back then, again, this is going back from 2007 to 2013. I didn't know there was any services out there, like what virtual assistants were. And then I got introduced back in 2013 what a virtual assistant was. You know what this could help my business So I hired my first one and then light bulb went on like, you know what we could turn this into a business I could take the back end of what it helps create which is the real estate education company And our students could use it to help them grow their business help scale help, you know, get your time and freedom back. So launched it in 2014 and then fast forward today you know 10 years later i've been in business for a while and I also have like I said my real estate investment company  [00:03:45] Jason: Nice. [00:03:46] Jason: Nice. All right. And so let's get into the topic at hand. So, we're going to talk a little bit about leveraging virtual assistants. And so how did you kind of start doing this yourself?  [00:03:58] Bob: Yeah well, when I first got into this, like I said I door knocked first, we didn't have the opportunity to have, you know, virtual assistants do some outbound stuff. [00:04:07] Bob: And I didn't understand, you know, I didn't understand what outsourcing was when I first started. It was just me. I had an individual who was my business partner back in the day, but first year I door knocked. I went from door to door, individuals that were behind on payments. So it wasn't the easiest job in the world, but it allowed you to understand how to build a business from ground up. [00:04:29] Bob: I think that was very important back then. So nowadays you can have virtual assistants do that, whether it's you know, cold calling, whether it's responding to direct mail, whether it's text messaging, whether it's social media, whether it's going out to, you know, Facebook marketplace and going right direct to seller, you also have rarely used now Craigslist, of course, but there's different ways to acquire and use your virtual assistant to do that. So that's just, again, a long and short.  [00:04:54] Jason: So go ahead and tell people a little bit about your company and what you help people do. And I'm really curious because this is usually a difficult thing for business owners to outsource. [00:05:05] Jason: Usually they'll outsource some of the lowest level stuff, and it's usually not towards growth, lead generation, outreach, stuff like that. Those pieces can be really difficult to get dialed in or to do effectively. And so, tell us a little bit about REVA global? Okay. Yeah.  [00:05:22] Bob: So, you know, like I said, we started back in 2014. [00:05:26] Bob: Like I said, I've been doing this for a long time and just to fast forward to what that looks like today and working with property managers, because obviously the individuals that are on your podcast here, I'll speak to them. And I know, you know, many people that also buy and hold also probably do fix and flip or also may wholesale, but it's kind of the same concept, but there's a lot of different tasks within it that virtual assistants can do. [00:05:50] Bob: So what I did is I broke up all the stuff that our VA is doing in my own business because you know, many individuals that are listening to this will relate to a company like ours because like I said, we have a real estate investment company, but we also use our VA's which I think is pretty cool. I think Nowadays, it's very important as a service provider like myself to use it to make sure it works so I think that's a pretty unique thing that we actually have. But what we do, we have virtual assistants that acquire, we call them like a department of acquisition. So if you're looking for leads, you could do cold calling, you do text blasting, you could do lead management. You know, lead management, a lot of us, I'm just like, you will have all these leads in your database, but if you don't get ahold of them the first time, your marketing is going to consistently go out. So when marketing consistently goes out, what we find is all those leads end up piling up. And if you try to reach out to them the first time, you know you have a very small percentage that are actually going to pick up the phone. Right? So you need somebody then that will continue to follow up on those leads. [00:06:57] Bob: And a national statistic is over 70% of all sales never happen on the first touch, right? So you have to continue. And I think that's probably 90 or 95 percent nowadays. So that's what we find in our office. And I know a lot of our clients say the same thing. So that number could change a little bit depending on what you read, but our experience in our office is over 90%. [00:07:21] Bob: So what I mean by that is the first touch, whether it's direct mail call or a cold call, whatever you do for direct mail or whatever you do for marketing, that first touch will not equate to a contract, so you're going to have somebody that's continuing to follow up with those individuals. Very important. [00:07:39] Bob: I wish I would have understood that stat when I first started real estate. But again, you know, you learn over time. Another stuff. If you look at other tasks as well, that works very well is marketing. Right social media management because you look at any type of business if you don't have marketing It's very difficult brand awareness, right people want to do business with people they see, feel, touch, and like so you need to make sure that you're out there You're out in the public's eye. [00:08:05] Bob: I think that's very important. I know you guys do a great job of that Jason on the marketing side of always being out there because I see in a lot of different places everywhere I'm looking online. So whoever's doing your stuff man, great job. So you're doing a fantastic job on that side of it. And then you go into leasing so if we look at property management you know driving leads is one thing, but you also have to, you know, close them. [00:08:27] Bob: So if it's you, me, or whoever's the one on the phone locking up those deals, it then goes to once you own them, you got leasing, you got move in, move out, you have collection, you have evictions, you have maintenance, you have accounts receivable, you have accounts payable, bookkeeping, accounting etc that fall underneath that property management umbrella, that virtual assistants are phenomenal to actually take on those tasks for you.  [00:08:52] Jason: Got it. Yeah. Yeah. So what's the typical process for somebody that could use some help from a company like yours? How do you engage them? [00:09:01] Jason: What's onboarding like? How does that work?  [00:09:03] Bob: I think for anybody who's looking to scale or looking to just get help in their business. You know, here in Connecticut, it's pretty interesting because if you're looking to hire someone in house, you start looking at what's going on with the world and what's going on with the economy in state of Connecticut, minimum wage is up to $15.69. [00:09:24] Bob: So when you start looking at that I know in my area, if I try to hire someone at minimum wage, they don't have a four year college degree. That's just not the highest level individual that you'd want working in your office. And so now you start looking at those things and what's happening around the country. [00:09:42] Bob: Virtual assistants are very are a big part of anyone's business. In my opinion today, I think you got to start looking at that because small businesses, a lot of times, especially when we start, we are on a tight budget. Right. And so for us to start to scale or start to grow or start to hire, we really need to look at what's going out, meaning out of our pocket. [00:10:04] Bob: So it's very important. So they first look at number one, what can we afford as small business owners? If we look at that number, now we start looking at what tasks in our business do not put money in our pocket. Right? And if you look in your world, meaning the property management world, it is a lot of the tasks like leasing, like taking calls from tenants, move in, move outs, eviction process when you're calling attorneys back and forth. What does that look like? There's just a lot of back and forth, right? Maintenance concerns. You get those all the time and those are the things that burn up your time. Your phone doesn't stop ringing. [00:10:44] Bob: So if your husband or wife wants to go on vacation with you and your phone doesn't stop ringing. That's going to put a lot of stress and a lot of challenges in your personal life to where, especially when you continue to grow. You have to put more systems and processes in your business. You know, if you had one house, that's one headache. [00:11:02] Bob: You had two, that's two headaches. You have a hundred, you have a hundred potential headaches that if you don't want to take those headaches on yourself, it's always good to have somebody else take those headaches before it gets to you.  [00:11:15] Jason: Yeah. Property management can definitely be death by a thousand cuts. [00:11:18] Bob: Yep.  [00:11:18] Jason: Yep. And if you get it really well dialed in though, yeah, it can be a really great residual income business model.  [00:11:25] Bob: So Very good. Very good. Well, two sides of it, right? You buy, right? You have an equity play there, right? And if you don't have to deal with the headache, you get the positive income, you get tax advantages, things like that. [00:11:36] Bob: So, I mean, I'm a huge advocate of buying and holding and property management because over time, the more, like you said, the more properties you actually hold, the bigger your income grows.  [00:11:48] Jason: Nice. Yeah. Cool. So, so I love this. There's lots of low level tasks. It does get really expensive trying to afford staff and team members and you don't want the cheapest or lowest level or worst people. [00:12:02] Jason: You know, in the United States representing your business. And so, sometimes you can get people at a fraction of the price point that have a lot more education that are a lot better. And so when you, any of the roles that are able to be done virtually, you open yourself up to a global marketplace rather than just your local city. [00:12:22] Jason: And so, yeah, so there's definitely advantages. So my entire team are virtual and I've got team members in various areas, Canada, Philippines. Egypt gosh, I don't know where else like all over the place and I've hired people over the past and just about everywhere. So yeah. And so, and so I'm not limited, so I'm able to just go find the best and I'm able to figure out, okay what can kind of fit into our budget and what can we afford in order to do that. [00:12:49] Bob: Right. And to your point, to get back to what that looks like, I mean, anyone in this world could go out and go source for their own candidates. You know, we set up a very unique system process. We have a whole sourcing and recruiting team. All my virtual assistants are in the Philippines. We set up a sourcing and recruiting team out of the Philippines, so they're Looking through, you know, thousands of resumes every single month sifting through and we're getting the best of those Resumes that come in as soon as they pass then they go through an interview process. [00:13:22] Bob: They pass the interview process They go to our training team and they train for about a month on various tasks property management tasks lead generation tasks, etc And then once they actually get to the end of that stage, they do another test and a lot of individuals do not pass our testing phase. And that's a positive thing because, you know, that's a way to kind of weed out the individuals that wouldn't make it, yeah, very good. [00:13:48] Bob: So, after that goes to our placements team and our placements team, it's kind of like match. com. They look at exactly what you're, you know, what the tasks are. And we do DISC profiling, things like that, and predictive index. And we look at the tasks that they're good at, and we match them exactly up with the client and the tasks that they're looking for. [00:14:05] Bob: So for instance, if someone's looking for a bookkeeper, you're not going to give them a profile that's a sales profile, right? You're going to, you're going to give them the correct profile. You put them together, they go through an interview process, and they pick the best candidate that fits within them so after that, it goes to our operations team. We have what we call a client service manager that helps manage the relationship between you and your va, so it's very streamlined. [00:14:27] Bob: You know, we tried every different business model there is out there and the model that we have right now seems to be the best model.  [00:14:34] Jason: Nice. Yeah, I always recommend if you're a property manager like watching this or listening if you don't have a really solid hiring process you have not like tested embedded and experimented with, then the best initial way to do hiring is to leverage other companies' hiring processes. Go and work with a company and there's lots of different companies I've worked with over the years to get people on my team, and then eventually we've built a really good process internally, but In the beginning, I do think every business eventually needs their own hiring system, but if you don't have a great robust hiring system that you can get candidates consistently, that you know are a good culture fit, a good skill fit for the role, a good personality fit for the role then you need to go leverage somebody else's hiring system. [00:15:20] Jason: So I would highly recommend, especially if you're going to dabble with VAs, especially in the Philippines or any other area, that you want to not be dealing with all the riff raff and the challenges and everything else. You want to have some help with this. So I highly recommend you leverage somebody else's hiring system. And they're going to help you not waste as much time and money for sure.  [00:15:46] Bob: And that's one of the things that's a great very great point because when you're first starting out or you're smaller. The best thing to do is learn off of others, right? [00:15:55] Bob: It's you'll walk through a company like mine. You say, "wow, what a great system." You know what? Document what we do and then implement it in your own business if you start growing. I think that is a fantastic idea, Jason, for that. Because, you know, you look at the biggest companies in the world. [00:16:09] Bob: They didn't just, you know, start being the biggest companies in the world or that, you know, it doesn't, you don't have to be the biggest, but they learned from somebody and they started implementing and they tested, you don't always get it right the first time. But after a while you will hone in and get that right. [00:16:24] Bob: So I 100 percent agree whether it's with our company or anybody else. Like I said, anyone could do anything themselves. It all depends on what you need help with at the beginning.  [00:16:34] Jason: Yeah. And it also depends on how long do you want to suck until you figure it out.  [00:16:40] Bob: That's true.  [00:16:41] Jason: Like so if you want to collapse time, I highly recommend. Because I know when I started experimenting with hiring in the Philippines. Like there's just things you don't even think to ask like we had to ask like where are you accessing the internet? [00:16:53] Jason: Is this like at a cafe at your home? Is it reliable? What kind of computer do you have? You know, we needed to be able to you know there's just so many little quality controls we had to implement in order to figure out if they would be a good candidate, I mean, I've had team members in the Philippines with chickens going off constantly in the background and roosters crowing and like all sorts of stuff and their internet going up and down and so you know, there's there's a lot of quality controls that I think need to be put in place because it's not America. We have a little bit more stability in our infrastructure and in our internet connections and everything else. [00:17:29] Jason: And so, and then, you know, it helps to have somebody that manages the relationship like your company, because a lot of times, in that culture, they can be a little bit shy, I think at times, or a little bit nervous about displeasing their employer or giving honest feedback. And so they tend to ghost or disappear. [00:17:49] Jason: People have talked about people in the Philippines doing this. And so having somebody manage that relationship as a liaison can help improve the results that you're getting from team members. And but the cost savings are awesome. I mean, it's like a third to a half of what you would get and you can get college educated people, you get people that have like lots and lots of experience and skill, and they are able to be paid very well for their area. [00:18:14] Jason: And for you, it's seems like a steal. So.  [00:18:17] Bob: And that's one of the things that we pride ourselves on. I mean, you nailed it. You touched upon all of that. You know, we make sure there's backup. We make sure there's the right internet connection, the right computer system, etc. So to your point that is definitely something for everyone listening to this to look at because the vetting process, that's what I found the most tiring. When I first hired my first VA, I got it wrong a lot, to be honest with you. And I didn't ask any of those questions. And then it's kind of funny to talk about the rooster. That happened to me. And that was before I actually owned the company. And then I started my company. That's one of the things I'm like, all right, we have to listen for, right? [00:18:52] Bob: What's your background, what's your surrounding, right to your point. And then you start learning over time. And then the more interviews you go on, the more stuff you learn, right? Like you said, you don't learn or you don't know all this stuff until you actually go through the process. And I think it's important for you to understand if you're going to do this, know that you're going to have a lot of pain up front when you hire at the beginning, right? And then you work with a company like mine and you'll realize you didn't go through that pain, but then you want to go hire someone. And then you decide to then throw your hat in the ring and do this yourself. [00:19:25] Bob: 100%. The questions to ask, just like Jason said up front, those are some of the things to look at.  [00:19:30] Jason: You know, based on the stuff that you said, I there's a lot of. Property management targeted, you know, VA companies leveraging talent in the Philippines, but it seems like one of the things you brought up that seems to be unique to what you guys do that's different than most of the others, or maybe all of them is the focus on client acquisition, lead gen, and on the sales side of things. [00:19:53] Jason: Most are usually focused on trying to find VAs that are more like executive assistants or that are going to do tasks and be told what to do rather than people that you can trust to be the initial connection and face of your business.  [00:20:08] Bob: You know what it's interesting, again, it's interesting you say that because I've been in this business for about 21 years, real estate investing. [00:20:14] Bob: And we realized over time that If you don't have, you talk about acquisition and lead generation, if you don't have leads for any of our businesses, we are going to struggle to make ends meet, right? So you have to figure out a way that's going to drive in leads to your business. I mean, I know for me, I'll just give you a perfect example. [00:20:32] Bob: When I door knocked, I went door to door to door every day from 10 a. m. to 3 p. m. But when I go home, I'd get that list and I would skip trace it back in the day You'd use 401. com white pages, and I would look for the best possible phone number for that individual then I would call. So when I got home, I would skip trace then I'll call until seven at night until I had to eat dinner with the family. But over time, I was beat up. [00:20:55] Bob: I don't recommend doing that anymore. You don't have to do that anymore because you can hand over those tasks over to a virtual assistant. And they're the ones that are going to be doing the outreach for you. And again, I do recommend you should try it because you'll realize you know, open your mind and understand that outsourcing that task will really give your energy back and bring your success up. [00:21:16] Bob: You may feel, well, I don't think anyone could do that task better than me. We all said, I know you said it before, Jason, I've said it. We all feel that way. And if you think about it, if they do 80 percent as good as you, that's a huge win. Now you get to do other tasks. That's going to drive business and revenue to your business. [00:21:36] Jason: Even if they do it half as well as you, but they're getting. You know, half the result and you're able to hire two or three of them and not do that work. Like it's easily time and money well spent. So it's consistency, right?  [00:21:48] Bob: It's all the consistency. If you have something, a task that gets on a consistent manner, consistent basis every single day, you will get results by the end of the week. [00:21:58] Jason: Yeah. So what are kind of SLA you know, you know, what do you sort of think are the metrics or KPIs for as an appointment setter or somebody trying to help, you know, maybe reaching out directly to owners or maybe reaching out to schedule, I don't know, appointments with real estate agents to build referral relationships. [00:22:17] Jason: How many calls should they make a day? If this is their full time gig and how many appointments do you think they should be booking?  [00:22:22] Bob: Well, it depends. So if you have, so for instance, if you have a, you know, triple line dialer, as an example, it depends if you're, you know, calling just on a, you know, on your phone and just dial like this, but there's a lot of very good technology out there. [00:22:36] Bob: You got mojo dialer, you have things like that actually are very good. You may have a company that you refer, Jason, that you could tell everyone but you're probably calling if you're full time, anywhere between 400 and 600 dials using that dialer, not manual dialing. You're probably going to hit about a hundred, 150 if you're manually dialing. [00:22:57] Bob: And that's a day. Yeah. But if you have a triple line dialer, you're going to hit on average 400 to 600 and this is just what I've seen through the years that I've been doing this. You may have a technology that burns through a thousand calls and then you're going to be listening to me saying, well, Bob, you're a hundred percent wrong. [00:23:13] Bob: I'm just telling you what I see on a daily basis and what comes out of, you know, mine and my client's offices.  [00:23:19] Jason: I think yeah, even if they're doing it manually, if they can get a hundred to two hundred calls a day and get two appointments booked a day, like, so they're getting roughly about 10 a week. [00:23:27] Jason: Like that's a solid result for an appointment setter.  [00:23:31] Bob: That's a win. That's a win. You're looking at, if you're looking for, so we call them ITS's in our office, interested to sell. I know other people call it different, but that's what we look for. Same exact thing. One to two per day per VA. [00:23:44] Jason: Nice. Yeah, very cool. And those listening, I'm sure all of you would love to have one or two appointments booked for you per day, and that would fill up a nice little chunk of your time and help you close some deals. So, yeah.  [00:23:57] Bob: Especially on the buy and hold side Jason. It's a lot easier to look at your numbers. [00:24:03] Bob: And I know you have a formula that you guys look at to make sure the rent and you know, what the interest rates are today, et cetera, et cetera, whatever financing you have, but it is easier on the buy and hold side to fit within your buy box, right? Rather than having to go at, you know, 30 or 40 or 50 or 60 percent of the value. [00:24:20] Bob: When you fund it out and then try to resell it. So it's a different kind of mindset. So you're very fortunate if you're going to buy and hold your buy box is usually different than somebody who's either trying to wholesale or fix and flip.  [00:24:32] Jason: Got it. So we've probably got some property management business owners listening to this. [00:24:37] Jason: And for some reason, maybe they're just crazy and they have not yet worked with DoorGrow yet, but they're like, Hey, I would like to grow, add some doors and maybe have somebody do some calls and reach out to Bob. How could they get in touch with you and how can they initiate a conversation?  [00:24:54] Bob: Well, you can check us out on our all of our social, of course, but REVA Global. R-E-V-A Global. com. If you have any specific questions, obviously for you, you could just reach me direct at bob@revaglobal.com.  [00:25:07] Jason: Awesome. Hey Bob, thanks for coming on the show. Any parting words for entrepreneurs that are struggling, they've never hired an assistant yet they, even if they've built out part of their team or an entire team already, which is ludicrous to me, but what would you say to them? [00:25:22] Bob: Well, I would say number one, get started, of course, but number two, I would say you got to set up your processes and systems and get them done consistently because if you just get success here. And then you stop doing it. Real estate's a long game. You know, like I said, I started this 21 years ago and I wish I knew what I knew now back then. [00:25:43] Bob: I would start buying properties back then because right now I'd be retired with thousands of doors and rental income of a thousand doors. But I started a little bit later.  [00:25:54] Jason: Hey, Bob, we appreciate you coming and hanging out with me on the DoorGrow show today. And I'm excited to see if you helped maybe some of our clients listening or some of the people let me know what results they get and maybe we'll have you come back on. [00:26:07] Bob: Thanks for having me. Appreciate it.  [00:26:08] Jason: All right. So if you are a property management entrepreneur, you're struggling to add doors, you're struggling to figure out how to grow your business. We want to help you. We want to support you. Reach out to us at DoorGrow. com. You can also join our free community at DoorGrow club. com. Go there. Answer the questions. We reject 60 to 70 percent of applicants. It's just for property management business owners And if you get inside, we'll give you some free stuff that'll help you out and help out your business. So that's it for today until next time to our mutual growth I'm, Jason Hull, and I hope you crush it. [00:26:40] Jason: Bye, everybody. [00:26:40] Jason: You just listened to the DoorGrowShow We are building a community of the savviest property management entrepreneurs on the planet in the DoorGrowClub Join your fellow DoorGrow Hackers at doorgrowclub.com Listen everyone is doing the same stuff SEO PPC pay-per-lead content social direct mail and they still struggle to grow at DoorGrow We solve your biggest challenge getting deals and growing your business Find out more at doorgrow.com Find any show notes or links from today's episode on our blog doorgrow.com and to get notified of future events and news subscribe to our newsletter at doorgrow.com/subscribe until next time take what you learn and start DoorGrow hacking your business and your life.

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It's already 2025! What goals do you have for the year for yourself? For your property management business? In this episode of the #DoorGrowShow, property management experts Jason and Sarah Hull discuss their goals for 2025 and how they will impact property management business owners. You'll Learn [01:36] DoorGrow's Yearly Planning and Goals [07:30] DoorGrow in-Person Events in 2025 [13:05] The Future of Property Management: DoorGrow Live 2025 [16:11] DoorGrow's Commitment to Rescuing Dogs Tweetables  ”Strategic time invested in the business is what actually grows businesses.” “Most of y'all are focused so heavily on the tactical, the day-to-day tasks that just come at you and the business isn't moving forward.”  ”Broke people often have a broke mindset.” “You can do it. You just need a really good plan.” Resources DoorGrow and Scale Mastermind DoorGrow Academy DoorGrow on YouTube DoorGrowClub DoorGrowLive TalkRoute Referral Link Transcript [00:00:00] Jason: Most of y'all are focused so heavily on the tactical, the day to day tasks that just come at you and the business isn't moving forward.  [00:00:09] Welcome, DoorGrow property managers to the DoorGrow show. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others, impact lives, and you are interested in growing in business and life, and you're open to doing things a bit differently, then you are a DoorGrow property manager. [00:00:27] DoorGrow property managers love the opportunities, daily variety, unique challenges, and freedom that property management brings. Many in real estate think you're crazy for doing it. You think they're crazy for not because you realize that property management is the ultimate high trust gateway to real estate deals, relationships, and residual income. [00:00:47] At DoorGrow, we are on a mission to transform property management business owners and their businesses. We want to transform the industry, eliminate the BS, build awareness, change perception, expand the market, and help the best property management entrepreneurs win. We're your hosts property management growth experts Jason Hull and Sarah Hull the owners of DoorGrow. [00:01:07] Now, let's get into the show. All right.  [00:01:10] So today, we're going to be... [00:01:12] Sarah: It's new year's eve!  [00:01:13] Jason: It's new year's eve as we're recording this episode. So those of you watching us live, happy new year's. And those of you that are not, then I hope you had a happy new year, and you didn't like drink too much and you are like ready to go for the new year. [00:01:28] So we're going to be talking about the new year. What are we going to chat about today?  [00:01:33] Sarah: I thought we were going to talk about where we want to go.  [00:01:36] Jason: Yeah. So we're going to tell you a little bit about what's up with DoorGrow. We do our annual planning in the middle of the year. We offset it by two quarters. [00:01:45] We find that to be a lot more effective. So we actually coach our clients to do the same. Why? Because this time of year, everybody's a little bit too focused on other stuff, holidays, family, all good things, right? And not as focused, maybe, on the business. [00:02:00] Sarah: Can you imagine if today was the deadline for all of your big annual goals? [00:02:05] Like, man, we gotta do that one thing! Today's the last day. Hard push, guys! Everyone's like, "..." [00:02:10] Jason: Or just even this whole month of December or even like Thanksgiving time. Like just trying to push your end of the year goals and trying to achieve as a team, your team are like, "cool. I'm glad you are motivated, Mr. Business Owner, but..."  [00:02:24] Sarah: "I'm taking two weeks off for Christmas, and I'm off for Thanksgiving, I'm taking time off for Christmas, I'm taking time off for New Year's." [00:02:31] Jason: "That's cool, you want to hit that end of the year revenue goal, or sales goal, or whatever your goals are, but I need to figure out what to get my Aunt Susie for Christmas, and who's bringing what for Thanksgiving." [00:02:43] Sarah: "I'm cooking, and I'm cleaning." [00:02:44] Jason: And, "what party am I going to for New Year's? Who am I going to kiss at midnight?" Like, it's hard stuff. That being said, some of the goals we have for 2025 I think one of the things we've really put a lot of attention into over the last three, four years, maybe even longer is just making our program better and better. [00:03:05] We've just added a lot to the program, like focusing on decreasing churn, keeping our coaching clients longterm improving systems. We just rolled out some cool stuff, our client workbooks. What are some of the things we've done in the last year? We rolled out this new Accountability Sales Tracker. [00:03:19] We rolled out, you know... [00:03:20] Sarah: all kinds of client workbooks content...  [00:03:23] Jason: new courses,  [00:03:23] Sarah: operations revamp.  [00:03:25] Jason: DoorGrow, we get a lot done. Part of that is because of DoorGrow OS and our planning process. It allows us to really focus on Goals and outcomes, strategic growth of the business instead of just tactical day to day work. [00:03:38] And strategic time invested in the business is what actually grows businesses. Most of y'all, because I've talked to thousands of property managers, most of y'all are focused so heavily on the tactical, the day to day tasks that just come at you and the business isn't moving forward. So our goal for this year, because we've got a really good program, we're getting great results. [00:03:59] We're keeping clients for a decent time now. You know, we even got rid of over the last several years, we got rid of any sort of annual contract. A lot of vendors like DoorGrow have annual agreements or whatever. We got rid of those because we could keep clients longer than a year. And so we didn't need that. [00:04:16] Like it increases the risk of people wanting to like get on board with us. So we're like, let's lower the risk to come on board with us, prove ourselves and just keep them. So the next goal for us really at DoorGrow is to focus on lead generation. That game has changed so much over the last decade plus that we've been in business. [00:04:37] We've used LinkedIn to get business for a while through automation. We used our Facebook group and we've used organic stuff through SEO. Like we've used a lot of different strategies and we still have several things going at a time, but the game always changes. And so lead gen is something where we're shifting our focus. [00:04:57] As you focus on the business, we've got our six core functions, lead gen, nurture, conversion, delivery, lifetime value, pricing, retention, et cetera. And then financial finances. And so we're shifting our focus every year towards what's weakest. Where does our attention... yeah. [00:05:17] Sarah: Every quarter, we're like, "okay, Hey, we solved that problem. Now we have this whole other problem.  [00:05:22] Jason: So our weakest thing right now is probably lead generation. Like we've got a lot of tools for nurture. This podcast or newsletter. We've got lots of content on YouTube. Yeah. Nurture's strong.  [00:05:35] Sarah: Yeah. [00:05:36] Jason: Delivery and fulfillment is strong. Conversion, like we're pretty good at conversion.  [00:05:40] Sarah: Hassan follows up with people like crazy. He's just on top of it. He's done everything.  [00:05:45] Jason: So lead gen, we've been getting a lot of leads, you know, through Facebook ads and through our Facebook group where we funnel people to, but we're getting a lot of unqualified leads. [00:05:54] Like basically there's a lot of startup property managers that are broke and don't have money and we can help them with that stuff if they're willing to invest. But broke people often have a broke mindset. So if you're listening and you're not growing, you're probably not investing any money towards growth. [00:06:10] Like who are you paying to coach you or teach you or help you figure out how to grow? If you're not paying somebody, you're selling yourself short. And we eat our own dog food. How many masterminds am I in right now? I don't know, two, three? [00:06:22] Sarah: I don't know. You just added another one.  [00:06:24] Jason: Yeah, but they're for different areas of the business. [00:06:26] And and we leverage them and allow the team to leverage them and to make sure that we're always innovating or getting new ideas and moving things forward.  [00:06:35] Sarah: Think the answer is four.  [00:06:36] Jason: I think I'm in four different masterminds right now. Yeah. We're in plenty. So, yeah. So, and yeah we've got two online programs that we're in right now related to just leads. [00:06:49] Oh, I wasn't counting those.  [00:06:50] Ads. So we've got access to at least, you know, at least two focused on lead gen. So we're going to be putting our attention and focus this year on lead generation. Like how do we attract more property managers that are struggling, that want to grow, or that are struggling with being able to scale their operations and adding doors is causing a problem for them? [00:07:14] These are problems we solve and we're really good at solving it. So we're going to be shifting our lead gen from just like, "Hey, are you a property manager? Join our free Facebook group and then we'll give you free stuff." We're going to shift it more towards, "Hey, do you have these particular challenges we want to help?" [00:07:28] So that's going to be our focus this year.  [00:07:30] Sarah: I also want to focus on doing some cool events this year.  [00:07:33] Jason: Yeah.  [00:07:33] Sarah: Those are so fun for me. I love that. Like even our jumpstart events.  [00:07:37] Jason: Yeah.  [00:07:38] Sarah: It's a whole day, so it's a lot. Like I am tired afterwards, but I walk away feeling really fulfilled I walk away... [00:07:45] Explain what a jumpstart event is  [00:07:46] ...and I just feel like we just changed the trajectory of people's lives and businesses. [00:07:52] Jason: Yeah, they're powerful. Explain what a jumpstart is for those that are like, what's that? Yeah.  [00:07:56] Sarah: What's a jumpstart session? So the jumpstart session is available for our mastermind clients. They're held here in the North Austin, Texas area, and they're a one day deep dive into the business. So, there's no pre selected topics. [00:08:08] Sometimes I get, "well, what are we going to talk about?" I don't know, what do you need in your business? What are the problems? What are your challenges? What are you working on? What has not been working for you? You know, what questions might you have that you're like, "man, I just, I know I can do this better. I just don't know how." That's what we're going to talk about. So whatever it is. We've done a couple of them we've done pricing. Some of them have been focused on sales. Some of them have been focused more on the back end, like delivery and team operations.  [00:08:37] Jason: Yeah.  [00:08:38] Sarah: So they're different every single time and we never know what we're going to talk about really until we get there and we start diving in and we start asking questions. [00:08:48] So, they're usually smaller events. I like to keep them small because if they get too big, it's hard to go really deep into a business if there's like 20 businesses in the room. Now it's not a deep dive. Now it's just, we're going to talk about some stuff. So we keep them generally pretty small. [00:09:03] There are usually about like three, maybe four businesses there. And it's like a one day deep dive. We do break, we get some really good tacos. We go for lunch and then we dive right back into it. But every single time people walk away with an action plan, they walk away knowing what to do. We update our client workbooks. [00:09:22] So they get a lot of clarity and then we wanted to mimic that, but build on it and do this a little bit in a more robust way. So we're actually hosting an event. This is open to anyone who wants to join. It will be called Thrive 2025 because as we're talking with people, we're realizing we're at the end of the year. [00:09:44] The clock is about to reset. Some people, they have an idea of what they want to do, but they don't know how the hell they're actually going to get there. So, we're going to get into the nitty gritty and help them figure out, well, what is your plan? What are your goals? And then, how are you going to get there? [00:10:01] What are the things that you need to do? And by what time frame do you actually need to do them? So that you can hit this goal that you're trying to hit in all of 2025. So at this event, we're not just planning for like, "Hey, here's what you're going to do for maybe the next month or the next couple of weeks." [00:10:18] "Here's what your 2025 is going to look like, and here's the entire roadmap for your 2025." So that you can be on track and hit the goals that you're looking to hit so that you don't have another year where you're like, "man, it just didn't happen again. I just don't know what's going on. Maybe I'll just never do it." [00:10:38] You can do it. You just need a really good plan. You need a solid plan put together. So we're going to spend the day with a room of property managers. We're going to brainstorm. We're going to create some goals, figure out what is it that you really want for your business? Why do you want it? [00:10:53] And then, what are the action steps that you need to take so that you can get there? So this essentially is going to write the business plan for your business for 2025. And we're going to do that in a really cool place. It's going to be in Nashville.  [00:11:07] Jason: Yeah, we're going to take you through a bit of our planning process the way we do this at DoorGrow I really think this is the technology that has allowed us to surpass any other coaches in the space it's our planning and it's the planning process gets our team in alignment It gets them out of that transactional sort of leadership system. [00:11:28] It gets them focusing on objectives. It gets them functioning more like like intrapreneurs, instead of just waiting to be told what to do. And if you're frustrated and always having to tell your team what to do and always having to answer all their questions, you have a transactional leadership system because that's the least risky thing for them to do is to let you do all the thinking and decision making. [00:11:48] So when we start focusing on a team, figuring out what is the business need? What are the objectives to like brainstorm as a team? And you're the last to speak as a visionary or the people that are running the business and you get feedback, real feedback from your team who are on the front lines, who know what challenges they're running into, then we can start to innovate as a company. [00:12:09] Then they start to focus on those outcomes and they start to move things forward. And so we're going to take you through that process. And come up with a plan. So we're going to spend a day and just dig in. And this will be a game changer for you and your business. So we're going to have a small group. [00:12:24] How many are we allowing to come to this?  [00:12:26] Sarah: There's going to be eight spots total. And some of them are already spoken for.  [00:12:30] Jason: Okay. Eight businesses.  [00:12:32] Sarah: Eight spots.  [00:12:33] Jason: Eight people.  [00:12:34] Sarah: Eight. Yep. Eight human beings. So, a business might just have one person.  [00:12:39] Jason: Or bring a plus one. It can bring a plus one. Yeah. Okay.  [00:12:43] Sarah: Two, two max. [00:12:44] Because if someone goes, Oh, I have three people. So it might only be four businesses. Four people. Like now that's really.  [00:12:49] Jason: Okay.  [00:12:50] Sarah: It's hard then, because it takes up so many spots.  [00:12:52] Jason: So we're going to be doing events as another goal for the year.  [00:12:56] Sarah: Yep. Yeah, so we're going to kick it off with right in January Thrive 2025. [00:12:59] Jason: If you're listening this podcast later on like iTunes or something then you probably missed it, but we'll have other stuff.  [00:13:05] Sarah: But don't worry because we have our DoorGrow live event coming up. [00:13:08] Jason: Okay, that's another event So we've got DoorGrow live coming up. You want to talk about DoorGrow Live?  [00:13:13] Sarah: Yeah, let's talk about DoorGrow Live. So that is going to be a Friday and Saturday. It's May 16th and 17th. And you'll want to make sure that you come in on the 15th because that Thursday, the day before from 7pm to 9pm, we're doing a mixer. [00:13:27] So we're doing some networking. You'll meet the DoorGrow team. You'll meet a lot of other business owners and property managers, and we're going to have some live entertainment. So you're going to get to see some dancers. We're going to have a singer. It's going to be a good time. So make sure that you travel in the day before, attend the mixer. [00:13:46] And then this year we're talking about innovating the future of property management. So we want to talk about where is this whole industry going? Because things change really quickly, especially with all of the developments in AI. So things can change really quickly. So we're going to have some great speakers there. [00:14:07] You can go actually right now. You can go to doorgrowlive.Com and you can get all of the event details. You can book your rooms at the discounted room rate that we've negotiated with the venue for you. It's at Kalahari Resorts in Round Rock, Texas. And you can check out some of the speakers that are going to be there at the event. Every year we do one of these we always try to make it a little bigger a little better, and this year is no exception We've got some great stuff planned.  [00:14:39] Jason: You know, I think a lot of people are burnt out on conferences. A lot of you maybe have gone to a lot of events and conferences. But there's something special and different about DoorGrow Live. [00:14:49] I've been to a lot of different events as well. And there's just something special and different about DoorGrow Live. And one, we're creating a lot of momentum for property managers too. I think we're a lot more holistic in our approach. We're not just focused on property management. All of y'all know plenty about property management, but what I find is usually what's holding you back in business is not even related to business, it's everything else going on. And that's why we take a much more holistic approach. And so we're going to benefit you in a lot of different ways. Like people walk away from these events and become better people. That's our goal. And so, and better people have better businesses and better families and make more money and more contribution and make a bigger difference. [00:15:33] So, so get your tickets to DoorGrow Live. That's coming up as well. And any other events?  [00:15:39] Sarah: Well, there's this secret one that we haven't talked about yet. When we were in Mexico, we were talking about it.  [00:15:45] Jason: Okay, well I guess we're not talking about today 'cause it's a secret . So, so sorry, everybody. [00:15:51] All right. So something cool is coming. All right, so we've got events coming up and then so what other goals do we have for DoorGrow? Those are kind of the key ones for us internally. It's lead gen. Yeah. Yeah. It is going to be our focus, so.  [00:16:04] Sarah: I want to just find it to help more people and [00:16:07] Yeah. [00:16:07] I don't care what that looks like.  [00:16:08] Jason: It doesn't  [00:16:09] Sarah: even matter what it looks like, really, so. Oh, and then my, I have some personal goals, too, I'm going to help more dogs. We're going to save more dogs this year. Jason's going to kill me, probably. I might be divorced by the end of the year. Hopefully not.  [00:16:22] Jason: I will not kill her. [00:16:22] Sarah: What's the number of dogs that we can get before we talk about divorce?  [00:16:28] Jason: Is this, like...? [00:16:29] Sarah: On the pod, we're going to record it, yeah. So, like, what's the number? Because we're at three right now. We just rescued enough.  [00:16:35] Jason: There's no amount of dogs that would make me divorce you. There's plenty of other things you could do that would probably lead towards that, but it's not a dog thing. [00:16:44] Sarah: So we're going to have 99 dogs.  [00:16:46] Jason: We just adopted. Yesterday, we officially just adopted our third dog, who was a foster. We had for, what, a month? And then...  [00:16:55] Sarah: we had him for a month.  [00:16:56] Jason: And then he got adopted. We got him adopted.  [00:16:58] Sarah: We did our job.  [00:16:59] Jason: We took him to farmer's markets and places and we met somebody at one of the things we took him to and got him adopted. [00:17:06] Sarah: And it was a great situation for him. We were super sad because he's such a great dog. He's so perfect for him. And then when we dropped him off, I was just I was crying. I was a mess.  [00:17:15] Jason: Yeah, it was, that was hard.  [00:17:16] Sarah: I was so sad.  [00:17:17] Jason: He's just like the sweetest dog ever. Like, he's so, like, loving, he just loves everyone, like, well, loves us, not everyone. [00:17:24] And yeah, so we got him adopted and then they took him back to the animal shelter.  [00:17:30] Sarah: Yeah.  [00:17:31] Jason: Which is sad. I guess.  [00:17:33] Sarah: Husband wasn't really on board.  [00:17:34] Jason: Husband wasn't really on board with it. No. The wife had adopted him and.  [00:17:37] Sarah: She got him while he was in Florida like. He was out of town. Rebuilding houses from the storm. [00:17:43] Jason: Yeah.  [00:17:43] Sarah: And he was like, yeah, babe, go ahead. And he comes home and there's this dog.  [00:17:47] Jason: I'm coming to Texas. And he's like, I don't know if I like this dog. Yeah. Hans doesn't like new people, so he was probably like a little iffy about him, and it probably just didn't go well. I don't know.  [00:17:57] Sarah: Well, he let me know that it wasn't going to work out, so I said, okay, bring him back, and we'll foster him again, and in fostering him again, we both just, we knew we can't, we just can't, we can't give him up.  [00:18:12] Jason: So we're on number three. If we keep doing this fostering, we may end up with 20 dogs eventually. We'll need to buy land and a farm for dogs.  [00:18:21] Sarah: Y'all heard it. He said there is no amount of dogs.  [00:18:25] Jason: I'm not going to divorce you over dogs.  [00:18:26] Sarah: He said there's no amount of dogs. [00:18:27] So this is recorded. I have video evidence  [00:18:30] Jason: that doesn't mean I'm going to allow any number of dogs. There's only so many we can handle. Do you like taking trips? You like taking trips?  [00:18:37] Sarah: I do, but that's... [00:18:38] we're not boarding 20 dogs. [00:18:40] No, we just need a farm. Need a farm. [00:18:43] Need some volunteers. We'll start a nonprofit.  [00:18:47] Jason: Okay.  [00:18:47] Sarah: Get some people to help out. I'm going to save all dogs.  [00:18:50] Jason: This is Sarah's goal for 2025.  [00:18:54] Sarah: We'll have buses full of dogs. And he's not going to leave me, so that's great.  [00:18:58] Jason: God help me.  [00:19:00] Sarah: Seriously.  [00:19:00] Jason: Please, protect me from this woman and all of her dogs, so. Okay, so that's it. [00:19:07] That's our goals for DoorGrow. What are your goals? Figure them out. Let us know inside our Facebook group. You can go there by going to doorgrowclub.com . And let us know what your goals are for the year. And if you would like some help, we would love to help you with your goals. You know what your default future is. [00:19:25] You know what you achieved last year. You know what you achieved the year before that. And if you're anything like the majority of the property managers I've talked to over the last decade, your results probably aren't super great and you're probably not super excited about it. And you're probably getting a little bit burnt out on your business. [00:19:43] And you probably do not want to keep doing things the way that you're doing it for the next year or the next five years. And so if you would like to have a different year this year than you had last year. Like a great year, like things really going well, like adding a lot of doors, getting a team that actually makes your life easy and you feel like you can just take vacations and step away and the business works swimmingly well, then reach out to us. Reach out to us. This is stuff that we're helping clients do all the time, and you would be amazed how much we can get accomplished even in your initial jumpstart session as a new client, but certainly within the first 90 days, we are changing lives, and we would love to change yours. [00:20:26] We love getting to do this. We just we want to help more people and reach out to us. Have a conversation. We're expensive. Yeah. Not going to lie, like we're expensive, right? But we help you make so much money that you're not going to be worried about the expense. So that's the goal.  [00:20:43] Sarah: What's this, what's the, I don't know what it's called, but there's this framework where you have good, you have cheap, and you have fast and you can never have all three. [00:20:51] Jason: You can only pick two.  [00:20:52] Sarah: There's only two. There's no combination in this world of anything. No product, no service, no nothing that's good and cheap and fast.  [00:21:00] Jason: Yeah. [00:21:00] Sarah: So  [00:21:01] Jason: Yep.  [00:21:01] Sarah: So figure out which one you want to sacrifice, right?  [00:21:04] Jason: Reach out to us. You can check us out at DoorGrow. com and until next time to our mutual growth and happy new year. [00:21:10] Bye everyone. [00:21:10] you just listened to the #DoorGrowShow. We are building a community of the savviest property management entrepreneurs on the planet in the DoorGrowClub. Join your fellow DoorGrow Hackers at doorgrowclub.com. Listen, everyone is doing the same stuff. SEO, PPC, pay-per-lead content, social direct mail, and they still struggle to grow!  [00:21:37] At DoorGrow, we solve your biggest challenge: getting deals and growing your business. Find out more at doorgrow.com. Find any show notes or links from today's episode on our blog doorgrow.com, and to get notified of future events and news subscribe to our newsletter at doorgrow.com/subscribe. Until next time, take what you learn and start DoorGrow Hacking your business and your life.

It's been 6 years since we've had TenantCloud join us on the podcast, and a lot has changed since then! In today's episode of the #DoorGrowShow, property management growth expert Jason Hull welcomes Mark DeHaan from TenantCloud to talk about how it can help property managers collect payments, advertise properties, and screen potential tenants. You'll Learn [03:03] TenantCloud update!  [06:46] How does TenantCloud compare? [09:34] TenantCloud integrations  [12:20] Scaling with your software  [15:56] Starting strong with Rentler  Tweetables “A lot of times when you get into rental real estate… you log into a property management system and you're like, "holy smokes, this is so overwhelming like I can't figure this out.” “A lot of property managers have all of these different tools. They kind of build their own Swiss army knife or stack of different tools and software.” “A lot of property managers have a challenge with financials and accounting.” “We love the rental real estate industry and helping people grow and make passive income and that's what we're all about.” Resources DoorGrow and Scale Mastermind DoorGrow Academy DoorGrow on YouTube DoorGrowClub DoorGrowLive TalkRoute Referral Link Transcript [00:00:00] Mark: A lot of times when you log into a property management system and you're like, "holy smokes, this is so overwhelming, like I can't figure this out." [00:00:07] And that's, I think the differentiator that we tried to solve.   [00:00:11] Jason: Welcome DoorGrow property managers to the DoorGrow show. If you are property management entrepreneur that wants to add doors, make a difference, increase revenue, help others, impact lives, and you are interested in growing in business and life, and you're open to doing things a bit differently, then you are a DoorGrow property manager. [00:00:29] DoorGrow property managers love the opportunities, daily variety, unique challenges, and freedom that property management brings. Many in real estate think you're crazy for doing it. You think they're crazy for not because you realize that property management is the ultimate high trust gateway to real estate deals, relationships, and residual income. At DoorGrow, we are on a mission to transform property management business owners, and their businesses. We want to transform the industry, eliminate the BS, build awareness, change perception, expand the market and help the best property management entrepreneurs win I'm your host, property management growth expert, Jason Hull, the founder and CEO of DoorGrow. [00:01:10] Now, let's get into the show. And my guest today is Mark DeHaan of TenantCloud. So Mark, welcome to the show. Good to have you.  [00:01:19] Mark: Yeah. Thanks Jason. Nice to meet you. Appreciate it.  [00:01:22] Jason: So we haven't had TenantCloud on the show for like six years. Back then, Joe Edgar was CEO. I had to look it up because I'm like, "I know, that they've been on the show before." [00:01:32] So I'm guessing a little bit's changed since then. So why don't we start by getting into a little bit about Mark. Tell us, tell everybody like, who are you and how'd you get into your entrepreneurial journey and then what led you to being at TenantCloud?  [00:01:46] Mark: Yeah, great. Yeah. So I'm based here just outside of Salt Lake city, Utah. [00:01:50] And I was a co founder of Rentler. And we partnered with TenantCloud, merged with them about five years ago with Joe. And when he exited, I ended up taking over as a CEO and running both Rentler and TenantCloud. And it's been a big journey by then, but yeah, my history was rental real estate. [00:02:13] And being an entrepreneur and really sacrificing and so forth. And it's been really exciting, and I love your audience because I think they can relate to, you know, being an entrepreneur and trying to grow in the real estate business.  [00:02:25] Jason: So for sure. I'm looking up Rentler right now, cause I don't know what it is. [00:02:30] What's Rentler? [00:02:31] Mark: So Rentler primarily focuses on listings and filling vacancies for landlords, small mom and pop landlords. Yeah. It does some payments and screenings and a few other tools and syndicates out your leads. And then TenantCloud is a lot more robust. It does the accounting, the maintenance, a ton of things that you can track with service professionals and your owners and reporting. [00:02:53] And so they came, they come together really nicely. And we just try to really focus on. landlords and property managers and using technology to make their lives easier.  [00:03:03] Jason: Got it. So what's what's been going on at TenantCloud since in the last six years? Like what what are you guys doing lately? [00:03:12] And you know, why should people use TenantCloud? Like, let's get into it.  [00:03:17] Mark: Yeah. So the last bit we've been growing tremendously. We're processing over a billion dollars in rent payments a year. Well over that. And TenantCloud really as its core is to help the rental life cycle and help owners, service professionals, tenants, and landlords really come together and leverage technology to run the business and the way we built it was with that in mind to really make things seamless and easy. And you can pay your rent with, you know, ACH, credit, debit, Apple Pay, Google Pay. We have a lot of things that we're working on to just make life easier there. We do screenings, have a ton of different bundles, options for you to do screenings and to protect your investment. And that's been really good to help people with income verification and criminal and background checks and of that nature. [00:04:11] Yeah and we do a lot of accounting. We will even file your Schedule E for you automatically. So the cool thing about TenantCloud is you don't have to have a degree in accounting. You can really log into our software and we're, we'll lead you along that process. And we'll do a lot of the tax reporting team management and you know...  [00:04:33] Jason: Can you explain what a schedule E is for those that might not be familiar with it. [00:04:38] Mark: Yeah, absolutely. So schedule E is you know, to report income or loss on your rental real estate. And that's one thing that you'll have to do. You'll get a 1040 form and, you know, the government will want you to file that. And sometimes that can be tough to do, but with our system we will track all of your expenses and all your income and so forth and help you file that form on your behalf.  [00:05:05] Jason: So for property managers, they're doing this third party for owners, this then becomes a resource for the owners that they're managing properties for. It will do it for them as well? [00:05:15] Mark: Yes, and we do have like an owner portal. So what's great is you can have your owners log in instead of having that back and forth. [00:05:24] We give them a login where they can have some view access to see their portfolio as well. So it just makes it easy for those property managers to work with their owners.  [00:05:35] Jason: Got it. Okay. Now what's different between a property manager using this tool or like owners just going direct and getting TenantCloud and bypassing the property manager? [00:05:46] Mark: Well, yeah, I mean, some owners can do that, but I mean, then they have to deal with a lot of the heavy lifting with the maintenance and managing all the units. And so with the property manager using our system, we make it easy for the owners to have access and you can send your distributions to them and so forth. [00:06:05] But it really comes down to the ease of use and being able to manage all your leads. Manage, you know, all your contracts, all your communications with your tenants and with it, it's such a affordable option. Like our lowest plan is 17 bucks a month and we don't do a lot of unit restrictions like other competitors where you can add a bunch of units on the system. And really make it affordable for you as a property manager. So, yeah, hopefully that answers your question there.  [00:06:36] Jason: Got it. Okay. So you would say TenantCloud's probably a lot more affordable than some of the competition that exists for property managers out there. So how would you say TenantCloud kind of compares to some of the big names in the industry like Appfolio, Propertyware, there's a bunch of these You know, and then I know Bodia just came out with RentVine and then Rent Manager, you know, these tools. So we've got clients using all these different tools. [00:07:03] So how does TenantCloud sort of fit into the mix and how do you kind of stand out among all these different tools because there's so many of them now.  [00:07:11] Mark: Yeah. So we started with the end user in mind where it was more of a business to consumer platform where you didn't have to do a heavy integration and you could just quickly create an account and more of a self service where it would be really intuitive. [00:07:28] If you were, you know, if you had one property up to, you know, 50 units, you could easily log in. And it was way more affordable than those bigger players. They have monthly minimums, and you'd have to spend months to integrate your stuff. Everything we built was to make it so, boom, within a couple days, you could get set up, and we would help you add your accounts, add your units, add your tenants data. And so we really tried to make it cutting edge where we used a lot of the technology to help you get set up a lot quicker. And so one thing that people really, they come over to us is. You know, they're like, "man, your platform is a lot easier to use because of the way you built it. It's just really quick to get it. I don't have to hire an accountant or get an implementation manager to help me use your software" because a lot of times when you get into rental real estate, you're an entrepreneur or you have a day job and then you log into a property management system and you're like, "holy smokes, this is so overwhelming, like I can't figure this out." [00:08:35] And that's, I think the differentiator that we tried to solve is that you don't have to have a professional help you use our software. You can just go ahead and get started and it will help you from day one.  [00:08:46] Jason: So basically, you're kind of one of your unique differentiators is since you started with the consumer in mind, instead of maybe a property manager in mind, you focus really on maybe the tenant and the property owner's experience being you know, really great, which once you started focusing on property managers, probably made a lot easier for the property managers. They're probably getting less questions. Maybe the reports are a little more clear. It's a little bit easier for them to figure out what they need, which has been a frustration. I've heard from a lot of software, you know, the owners find it confusing. They find their statements confusing. The tenants are like feeling things are confusing. Now a lot of property managers have all of these different tools. They kind of build their own Swiss army knife or stack of different tools and software. [00:09:34] How are integrations with TenantCloud or which things do you guys do really well that they might not need? You know, some of our clients might, for example, be using TenantTurner, even though they use Appfolio in order to get properties leased out and, or they might be, or to do self showings, or they might be using we've got a lot of clients getting going on this new AI maintenance coordinator called Vendoroo, or in the past, they might use PropertyMeld, you know, for maintenance coordination. [00:10:01] So they're stacking all these different tools because usually there's better stuff than what the property management software has internally. How does TenantCloud sort of go with this?  [00:10:11] Mark: Yeah, that's a great question. So TenantTurner is an awesome company and we have an integration with them. [00:10:18] Jason: Okay.  [00:10:18] Mark: And so we feel like we're a platform and we're doing more and more integrations with companies like you mentioned with maintenance. There's others out there that solve that problem. I mean, we have a maintenance portal, but we love to integrate other tools and make it so it's seamless and easy that you can do a show in coordination like a TenantTurner and so forth. [00:10:39] And so, yeah, that's a big thing for our users and we love to work nicely with other companies that will help benefit them.  [00:10:47] Jason: Great. So, TenantCloud has an open API that some of these companies can connect with? Yeah. Okay. Awesome.  [00:10:54] Mark: Absolutely. I mean, we have a partnerships team and they can reach out and we can, you know, when our users request certain things, we say, you know, that makes sense. [00:11:04] So absolutely. We love that.  [00:11:06] Jason: Is there a scenario or a situation in which you think. TenantCloud' s maybe not a good fit for certain property managers or certain types of management.  [00:11:18] Mark: Yeah, that is sometimes like multifamily or you're getting really a ton of units. You're going to probably need something a little bit more robust. [00:11:27] Now, we just launched reconciliation and some other features more reporting tools to help as we move up market because primarily we were focused on ones that, you know, had under 10 units and then we started growing. Now we have people that use us that have a few hundred doors and they love it. [00:11:46] They love the ease of use. They love the cost. They love that it's not restrictive, but some of that trade off is like, "Hey, you don't have some of these other customizations that you know, maybe a Yardi or some of these bigger players have." And so I would say if that's the case, you know, you'd have to wait a little bit as we continue to add more of those robust features for the upmarket bigger players. [00:12:08] Jason: It sounds like TenantCloud is a great place for a property manager. And it's small to start, especially when they're getting pushed back from places like Appfolio or Buildium, saying you have to have a 200 door minimum stuff like this. Is TenantCloud something that can scale with them up to maybe a thousand doors? Are they going to run into some capacity issue or some challenges if they continue? Because switching software is hard.  [00:12:31] Mark: Yeah, it is. And we do have some that have a thousand doors and some bigger ones and they love it. And I think it's just the way you approach your business and how you can adapt. [00:12:41] I mean, you'd save a ton of money and the way that every property manager is different. You know, I wish there was a standard in how accounting worked in the industry and how things did with money in, money out and so forth. But so sometimes people say, "well, I'm just so used to how these older systems work," and that's fine. [00:12:59] But if you want to be more innovative and more customer facing and adopt, you know, the latest technologies on how payments are being transferred and so forth, then I think you'll fit in really good, you know, with what we have going on.  [00:13:13] Jason: Got it. Yeah. I know that's been an industry issue for a long time is they're not being sort of a standard in accounting and NARPM then released the NARPM sort of chart of accounts and the NARPM accounting standard that hopefully is starting to get people a little more on the same page. [00:13:30] It has kind of been an adoption challenge, I think, and some people are starting to get going on it. And then there's definitely some businesses that have been capitalizing on it financially to like help businesses get that dialed in and get their QuickBooks like mapped out. Related to that, a lot of property managers have a challenge with financials and accounting. [00:13:51] They've got the accounting they've got to do for the client, right? Which is usually done by their property management software. But then there's their internal accounting, their own books. And some of them try to run that through their software, which I think is a little crazy. Or some of them tried, like, will have QuickBooks or something else. [00:14:07] I've noticed this it is a common problem in the industry is like people having this accounting mess and not being focused on it. Some outsource it and I've had clients come to me that say they found out their bookkeeper or accountant wasn't doing things right for like three years. And then one of my clients was suing their accountant and won and like, but it's still a mess that has to be cleaned up. [00:14:31] And so, maybe you could touch on TenantCloud. I know you help with the owners and their properties and the accounting. I'm sure. How do they help with their business accounting? Is there any connection to like maybe quickBooks, or is this something that the tool helps with or how would this work? [00:14:50] Mark: Yeah. So we have an integration with QuickBooks and that helps. And then everything we do with the reporting and with all your financials, we just try to make it really easy between the owners and the property managers so that, you know, it's seamless, but I do feel like, you know, QuickBooks could help. [00:15:09] And, you know, primarily we're trying to do property management software. But you know, personal finance is a big part of that. We just are launching a cool product with our banking partner where we can now loan some capital to folks that want to grow some doors. And so with our payment system and our banking partner, people can quickly get a loan directly through our system and they could use it to then go buy their next rental property. So we're looking at more innovative ways. That just kind of reminded me on the personal finance, like, "Hey, I really want to go buy this next door, but I don't have some money." We can help loan that money to help you grow your business. [00:15:51] And that's going to be coming out here at the end of this year.  [00:15:54] Jason: Cool. Very cool. So how does how does this relationship with Rentler and TenantCloud benefit, maybe property managers that are looking to use your software. And this, your shirt has on it. So then you've got this relationship going there. [00:16:08] So how did these kind of work together? I'm curious.  [00:16:11] Mark: Yeah. So Rentler doesn't have a subscription. It's free to use. And so if you're just like one unit. And you're just barely getting in. Let's say you're moving and you just need to rent out your basement apartment or you just have one property, you can use our payment system, do screenings and you can list your property, syndicate, get your leads, fill vacancies. And it's like super light. I mean, it would probably be very similar to like a Cozy back in the day, or like a Zillow Rent Manager just something there to just boom, do that. And then as you graduate, as you go, "Hey, I really want to do more accounting or actually property management software." [00:16:51] Then you graduate up to TenantCloud and when you list with TenantCloud, it will post on Rentler, but Rentler was primarily, you know, a listings and filling vacancy. So that's how that works.  [00:17:02] Jason: Is there an easy upgrade path from Rentler to TenantCloud or?  [00:17:06] Mark: Absolutely. Yeah, there is. [00:17:07] Yeah, we have a fantastic support system. Pretty much 24 seven support. We have chat, we have people you can call and we'll help you. Most all of our support have been in property management and ran their own property management companies. And so they're really helpful to. to guide you and what you need for your business. [00:17:26] Jason: Got it. Okay. Very cool. So, well, this is very helpful. Anything else that people should know about TenantCloud if they're working on making this decision right now between all these different software that exist out there?  [00:17:38] Mark: Yeah, I'd say we have a free trial and give us a shot and there's a lot of great things coming down the pipe. [00:17:44] So just ask our team, you know, Hey, if we don't have something that we probably will have it coming soon, but yeah, give us a go and you'll love it and we'll make your life a lot easier.  [00:17:56] Jason: Very cool. Awesome. Well, Mark, how can people find out more about TenantCloud? How can they get in touch with y'all? [00:18:04] Mark: Yeah, they can log on TenantCloud. com. We do a webinar every Thursday and they can learn about our system. And they can sign up for that on our website, TenantCloud. com. They can reach out. We have a great sales team, account management team that will give you a demo. You know, We'll do a consult free consultation on your business and help you out with that. [00:18:25] So we're happy to help we love the rental real estate industry and helping people grow and make passive income and that's what we're all about.  [00:18:34] Jason: Awesome mark. Thanks for coming on the DoorGrow show giving us an update on TenantCloud and everybody check them out at TenantCloud. com. Thanks for coming, Mark. [00:18:43] Mark: All right. Thank you, Jason. Appreciate it.  [00:18:45] Jason: You bet. All right. So if you are a property management entrepreneur and you are either struggling to get leads or to add doors to your property management business, reach out to DoorGrow. We might be able to help you and we've been able to help lots of our clients add hundreds of doors to their portfolios to help them scale their businesses. [00:19:09] And we would love to see if we might be a fit for you to help you scale as well. So check us out at doorgrow.Com. And if you are a fan of the podcast or you follow us on YouTube. Make sure to like, and subscribe and make sure you're plugged in and make sure to join our free Facebook community by going to DoorGrow club. com. If you go to doorgrowclub.Com, it will redirect you to our Facebook group so that you can join. Make sure you answer the questions clearly because we're really careful about who we let in. We reject 60 to 70 percent of the people that apply to join that group every month. It's for property management, entrepreneurs, property management business owners. [00:19:54] That includes those of you that are starting a property management business, just let us know that in the questions. So answer the questions. Join that and make sure you're asking questions inside the group and you'll by joining the group. We will also send you a series of free gifts to benefit you including a fee bible and some other resources that I think would be really useful to your business. [00:20:18] And you can also then schedule a call with our team. So check that out doorgrowclub.com. Until next time, everybody. To our mutual growth. Have an awesome week. Bye everyone [00:20:28] you just listened to the #DoorGrowShow. We are building a community of the savviest property management entrepreneurs on the planet in the DoorGrowClub. Join your fellow DoorGrow Hackers at doorgrowclub.com. Listen, everyone is doing the same stuff. SEO, PPC, pay-per-lead content, social direct mail, and they still struggle to grow!  [00:20:54] At DoorGrow, we solve your biggest challenge: getting deals and growing your business. Find out more at doorgrow.com. Find any show notes or links from today's episode on our blog doorgrow.com, and to get notified of future events and news subscribe to our newsletter at doorgrow.com/subscribe. Until next time, take what you learn and start DoorGrow Hacking your business and your life.

In May, we had our annual DoorGrow Live event! What makes DoorGrow Live different from other property management conferences? In today's episode, property management growth experts Jason and Sarah Hull talk about our most recent DoorGrow Live conference and some of the topics discussed. You'll Learn [01:12] What was different about this year's DoorGrow Live? [04:48] Tactics vs. Mindset [06:41] Changing the order of your priorities [10:17] Hard choices, easy life Tweetables “Tactics and the how can always be figured out.” “It's not really the tactics that are the problem. It's almost always the mindset.” “The hard choice is to not go for what you immediately want, but to reorder and prioritize some things that are more relevant to the long term.” “If you don't like the results, then it's probably because your priorities are not in the right order.” Resources DoorGrow and Scale Mastermind DoorGrow Academy DoorGrow on YouTube DoorGrowClub DoorGrowLive TalkRoute Referral Link Transcript [00:00:00] Jason: If you don't like the results, then it's probably because your priorities are not in the right order.  [00:00:08] Welcome DoorGrow property managers to the DoorGrow show. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others, impact lives, and you are interested in growing in business and life, and you're open to doing things a bit differently, then you are a DoorGrow property manager. DoorGrow property managers love the opportunities, daily variety, unique challenges, and freedom that property management brings. Many in real estate think you're crazy for doing it. You think they're crazy for not because you realize that property management is the ultimate, high trust gateway to real estate deals, relationships, and residual income. At DoorGrow, we are on a mission to transform property management business owners and their businesses. [00:00:53] We want to transform the industry, eliminate the BS, build awareness, change perception, expand the market, and help the best property management entrepreneurs win. We're your hosts, property management growth experts, Jason and Sarah Hall, the owners of DoorGrow. Now let's get into the show. Okay.  [00:01:12] And so what we're going to be talking about today is we just had DoorGrow Live and DoorGrow Live was a success. It was a lot of fun and it was a little bit different this year. So how would you say it was different this year, Sarah?  [00:01:27] Sarah: So I think a lot of people were saying, "Hey, it feels like there was really just a lot of heart that went into this event." [00:01:35] So usually when I think you and I run events, we're very tactical. How do you do this? How do you do that? And let's share this strategy and let's talk about this thing. And this year we changed things up a little bit and you were maybe a little hesitant to follow the formula that I put together, might I add. [00:01:53] And so maybe on the podcast you can tell people that It worked?  [00:01:57] Jason: It worked.  [00:01:58] Sarah: And? Do you have anything else to say about that?  [00:02:00] Jason: Anyone that knows Sarah knows what she wants to hear right now. You were right. There it is! There it is. There it is. That's what she wanted. There it is.  [00:02:10] Sarah: So this year when I was putting together the schedule and the agenda, there was this whole plan that I had. [00:02:17] And I was like, "Oh no, we need to order things like this and do things like this. And this is what I wanted." And he's like, " I don't know if that's going to work. And why are we doing this whole thing? And we're like putting this whole thing together. And like, you don't even know if it's going to work the way you want." [00:02:30] Jason: Is this how I sound?  [00:02:31] Sarah: Yes.  [00:02:32] Jason: "I don't know if it's gonna work."  [00:02:34] Sarah: "I don't know if it's gonna work."  [00:02:36] Jason: That's totally what I sound like.  [00:02:38] Sarah: It was perfect.  [00:02:39] Jason: I'm shaking my head no, by the way, for the listeners.  [00:02:41] Sarah: See you probably, they probably didn't even know that was me talking. They just thought it was you.  [00:02:45] Jason: Oh, yeah. [00:02:46] You do such a good impersonation of me. I know. It's really quite impressive. I'll go back to my normal voice so that you realize it's Sarah talking. Yeah, for the listeners, we need to make sure there's two distinct voices or they're going to be really confused why I'm talking to myself because you sound so much like me. [00:03:03] Sarah: I know. I'm so sorry if I confused anyone.  [00:03:06] Jason: Nobody was confused. Okay. So...  [00:03:08] Sarah: so he was giving me a little bit of a hard time about it because I, like, made him sit down and map this out and I was like, "no, there's a formula that we're supposed to follow and this is what I want it to look like." And I think it worked out really well. [00:03:21] Jason: Yeah, the event went really well.  [00:03:23] Sarah: Yeah.  [00:03:24] Jason: Things ran pretty much like clockwork. That's hard. It's hard to do that in events. Like speakers go over, people don't stop. Like, we had this big, huge red LED clock right in front of the speaker. So it was like super obvious, like, and we, I think we had conversations with all the speakers, like everything worked pretty smoothly. [00:03:43] The general feedback I got from a lot of clients one of our clients, Ed Golding, came up to me and he was just smiling. He'd been to some previous ones and he said, "this was different, you know, what was different about this?" I said, "what, Ed? " He said, "heart, this one had heart." [00:03:56] And it was an emotional event. There was lot more emotion at this event. Did we talk about tactics? Yes. I explained how I've been able to leverage social media and different tools and, I've made millions of dollars off social media. And I shared some really cool tools and very tactical stuff. [00:04:12] That's how I opened up the event. But we got into a lot of mindset and what we've realized over time, that we talked about at the event that most of our clients are not winning or losing because they don't, or do have tactics. Tactics and the how can always be figured out. And I liked Jeff Garner's tattoo he talked about but....  [00:04:33] Sarah: he's funny.  [00:04:33] Jason: He's like, " can I say it? There's children present." I had my kids at the event.  [00:04:36] Sarah: They're my kids. Like they hear it all the time.  [00:04:40] Jason: Yeah, so he's got a tattoo that's FTH Which stands for "fuck the how" so and so a lot of times people are so worried about "how do I do this? How do I do this?" And we do share tactics. We do a lot of that at DoorGrow. However, It's not really the tactics that are the problem. It's almost always the mindset. And so whenever I teach tactics. I always am going into the why behind it and the mindset stuff. And when they start to understand this stuff, then they will actually do it usually. [00:05:13] So there was a lot of mindset at the event. And then also, there's vulnerability. Like I openly shared how I've been reevaluating my priorities and what those look like and how how that looks. You were sharing about your upbringing and how like the difficult things in life are also the things that make us who we are and help us to enable us to help others and how to view it through a different lens, which I thought was really awesome. [00:05:39] And everybody's crying. Sarah's making everybody cry. Like I was crying, like...  [00:05:44] Sarah: I made people cry in a very different way this time though. I'm usually making people cry because I'm yelling at them.  [00:05:50] Jason: That's not true.  [00:05:51] Sarah: It's a little true. It's a little true.  [00:05:54] Jason: Not our clients, just me.  [00:05:56] Sarah: No, I don't do, but I do give our clients tough love when they need it. [00:05:59] And Kelly came to the event and she's like, "this is exactly what I needed." I'm like, "I know that's why I was on you for like three months." [00:06:07] Jason: Yeah. I think some people had some breakthroughs, which that's the goal. Like we want to change lives. And so there's something just really beautiful about this DoorGrow Live. [00:06:16] There was a lot of more depth to it and I just feel grateful to be able to be part of it and to see, our clients that believe in us and that, that came in just seeing their progress and, there are people there that have been in our program for years, which is just. [00:06:29] It's really awesome to see. So, so I thought I would share just a little bit today about what I had shared and this will be a quick episode cause Sarah doesn't want me to go long. So this'll be a quick one.  [00:06:41] Sarah: Back to back today.  [00:06:42] Jason: You got a busy day. So what I shared is I talked a little bit about prioritization and I've talked about this previously, but what what was interesting, one of my breakthroughs recently was recognizing I was basically merging in my mind, the five basic needs. [00:06:57] Which I don't know who put that out. We learned it from our friend Roya.  [00:07:01] Sarah: But maybe it was... [00:07:02] Jason: maybe it's Tony Robbins. I don't know. So there's five basic needs and the five basic needs are love and belonging, power and achievement fun and adventure, fun and pleasure, safety and security. [00:07:15] Sarah: And I'll see when you put them in a weird order, then I don't remember them. Freedom and flexibility.  [00:07:20] Jason: Freedom and flexibility. Freedom. There we go. Yeah. Okay. These are five basic needs and we all have one that's primary. For Sarah, it's power and achievement. Nobody's surprised, right? For me, it's actually love and belonging. [00:07:33] And a lot of my achievement and a lot of the things that I do. Are to, that's what motivates that we're helping clients working with clients love and belonging and having that connection. That's why I like working with entrepreneurs because I don't feel like such a weirdo when I'm around other people that are that weird, that are also entrepreneurial. [00:07:51] But what I've come to realize that if I make that my highest priority, I tend to get less of it. And I think this is true for anyone with their basic need. If you really think about it, if Sarah just went after power and achievement. And didn't prioritize like relationships and other things, it could be pretty destructive and it would likely have the opposite desired effect in trying to achieve power and whatnot, right? [00:08:13] Because we need others. And then for me, if I'm just going after love and belonging, I would be less likely to get it. If I didn't have my own oxygen mass first, if I didn't have financial wealth and health, if I didn't have physical health then it wouldn't be nearly as effective. I wouldn't be nearly as present. [00:08:31] I wouldn't be able to enjoy much love and connection or belonging, in relationships. I wouldn't be able to feed into relationships as much if I weren't taking care of myself. And so based on that I, I had everybody map out or stack or list their priorities in their life, and then I showed how my priorities were listed and then Like what my natural inclination is placing like love and belonging at the top. [00:08:59] And then I showcased how I've intentionally consciously listed them and rearranged the priority and how that affects my decision making in my day to day so that I spend more of my time in my day to day moving towards the top priorities, which are not on my new adjusted priority list are not the love and connection related things related to family, sex, relationship, stuff like that. So above that, I've placed God at the top which is, for some of you that might be your highest ideal, whatever that is. And so I want to always be pointed towards my highest ideal. Second, I put power, achievement, impact, and that's related money status, all that. [00:09:41] And that allows me to have impact. Which leads to me getting what I want. It's a leading sort of thing. And then the next is health. I need to be prioritizing health. And then it gets into more of the relationship stuff in the priorities. Whereas before I was putting family, friends, fun was probably higher on the list, but I felt like I wasn't ever able to do as much of that as I wanted. [00:10:04] Because I was so focused on the other stuff. And so by reordering the priorities, it takes work. Like it takes effort to go towards what's easy and what's natural usually leads to a harder life. And so there's this stoic phrase that I like that is "hard choices, easy life. Easy choices, hard life." [00:10:26] And the hard choice is to not go for what you immediately want, but to reorder and prioritize some things that are more relevant to the long term, playing the long game, doing what maybe I feel deep down inside I should do connected when I'm connected to God or focusing on my health, doing the playing the long game instead of doing the short term, right? [00:10:49] The short term is like eat, Häagen Dazs vanilla ice cream, vanilla bean ice cream. It's like my favorite right now. I love that. Or whatever, right? When we're just trying to please our tongue and our genitals, we tend to have a much harder life, right? And this is the short term. We're just going for the short term gain. [00:11:05] And so we want to make sure we prioritize the long game, the long term. and give up where that means sacrifice in the short term. That means work. That means effort. And a lot of people just aren't putting in enough work or enough effort in the lazy people in society are the people that are always trying to please their tongue and their genitals. [00:11:24] Maybe it's crass, my crass way of saying it. Okay. It's a little gross. Okay. So that's what I shared at DoorGrow Live. And so I encourage all of you listening, like make a list. What are your priorities? And what I shared is your results reveal your priorities. So if you don't like the results in your life, write them down. [00:11:43] Like, what are your relationships like? What's your business like? What are you doing in the business? What aren't you doing in the business? Or what are you enjoying? What are you not enjoying? And if you don't like the results, then it's probably because your priorities are not in the right order. It doesn't mean you give up or change your priorities, right? All of the things that were my priorities before are still priorities for me. I've just rearranged the order and by just rearranging the order, it changes everything. It changes the results that you get and you'll get more of the results that you really desire if you rearrange those priorities in a way that probably will take you more effort and more work, but will allow you to get everything that you want in the long run. [00:12:28] So that was my message. That's the simple message. Rearrange your priorities figure out your basic need, put that lower on the list, and figure out what needs to come before in order for you to have as much of that as possible because I want you to enjoy your life, but you need to do make hard choices. [00:12:41] And you need to do hard things.  [00:12:43] But it was an awesome event and make sure you are keeping an eye on doorgrowlive.com for the future and make sure to attend in the future. [00:12:52] Everybody says our conferences are different than any other property management conference out there. And That's a good thing. Like we do it in a good way. So, I recommend you attend. So you can check out more details about future events at doorgrowlive.Com. And if you are wanting to grow your property management business and have success like our clients were showcasing at DoorGrow Live and grow your business, scale your operations, have a better lifestyle, enjoy your team more, enjoy your business, be less frustrated, have more peace, reach out to us at DoorGrow. You can check us out at DoorGrow.com. We would love to see if we can help you scale your business. And until next time to our mutual growth. Bye everyone. [00:13:36] you just listened to the #DoorGrowShow. We are building a community of the savviest property management entrepreneurs on the planet in the DoorGrowClub. Join your fellow DoorGrow Hackers at doorgrowclub.com. Listen, everyone is doing the same stuff. SEO, PPC, pay-per-lead content, social direct mail, and they still struggle to grow!  [00:14:02] At DoorGrow, we solve your biggest challenge: getting deals and growing your business. Find out more at doorgrow.com. Find any show notes or links from today's episode on our blog doorgrow.com, and to get notified of future events and news subscribe to our newsletter at doorgrow.com/subscribe. Until next time, take what you learn and start DoorGrow Hacking your business and your life.

In this episode of Building Texas Business, we delve into the remarkable journey of Jason Hayes and his family's business, Top Coat Fabrication. Despite the tumultuous nature of the markets, they managed to emerge as an industrial leader, a testament to their resilience and adaptability. He shares Top Coat's blueprint for navigating change while excelling in oil, gas, and petrochemicals. Intentional culture-building through staff gatherings and challenges instilled trust and community, cornerstones of Top Coat's prosperity. In conclusion, his journey to company president wove together personal learning, workplace achievements, nurturing customer bonds, and proactive growth to create the powerhouse that Top Coat is today. SHOW HIGHLIGHTS Jason Hayes discusses the transformation of Top Coat Fabrication from its sandblasting roots to becoming an influential player in the oil, gas, and petrochemical industries. We explore Jason's early involvement with the family business, starting straight out of high school and eventually becoming president, as he emphasizes the value of hands-on experience. Jason shares how Top Coat navigated the challenges of the oil industry's downturns and how strategic diversification into fabrication opened new opportunities in the petrochemical sector. Jason and I delve into the pivotal moment in 2010 when Jason embraced intentional leadership and continuous learning, transforming his personal and professional outlook. Jason highlights the cultural shift within Top Coat, illustrating how he cultivates a positive work environment through team-building exercises and weekly staff meetings. We discuss the significance of building strong customer relationships, with Jason explaining his personal approach to post-project follow-ups and the search for honest feedback. Jason reflects on the importance of networking and trusted advisors, detailing how open communication within the leadership team is essential for resolving conflicts and fostering growth. We delve into Jason's leadership style, his efforts to understand team members' goals, and his commitment to maintaining a balance between work and family life. Jason explains the importance of hiring for culture fit, noting that while skills are necessary, alignment with the company's ethos is crucial for long-term success. Personal anecdotes are shared, including Jason's love for Tex-Mex, his first job experiences, and his aspirations to travel more with his family. LINKSShow Notes Previous Episodes About BoyarMiller About Top Coat Fabrication GUESTS Jason HayesAbout Jason TRANSCRIPT (AI transcript provided as supporting material and may contain errors) Chris: In this episode, you will meet Jason Hayes, president of Top Coat Fabrication. Jason is the second generation of leadership in a family-owned business and tells how he went from hope to learning to be more intentional about growth. Jason I want to welcome you to. Building Texas Business. Thanks for taking time to come on the show. Absolutely Glad to be here. So I think the best place to start is just tell us a little bit about Topcoat. What is the business and what? Jason: does it do? Okay, we're an industrial fabricator, so we fabricate oil and gas and petrochemical equipment, a lot of welding, piping, structural steel, pressure vessels pretty much anything you see when you drive by chemical plants. That's the type of stuff that we fabricate. Chris: Okay, and y'all been in business. Now for what? 40 plus years, 40 plus years. Jason: This is our 44th year. I think it started in 1980. Okay, yes, it started as a sandblasting and painting company, and that's how they got the name Top Coat. Chris: Oh, okay, that makes sense. And so started by your father, I believe. Mom and dad, okay, still 100% owners. Very good, so what was the I guess, the inspiration that had them start Top Coat to begin with? Jason: I think honestly, if I remember the story right, my dad was working for a contractor down in Freeport and I don't remember the whole story but he didn't get treated right so he got let go or whatever happened. So he decided he was going to start his own thing. So he did they and they started this blasting and painting and it just kind of took off. His work ethic combined with everything else and industry in our area, so there was a lot of oil and gas in our area at that time. Mobile had a big shore base down there, so his contacts led to him doing some blasting painting for mobile and then they asked him if he could do some work offshore on their platforms, because they have platforms out there. So that that led to that part of the business and it just kind of started growing a little bit from there so it's interesting. Chris: So many people that I've talked to have you know unique stories, but there's a there, there's some that have a common theme that it's kind of, out of that hardship or disappointment or something, they decide to go on their own and do it their own way. It sounds like that was the case for your dad. Jason: Yeah, absolutely. I don't know exactly what drove it, you know, but yeah, that's what led to it. Chris: Tell us a little bit then you know how did that lead to. You know what the company is today as it relates to you know the focus and the mission and the purpose of the company. How has those early days influenced where you are today, some 44 years later? Jason: Well, let me give you a little bit of history about that. So when he started working offshore for Mobile at some point, he was just doing sandblasting and painting, well, on a project. They had asked him if he had any welders or knew any welders, because they needed some welding done out there. So he said yes, as a matter of fact, I do so. Welders because they needed some welding done out there. So he said, yes, matter of fact, I do so that he started hiring welders and doing construction on the platforms as well. So the offshore oil and gas was our bread and butter for many years, 20 plus years at least. So that even when I came on board in 98, that was our biggest business was oil and gas offshore construction. We'd send crews to the platforms and do maintenance and platform installations, platform removals, kind of everything in between. So that was great. The downside was, you know, when oil and gas is great, it's great, but it's dead, very cyclical too, right Big time. So we had a lot of struggles and I didn't see any other struggles that they saw. My mom and dad went through so many downturns that it was everything they could do to survive, but they did Well. Then, after the BP spill, macondo incident. Then the government really cracked down on offshore industry. So pretty much all the platforms we used to work on started coming out of the water. So all the stuff that we used to do existed no more. So that's when we really had to decide and make a big pivot in the business and say you know what we've been doing? A little bit of fabrication that supports the oil and gas, the offshore let's, let's focus on that. We have the knowledge base, we had some experience in it. Let's let's focus on that. So we literally changed the name to top coat fabrication and we didn't do anything off-site anymore. We focused strictly on fabrication and we would ship our stuff, you know, kind of all over. So it opened another big door to us for the petrochemical industry, because down in our area, you know, we've had Dow Chemical, all these chemical plants right in our back door. But it was almost like we swore we'll never work for the plants, we'll never work in the plants, just because it has that stigma of okay, once you get in, you know your foot in Dow, you know it's, it can be great. But then they people say they own you or you know whatever, and so we never did. Well then now with just the fabrication, that's when we started reaching out to these chemical plants and started really digging in and started doing a lot of work for them. So, and then, another big blessing was not too long after that, we got approached by a big company that had property next to us, had a, a facility, and then they wanted to buy our facility for an expansion. So we were on the water, we were on the intercoastal canal because we had crew boats coming in and out. We did a lot of dock services, so none of that existed anymore. So this was just a huge place that we didn't need, so that we used that to actually buy a piece of property, built a brand new shop where we're at now, a brand new facility. We built it the way we wanted. That was, you know, based on fabrication. So that's where we still are. Chris: Okay, that's great. So you know, I guess, a good lesson in the adage of don't put all your eggs in one basket. Yeah, y'all learned to diversify pretty quickly, right? Yes, yeah, exactly. Jason: So now you know we still do oil and gas work, but it's fabrication. We do a lot of stuff for West Texas oil and gas and we ship our stuff out there. We do a ton for the petrochemical industry right in our back door. We're getting into commercial building fabrication now not the buildings themselves but the structural components that go into them. We're looking into the offshore wind generation, solar, anywhere. We can do our fabrication in different industries for that exact reason to diversify. Chris: It's a good lesson right for people out there that you know. Start a business, maybe with that one big customer, that focus. It can be good when times are good, but you got to think about you know what. If this goes away, what else do we have? That is a compliment to it. It's a big liability yeah, if you don't, yeah, it ain't no different than what you were saying if, if you got too far in with someone like Dow, that'd be no different than you know, kind of that singular focus. So let's talk a little bit. How did you get involved and kind of come up through the business? Because you're now the president, I definitely want to talk a little bit once I hear kind of the back story about at some point there was a transition in leadership, so I definitely want to dive into that. Sure. Jason: So right out of high school I worked for Topcoat for the summer between high school and college and I went off to college that next semester. I went to Texas A&M. I was in mechanical engineering program. I wasn't ready for college, so I was there for two semesters and then they suggested that I leave. So I left. After that I came home and started working in 98 at some point and started at the bottom, started as a helper. The summer before college I was just a weed eater. We had this huge facility on the shore basin. I literally just weeded it all summer pretty much. So then when I came back I was a helper, just doing whatever you know in the shop around the facility. At one point we also made a realization or my dad did, because I had nothing to do with management then, but he made a realization that we needed somebody that would take care of the safety. We always had good safety records and good practices, but we needed somebody that could take charge of the program. Right? So I got volunteered to be the safety man. There you go. So I did that for a few years. They call that voluntold. Chris: Yes. Jason: I was being polite, you're exactly right. So I did that for a couple years and then I don't remember how the transition it was kind of a slow transition into just kind of taking more of the reins of the management. So at some point I can't tell you when, but he named me as the general manager. Okay, so he was the president, I was the general manager and then so I had, you know, a couple of people that kind of reported directly to me and then all the work happened underneath them. So that, and that was the case for a pretty good while. And I mean I'll be brutally honest that I was not into leadership back then. I wanted to be the top dog, right, I wanted to be the guy in charge, but leadership as I understand it now was not in my repertoire. Chris: Yeah, well, I mean, it's easy to want to be the guy, yeah, but there's a lot that goes with it that not everyone understands. Right To do it, the right way To do it right? Yeah, I knew nothing about leading people. Well, what have you done to try to help educate yourself, get some experience to become a better leader? Jason: I think it started with a desire wanting to be better. When you hit that point in 2010, I hit a really low point in my life. That's when I turned my life over to God and became a Christian. It just really changed the way I was thinking. So that kind of led me into leading my family and at some point, you know, I started reading books, I started learning more, listening to podcasts, and that just literally flowed into work. Okay, there's a realization. Okay, now I need to be a better leader at work. And what does that look like? So I started going to conferences, reading books, listening, just consuming as much content as I could, yeah, and then just slowly started putting things into practice at work, which was awkward, you know, at times when you try to bring some new thought processes and stuff to the team where it's never been before. You know, this is the way we've always done it type of mentality, and I was the same way. Chris: So it's a struggle, it's a beautiful story. It's an easy trap to fall into, right For people. Well, we were just doing it this way, because we've always done it that way. That is a eventually that becomes a death sentence for a company because no one will. Eventually that becomes a death sentence for a company because no one will innovate or think differently. And so I definitely applaud you for coming to that point. And you know, and as you know, now it's a, it's an everyday. You know you got to keep learning and keep growing, yeah for sure. So let's go back to the kind of the transition, because at some point you become president I don't know what your dad's title is now, but you kind of take over the reins. Let's talk about how did that decision kind of come about? And then how did y'all manage through the transition where you became kind of the. Jason: It was gradually happening already, so my dad is still the CEO now and he was like saying he was the president back then and it was just I, I probably just. It was a combination of me taking more and taking more initiative and him being able to release more right. So there wasn't anything set like, okay, I'm going to give you more, I need you to take more. Chris: It was just kind of I started pulling and he started giving well the given parts, probably the hardest of those two, oh, I'm sure'm sure, allowing himself to let go and trust. How did y'all manage the communication within the company? Did you just let it happen by kind of osmosis? The actual? Jason: leadership just happened. So I've worked really closely with most of my leadership team for gosh I guess 16 or 17 years now several of them and so it just happened. We started really clicking together, growing. A lot of us have the same kind of mentality we want to get better personally, we want to get better in the business. We're, all you know, looking at the big picture type of thing. But the actual transition from me to GM to president, I didn't even know about it. So we have a staff meeting every Monday with the entire company. We have breakfast and I typically show some type of motivational video, tell the whole staff a few things that might be going on within the business. And in one of those meetings my mom shows up. And my mom, she just doesn't. She's never been involved in the business since I've been there. She's part owner but never been involved in it, and so she's. So you know, I said hi to her before I'm going to the meeting and I didn't think anything about it. Well, during that meeting my dad gets up and says okay, I want to announce that jason is now the president of the business and I'm he. I don't think he said this, but he was stepping up to the ceo. So it was like a we both kind of moved up okay. But he mentioned, you know, that he just that he just wanted to. He knew I was passionate about it, I was passionate about the business, passionate about the people, and he knew I wanted to take it to new places. So he named me president. So nobody knew, not me, not anybody else, it just happened one day oh, we don't. So it was a cool honor and you know it didn't change much. It didn't change much because the structure was already there. Yeah, it was just a matter of a title really then. But I think I started taking it even more serious then. Chris: Makes sense. So I guess we talk about as it exists today. Then you're still working with your dad, but more the responsibility for the day-to-day falls on you, Right? Yes, definitely. Jason: He's there almost every day. I mean he's there every day that he's around. If he's not, you know, gone out of town or something, he's there. He's typically in his shorts and flip flops or you know shorts and shoes and fishing shirt. But he is there, which is great to have him. I'm honored to be able to work with him. He still lets me pretty much do what I want. I mean trusts me. Chris: So one of the things I noticed in getting ready to meet you today was on your website, the company's website. You're very big on your people and your culture, so let's talk a little bit about how you would describe the culture at Top Coat and what are some of the things you think you've done to help kind of build to get to that type of culture. Jason: The culture is amazing at Top Coat and that's my passion. My passion is the culture. That's one of the biggest things I think spend most time thinking about. One of the first things I did was start having a just a like a weekly meeting with my, the leadership team. We started doing that, I would bet, six or eight years ago, Just a weekly meeting. We didn't really have any structure, I just wanted us to meet, put our heads together and talk about things going on. So that was the first thing I started. And then, after that, we started the full staff meetings. After we moved to our new place, we actually had a place we could meet, but we started having our full staff meetings once a week too, and we kind of used that as a transition. I don't remember how it came about, but we started doing a type of physical challenge where every Monday after our staff meeting, we'd have some kind of challenge where it would be, we'd do push-ups, we'd do dead hangs. We've done just about everything you could imagine. Some of them are physical, some of them are not, but we do that and it's we literally make the people pay. If you want to play five bucks, Everybody puts in five bucks and wants to do it. Winner takes all, unless it's a team sport. You know, we've done tug of war, We've done dodgeball tournaments and little things like that. It just creates like maybe 15, 20 minutes of fun and there's trash talking from all the you know, the audience and everything else. But it's that's just a tiny layer that just it just adds a little bit of fun into the workday. It makes it a little more human, right? Yes, and that's one of the biggest things my dad fought me on at the very beginning was doing these. You know his mentality was you know, think about what that's costing the company. You know you have this entire crew shut down for 30 minutes additional. What do you think that's costing us? And I wrapped my head around it and I thought about it and I understood. But at the same time I tried to make him understand. I think it's way more valuable to spend that time and spend that money on this time, because I think overall it's going to be well worth it. Chris: Yeah, kudos to you for that, because it's easy to look at the black and white and ensure there's a cost to that. But I think you're right when you evaluate it holistically. If you're creating engagement and fostering that environment where everyone kind of knows each other better and feels more like a team, I think the returns are exponential. Right, you can't necessarily put dollars on it, but you probably can't look at lack of turnover, maybe better productivity once they're back at work. So I think to your point it was it's a wise investment to making your people yeah, I agree, and I mean to this day. Jason: If you look on our LinkedIn page or Facebook, when I put up videos of the challenge that we do, that's even on LinkedIn. Those are the posts that get so many comments, so many shares. It's people connect with it and so many people say, man, I wish we did that at our place, or I wish my company would do stuff like that. And it's like it's those little things that people I don't know if they don't think about them or they just don't think it's worth it, but for us it's been kind of a game changer. Advert Hello friends, this is Chris Hanslick, your Building Texas business host. Did you know that Boyer Miller, the producer of this podcast, is a business law firm that works with entrepreneurs, corporations and business leaders? Our team of attorneys serve as strategic partners to businesses by providing legal guidance to organizations of all sizes. Get to know the firm at boyermillercom. And thanks for listening to the show. Chris: So one of the things you mentioned kind of as the company's evolved is, you know this diversification into fabrication and doing other lines of business. What are some of the things you do as the president of the company to kind of create those relationships with the new customers, new vendors, and maintain those strong relationships? Jason: We have a sales team that does a lot of the actual interaction. But most of our customers I'll know their name, I'll know their contact information and I'm the one that reaches out to them personally. For if we're going to do it, then let's say we sponsor a lot of golf tournaments, you know skeet shooting teams for fundraisers and that sort of thing, and I'm the one that normally reaches out to the people and ask them if they want to you know, participate with us. We had an industry night a couple of weeks ago and I call all the what the customers that I know and have the contact information. I'm the one that calls them and I also do customer follow-ups. With every project that we do that ships out, I do a customer follow-up call with everyone. I call them personally, just as me, thanking them, number one for their business and then number two just seeing if there's anything we can do to improve that I love. Chris: And I'll tell you we tried here and we're not consistent with it. Love, and I'll tell you we tried here and we were not consistent with it, but that kind of what I would call customer survey, satisfaction survey. So you've got it baked into your routine to do it on every order. Jason: That's amazing, I learned that from Mattress Mac. Okay, we bought some furniture from him and I think twice now, and every time sometime afterwards he calls personally and just thanks us for his business. Oh we darn. Chris: Yeah, Well, I think it's a great lesson for people you know that are listening to this and have their own business. That personal touch and that follow-up can go so far in creating that customer loyalty Right. So that's amazing. I guess you report back to your people on what you learned from that so that's amazing. Jason: I guess you report back to your people what you learned from that. Yeah, so we have a Teams, our Teams folder that we open up every day or every week in our leadership meeting and I keep the spreadsheets in there so we review it every week. Any ones that I call, you know, I'll be honest, I'll let them build up, because our project coordinator sends me. Every time we ship one out, he sends me the contact, you know, until I know what the project was, who the contact name is and so forth. And I will, all honesty, I let them build up because sometimes I'll procrastinate doing it, you know, because I'm like, oh, it's one more thing I gotta do, right, right. But then after I do, let's say, just the day before yesterday I called six, six clients and every time I do it I'm so glad that I did because I feel better, I'm sure you know, I feel better because I let them know, number one I that I them. Number two we're trying to ask them if there's anything that we can do to improve and be better. We want to know and I don't think. I think it's so uncommon that people don't people say they want feedback. But I think they want the five-star rating Right. They don't want the honesty, they just want okay, how many five stars can we get? Chris: Yeah, they want the high google rating, right right which it feels good to get that. Jason: But we're not going to get any better if, especially if there's a client that's not happy about something, some most of them aren't going to come and just out and tell us, hey, so and so went wrong. But if I ask, is there anything we could do to better, that's when they're going to say, as a matter of fact, there is. Yeah, I haven't got that yet, but we will sure you will. I mean, that's the point, that's what I want. Chris: I think that's great. You know, sitting here thinking I need to do more of that. You know that, as I told you before we came on, I learned from all the guests and I've at least learned that from you today. I think that's wise advice. Jason: And it has to come from the top. If my project coordinator is talking to the clients, you know 24 seven7. It's not going to be the same Right. Chris: That's right. So let's talk a little bit. I mean, it's been up and down in the economy the last few years. What have you experienced at Top Coat kind of as it relates to the last four or five years and kind of the you know turbulent environment, and what are some of the things you've done to kind of manage through? Jason: that We've stayed pretty steady the last several years. Now. Last year ended up being our best year in history revenue-wise. Revenue and profit-wise. Several stars aligned for that, some great projects from some longtime customers. But the few years before that we were okay, we were steady, right, and that's. I think that's one thing that Vistage taught me is to be proactive. I'd sit back for years and say, man, I hope this company grows, I hope this company grows. And then, with you know, the Vistage group and just everything that I've been involved in so far with that has just really taught me that you have to be intentional, you have to, we have to make it happen. So we going to grow, how are we going to make this happen? So that's where the big focus is now. I mean we since I've been there, you know, 26 years we've had some horrible years. I mean when we first take great story, when we first built our new facility beautiful shop, beautiful, everything we had no work, zero. We got down, I believe seven people in the company completely, and I remember just like it was. Yesterday we're having my staff meeting, so it's a small group, but I'm kind of telling them look, we literally had 75 grand in the bank and we said this is all the money we had left. We had all this money from selling our property, but we'd spent on this new facility and we had some money, but it had just dwindled down to nothing because the work had died, and so that was in 16, I think 2016, 2017. Okay, so I'm telling the whole team look, guys, I don't know what we're going to do. We're going to figure this out, but I really don't know what I do, what we're going to do. And then, literally during that meeting, our phone, our office phone, rang. There was nobody in the office, so I turned around and I answered the phone. Quick, five-minute conversation. It was a guy driving by our facility. He was an inspector for Chevron, phillips and Sweeney and he said I'm leaving the shop and I'm the inspector and I can't stand Something along the lines of I can't stand working with these guys. They keep lying to me, I need to find another shop and I've just been driving by your place. I want to see if I can come talk to you about doing some fabrication work for us. That led to us doing $2 million to $3 million a year for them almost every year since. Oh, wow, and so that was. It was like that was. Since I've been in the business, that was the lowest point that I felt, because I was really feeling that pressure of what am I going to do? What am I going to do? And there was no strategy to this. It was like it was a God moment of having him drive by all this stuff at the same time by having a new facility help? yes, absolutely if we had not been there, he never would have driven by our place, because where we were before nobody drove by right, so nobody knew so so that's it. Chris: I mean well, that's an incredible deal. So 2016 is seven employees, $75,000 in the bank. How did you end 2023? How many employees and what was your revenue? Jason: 2023,. We had $22 million in revenue and for most of the year we were probably around close to 100 employees. Wow. Chris: That's an amazing turnaround, congratulations. Appreciate it yeah, congratulations, appreciate it. So, yeah, I like what you said earlier, when it was you were hoping to grow and you've learned to go think about how to grow and be intentional, because that otherwise you hear there's another cliche hope's not a strategy, right? So sounds like you mentioned vistage, so you're a vistage member, that sounds like, and other vistage members, including myself. I know how valuable it can be to grow as a leader, but then how you think about your business. Jason: Sure, absolutely yeah. And, like I was telling you earlier, the network that you meet the people, the different people in every area of business yourself for legal, whether it's taxes, insurance, whatever has to do with business. There's people that I'm connected with, literally one-on-one, that I can call, I can sit down with. Most of them will just meet me for lunch. If I need to bounce an idea off of them. That's the biggest thing. Chris: Something I tell people that have businesses all the time is you've got to build a solid network of trusted advisors that you can reach out to, whether it's a banker, insurance person, accountant, lawyer, another entrepreneur or business owner right, that you can just reach out to, because even when you're having a bad day and maybe they can you know, hey, I've been there before, so you'll feel, because a lot of times you feel alone. What are some of the things I guess, as you've evolved as a leader that you've found to kind of whether it's a particular book or conference you go to that have really been valuable to you to kind of grow as a leader? Jason: I can't think of a specific book, but I think, the mentality of giving your people the tools that they need to do what they have inside their head. You know, I think so many times I've learned that even our leadership team at work they have so many ideas and great ways to do different things, but they don't always let them out. So I think creating number one, creating a safe place, like our leadership meetings that we have every Wednesday morning, that's a safe place. Whether it's a conflict that we have, whether it's an issue that they've been holding in, whatever it may be, that is the place where we draw those things out and we squash them or whatever we need to do. To me, that's probably been the biggest thing. Chris: It's a hard thing to do, but you're so right that safe place where people feel like they can share without being judged or criticized is unique, I think, but so important. Jason: And it's so simple, but we're all humans, especially at work. Yeah, and it's so simple, but we're all humans, especially at work. I'm sure we all swallow a whole lot more at work than we do anywhere else, because maybe we're afraid of our job, we're afraid of whatever. But I think it's been really good for us. We've solved so many issues just because we've created the structure for it. Chris: So one of the things I like to ask folks that come on is can you tell us a setback you've encountered in your professional life? Maybe it's your personal life, but something that sets you back. But you learned so much and you grew from it that you're better off because of it today. Man. Jason: I know there's plenty of them. Chris: That's what most people say. Jason: Yeah, there's plenty of them. Chris: I'm just trying to think what would come to mind, maybe something right after you kind of took over being either general manager or president at Topco, maybe something in those early days. Jason: I think one of the real struggles is it's not a moment but learning the business finances. You know I struggle a lot with okay, we need this piece of equipment to get better, we should just go buy it. Well, my dad has the finances and the history of the accounting behind it and I've struggled because he and I butted heads quite a bit on things I think would be a good investment and things he thinks wouldn't be a good investment. So that's become something we both had to work on. Really, I mean, I lean on him a lot for his knowledge and different things when we're purchasing, making big purchases or expanding our facility, whatever we're doing. But I think having those conversations was probably some of the toughest things we've had to do. Gotcha, and it's just like anything else, it's just like with the leadership team. It's creating a space that we can have those. I mean, he and I have worked together for literally 26 years, so we work well together and we communicate fine together. But it's me getting up the courage to ask those questions too. That's been a struggle. Chris: So what I hear you saying in that and I think it's a natural struggle for people in leadership because, like you said, from day one, you wanted to be the top dog. Sure, it's having the humility to ask your father or mentor someone that you don't know or don't know enough, right. Sure, so that takes a lot of humility, yeah, for you, and I think it's also a blessing that you have the courage to use it. Jason: Is you have a built-in, you know, advisor, mentor, right there, you know, letting you grow and being there to kind of guide you along the way yeah, and I don't utilize them as much as I should, but every time we have a conversation like this, it reminds me how much I should I, how much I do and should you know, put more value in that another thing that you mentioned was mentioned was y'all can butt heads. Chris: So what have y'all done? Because I guarantee I've had other people that have done what you've done on the show, that have taken over a family business. I guarantee there's people who are going to listen to this, that are doing that or see that in their future when you get to that place of how will you and your dad communicate on big issues. If you all kind of got it agreed upon, let's do this in private and really hash it out and not let other people see what's going on. I mean, is that something that's one that you all kind of have a practice of doing? If so, how does that work? Jason: Yeah, definitely. I mean, he's in our leadership meeting. He sits in our leadership meetings pretty much every week. He's pretty quiet, you know, off to the side, he's just mainly listening, but there's plenty of times where I'll you know if I have an issue with something he said, or vice versa. He'll either come to my office and shut the. I always, I constantly, have to remind myself that this is his baby. This whole company is. I've had a lot to do with the growth and where we're at in you know the current state, but at the end of the day, this is his and he. He created it and I'm just a part of it. Yeah, so I have to constantly remind myself of that. And then he I mean, he tells me multiple times that you know I'm doing a good job of running it. So he's constantly having to remind himself that he gave me the authority and the power to run it. But it's definitely a team effort. Chris: I think it would have to be. The other thing that comes to mind again, kind of unique to family-owned business and second generation of leadership of that family-owned business is how well do you and your dad do at leaving the issues at the office versus trickling over to the Thanksgiving table or anything like that? Jason: Yeah, he's probably better at that than I am, but even I don't know. From the time I was born, he and I have had an absolutely solid relationship always. He was gone a lot when I was growing up for many years because he was doing a lot of offshore work. So he was gone a lot when I was growing up for many years because he was doing a lot of offshore work. So he was gone a lot, but we always had just a top-notch relationship. Yeah, so I think without that it would have been a hundred times worse. Yeah, but I don't think I can't remember a single time where any tension between me and him ever stayed very long period, but certainly much less made it out the door. Yeah, yeah, we could have this tough discussion and then say, all right, let's go get some lunch yeah, you know that's good here and you know. Chris: The other thing is, I think when you're an entrepreneur and you own this business, you live and breathe it, so you you're going to be thinking about it when you're at home and those conversations could come up versus, just as natural, when they happen at the office right it. Jason: It always has. Yeah, I mean, whether we're at my house, his house, it's typically something with work is going to come up and we're going to talk about it. Chris: It just happens. So let me ask you this just about your own personal leadership style. How would you describe your leadership style today? How do you think it's evolved or developed over the last several years? Jason: I would say my style is to. This is just off the cuff, but I would say my style is to help anybody that I'm leading, make sure they have the tools to do what they need to do. You know I'm really passionate about I haven't been extremely proactive about mentoring all of my leadership team, but I want to know their goals, not just professionally but personally too, and I think a lot about like, what can I do to help them succeed? If the person is going after what they were put on this earth to do and I can be a part of that and help guide them to that, I think that is the ultimate definition of success when it comes to leadership. Yeah, so that's kind of my passion. I haven't been as good at the mentoring side and maybe the personal side. We talk about business roles and stuff quite a bit but I really want to be more involved with their goals in life overall. Sure, Not involved in them, but what can I do to help? How can I help? Chris: Well, at least understand them, so you know how you can be a resource. Jason: Yeah, and again, I want all my resources to be their resources too. Chris: So that brings up kind of a good subject. When you think about that, and maybe I'm going to ask you about yourself, what do you do to try to maintain some type of balance in your life right between work and family, knowing that you're always thinking about the business, right? Jason: I've done pretty good with that for the most part. I've never been a workaholic, just not me. I've been a huge family guy always. I have four kids, ages 15 down to 7, so we stay busy, sounds like it, but that's another. Passion of mine, too is just the kids and the family. I've never had a struggle with staying at work when I should be at home. Chris: Now having the leadership team that I have is what makes that possible. I was going to say you got to have some tools in place to help facilitate that. So hiring good leaders to work with you, Anything that you look for, or when you do interview or interview someone for a leadership position and or think about promoting them to one. Jason: Culture is the number one thing. That's what I always start with. Will this person be a fit for our culture? And that's typically if we're going to hire not just leadership team, but maybe even the level right. You know, underneath that, most of the time I'll. I want to know the person. I want to have a one-on-meeting. You know, I've met several people for coffee that we were interviewing for a project manager position, just because I want to just get to know the person. The resume says what they've done. The resume says everything that they've accomplished. But I want to know are they going to fit with us? And if they don't, then that's an immediate no. So I think that hiring for the culture is the number one thing. Chris: So many people, including myself, believe that right. Lots of people have skills that could fit with what you do, but are they a type of person that fits with who you are and who you want your people to be? Right, and I believe the people that are culture fit. Jason: You never know where they might end up, even with the company. We've hired a couple of people that were a great fit for us and they were doing one thing. Well then, as soon as we get, they get in and they're a great fit, and then we start seeing all the stuff that they're capable of. Then they start getting snagged by this person and next thing you know they're just keep moving up because everybody's starting to see. Chris: You know they're capable of yeah, but it started with the fit right. That's great. Well, jason, I love the story and the family transition. I think it's a beautiful story when they're done right. They're not always are. I want to always wrap up on a few off-topic personal things. Okay, what was your first job? Was it something at Top Coat or something other than that? Jason: Yeah, it was Top Coat, the one right after high school, so weed eating, yeah, it was great. Chris: So great. All right, what's your preference? Tex-mex or barbecue Tex-Mex? I could eat it every day. I mean, I didn't even finish the sentence. Jason: I know you jumped on that one, I know. Chris: No question. Jason: So I always ask people if you could take a sabbat Ooh 30 days, oh man, for at least a week I'd take my wife and we'd just sit on a beach somewhere. Yeah, without a doubt. Yeah, and then I would just do some traveling, a lot of traveling. I want to do a lot more traveling. The only place out of the states I've been is to Mexico, for me and my wife on our honeymoon. Okay, so I've got so many places I want to see, but I just don't make the time or make the plans to do it. Chris: Well with the four kids as you described, you got your hands full right. Yeah, well again. Jason, thanks for taking the time to come on the show. Really enjoyed getting to get to know you better and meet you. Jason: I appreciate the opportunity man. Special Guest: Jason Hayes.

Patrick answers how we can both pray for peace in Israel and seek justice for what Hamas did, has a lively conversation about the difference between NFP and contraceptives, and takes on interesting questions related to prayer and the Eucharist.   Carol (email) – I can't pray for peace. Shouldn't we be praying for Israel's victory? Nick - Why is NFP acceptable opposed to other contraceptives? Al - You should be able to have sex with your wife and use contraceptives. I strongly disagree with you Patrick. Jocelyn - With all the prayer we are doing for the bad events, does that take prayer away from other things? Robert - Is Jesus able to come out of the host after it has been consecrated? Jason - Is listening to music on YouTube or using cash back credit cards ethical?

Patrick starts the show by answering an email from a family concerned that one of their own is considering transitioning and will soon be taking hormone treatment  Patrick recommends “When Harry Became Sally”  Email from Wilfred: Question about valid baptisms  Donna - What should I call someone who identifies as a non-binary?  Steve - Why don't all the Churches believe in what Jesus says about conserving the planet?  Email from Randy: Should a family member convert to be a Lutheran so he can marry?  Andrew - There is another path for interacting with a non-binary person. Ask them if they believe that they should be tolerant than they should tolerate you calling them by what science says they are.  Pete - What is efficacy of prayer and fasting? Does my prayer for multiple people lessen the effect?  Mary - I am reading from Saint Faustina's Diary. What does it mean that religious are married to Christ?  Jason – Is the Our Father prayer different form the Lord's Prayer? 

Reflections on Episode 3, The Map Is Not The TerritoryJason : I reflected mostly on the map of “career”. All the beliefs that go into this map and how profoundly and insidiously it has affected my own life. Maybe we can talk about this in this fourth episode???About a myopic focus on outcomes and mistaking the map for the territory…I need to clean this up. It is kind of a brain dump.We talked about how humans like to be predictive. More specifically, we like to think we can control and manipulate variables in our environment in order to achieve certain outcomes. This may be true, to an extent, under certain conditions–such as a low variable set–or when one only considers limited influence over outcomes. For example, trying to manipulate or control general or specific physiological outcomes through the structure of workouts in a training plan focuses on a (relatively) narrow variable set and yields limited control.Where we get in trouble with problematic thinking around outcomes and control is when we think we can predict and control multi-variate outcomes like races.  In fact, I believe we over-invest our energy in focusing on things we can't really control. Too many things are outside of our control on race day. Our outcome expectations often subsume so many of these variables that are out of our control and this sets us up for disappointment. We'd do better to focus on the variables we can control and then construct our outcome goals around those variables.Steve: I concur whole-heartedly. I feel like we covered the basics pretty well.If you want we can add the following:One of my athletes, Alex Brenner, added a comment to the new community space dedicated to this podcast. If you want to access that site, just subscribe at rungnosis.com & we'll add you to the community.Alex:Great episode! I thought it was funny when you guys started talking about consciousness and riffing on the fact that it's hard to define what is "conscious" let alone what consciousness itself is or how it's produced by the human brain. Steve says something about how the different theories of consciousness would "blow your mind," and how we shouldn't trust anybody who claims to know anything about it with certainty.That all hit close to home for me because it's the reason why I quit neuroscience!

Jason Is talking with Donnie Boivin, Marine Corp veteran and owner of his profitable Success Champions business; you better be ready for the badassery that is Donnie Boivin. Fresh out of the Marine Corps, Donnie learned what it took to be successful in sales, business, and life over two incredible decades of experience. Then, at the age of 40, he realized he'd been living other people's dreams and began chasing his own. "I took the biggest risk in my life and opened up my own business!" Donnie went from knowing nothing about business and being on the brink of failure to launching his world-renowned Success Champions podcast, interviewing influencers in the industry and then building a company that's now kicking ass and taking names. When people meet you, the real you and show up as yourself, people will resonate more with you than a shinny version of yourself that doesn't exist in anyone. Running a business can be challenging, but it takes that resistance and shows you what you need to do to connect more with people and your customers. So, for example, our conversations with our clients now have to be more accurate - every discussion with your clients has to get to either a yes or no, but we should have e to have a close the clients have to close themselves. Donnie and Jason have a real down to earth conversation about showing up and giving much more about conversational business and sales strategies to enable others to get what they want. This is a fun and exciting conversation which you will love. What can you teach people and what value you can give others its amazing how many people you can reach. Networking http://successchampionnetworking.com/ Badass Business Summit http://badassbusinesssummit.com/ About Jason Cooper ❌Award-winning sales coach and trainer Ireland from the corporate vision

Monte and Jason talk with Midtown Title's Jake Moore about the importance of using a 1031 exchange when investing in properties.   ****You can listen to this and all recent episodes at: www.talkmusiccity.com   We Educate and Motivate All Things Real Estate! Have a question about buying/selling real estate and mortgages? Email questions@talkmusiccity.com or use #talkmusiccity to get your question answered!   The Talk of Music City Real Estate is sponsored by Music City Removal: www.musiccityremoval.com     Laura's story of working with an out-of-state client who was double dealing on buying their next home on TN. Little did she know, they were working with another agent while under contract with her.  She showed over 80(!) homes, offered on 13 and accepted on 6.    A few things that came up:     12:00 MONTE - Keep your eyes on the 1031 to allow for your clients to reduce their tax exposure 14:30 JAKE - The 95% rule 17:15 JAKE - A good rule of thumb regarding the 95% rule 20:00 JAKE - Same taxpayer rule 21:10 JAKE - How do I satisfy the like/kind exchange requirement? 27:30 JAKE - Person (Qualified Intermediary)1 you need to contact about getting your 1031 exchange setup 30:35 JASON - Is there grace if you fall out of contract on what your purchasing?     jmoore@midtowntitletn.com 615-921-8684 x151 __________________________________________   Carey Ann Cyr manages and operates one of the Top Branches for CMG Financial in Franklin, TN. She and her team have become known for closing nearly impossible deals! They have processed over 300 million in mortgages since 2016 with over 613 families ushered into their dream homes! Contact Carey Ann: www.yourtnlendingsolution.com     Monte Mohr owns Realty One Group Music City and has sold over $1 Billion dollar's worth of real estate and over 3000 homes sold over his 30+ year career! Interested in joining Monte as an agent? www.topagentsuccess.com     The Talk of Music City Real Estate is Produced, Voiced and Edited by www.jimmccarthyvoiceovers.com     #nashvillerealestate #middletennesseerealestate #realestateagent #realestatetraining #buyersmarket #sellersmarket #DISC #DISCprofile #broker #brokerage #switchingbrokers #realestate #realtor  

If you dream of using analytics to optimise your customer interactions and squeeze additional value out of your existing operations, then is episode is for you! Today, most large services businesses have established data science functions that churn out countless reports, dashboards, customer insights packs, machine learning models, forecasts and predictions. With all this information to hand, you would hope that front-line operations are making data-driven decisions across the board. But alas, many of these same businesses struggle to turn their analytics into more than glossy PowerPoint packs that describe what could be done. Often, this is because the technical implementation of data science solutions run into resource constraints or remain unsupported by IT departments. So, how can we successfully make use of our analytical output in our front-line operations without spending eons creating overly complex systems that never quite deliver? To answer this question, I recently spoke to Jason Tan who is an expert in operationalising data science solutions that deliver positive customer outcomes and real financial results. Jason Is the managing director of consulting group Data Driven Analytics and an expert in optimising customer experience, pricing and long-term customer value. In this episode of Leaders of Analytics, we discuss: How to use analytics to optimise your customer interactions How to identify the most valuable data science use cases in your organisation How Jason has created successful data science solutions around legacy IT platforms Whether you should buy off-the-shelf pricing software or build your own solution

If you dream of using analytics to optimise your customer interactions and squeeze additional value out of your existing operations, then is episode is for you! Today, most large services businesses have established data science functions that churn out countless reports, dashboards, customer insights packs, machine learning models, forecasts and predictions. With all this information to hand, you would hope that front-line operations are making data-driven decisions across the board. But alas, many of these same businesses struggle to turn their analytics into more than glossy PowerPoint packs that describe what could be done. Often, this is because the technical implementation of data science solutions run into resource constraints or remain unsupported by IT departments. So, how can we successfully make use of our analytical output in our front-line operations without spending eons creating overly complex systems that never quite deliver? To answer this question, I recently spoke to Jason Tan who is an expert in operationalising data science solutions that deliver positive customer outcomes and real financial results. Jason Is the managing director of consulting group Data Driven Analytics and an expert in optimising customer experience, pricing and long-term customer value.         In this episode of Leaders of Analytics, we discuss: How to use analytics to optimise your customer interactions How to identify the most valuable data science use cases in your organisation How Jason has created successful data science solutions around legacy IT platforms Whether you should buy off-the-shelf pricing software or build your own solution

A rare, request friendly (sort of) ride this week as Dan throws caution to the wind, creating a playlist from the suggestions of Facebook friends, you know; that Social Media app we we've been using to throw shade at each other the last few years? Yeah, so, the results turned out to be a rather rich, friendly and diverse ride no one person could create themselves. Featured: Dead Man Winter(I guess they keep better), Prince (Not Harry; the Purple one) Jason Is(a bike)bell and Alice (not the one from the restaurant) Cooper.

Jackie's family might be In a spiritual battle with dark magic but that's not going to stop her from beating all the sniper games! Jason Is hard at work watching scary videos before bed while the dead people chill In the living room. There's a lot to unpack here. This episode goes out to all the chamacos out there that had silver teeth growing up. 

Another credit myth destroyed by evidence - some big wig that actually works for a credit reporting agency! More unbiased advice supporting what Scott has been saying all along, and how it will help you get the best rates for loans. LISTENER QUESTIONS: IN THE BAND: I followed your advice and got a reimbursement check for an accident (Jason) Is pet insurance something we should consider (Roberta) Please warn others about saving for the future (Ann, United Kingdom) What do you think about life insurance for children (Rachel, Tempe, AZ) I used your find missing money trick and got $139 from an old insurance reimbursement (Erin, Memphis, Tennessee) TOPICS: AS-IS: Anyone moving in/out of a place needs to hear this warning about what is expected, allowed, and can be challenged so you can save yourself from hassle. What can you learn from another $10 BILLION money manager calling it quits after failing to provide consistent returns for investors. Where to find missing money: MissingMoney.com ===== Teach pre-school kids good money habits - Money A to Z is here: https://tinyurl.com/MoneyAtoZ

* Lil Baby files for primary custody of his son Jason* Is there a such thing as black privilege? Ask Gilbert* Celebrity divorces* New Segment called " I'll Holla "+ much more...

It’s that time of year as college students start or return to school. They may think they know it all, but really know nothing. How many students does it take to change a lightbulb or turn the heat on? It’s time to grow up in the real world! Today’s guest is Peter Tverdov of Tverdov Housing. Although student rentals are management intensive, Peter actually enjoys dealing with students. It’s prepared him to take on other types of tenants to diversify and grow his business.  You’ll Learn... [02:18] Rutgers University: Becoming a landlord in New Brunswick and loving it. [02:53] Student Housing Side Hustle: Accumulate more and manage them for others. [03:24] Hindsight is 20/20 in 2020: Bad timing to start business and quit day job to grow. [04:41] Decision to deal with students and student housing led to diverse tenant groups. [06:15] Peter’s Portfolio: 65-70% student rentals, 15-20% low-income families, 5-10% middle-class/workforce housing. [08:10] Onboarding Students: Educate and set expectations to limit excuses later on. [11:00] Happy Tenant, Happy Owner: Second largest lead generator is tenant referrals. [12:57] Broken Windows Theory: Dumpy/dilapidated areas attract crime and trouble. [13:45] Tverdov Renovation Consultants: Improve properties to attract better tenants. [14:47] Avoid or Acquired Taste? Riches are in the niches as a student rentals landlord. [16:33] Other Options? Rules/laws for room rentals, individual leases, boarding houses. [20:55] Responsibility: How to be landlords and hold each other accountable. [23:35] What’s next for Tverdov Housing? Track KPIs, achieve goals, and grow doors. Tweetables Landlord Business: Slowly and discreetly acquire more properties, get your hands dirty, and deal with people. “In business, it’s good to diversify.” “Managing student rentals, it really gets you battle-tested for managing other tenants.” “We’re not for everybody. We’re fair, but firm.” Resources Tverdov Housing Tverdov Housing on Instagram DoorGrow on YouTube DoorGrowClub DoorGrowLive Transcript Jason: Welcome, DoorGrow Hackers, to the DoorGrow Show. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others, impact lives, and you are interested in growing your business and life, and you are open to doing things a bit differently, then you are a DoorGrow Hacker. DoorGrow Hackers love the opportunities, daily variety, unique challenges, and freedom that property management brings. Many in real estate think you’re crazy for doing it, you think they’re crazy for not because you realize that property management is the ultimate high-trust gateway to real estate deals, relationships, and residual income. At DoorGrow, we are on a mission to transform property management businesses and their owners. We want to transform the industry, eliminate the BS, build awareness, change the perception, expand the market, and help the best property management entrepreneurs win. I’m your host, property management growth expert, Jason Hull, the founder and CEO of DoorGrow. Now, let’s get into the show. All right, today's guests, I'm hanging out with Pete. I’m going to see if I can say your last name right, Tverdov. And I'm going to unmute you so you can actually respond to that. Did I say it right? Pete: That was awesome. Pete Tverdov of Tverdov Housing. Pete, before we get into the topic, I want to introduce you, have you introduce yourself a little bit, but we’re going to be talking about student rental properties and the title is The Cash flow and Chaos of managing student rental properties. That sounds kind of fun. Let's get into the cash flow and chaos after we hear a little bit about your background, how did you get into this, and tell everybody who's listening about Pete. Pete: Sure. Happy to be on the show, thanks for having me. I got into it, my wife and I moved back to the Central Jersey area about six years ago and in the process of moving back we were looking to buy a multi-family, live in one unit, and it brought us to New Brunswick, where Rutgers University is. We both went to school there, we both played sports there, became a landlord, and really enjoyed the process of becoming a landlord. As I wanted to try to accumulate more rentals, I had the idea to begin managing for the people as it's something I really enjoyed doing. I enjoyed just getting your hands dirty and dealing with people. I started to do that on the side a little bit in that neighborhood, very slowly, very discreetly, and then little by little, I was just nibbling and getting more people under management because I was doing a pretty good job. About a year ago, it grew into a large enough business where I was at a crossroads with my regular job. I said you know what? I feel pretty good about this. I'm just going to dive in and really try to grow my business. That has been a bit rocky because I did that officially in January. I say rocky because of Coronavirus. The business has been good. It's been fun. I enjoy being an entrepreneur. I enjoy trying to grow the business each day and I'm happy to be here. Jason: Yes. Looking back, hindsight being 20/20, pun intended, so here in 2020, would you have chosen, if knowing that this would all happen to start your business, would you still have done it? Pete: It's such a hard question to answer because I had grown a business enough to that point where there was really no turning back. I just had a breaking point because I was working 24 hours a day. I was working in New York City. So it's just really challenging to try and juggle both really and I couldn't at that point. So was the timing the best? Definitely not. Jason: Okay, so you started getting into doing this yourself. Then you started doing it for others. At what point did you start deciding it would be a good idea to deal with students? I mean, this is your college hometown, right? It's a college town, your wife's college town, there is a college there, and it seems probably pretty obvious that you should be dealing with student housing. Were you already dealing with students with your own rentals? Pete: Yeah, that's exactly right. Every rental we owned was student housing and something I had a lot of familiarity with. For a while, I didn't want to do anything else but student rentals. About a year ago, I started to diversify that and try to pick up other tenant groups to manage, which we have, thank God, because in business it's good to diversify. But for me, anything with investing or my advice to anybody with investing is to go with what you know or the areas you know and then you branch out from there, which is what we did with the business. Again, student rentals are something we're super familiar with, super comfortable with and now we're at the point where we're happy with how much we have in the business and we're actively looking. We don't really even market too heavily to student rental landlords just because we have a sizable amount and because we know what chaos comes with managing them and how management-intensive they could be. As I said, we're trying to diversify the business. In addition to being well-known for student rentals, we want to [...] things as well. Jason: Give listeners a little bit of idea of what your portfolio looks like right now. Pete: Of our business, 65%–70% is student rentals. Another 15%–20% is lower-income families, and then the remainder is middle-class housing, workforce housing, yuppies. What's funny is managing student rentals really gets you battle-tested for managing other tenants because the other tenant groups really are a breeze. Student rentals are very management-intensive because they're 18- to 21-year-olds, so young adults. Most of them know nothing and what's worse is they think they know something which compounds the problem sometimes. I was the same way and maybe you were as well. You don't really know much when you're that age. They don't understand that they're responsible for changing light bulbs or if the heat's not working in the house, maybe it's because no one checked to see if the thermostat was even on. Stuff like that is really low hanging fruit. Jason: Yeah. Like you're saying, before anybody has kids or business or any of that, we're all experts on parenting, business, and how the world should work. I love it when my teenagers tell me how to be a better parent. I love that. That's always a really fun conversation. Everyone's an expert until they do it and then they realize they're like everybody else winging it and trying to figure out what's next. You started with the most difficult type of housing. It sounds like it was more difficult renters and tenants than anything else. It felt like it was just downhill. From there it was easier. Pete: That's right. As I said, it's just a very management-intensive group. What do I mean by that? They never signed a lease before. Some of them have never paid rent before. They've never written a check before or they don't know how to pay rent online. They don't really know what a security deposit is. They don't really know the process of getting it back. I think our business grew because we really tried to help the tenants understand the process and how it works. With students, for example—I would recommend this to anyone managing students—we usually sit down with them for 20–30 minutes and go over the lease with them, go over all the points in the lease, and set expectations upfront. We try to really limit the excuses for a tenant, like I didn't know that. What do you mean? We sat with you in person and went over that. That's one of the things. Some of the management items that I was talking about beat the properties up a little bit more so the repairs are higher and things always just mysteriously break. It was never their fault like something happens and nobody wants to admit it. I got a taste for managing other tenant groups. I realize how intense the students are and it's not a bad business to be in because, for people who own the rentals, the cash flows are higher, but with higher cash flows comes a set of their own problems. Jason: Aren't these things just common in property management in general? Like the advantage of you having a business like this is that you're almost educating these people through the process. That would work well for any new client because even if they've rented multiple places before, you have your way of doing things, they still may not want to follow things, have misinterpreted things, or they may claim they read the lease and understand it. All of these things sound like a really good baseline for how to onboard all of your renters. Pete: What I realized early on with the way I conduct business is we're not for everybody and that's because we believe in holding people accountable. One of the gentlemen who help me out hits me on the head. We're fair but firm. We're very fair. We don't try to nickel and dime people, but we're firm. The lease is the lease or the code is the code and this is what we have to do in order to ensure that the property is running smoothly, to ensure you're happy as a tenant, and to ensure the owner’s happy as a client. As a property manager, you're getting hit from both sides a lot of the time, but that's what I try to do to tenants. Honestly, we try to give as good of an effort as we can to make sure that they have a good experience because what's pretty cool about our business is the second-largest lead generator for us is tenant referrals which is awesome. That's free. That costs nothing. For that to be number two, it tells me we're doing something right, even though it feels like we're not sometimes and I want to continue that. Jason: So tenant referrals, meaning the tenants are referring the owners to your company? Pete: They're referring other tenants to our company. It makes the amount of advertising we have to spend on finding tenants less. Jason: Right. Do you feel like that's a challenge and student housing is finding people to rent the place? Pete: I must say it depends on the demographic. What's unique about Rutgers is it's split between two towns in New Jersey, New Brunswick, which has a population of 55,000 and Piscataway, which (I couldn't tell you) maybe it's 30,000 or 50,000. It's not a small town either, but it’s very old homes, especially in New Brunswick. What a lot of landlords in that area are realizing is people don't want to live in a dump anymore. They're willing to pay a little bit more. The house needs to be nicer. That's what we've done with stuff that we own. Most of the clients we have take a little bit of convincing, but after a while, they trust us to spend some money on their property because it makes it easier to rent. I went out to Rutgers, I majored in Criminal Justice. There's this thing called Broken Windows Theory and for people who don't know that it is, it's what it sounds like. When you have a dilapidated area with a bunch of broken windows, it attracts crime and attracts people looking to get into trouble. When you have that same place and it's all cleaned up, all the windows are fixed, the outsides painted, and the sidewalks are redone, the crime statistically usually has gone away. We took that same theory with housing. So if you have a dump, you're likely going to attract tenants who don't care about the place. They're just going to beat it up even more. If you have a nice place, you usually attract nice tenants, and even with the students being as management-intensive as they are, we've found that to be true. What's interesting is within the property management business—I did this right in the middle of the pandemic—I said screw it. I’m going to start another business. So we created what's called Tverdov Renovation Consultants. We basically do project management for our clients. We tell them, listen, we could help you rehab, bathrooms, kitchens, additions, roof siding, blah-blah-blah. We have a whole portfolio of the work we've done on Instagram. That's been good for the owners because it makes their property easier to rent. They get more rent and make our property worth more. We're happy because we've found a better tenant. The town's happy because we've improved the property and it's really a win and win across the board. It's just a matter of convincing other owners who are stuck in having lipstick on a pig or they don't want to spend a lot of money on properties and now we're at the point where I don't really want clients like that. I want clients who want to have a well-run property. Jason: Got it. Do you feel like tenants are an acquired taste in property management? My perception as other property managers avoid dealing with student housing, with those types of tenants. They feel like they're more difficult to manage unless they feel like in their market they need to. Do you feel like you would maybe in general convince these property managers in some way that there is a benefit or an upside to focusing on a tenant or better student housing? Pete: I think if you know it and you know the area, you could do very well and we have done very well. If you don't know it, it's pretty obvious to people who don't know it. You get beat up because you don't know what you're doing. The challenging part is every school is different across the country. When tenants begin to look when the lease is run and there are a plethora of questions to answer. If I was going to invest in another state, it's a whole different set of rules if you're going to try to be a student rental landlord in that state. For me, the riches are in the niches. Again, that's what I knew and I grew it. Now we're looking at expanding into more residential options. Still single family, two to four families, small apartment buildings. That's our bread and butter. That's all we want to do. We don't do commercial. We don't do HOAs or anything like that. That's what we focus on and that's what we're trying to grow. Jason: Now, the financial upside that I've heard from some people that get into this is some have convinced owners to take a property and to rent it out the room instead of renting out the entire property to a family. They're renting it out by the room in these sorts of situations and they're able to get a lot more rent at the property by doing such. That seems to be that there would be a potential financial upside, especially if your fee structure is based on percentages or each renter rather than being just connected to a flat fee per unit, for example. Pete: Maybe it's a little off-topic. We charge a percentage base and we'll always do that. I really don't know how property managers make money doing a flat fee. I think it's tough so we'll always be a percentage-based company. Renting by the room is, you're correct, that is the way to make more money. Again, I keep saying this phrase, but management-intensive, renting by the room is even tougher for students where we put groups together. We put a bunch together last year. We had a kid from Singapore, a kid from India, a kid from New Jersey, a kid from Pennsylvania and they don't know each other. When you're renting by the room, it's even worse because now you almost have four tenants, not one tenant, or six tenants, or however many people you're putting in a house. That creates its own set of problems. Again, this is based on jurisdiction. You cannot do individual leases because that would be considered a boarding house unless it's a licensed boarding house, you really shouldn't be doing that. We don't do that, so we had to rent by the room. We put them all on one lease. We say, listen, you're all legally responsible for damage in the common areas, and so on and so forth. It's challenging. What's funny, though, is I actually want to try to add a boarding house to manage because we get a lot of people just looking for a room. Just looking for a place to live, not just an apartment or a studio. We get a lot of inquiries like, hey, do you have a room? Jason: Is this boarding house law something that is common in just your state? I haven't heard from this, but it makes sense. Is this in other states as well? Pete: I'm just speaking about New Jersey. Jason: Interesting. It's something to those listening if they haven't dabbled in student housing or they're thinking of renting by the room or something like that, they probably should check with their local laws to make sure whether or not there's any sort of rules against doing such. In New Jersey, what does it take to become a boarding house then or to set one of those up? Is it on an individual property basis or is it a licensing sort of deal as a property manager? Pete: You need to have (they call it) a rooming house or a boarding house, but you need to have a license displayed in the property. I've been in enough of them. It's pretty obvious if it's a boarding house or rooming house because there'll be a kitchen with a bunch of labels on each cabinet. Like, this is John's cabinet, this is Max's cabinet, this is Pete's cabinet, and there's a common bathroom or two. Then all the other doors are just shut with locks on it. If you can imagine, that's what they look like and then they'll have a big license in the hallway or stairwell that'll say this is a New Jersey-licensed rooming house or boarding house. That's how they work. But again, those are challenging. Jason: Do you find in those situations you end up sort of having to play parent between roommates? Pete: Yes and no. We had to do it last year with a group of girls we put together. It was a little aggravating and a lot of girl drama. I stepped in and I spoke with them and tried to give them some words of wisdom. Most of the time, what we do with student rentals, I don't care how many kids are living in the house. It's one tenant and I explain to them you're all jointly responsible for rent and all the lease obligations. So it doesn't matter how many people are in the house. At the end of the day, you guys are all responsible. The other thing is we manage nearly 400 students. Some of these are very nice people, but we can't talk to 400 people. It's just not possible. What we do is we make a house manager or captain, or house mom, dad, whatever you want to call it and that's the person we speak with now regarding any tenant issues. We usually recommend somebody else in the house be responsible for submitting rent. So rent is submitted in one payment. Someone else is responsible for utilities. What it teaches these guys is responsibility, how to be accountable, and hold their roommates accountable. In theory, what's cool is we are actually teaching them how to be landlords because they have to make sure rent is collected. Something's broken, they have to find out who did this. Now, I have to tell Pete or for repairs to be made, coordinate with them to schedule it. That's why I said earlier, we're not for everybody because somebody who needs their hands held or mommy and daddy to wipe their mouth, we're not for you and that's okay. Our system usually winds up attracting tenants who are a bit more mature, a bit more independent and if they're not, they get there by the time that they're done with us. Jason: Right, I like it. You’re part of their educational process of the real world. That might be a good selling point for getting tenants. We'll make your kid actually grow up. I hope you're excited about that. I'm serious. I'd be like, I'm going to send my kids into one of those properties, right? Pete: I might try that. Jason: It's worth a shot. Pete, I think this is really interesting. I'd be interested in those that are doing student housing when you see this posted or see this inside the DoorGrow Club Facebook group at doorgrowclub.com. I'd be interested to see other people's comments on what you're doing, what's working, and what's not working in student housing. This started as a side hustle. It's evolved into a business doing it for other people. It's now growing. What do you feel like is next for you and your business moving forward? Pete: What I start to do from watching podcasts like this is to track our KPIs, which is really cool. I love that side of the business. It's like a quarterly visit if people think of it. It helps me to understand where we should be spending money, what's working, what's not, and tweaking things. Because we're in the growth stage right now, 100 doors is cool, but there are people who are 500, 800. Those are huge, huge companies. We won't get there overnight, I understand that. The goal of my business is we want to cover three counties in New Jersey. So we're based in Central New Jersey. If anybody from New Jersey is listening to this, Central New Jersey really doesn't exist. That's the inside joke. But the three counties we cover probably have about 2.6–3 million people in them. Those are within a 30-minute radius of our office, so we're very comfortable being within a 30-minute radius of home base. The goal is just to continue to add doors under management. Single-family, 2–4 families, small apartment buildings in those areas. There are certain towns that are rental towns and certain towns that are not. What we've been doing on the marketing side, we've been working on SEO, we have our own website, we blog, we're very active on Instagram, then we do mailers, which maybe not a lot of people do. We do some cold calling, too, and just constantly trying to tweak and figure out what's working, what's not, and how we could generate more leads. On top of the property management, because in New Jersey you have to have your real estate license. So right now, me and a few people, my team are realtors. Eventually, I would like to have my own brokerage. Really rural housing is three companies, so it's realty services—we can help you buy and sell investment properties; that's all we do—we could help you manage the property, or we could help you rehab the property. We have some clients where we help them buy the property, we help them rehab the property, and then we manage the property. Then, one day when they want to sell it, we'll sell the property. That's about creating multiple income streams for our business within the same business, which I think is pretty cool. Jason: Makes sense. Cool. Pete, it's been great having you on the show. I wish you success at Tverdov Housing and for those that are listening, if you have questions about student housing or getting this, or if people listening are interested in getting a place from you or whatever your goal is, how can they get a hold of you? Pete: My website is tvdhousing.com and also my Instagram, Tverdov Housing. You could look at the last name on the DoorGrow Show. It's Tverdov Housing. We're constantly posting what we're doing on Instagram, so it's usually properties we're rehabbing, or some crazy management story, about just some crazy stuff that's happened and probably will happen in the future, stuff that we're selling, so we're very active on there. Jason: Cool. All right. Pete, thanks for coming on the show. Pete: Pleasure being on. Jason: All right. Those of you that are interested in getting into student housing or that have been dealing with student housing, I'd be really curious, like I mentioned, to see your feedback inside the DoorGrow Club Facebook group so inside the DoorGrow Club. Let us know what you find is working or not working. It sounds like a challenging thing. I think any of us that have gone to college and remember some of the crazy stuff that either we did or that we saw other people doing, recognize that could be a really challenging thing, but it's necessary. Like their student housing is a need. It'll be interesting to see how things go moving forward with COVID-19 and Coronavirus, and things shifting to online. It will be interesting. Check out the Facebook group, doorgrowclub.com. If you are interested in growing your business and your property management company, making some changes there, if you are feeling stuck, struggling, whatever, reach out to DoorGrow. Check us out at doorgrow.com We'd love to help you out. Until next time. To our mutual growth, Bye everyone. You just listened to the DoorGrow Show. We are building a community of the savviest property management entrepreneurs on the planet, in the DoorGrow Club. Join your fellow DoorGrow Hackers at doorgrowclub.com. Listen, everyone is doing the same stuff. SEO, PPC, pay-per-lead, content, social, direct mail, and they still struggle to grow. At DoorGrow, we solve your biggest challenge getting deals and growing your business. Find out more at doorgrow.com. Find any show notes or links from today’s episode on our blog at doorgrow.com. To get notified of future events and news, subscribe to our newsletter at doorgrow.com/subscribe. Until next time, take what you’ve learned and start DoorGrow hacking your business and your life.

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Do you like dealing with people or properties? Most real estate investors and property managers leave dealing with numbers to their accountants. Today, I am talking to Kyle Redding, Head of Growth and Sales for Proper. The property management tool uses artificial intelligence (AI) and machine learning (ML) to provide accounting and bookkeeping services. As a former CPA, Kyle has extensive knowledge of accounting, bookkeeping, and customer experience.  You’ll Learn... [05:12] Purpose of Proper: Partner with property management companies to set up accounting automation for back office. [06:10] Proper Position: Works with, doesn’t replace other property management tools. [10:00] Sophistication Fog: Property managers who need additional software and staff to optimize accounting automation. [12:15] Proper Process: Property managers handle invoices via dedicated email inbox, training, and automated processing. [17:45] Reminders: Rent is due! Rent is late! Proper’s frequency of property management invoices and statements. [21:10] Proper Competition: Hire bookkeepers/accountants with qualifications, education, and experience to alleviate single point-of-failure. [29:55] Proper Pricing: Affordable and sliding-fee scale based on price per unit. Tweetables Proper manages the books, you manage the properties. Proper’s Primary Focus: Accounting automation for more scalability and less stress. Proper’s accounting team is not your run-of-the-mill bookkeepers. Leverage Growth: Partner with Proper to take property management to the next level. Resources Kyle Redding’s Email Proper Ernst & Young QuickFee Buildium AppFolio Rent Manager Propertyware Yardi QuickBooks DGS 101: Take Confusion Out of Property Management with the Proper App  DoorGrowClub Facebook Group DoorGrow on YouTube DoorGrowLive DoorGrow Website Score Quiz DoorGrow Cold Leads Calculator Transcript Jason: Welcome, DoorGrow Hackers, to the DoorGrow Show. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others, impact lives, and you are interested in growing your business and life, and you are open to doing things a bit differently, then you are a DoorGrow Hacker. DoorGrow Hackers love the opportunities, daily variety, unique challenges, and freedom that property management brings. Many in real estate think you’re crazy for doing it, you think they’re crazy for not because you realize that property management is the ultimate high-trust gateway to real estate deals, relationships, and residual income. At DoorGrow, we are on a mission to transform property management businesses and their owners. We want to transform the industry, eliminate the BS, build awareness, change perception, expand the market, and help the best property management entrepreneurs win. I’m your host, property management growth expert, Jason Hull, the founder and CEO of DoorGrow. Now, let’s get into the show. Today’s guest is Kyle Redding of Proper. We’re going to be learning about what Proper is now. I think we’ve had you guys on the show before and it’s different. Kyle, welcome to the Door Grow Show, glad to have you. Let’s get into your background and maybe you could share with people your entrepreneurial journey, I think you have a cool story and I think it’d be fun to get into first. Kyle: Yeah, thanks, Jason. This is exciting, thanks for having us. Up at baseball in college really all I wanted to do fell into accounting. That sounds a little crazy, but Accounting 101 was in all those classes that I took and got 100% in. Don’t ask me how, but it just happened. While playing baseball I was like, “Okay, I think I can do this.” You travel a bit, you miss a bunch of classes but still, somehow worked it out. That revolved into an internship with Ernst & Young and then ultimately, a full-time job. I started up at EY in Orange County, California for about five years or so in the real estate group. A lot of my clients were public REITs or real estate developers. I ultimately then transferred out to Australia where I work at EY. Again with some real estate clients and some other industries. Ultimately, I got out of the public accounting game and was attracted to start-up life. I found this little start-up in Australia that was looking for an accountant that could sell, and I thought I’d give this a crack. We are a little finance online payment company in the professional services, all of our clients were accounting firms and law firms. We got really deep into the accounting industry and the CPA world and how they run their business. We grew that business and brought it to the US about four years ago. I took that company public in July last year. While that happened, I’ve always stayed in touch with one of my best friends, Matt, who is our COO and head of finance at Proper and Mark, an old college roommate from USC. We used to make surfboards and Matt and I worked at Ernst & Young together. At that time, Proper was really trying to solve a lot of different challenges for a property managing company, mainly on the maintenance side, which I think he comes and talks about before. Mark, our COO, was just religious about user research and first principles, light up thinking, breaking down problems, and finding the best solution for those problems; which is how we ended up coming back to Matt and I’s core background from the CPA world and real estate and addressing that [...] maintenance side of things, which is a nice to have and people want that to be better. The real true problem that we found was on the accounting side. A lot of property managers don’t necessarily get into this business because they like doing the accounting, or they do not do the accounting because (like you said) different from the real estate sales. It allows them to grab a hold of these owners and these properties, and develop other business opportunities but at the end of the month, the key deliverable that they all have is a financial package on that owner’s investment. That’s where we are today, helping a lot of property management companies solve that challenge and get better and focus on growth as opposed to running a call center and operations. Jason: Cool, so let’s get into how would you describe Proper now to those that are listening? What does Proper do? Kyle: Yep, sure. We partner with company management companies to help automate their back-office essentially, from everything, from AR to AP, to bank [...], to owner reporting. We use very high caliber accountants who have all got an accounting degree from big universities, that work in a big board accounting firm, that works at a Fortune 500 accounting firm. We power our team with machine learning, automation, and artificial intelligence to help make their job easier and allow our clients, the property managers, to scale a lot faster without having to worry about hiring more staff for training those people or maybe delaying, bringing on more portfolio because they need to do those things before they can get to that next step. We focus on accounting automation. Jason: Help me understand then how that works. Most property management entrepreneurs and business owners that are listening to the show right now are probably thinking, “Well, I’ve already got AppFolio, I’ve already got Rent Manager, I’ve already got Buildium. I’ve got a property management back office or accounting solution.” Is Proper something that you guys are positioning yourself to replace these tools or is this something where work in conjunction? How does this work? Kyle: Good question. We work alongside all of those tools. We’ve got a big mix, we don’t just work in AppFolio, we don’t just work in Propertyware. We’ve got clients that use Buildium, use Yardi, AppFolio, Propertyware, Rent Manager, you name it. We’ve even got clients who start out with QuickBooks and then as we help them grow, we transition into something more appropriate like a property management software. Right now, we’re not looking to replace any of those tools. We help optimize them for our clients. We help them set up a foundation to better utilize those and then manage those as well. A big part of what we do is helping them set up the appropriate level of internal controls. Are they set up for growth? Is that foundation there to really pile on top of? When we take on a new client, a lot of times it’s retooling the way they’ve set up AppFolio, Buildium, or Propertyware. It’s helping them get their [...] matrices set up. It’s all of those things to create efficiency, get them out of the weeds of the mundane repetitive low-level tasks that are [...] time set from their day, put that on to our plate, and get them back out to the field, so they can grow their business. Jason: It’s not just accounting because you’re helping with some of the operational aspects as well. Kyle: Correct. What we found is depending on a property manager and the company and the way they’re staffed, there’s a lot of leaving in and out of that accounting process. There’s a property manager who might spend 10%–15% of their day doing some accounting function that they probably shouldn’t be doing. The other side of that is you might be the owner or the broker-owner going, “I wish my PMs are out there losing these vacant apartments I’ve got, but they’re stuck doing this paperwork because there’s no one else to do it,” or it’s part of a process that they set up that hasn’t been revisited or fine-tuned. So, we help alleviate all those little bits of pieces there, then create more capacity for them to focus on what they want to focus on. Jason: Is this difficult to get going, get set up, and is there a certain level that a property management business owner has to be at before it would make sense to work with you guys? Kyle: Let me tackle that second question first which is do we have a minimum or a certain size. The short answer is no. We’ve got clients who have as little as six units. We’ve got clients who start with us at say 30 units and grow to 50–60 within three months. I’d probably say where it starts to make the most sense where they can move away from that one part-time admin or office staff handling some of these admin related tasks or accounting related tasks. Generally, to make it to that 30–40 unit mark and they’re starting to gain some momentum and get a little serious is where we can usually help them get to that next level. Where we see a clear difference is with somebody’s property managers who we call in the sophistication fog. They’ve half thought on their AppFolio or Yardi to do some things for them, but they still have some low-level staff that may or may not have an accounting background. They’re essentially taking off things on the checklist on a daily basis to help get that job done but there really isn’t an optimization to that process yet, it hasn’t really been optimized. We can come in and create efficiencies for them and help them, ultimately, have them repurpose those people to maybe a more interesting role or a more revenue-generating role, and then start to use some automation and fine-tune their property management software to do more for them. Jason: When it comes to automation and the technology side, do you guys have a homegrown software that’s running and doing the stuff? Are you using a certain software platform that you work within? Kyle: We continue to optimize and build other tools mainly around AP. Our goal is to attack one of these functions at a time. We found by measuring our accountants’ time that on average it takes about 5 minutes and 59 seconds to process an invoice. We built a proprietary tool that allows us to take that 5 minutes and 59 seconds down to (say) 30 seconds. From a scaling perspective, that property manager then takes on another 200 units. There isn’t the fear of being able to handle that, and we don’t need to staff another five people on their account to get that work done. We can continue getting through that work at a very high accuracy rate by training our model over and over with the different touches and windows that we see. Jason: How are the property managers feeding stuff into the system as if they’re feeding it into Proper? Kyle: Just like maybe a more specific property manager we may have set up where, let’s say 70%–80% of their invoices from their [...] vendors are coming in by email. They might have a dedicated inbox, ap@xyzpm.com or billing@xyzpm.com. If they don’t already have something like that set-up, then we’ll help create something like that. We’ll work with their vendors and their team to start training those invoices to come through to that inbox, at which point we can then adjust them and start processing them through our automation tools. Jason: What are some of the big questions that you’ve been getting? Everybody’s using their property management software, they probably have their systems and processes going to where they’re afraid to even mess with it a little bit, they feel comfortable. Then hearing you say, “Hey, we can help you make things faster. We can make it better, we can help you utilize things better, we work alongside,” and they’re probably thinking, “This is going to be really expensive, I don’t know if this makes sense. I’m going to have to do something different or something new.” What are some of the concerns and how are you addressing those? Maybe you can address them here so people listening, they’re popping up in their head. Kyle: Sure. I’ll probably revisit one of the questions you asked earlier which I didn’t address, which was what does it look like to get started or to start working with us? What does that process [...]? Our onboarding process, usually depending on the size of the PM, say, between two and four weeks to where we’ve fully taken over the accounting work off of their plate. When we start working with a new client we’ll basically do a deep dive walkthrough through every single one of their processes that they have. We’ll then document that process, so if they do continue to grow or they want these policies, procedures, and manuals for their own internal use, they’ll have those and we can use those to hire additional staff as they continue to grow. That’s probably a big first step, is understanding what they do, how they do it, what is being done, who’s doing what, et cetera. During that onboarding process, if we see a glaring opportunity for an improvement or an optimization, we’ll help them execute it right there on the spot. In the first instance, we’re going to match what they do so there’s the least amount of distraction to their day. Then over time, the next 30-60 days, we’ll tweak that some more and optimize it a little bit further to where they’ve got a smooth running engine behind [...] essentially. That’s a big question for a lot of prospects of clients that we take on is how do we get started, how does this work? That’s a very high level. Jason: Let me recap that. Some of these direct out with accounting, they’re frustrated with some of their internal processes connected to these, their day-to-day, and in 2–4 weeks you feel like Proper can significantly lighten their load and allow them to breathe. Kyle: Yeah. For example, just in the last month, 80% of our clients had increased their unit count on a month-to-month basis. Obviously, there are ebbs and flows, they might lose an owner (which drops the units), but generally speaking, once Proper gets in there, we alleviate and free up. We have one client, we freed up 35 hours a month of their time. This is a seasoned property manager who’s just, at the end of the day having to review work, or they were using another accounting partner. Jason: Then roughly how many doors did they have that they were freeing up that much time? Kyle: About 200, let’s say. Not a massive one but a decent-sized property managing company. Working with Proper, we generally saved in terms of card cost of headcount, up to 30% of their accounting staff wages over time. Maybe not on day one because if we’re not going to replace a team, that comes in phases, but over time, we generally see about a 30% cost reduction. We can fix this cost for them as opposed to them running a call center. They want to be making more money so let us fix this cost for you. Keep the quality at a very high level so that financial output and what you’re delivering to your owners. We also see a significant reduction in the number of questions or queries that our clients get from owners every single month because now our accountants are coming in and doing things may be the way they should’ve been done before or at a slightly better cadence or faster cadence which helps them keep their relationships. Jason: What are you seeing in all the property management businesses that you’re working with? How often are they sending out statements? Rent is sometimes trickling in. Rent [...] coming [...] a month. Sometimes it’s late, rent is really late. In these situations, what are you seeing as a frequency for invoices going out? Kyle: Definitely ranges depending on who it is that we’re taking on board but ultimately during that onboarding and stabilization period, generally it’s within 60 days or so. We have them all recording on the 10th of the following month and that’s a pretty standard cadence across the industry, but we make sure it’s consistent. There isn’t that, “We’d like to get it done by the 10th. Sometimes it’s the 15th or sometimes it’s the 20th.” We try and help standardize that across all of their owners. That might even come down to giving them some advice around, “Hey, you don’t have this clause in your owner agreement negotiated property, let’s help you fix that real quick.” That way you have some consistency. There are fewer exemptions and less, “Oh, this one requires that and this one requires that.” Again, building for scale, they can make those tweaks and continue to pile on top of what they’ve already built. Jason: One of the questions that pop up in my head hearing about this and owners giving some of their subs, they’re concerned about checks and balances. How am I going to make sure everything between my management software reconciles with my trust accounts, banking accounts, and everything is going in and out? How do I make sure everything is legit and stable? If I’m going to hand it off to somebody, I want to feel safe that these checks and balances are in place otherwise I’m going to have to check everything. Isn’t that true? Kyle: Yeah. A big way that we approach that is through those onboarding walkthroughs. When we do a deep dive into each process, whether it’s collecting rent or AP, or with the owner recording if there are only [...] there, we go into extreme detail, we document and create a manual for that process. Then there is a consistent agreed way of doing it, whether we try to make recommendations to improve it, or we say, “Hey, you guys have got some great process here.” We just formalize it in that way there’s a clear line of, “This is how it’s going to work.” Then we use tools to keep people accountable. Set reminders for (say) someone on the PM side, they haven’t approved an invoice for us yet, we need to garnish their approval. We use tools that allow us to keep those people accountable, so we can keep them [...]. Jason: Short callers and text messages? Kyle: We communicate daily pretty much with all of our clients from Google Hangouts, workflow collaboration tools, things like that, so there’s clear visibility. Jason: What are some of the other frequently asked questions that people give you when they’re going through the sales prospects sort of process with you? Kyle: What are our qualifications, what makes us qualified to do this sort of thing. As I said, Matt and I—Matt is our head of operations—we’re both CPAs with extensive real estate experience at Ernst & Young. All of our accounting team—I think I mentioned this before—got an accounting degree from college, they’ve worked at a Fortune 500 company, or [...] accounting firms. Our staff is not your run-of-the-mill bookkeepers. They’re highly trained, they’ve got extensive experience, we require our team to do at least 10 hours of CP in real estate accounting every year, that generally gives them some confidence. Then we’ve got some clients out of their really sticky situation with back books and unreconciled accounts for a long period of time and if we can come in and clean that up in a very short amount of time. We have one client who had nine months of unreconciled accounts, and we helped clean that up in about 3½ weeks. When we can show our clients that we can do this for them and help them get to a part where they can sell all their managing company and their portfolio, that speaks volumes for the rest of the people that we talk to. Jason: Let’s throw stones at some of the competition. Kyle: Sure. Jason: One of the main competitors is going to be the property management that’s like, “I’m just going to go higher because the alternative will be I’m going to go higher than somebody. She’ll help me with my bookkeeping or my accounting, or data entry with checks and invoices and all this kind of stuff.” They bring in somebody, they’re probably one of the lowest-paying members of their team, and they’re trying to teach them how they do it and it gets really messy. I don’t know if you want to say anything else, maybe I already threw stones at it. Kyle: No, that’s good. It’s definitely a challenge that we come across, where they’re weighing up, “Do we do this in-house or do we bring on a partner like you guys?” What we often see or hear from people who maybe have gone down that road and then maybe come back to someone like Proper is that it's a single point of failure. It’s one person who’s a real accountant. They go on vacation, things get missed or they get tired if they’re growing quickly, and they’re not organized. All of those things are risks that a team like Proper doesn’t let happen because we have more than one person while working on your portfolio. We could do that and your pricing is still fixed. That’s one of the ways that we help alleviate those sorts of risks from that setup but that might be the right set up for some people. Jason: Yeah, I’m sure every property manager that’s brought anybody else in to touch anything financial in their business has noticed some really ugly mistakes that they’re having to clean up. They’re having to reissue their statements, they’re having to undo or apologize for a notice to quit or something that went out to the tenant that shouldn’t have. Let’s compare this now to just going and getting an accountant, like somebody maybe, “I’m going to go hire a local accountant. They know my area, they’ll get to know my business. Steve down the street, this guy, CPA.” Let’s throw stones at that now. Kyle: The biggest downside to that scenario is that they’re often doing things in arrears. The accountant isn’t there, the CPA isn’t there every day to do and process invoices or reconcile the bank account. They usually come in the first week of the next month to catch up on everything. The client isn’t super organized, they’re going to have to be digging through things, distracting their clients, asking them questions about stuff that happened three or four weeks ago. Which can be a big challenge. You might be able to navigate through that and create some processes, but that can be burdensome. Even more at a time sucks especially if people on the go are not doing things the way they should be along the way. With our team, we’re reconciling bank accounts on a daily basis as transactions go through. We’re processing invoices instantaneously as they come through. There are benefits of us essentially being an extension of your team, just maybe not sitting in your office, but having the same people every day in and out doing that work for you as you go. The other thing about the traditional CPA firm is they’d rather do the higher margin advisory work, tax consulting. It’s expensive for them to do the low-level bookkeeping. They’ll do it for a relationship, but they don’t necessarily like doing it. We actually get a lot of referrals from CPA firms who have clients who need property accounting done at an affordable price. Jason: You go get an accountant, they’re looking at things after the fact, they’re pointing out things you need to clean up, they’re disrupting your day. You’re having to communicate with them, you’re trying to find the problem they’re pointing out rather than these things being taken care of on a day-to-day basis. If you guys fix something that’s messed up within a day or even two, it’s dealt with. Thirty days later, some stuff to undo your mess. Kyle: Correct. Jason: What are some other alternatives to going without Proper? I guess doing it themselves. Kyle: Yeah, doing it themselves but again you’re constantly fighting that growth battle. How do I get to the next stage, whether it’s right? We all look for leverage to put us into that next zone. We get a lot of clients coming to us who want to grow. They get to the point of, “I can’t do anymore. I need a partner to get to the next stage.” We get people who’ve been burned by other accounting partners who maybe just don’t have the same quality control so now they’re looking for a new partner that isn’t going to mess things up that they don’t have to keep an eye on. I think because we focus exclusively on property managing companies, we’re not doing restaurants, we’re not doing eCommerce businesses. We’re 100% real estate accounting. That gives a bit of confidence in partnering with someone like us. Jason: Got it. If you’re working with some sort of accounting bookkeeping firm, you’re having to force the system, and you’re having to explain to them what you do and that rent’s going to come in, and certain amounts are going to be taken out, and all of those kinds of mess, and they just don’t get it. You’re having to use every time, like change the account rep that’s working with you this company has turned over. That can be a mess, you can guess it. Any other frequently asked questions that people come in to look at your firm would maybe want to hear on this podcast? Kyle: How quickly we can get started with people or whether we can help them retool their software stack. Another one we get quite a bit and gotten quite a bit recently is “Can you handle our overflow accounting?” As in they might already have a full accounting team with that capacity that they’re hungry to grow, and they want to buy four portfolios in the next quarter 400–500 units each. “Can we engage you guys to help do the mapping and the chart of accounts to our chart of accounts and the monthly accounting into a ready to transition them from whatever software they are on now to ours?” We handle a bit of our work as well or even maybe some ad hoc research of which one would outgrow this solution, what else should we look to do. We can scope in that sort of work and continue to partner with them on their growth. Jason: Okay, pricing. If we can really give any numbers here but if you can help people understand how do you price this out, how affordable this is, how does this work? Kyle: Great question. Our pricing scale is part of our client’s scale. As in the price per unit drops, the number of units continues to rise. We might start out someone with $12.99 per unit, we might have 100 units. Then if they get up to 2000 plus, we could get as low as $6.99 per unit. We calculate on a monthly basis and as the unit count fluctuates we adjust the pricing, so it’s a fixed note cost for them each month based on their unit count. If we don’t have to work on 100 units that they lost last month then cool, their fees are going to reflect that. So, between $12.99 a unit and $6.99 per unit per month for a full suite service. Jason: Got it. Well no matter how you work the numbers, doing that here at my screen, it’s going to be a lot cheaper than even a part-time employee generally would be. That’s handling the stuff, that’s a single weak link in the chain, that can be a bottleneck, that might get sick, go on vacation, or whatever, or yourself holding the entire company back because maybe this is not your area of genius or your life’s purpose to handle all this stuff. Kyle: Yup, exactly. We don’t necessarily provide à la carte services or our different functions of the accounting process other than accounts payable. We know that AP typically takes up about 60% of the time across the entire accounting function. We can get scale on AP pretty quickly especially with automation. If we’ve got someone who’s looking to maybe test us out, try before they buy sort of thing, we might take on just AP for them or maybe 60% of their workload at an appropriate price point for them to handle just AP, then move that into taking on the rest of their accounting services. Otherwise, we get people who just say, “We need this, let’s get started right now.” We’ll work with their team, get up to speed in a very short period of time, and then take everything off their plate. Jason: It’s just crazy to imagine that some of the property managers are going to listen to this. You’re dealing with some of the stuff, you’re running into headaches, you’re frustrated, this could be dealt with based on what Kyle’s saying here in like a month. It could be literally off your plate and your life could be infinitely easier. Kyle: That’s very true. We do start taking stuff off their plate in the first week or two but that first 2–4 weeks we like to really just make sure we’ve got a good understanding of what’s going on so that mistakes don’t happen, so that by week 4, we’re fully optimizing, we’re ready to roll. Jason: Cool. Well, I’ve gotten too deep with you and some of the members of your team and I know you guys are sharp. This sounds even better than what I thought we were going to be talking about today, so it sounds pretty exciting. I’m sure you’ll get some people reaching out that are running into some difficulties [...] off the top of my head that has been complaining about some of the stuff so it should be interesting to see the attraction you get on this episode. Kyle: The main thing, Jason, that we wanted to do is really give our clients their time back and give them the confidence and reliance on this financial that every month they got to deliver to their owners without having to worry, want it to be consistent, and want it to be high quality. We want them to not have to fear about getting right or spending time checking things. We want to be their partner in growth. We look for clients who want to grow and are like-minded with us to really help transform their business. Jason: I think those types of clients are my type of clients. These are the people that are focused on growth, so awesome. This is the Door Grow Show so hopefully, the people listening are that type of people. How do people get in touch with Proper? How do they get started? What’s the next step for those who might be listening that might be interested? Kyle: My email is kyle@proper.ai. You can check out our site proper.ai. Shoot us a note. We’d love to do a free consultation for you, show you a little bit about how we work. We’re happy to be in touch with any of our customers as well if you want to reference check us. Please reach out, and we’d love to work with anyone who’s interested. Jason: Awesome. Kyle, thanks for being on the DoorGrow Show. Kyle: Thanks for having us, Jason. I appreciate it. Jason: You just listened to the DoorGrow Show. We are building a community of the savviest property management entrepreneurs on the planet, in the DoorGrow Club. Join your fellow DoorGrow Hackers at doorgrowclub.com. Listen, everyone is doing the same stuff. SEO, PPC, pay-per-lead, content, social, direct mail, and they still struggle to grow. At DoorGrow, we solve your biggest challenge in getting deals and growing your business. Find out more at doorgrow.com. Find any show notes or links from today’s episode on our blog at doorgrow.com. To get notified of future events and news, subscribe to our newsletter at doorgrow.com/subscribe. Until next time, take what you learn and start DoorGrow hacking your business and your life.

00;00;14;09 [Jason]: Jason Watson with WCG Incorporated here in ColoradoSprings, we're a local tax and accounting firm. Joined by RachaelWeber and Joseph Bassett, both tax professionals for us. We'realso hosted by Axe and the Oak here in Colorado Springs, they'vebeen gracious enough to open up early for us, part of our Bourbonand Business00;00;31;29 series, podcasts and videos. We just got done wrapping up a videoand podcast on some of the bigger deductions that we see, cars,that's always a big one for most small00;00;42;29 business owners, meals and travel. We're going to talk this time or,this time around about home office and then all the other likegoofier ones, if you will.00;00;54;25 So, you know, tell me the rules, Rachael, on the home officededuction.00;01;00;04 [Rachael]: It's got to be used regularly and exclusively00;01;03;27 [Jason]: Okay.00;01;04;26 [Rachael]: In your home.00;01;05;13 [Jason]: Okay, regular and exclusive and have a business.00;01;09;01 [Rachael]: A Business purpose.00;01;09;14 [Jason]: That's probably true for every deduction on a plan, right?00;01;12;18 [Rachael]: Yeah.00;01;12;27 [Jason]: For a business deduction to be a legitimate businessdeduction it has to have a business purpose. So, use regularly andexclusively. So, can you break those words down for me? What's"regular" mean?00;01;23;15 [Rachael]: "Regular" means you would be checking your emails,invoicing your customers, doing administrative work. Okay. Meetingwith clients, holding your inventory. It could mean a whole host of00;01;37;27 [Jason]: Right.00;01;38;03 [Rachael]: of things. You're just doing that on a regular basis, notonce a month00;01;42;26 [Jason]: Right.00;01;43;14 [Rachael]: but on a regular basis.00;01;44;21 [Jason]: Yeah. And one of the words that the IRS will also use too is"continuous", right? This is regular and continuous, it's, it's, got alife, you know, it's got a cycle.00;01;53;28 [Jason]: So yeah, absolutely, regular is a big deal. We have folksthat have a rental, one rental, you know, they have a W-2 job, theyhave all those things and they're trying to say, I have a home officeto manage my rental. It's just never going to happen. Now, if wehave 10 rentals, 6 rentals, that's all you do is manage your00;02;11;02 rentals. We have some people that have 3 or 4 VRBOs or Airbnb,short term rentals and that is all they do.00;02;18;24 [Rachael]: Time consuming.00;02;18;29 [Jason]: Their working that stuff 100% so yeah, so that's regular.How about exclusive Joe? Joseph? What's exclusive?00;02;24;27 [Joseph]: So, let's say you have an extra room in the bedroomthat's you want to use for your home office and it also can't be yourtheater room. So you know, that's gotta be exclusively used forbusiness.00;02;33;20 [Jason]: What if you're a videographer and the theater is yourbusiness? I'm teasing you.00;02;38;03 [Joseph]: Well, you have an argument there. Or, or00;02;38;24 [Jason]: No, but you can't mix the use, yeah00;02;41;07 [Joseph]: Right, unless you run a daycare out of your00;02;42;13 [Jason]: Right.00;02;42;21 [Joseph]: House as well.00;02;43;05 [Jason]: Yeah, and daycare has its own special rules and this is notthe podcast for that because00;02;47;27 [Joseph]: Right.00;02;48;01 [Jason]: I don't know those rules by a memory. I look them up oncein awhile when I have to, but that's it. But right, those are some ofthe shared use stuff can be daycare. Other than that, it's regularand exclusive with a business purpose. So, tell me some of thebank, the benefits of having a home office00;03;05;25 deduction or home office reimbursement.00;03;08;10 [Rachael]: Reimbursement? Is that part of your mortgage interest?00;03;13;15 [Jason]: Okay.00;03;13;23 [Rachael]: Your real estate taxes,00;03;15;05 [Jason]: Okay.00;03;15;19 [Rachael]: Utilities.00;03;16;21 [Jason]: Okay.00;03;17;09 [Rachael]: Could become a small deduction.00;03;19;21 [Jason]: Okay.00;03;21;11 [Rachael]: For you, a business deduction.00;03;21;18 [Jason]: Yeah absolutely. And what are some of those expensesthat aren't otherwise available to be deducted? And mortgageinsurance, we say yes, right?00;03;27;29 [Rachael]: Mm-hmm00;03;28;14 [Jason]: Schedule A property taxes, we say yes, but how about theother ones?00;03;31;04 [Rachael]: Utilities, insurance00;03;33;19 [Jason]: HOA dues.00;03;34;21 [Rachael]: Yeah. Mm-hmm.00;03;35;24 [Joseph]: Repairs. Okay, so suddenly those become deductible andin a world where otherwise it wouldn't be.00;03;40;11 [Rachael]: Right.00;03;40;21 [Joseph]: Yeah.00;03;41;01 [Jason]: Okay, and how do we calculate that home officededuction?00;03;45;17 [Rachael]: Well we do it by square footage.00;03;48;07 [Jason]: Yeah, that is probably the most common, is squarefootage. You could do it at room by room, the IRS allow that, theyactually mentioned that in Publication, what? 587, or whatever it is.But I've never seen anybody do room by room.00;04;00;15 [Rachael]: No.00;04;00;20 [Jason]: It's always, usually, I shouldn't say always, but usually it'ssquare footage, yeah. So what's the basic calculation? It's thehome office space divided by00;04;09;24 [Joseph]: Total space of the house.00;04;10;26 [Jason]: Yeah, the total space of the house. What if you use yourgarage, then what do you do?00;04;15;08 [Joseph]: You include it.00;04;16;12 [Jason]: Include it where?00;04;17;08 [Joseph]: In both.00;04;18;01 [Jason]: In both numerator and denominator? Yeah, exactly. So ifwe're going to take the benefit of the garage and it's not otherwisein the denominator then we have to add it in.00;04;29;26 [Rachael]: Mm-hmm.00;04;30;02 [Jason]: Yeah, exactly. So, that's home office. What's this 50 milerule thing? Who wants to talk about that?00;04;38;14 [Joseph]: Right, so the 50 mile rule's, you know, kind of a safeharbor if you will, that if you know, your home office is within 50miles of your tax home then you can, you know, deduct expensesassociated with00;04;50;29 commuting from the tax home to the home office.00;04;54;17 [Jason]: Yeah, exactly. It's, they want, "they" being the IRS and thetax court, they want your home office to be, there's no written ruleon this, it's more of a contrived rule.00;05;06;23 But your home office needs to be within 50 miles of your tax home.Your tax home is where you earn your revenue. So, the greatexample, in one of the tax court cases, is a surgeon had a home inPennsylvania.00;05;23;05 He drove to New York, I believe, and it was 130 miles away. He wasattempting to deduct all those commuting expenses and becausehe was like, well, I got a home office. So then my commute is frommy bedroom to the basement. And then when I hop in the car, it'sall business miles, and of course the00;05;43;06 IRS and tax court said "No." They said it's too far from your taxhome, basically. So they dis, disallowed all those expenses asdeductible expenses and00;05;54;27 consider them commuting expenses, which is normally a personalexpense.00;05;59;03 [Rachael]: Mm-hmm.00;05;59;12 [Jason]: Non deductible. So, that's this 50 mile rule. What, youknow, talk to me about the audit rate risk for home offices and00;06;09;25 [Rachael]: [Inaudible]00;06;10;00 [Jason]: and, you've, and you've been doing taxes for a little bit oftime.00;06;14;07 [Rachael]: Just a little while.00;06;14;13 [Jason]: So tell me a little bit about the history.00;06;16;12 [Rachael]: It's kind of high. Yeah and it's, it's almost like they canwalk in and assume you're doing something wrong because they're,they're not easy rules. And you know, maybe the square footageisn't complete or they can say, Hey, what's with the day bed andyour home office?00;06;31;02 [Jason]: Right.00;06;31;13 [Rachael]: Or, and it's not just the deductions that you're getting,your utilities, your small amount of additional square footage, butit's that commuting miles00;06;42;07 [Jason]: Right.00;06;42;15 [Rachael]: That are, it's going to be pricey00;06;43;26 [Jason]: Yeah.00;06;44;04 [Rachael]: If its not done right.00;06;45;07 [Jason]: Yeah, absolutely. So, home offices, 20 years ago were notvery common, so it was a high audit rate risk.00;06;53;19 [Rachael]: Mm-hmm.00;06;54;11 [Jason]: Today telecommuters and all that stuff is a lot higher. Butnow we're back to not being seen very often because if you're aW-2 individual working out of your home office for a company out ofCalifornia,00;07;07;05 you would have to deduct that on Form 2106.00;07;10;19 [Rachael]: Mm-hmm.00;07;11;04 [Jason]: And those expenses, those deductions are no longerallowed. So, home office is almost been shrunk down to just forbusiness owners.00;07;18;02 [Rachael]: Yeah.00;07;18;29 [Jason]: So, how are we going to do that? Joseph, talk to, talk to usabout how we're going to do the home office from an S Corpperspective.00;07;28;20 [Joseph]: So, we'll use an accountable plan for the home office forthe S Corp and one of the reasons why we do that, so you know SCorp's are cash basis, you know, and00;07;38;07 [Jason]: Typically.00;07;38;23 [Joseph]: Typically, typically.00;07;39;14 [Jason]: Yes, small businesses enjoy using cash as their method of00;07;43;18 [Joseph]: Right. Accounting, it's simple. Depending on their grossreceipts.00;07;45;18 [Jason]: Yeah.00;07;45;27 [Joseph]: And we just, we have you record it, you know, for like, likeRachael said, your interest, taxes, insurance, and then you getreimbursed by the S Corp for your business use percentage of00;07;58;00 [Jason]: Okay.00;07;58;06 [Joseph]: Business expenses.00;07;59;18 [Jason]: So, just to back up for a viewers and listeners, anaccountable plan is the method used to reimburse people,employees for business use of their personal assets.00;08;13;03 [Jason]: Car, cell phone, home, are probably the biggest ones,right?00;08;16;05 [Joseph]: Mm-hmm.00;08;16;19 [Jason]: So, and we forgot to put cell phone down on our big list ofdeductions, but we can talk about that in a second. So, the benefitto that is we're getting reimbursed by our business. That expense iskind of tucked away on the S Corp tax return, using00;08;35;29 an S Corp in your00;08;36;29 [Joseph]: Mm-hmm.00;08;37;28 [Jason]: example as occupancy expense. Not that you can't defendit, not that we're doing anything wrong, but it certainly is not as highof an audit rate as filing Form 8829.00;08;49;29 [Rachael]: Mm-hmm.00;08;50;06 [Jason]: Which is clearly the Office In Home worksheet.00;08;53;12 [Joseph]: Right.00;08;53;20 [Jason]: That gets tucked on or tacked onto your Schedule C, if youwere to have a business only on your 1040. So, that just shrinksdramatically, the audit rate risk, from home office perspective.00;09;07;06 [Joseph]: And too, S Corp's already face a lower audit ratethemselves.00;09;10;14 [Jason]: Yes, 0.4% given I think 2017 data00;09;14;28 [Joseph]: Mm-hmm, 2017, yeah.00;09;15;02 [Jason]: Is the latest that we have now. So the IRS takes forever tocompile00;09;19;03 [Joseph]: Yeah.00;09;19;11 [Jason]: This stuff. I mean, I guess it makes a little bit of sensebecause audits take time00;09;23;07 [Rachael]: Mm-hmm.00;09;23;18 [Jason]: to generate and to do. But I still like to think we can live ina real time world. You know what I mean? Like we should know likeright now how many audits are happening. So, alright, let's talkabout commuting expenses. You know, you get up in the morning,you drive to WCG Inc, you know, is00;09;45;22 that an expense you can deduct?00;09;47;09 [Rachael]: No, it's not.00;09;48;01 [Jason]: Okay. Are you bummed out about that?00;09;49;20 [Rachael]: Yes, I am.00;09;50;08 [Jason]: Yeah, okay, we should write our Senators and ourCongress people. So, okay, so commute expenses? No. Even ifyou travel far, let's say you moved to Denver and you drove everyday down in the Colorado Springs, it doesn't matter, right?00;10;03;18 [Rachael]: Still personal, yeah.00;10;03;27 [Jason]: Right, so there's no like, Hey, we recognize that you'retraveling really far, we'll give you that deduction. There's nothinglike that. So, commuting expenses, parking, tolls, all that associatedwith going to00;10;16;18 your tax home if you will, are not going to be deductible. So, great,Country Club Dues, Rachel?00;10;23;14 [Rachael]: No, can't do it.00;10;24;15 [Jason]: No! Wow! Just hammered, boom.00;10;28;06 [Rachael]: Sad, yeah.00;10;29;14 [Jason]: Talk to me a little more about that. So we have someonewho has a membership somewhere, but they do entertain, shouldn'tsay that00;10;35;07 [Rachael]: Nope. Yeah.00;10;35;11 [Joseph]: Yeah, discuss business.00;10;36;08 [Jason]: They do discuss business at their country club.00;10;40;17 [Rachael]: Mm-hmm.00;10;40;20 [Jason]: How does that work?00;10;41;29 [Rachael]: Those expenses for the country club dues are going tobe personal.00;10;46;19 [Jason]: Right.00;10;46;25 [Rachael]: It's great that they're generating business00;10;48;29 [Jason]: Yes.00;10;49;07 [Rachael]: At the country club00;10;50;14 [Jason]: Okay.00;10;50;20 [Rachael]: but the dues are not deductible.00;10;52;01 [Jason]: All right, so this same member, buys a meal. The businesspurpose is clear. They00;10;59;20 [Rachael]: Yup.00;10;59;23 [Jason]: Were there to discuss business and now this individual isbuying a meal that's going to get tacked on top of his or her dues.How's that work?00;11;07;16 [Rachael]: That meal portion is going to be 50%00;11;10;14 [Jason]: Okay. Deductible as a business meal. Just, just like we'vealways done.00;11;13;06 [Rachael]: Mm-hmm.00;11;13;09 [Jason]: With meals. Okay, great. Talk to me a little abouteducation. Can you run education expenses through yourbusiness?00;11;20;21 [Joseph]: It depends.00;11;21;20 [Jason]: It depends, ah look just the classic accountant.00;11;24;28 [Rachael]: Yeah, maybe.00;11;26;00 [Jason]: Yeah.00;11;26;14 [Joseph]: If those education expenses are to improve your currentfield, then possibly. If they're to do something completely different,you know so if I was going to go to school to become a doctor now,which probably won't happen.00;11;37;13 [Jason]: Yeah.00;11;37;23 [Joseph]: But, those won't be deductible.00;11;40;03 [Jason]: Right, so the rule is it has to improve your current workskills. And you can even do, deducted a degree or even like, youknow, college courses, even if it leads to a degree, provided it'simproving your current00;11;57;20 work skills. So, you're absolutely correct, the other half of that is ifyou need it for certifications, like your continuing educations and allthat stuff. So, people who are CPAs have to go do all these, youknow, nauseating00;12;10;15 [Rachael]: [All laugh]00;12;11;02 [Jason]: Continuing Ed credits, you know, I'm sure we learned a lottoo, but you know, anyway, so, so that's education. How about yourchildren? Can you hire your children and consider them employeesand have the company00;12;27;10 pay for the education? Who wants to take that one?00;12;31;01 [Joseph]: I would say yes.00;12;32;07 [Jason]: I'd say no. [Laughs]00;12;34;09 [Joseph]: Like, the client advocacy in me would say Yes.00;12;38;13 [Jason]: Yeah.00;12;38;20 [Joseph]: Because of the, the relation though it will be disallowed.00;12;41;15 [Jason]: Right? Yeah, I was giving you a hard time. So section 127says if your child is 20 years or younger, they have attribution toyou as Mom and Dad being an owner of the company.00;12;54;21 If you own 5% or more of the company, you can't deduct thateducation.00;13;00;01 [Jason]: But if your child legitimately works, and is 21 or older, sowe're talking junior or senior00;13;08;24 [Rachael]: In college.00;13;08;29 [Jason]: If you're on a six year plan, you're a sophomore, right?Then the company can pay up to 5,250 a year, I think that's 2019limit. So, that might get index every year, like everything else. So,anyway that's education. How about client gifts? How do youhandle that?00;13;23;16 [Rachael]: Oh, they're $25 cap.00;13;27;08 [Jason]: Ahh $25?00;13;27;14 [Rachael]: I know, its really, yep. Mm-hmm.00;13;28;29 [Joseph]: Well they give you the $4 for gift wrapping, so00;13;31;16 [Jason]: And they give you $4 per pen or something.00;13;33;09 [Joseph]: Per pen, yeah.00;13;33;11 [Rachael]: That's advertising, yes.00;13;37;02 [Jason]: So, talk to me more about the $25 rule. Is that like all giftsor, or is it just for gifts to specific people?00;13;48;14 [Rachael]: It's gifts to a limited clientele. If you were handing giftsout to the general public and it was a lower cost, then that would beconsidered advertising.00;14;00;07 [Jason]: Okay.00;14;00;14 [Rachael]: And I think they give $4 for each advertising gift.00;14;04;21 [Jason]: Yeah.00;14;04;27 [Rachael]: Which I'm not quite sure what, you know, a pen or acalendar or something like that.00;14;08;26 [Jason]: Yeah, I don't know how much stuff like that costs either,yeah.00;14;12;12 [Rachael]: But your $75 wine basket is going to be a $25 businessgift.00;14;17;29 [Jason]: Yeah, and as I've seen it, read it maybe in Journal ofAccountancy, other things like that, but that's an individual limit. Soif you don't donate, or if you don't provide that gift to an individual, ifyou just do it to the business00;14;33;01 [Rachael]: Mm-hmm.00;14;33;10 [Jason]: There might be different rules00;14;34;03 [Rachael]: Yes.00;14;34;13 [Jason]: allowing you to take more deduction. So if you say, DearBob, thanks for all the business00;14;39;27 [Rachael]: versus staff at.00;14;41;03 [Jason]: Yeah, exactly.00;14;42;19 [Rachael]: Yeah.00;14;43;06 [Jason]: yeah, exactly. So, and you can see why, you know, theIRS is always worried about transfer of wealth without taxation.00;14;50;02 [Rachael]: Mm-hmm.00;14;50;12 [Jason]: Right? So if you, if you come in there with a bunch of clientgifts for one person it might look like a transfer of wealth. So, howabout professional attire? I am rocking the WCG.00;15;00;18 [Joseph]: That's true, very nice.00;15;00;29 [Jason]: On my shirt here. But tell me about professional attire.People will constantly ask you00;15;07;09 [Rachael]: Yep.00;15;07;28 [Jason]: I have to look good in my business suit, I have to have mynails and hair done, I have to rock, I have to rock this image.00;15;15;25 [Rachael]: And they're all personal.00;15;17;27 [Jason]: Yes, even though they're dead sexy, right? Even thoughthey're very good looking.00;15;21;21 [Rachael]: And necessary00;15;22;01 [Jason]: Yes.00;15;22;14 [Rachael]: Absolutely necessary. Yeah. So there's a businesspurpose behind it, but no tax deduction.00;15;26;09 [Jason]: Right. So what's the rule?00;15;28;07 [Joseph]: If it's not suitable for everyday wear00;15;30;00 [Jason]: Yes.00;15;30;11 [Joseph]: You can deduct it.00;15;30;20 [Jason]: So, if it's, yeah, so if you can, if it's suitable for everydaywear, easily convertible into everyday wear, then it's not deductible.00;15;38;08 [Rachael]: Mm-hmm.00;15;38;25 [Jason]: Right? Business suits are, you know, clearly somethingyou can convert to everyday use. We do have some, TVpersonalities.00;15;47;10 [Joseph]: Yes.00;15;47;15 [Jason]: We do have some models, you know, and we can, we canidentify some of that attire as costumes, something that theywouldn't, you know, be caught dead in. And that's true for some ofthese models, for sure.00;16;01;26 They wear stuff and they're like, I'm never wearing that in public. Itjust, it looks good on a cover of a magazine, but that's about it.00;16;08;15 [Jason]: Those are costumes, they're not suitable for everyday use.Those are something that we can deduct. TV personalities, they'llbuy, you know, a thousand jackets and they'll give them away andso those become marketing toys00;16;20;19 [Rachael]: Yeah.00;16;20;25 [Jason]: Or ploys or whatever, so absolutely. Let's talk about, perdiem and I'll just kind of talk about this real quick. Per diems a funnything. If you own 10% or more of a corporation and, and also theremight be some00;16;38;21 attribution there, where if your brother or your sister or your Mom or00;16;42;16 [Joseph]: Spouse.00;16;43;12 [Jason]: Whatever, then you are assumed to have the same,greater than 10%. If you are in that boat, you cannot take a perdiem reimbursement. So the scenario would be like this, I'm 100%owner of a corporation. I pay myself $71 a day for every day thatI'm in San Francisco, because00;17;02;15 that's the per diem rate. Let's say using 2018 numbers, I haven'tseen them, I haven't looked at per diem in a while cause we don't,we don't see 2106 expenses anymore. But, that would not beallowed. WCG Inc says, Rachel, we need you to go to, let's sayCortez, we really00;17;18;23 didn't like you very much. I'm teasing, Cortez is lovely. But, and wesay, Hey, we're going to give you $71 per per day that you're00;17;27;08 there for meals, that would be acceptable.00;17;30;11 [Rachael]: Mm-hmm.00;17;30;13 [Jason]: Now that will not be revenue to you. You maybe only spend$20, you know, whatever. You still get to take that $71 as tax freeincome.00;17;40;24 [Jason]: So, because you don't own 10% or more of WCG Inc.That'll change, you know, you'll own, own it all and00;17;49;07 [Rachael]: Eighty-five percent like you.00;17;50;09 [Jason]: Joseph, I'll be working for you one day, it'll be awesome.So, but that's per diem, per diem is a little tricky. There is the, themeals and incidentals component. There is the lodging component.The meals and incidentals component, as far as I know and read it,is00;18;06;24 available to Schedule C, Sole Prop, single member LLC types. Theminute you're a corporation or you act with a corporation through anS Corp election that gets tossed out the window.00;18;18;06 Lodging, regardless, is always going to be actual expenses. Youdon't get the high, low seasonal rates and all that stuff that you seein those per diem tables as a business owner. So, we ran throughhome office, all kinds of good stuff there. We ran through all kindsof other deductions that we get entertained with,00;18;38;10 quite literally, cause some people are pretty clever, right?00;18;41;22 [Rachael]: Mm-hmm.00;18;41;29 [Jason]: With, with their deductions. The bottom line is, people askme all the time and they ask all of us all the time, how do I save ontaxes, right? And the first thing I say is, look, your job is to buildwealth, not save taxes.00;18;56;12 We can save taxes along the way, that's great. But your job in life isto build wealth. Now, if you still want to save taxes the trick is tolook at what cash you're already comfortable with leaving yourbody.00;19;10;24 [Jason]: So go through your checkbook and try to figure out if therewas one thing that you missed or maybe this expense really didhave a business connection to it and I forgot that it did, or to digdeep. So, it's to look at the money that you're already willing tospend and try00;19;28;06 to find a business connection.00;19;29;23 [Rachael]: Mm-hmm.00;19;30;15 [Jason]: Now, I say find a business connection, like discover abusiness connection00;19;35;18 [Rachael]: Not create one.00;19;35;27 [Jason]: Not fabricate a business connection. So anyway, those,those are some of the other business deductions that we see a lotof: commuting expenses, country club dues, education, client00;19;47;20 gifts, professional attire, per diem, all that good stuff. We talkedabout home office in this segment as well. We didn't talk about cellphones. You know, cell phones, you know, folks will try to deduct100%, right?00;20;02;16 [Joseph]: Mm-hmm.00;20;02;21 [Jason]: "I use it for my business," oh, I know you use it for yourbusiness, I see that. But the minute you get a text saying, Heyhoney, you know, you're out of beer you should probably pick somemore up on the way home; and milk and eggs are low too. Nowyour cell phone's no longer 100%.00;20;17;04 [Rachael]: Mm-hmm.00;20;18;17 [Jason]: So, you know our firm-wide soft ceiling is around 80%, ifyou're a realtor, you're probably on the phone all the time. Peoplehave kicked landlines to the curb but still your phone is going tohave a high personal use and I, I believe, we believe as a firm, 20%is00;20;37;00 about the minimum there, meaning 80% is for business.00;20;40;26 [Jason]: Maybe you're a dentist, right? And you use your cell phoneoccasionally, you do have an office phone and all those otherthings, so maybe that's like 30% business use and 70% forpersonal. So, commonly we see cell phones being paid for by thebusiness and they00;20;58;19 truly are a mixed-use asset, so a mixed-use asset should be00;21;03;06 [Joseph]: Paid by you personally00;21;04;10 [Jason]: Exactly.00;21;05;00 [Joseph]: And reimbursed to you on an accountable plan.00;21;06;04 [Jason]: Yup. So, assets that you own personally should be paid forpersonally. If there's a business connection or use of that assetthen get reimbursed. No different than you working for Google andGoogle says, Hey, you know, drive down to the store, pick up some,you know, some pencils and we'll00;21;21;15 reimburse you. Well, you bring in a receipt and you're bringing inyour mileage log, and maybe you have to use your cell phone andall that stuff, and they would cut you a check for the business use ofyour personal stuff. So, anyway those are some of the common taxdeductions that we see here at WCG.00;21;36;06 My name is Jason Watson with WCG. I'm alongside Rachel Weberand Joseph Bassett. We're at the Axe and the Oak and this is a partof our Bourbon and Business series of podcasts and videos and wethank you for joining us and we'll00;21;51;00 talk to you real soon.

Entrepreneurs dream about starting their own business, but they can’t afford it. How can they reach their financial goals and objectives to fund and grow their business? Most of them borrow money from their friends, parents, and/or credit cards.  Today, I am talking to Bruce Mack of Platinum Trust Group. Bruce is an avid real estate investor and licensed financial advisor. He shares seven options to fund your business and take it to the next level. You’ll Learn... [03:54] Option 1: Revolving Lines of Credit Program is easy to qualify for with 700+ FICO score and more than one open lines of credit; no business plan, collateral needed.  [08:55] Option 2: Installment-based Lending Platform features 25 lenders offering $1,000 to $50,000 with lower FICO score, but provable income. [12:25] Option 3: Business Directed Retirement Account (BDRA) is rollable IRA or 401(k) where funds from previous employers are accessible for specific transactions.  [18:28] Option 4: Transactional Funding for A2B, B2C transactions, such as funds for wholesale flips. [20:07] Option 5: Platinum Trust Group/Division offers bulletproof asset protection and ability to save passive income money to repurpose.  [24:48] Option 6: Private and Hard Money Solutions with low annual percentage rates (APRs) and 1-2 points to cash out rental property income to deploy on new projects. [26:42] Option 7: Plug-and-Play Scenario is relationship-oriented opportunity to connect and network with partners and sponsors.  [29:17] Where to start? Typically, it takes about $75,000 to get your business started. [32:56] Funding Mindset: If you don’t want to go into debt to do anything, it may hold you back from growing your business and generating revenue.  [35:35] Constant Lawsuits: Property managers/management companies that aren’t real estate investors are in high-risk business. Tweetables Donuts to Dollars: Entrepreneurs start businesses thanks to friends, family, and credit cards. Plug-and-Play Option: You never know, who you know. Get your project going. You’re in the wrong business, if you don’t want to go into debt to grow your business and generate revenue. Protect your assets! Property managers/management companies that aren’t real estate investors face constant lawsuits. Resources Platinum Trust Group Platinum Financing Group FICO Fundbox IRA 401(k) Real Estate Investor Association (REIA) DoorGrowClub Facebook Group DoorGrowLive DoorGrow on YouTube DoorGrow Website Score Quiz Transcript Jason: Welcome to DoorGrow Hackers to the DoorGrow Show. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others impact lives and you are interested in growing your business and life and you're open to doing things a bit differently, then you are a DoorGrow Hacker. DoorGrow Hackers love the opportunity, daily variety, unique challenges and freedom that property management brings. Many in real estate think you're crazy for doing it, you think they're crazy for not, because you realize that property management is the ultimate, high trust gateway to real estate deals, relationships and the residual income. At DoorGrow, we are on a mission to transform property management businesses and their owners. We want to transform the industry, eliminate the BS, build awareness, change perception, expand the market and help the best property management entrepreneurs win. I'm your host, property management growth expert, Jason Hull, the founder and CEO of DoorGrow. Now, let's get into the show. Today's guest, who I'm hanging out with, is Bruce Mack of Platinum Trust Group. Bruce, welcome to the show. Bruce: Thank you so much. I really appreciate it and you definitely are unbelievable at your opening. Jason: Thank you. It's built around all the challenges that we've heard in the industry and what our client-centric mission is as a company. I wanted to fold all that into our intro and I appreciate you giving us some positive feedback on it. Bruce, I'm really interested in getting into this. Today's topic is seven options to fund your business. This is a common challenge of people not being able to afford to do work with us, being able to afford to do the things they need to do to grow their business. This is a common challenge. There's a lot of entrepreneurs that are just trying to operate just paycheck to paycheck. In order to get ahead and grow the business, they need to find some funding, or get some money, or figure out how to make it work, or save something in order to make that work. Before we get into that, could you give everybody a bit of a background? Let's qualify you, help them understand how you got into what you're doing? Tell us, who is Bruce? Bruce: Well, in a couple of sentences or at least a short paragraph, I am an avid real estate investor, have been in a three-year period of time. I was able to buy rehab and flipped out over 160 properties. I've been involved with over $92 million worth of real estate transactions, SFR’s, as well as commercial. I'm a licensed financial advisor, prior owner and operator of a credit repair company that was also a licensed and bonded. I've been around the block. I love working with real estate investors. I speak to them all over the world, as well as nationally and have been at countless events helping folks just like the folks that are on this podcast, to be able to reach their financial goals and objectives, through getting them the rudimentary financing that they need so they can take their business to the next level. Jason: Okay, great. Let's get into the seven options. I guess we're starting with number one. Bruce: Okay, let's start with number one. One of our premiere programs that we use on a daily basis is what I call our revolving lines of credit program. Now, the nice thing is with this particular program, is that there are a lot of no's, but these are no’s that you want to hear, not no’s that you don't want to hear. Bruce: One of the no’s is that you don't have to have a business plan. Another no is that you don't have to have collateral pledged to be able to qualify for this, so if you don't have any collateral, i.e. properties, what have you, or other hard assets, there are no collateral pledges. Another no is that you don't have to have an income verification because it's a stated program. Without a business plan, without having a stated income, without having to go through a bunch of hoops, this makes it an easy qualify program. The key qualifiers are having a FICO score, ideally north of 700 or 700 when we put you through the program, and having more than one (ideally) open lines of credit with a credit card that would be at least $6000, $7000, $7500 worth of credit limit, and at the time that we put you through, you're ideally at 30% or lower on your utilization. Let's just say you have a $10,000 credit card. Let's say you have a $7000 balance currently, that would be at %70 utilization. What I'm saying is that we’d like to see that that $10,000 credit card has no more than %30 utilization or that you're not currently carrying more than a $30,000 balance. Now, if you are, because there's too much month, not enough money and therefore you have higher balances, we do have a solution. We do have another funding division that will likely take a look at those balances and work with you to actually pay them down for you, so that therefore your scores will skyrocket to where we need them to be, your utilization ratios will plummet to where we need them to be, so that we get the maximum results. The maximum results is our average client on a first round funding gets $75,000 worth of revolving lines of credit as much as $150,000 on a first round fund. When done properly and if we have a client that comes to us with longevity of accounts, no derogatory, so on and so forth, of course, that's going to get us all a better net result for the client on the back-end. Again these lines of credit are all at 0% APR for up to 21 months. Jason: Okay, but the cruz behind this is that they've got to have good credit in place in order to do this one. Bruce: Well, there's a couple of other if’s, and’s, and but’s, so let's talk about them briefly. Number one, because of that high utilization, we have taken people with scores as low as 620 and just by paying down those balances, they've shot their scores up within a several week period of time to well over 700 and then we can put them through. Today's present credit score may qualify you even if you're not knocking on the 700 door or higher, we need to do a consultation and see if the net effect of paying down those cards is going to get you to where we need you to be. Secondarily, we do have a secondary program, in as much as if the client can't qualify, but they have what we call a credit partner—maybe it's a partner in their business, maybe it's a relative, a friend—we can use a credit partner to get the same results, thus being able to put them through the program and that could be a win-win. There's a number of different ways we can literally skin the cat to get to the desired result, which is to get the client funded on that program. Jason: All right. You’re going to help them the pay down process, they can use a credit partner, there's a couple of options there. That's number one, the revolving lines of credit program. Bruce: Number two, one of our other core programs is we have 25 lenders. We have a platform for the 25 lenders and they are offering on the platform anywhere from $1000 to $50,000. We can stack those offers, so if you were to get two $50,000 offers, obviously you pony those up and parlay them into $100,000. Now, we can take more credit-challenged folks. We have gotten people some funding with FICO’s as low as 580. The key here is that there needs to be provable income, where the income on the revolving lines of credit is stated. These will need to be proved up through either showing the last couple of pay stubs and/or from their doing account validation by showing bank statements, 1099s, a year's tax return or what have you. Jason: Okay. Bruce: Very, very simple program, 12 questions asked and answered online, a soft pool with instantaneous pre-approvals and funding within usually a week or a week-and-a-half. This is a secondary program that can be used. We use it all the time and it's very, very effective. Jason: With these 25 lenders, these would be people like maybe Fundbox and some of the services out there. Would it be like those kinds of companies? Bruce: Could be, yes. We have our own lender pool that we work with. The nice thing is, there are a number of lenders that you can apply to on the net today, tomorrow, yesterday, what have you, but that's problematic. Every time you apply, you're going to be getting an inquiry. Every inquiry's going to be anywhere from two to several points and it starts to drag down your profile. Worse than that, other creditors that your applying with, see than you’ve been applying. The way we do it is when you access our platform with one soft inquiry, so it doesn't even show on your report, you're getting one or multiple preapprovals from multiple lenders at multiple options in terms of length anywhere from 12 months out to as long as 60 months or five years. This is an ideal way where you have no FICO hit, no negatives, only positives and you can get the pre approvals before you even press the accept button and go into what we call the final underwriting or the hard underwriting. Jason: Got it. Anything else to know about this second option? What would you call this second option? You're 25 lenders platform or? Bruce: Our 25 letters platform or our installment-based lending platform. Jason: Got it, installment-based. All right, so we’re on the number three now. Bruce: Number three. Let's talk about what we call our BDRA. Our BDRA stands for Business Directed Retirement Account. Now, many of the people that are on the podcast have a rollable IRA or 401(k). Maybe, they're even working and are aware that they have a roll-able IRA or 401(k) amount. Let's just say that you're currently working at an employer. You may have $100,000 there and your employers told you, “Well, you can't touch that, it's not rollable.” They’re may be half correct, because prior to coming to the existing employer, you worked at another employer. When you're at that other employer, guess what? You had a $50,000 IRA, which you’ve been rolled over to your present employer. Well, I'm here to tell you some really great news. You can do what's called a carve-out, so you can take those moneys and move them from your present employer, because those were moneys that came from a previous employer and you can automatically put them into what we call our BDRA. That BDRA is a wonderful opportunity for you to be able to access those funds to do what you want and what you want with them. Jason: That’s called what again? Bruce: Business Directed Retirement Account. Jason: Okay, got it. Bruce: Now, it's not a very, very different than a self-directed normal account. Some self-directed retirement accounts have the ability to give you checkbook capability, which is great. The BDRA coincidentally also does, but many of the self-directed accounts are accounts that once you moved on from your old employer, you've moved them into a self-directed environment so that you can tell your money what you want it to do. The problem with the traditional IRA or 401(k) in a self-directed environment (which many administrators that are out there and offer these types of accounts) is that you cannot use these but for very specific types of transactions. Let's just take a typical real estate transaction, a house costs $200,000, you have $100,000 in the self-directed retirement account. You need to come up with $100,000. Now, unfortunately, you cannot obligate a self-directed retirement account, a traditional type, not ours, but a traditional type and you cannot take on a recourse loan, because one of the exemptions is you cannot sign and obligate your IRA or your 401(k) to an external obligation. If you can't do that whole deal inside your IRA, you're pooched. You can't do the deal. Now, there is the possibility of taking on what's called a non recourse loan where you wouldn't sign. However, there are very few and far between. They never go more than 50% of LTV and they're usually a couple of points higher for all the right reasons. You’re only having a collateralized value of the loan. With a BDRA, I've got great news, you can take recourse loans on and it's not a violation of the BDRA precepts. Secondarily, when you have a normal IRA or 401(k), unfortunately, you're exempt from being able to do what we call inter familiar transactions because they're called a prohibited transaction. Meaning, father-sister, mother-brother, siblings what have you, you plain and simple are not allowed to invest with them because it's prohibited. That is not the case with the self-directed that we have in the BDRA environment. Third, you can put up to $53,000 of your annual salary into this tax deferred vehicle where you cannot with a traditional IRA or 401(k) that’s self-directed. Fourth, you can use the money for any business purpose. Now, you mentioned earlier that you've got coaching programs sometimes that are $10, $20, $30, $40, $50 whatever the amount is, it makes no difference, but the flexibility of the BDRA is a beautiful thing because BDRA funds can be used for any business purpose whatsoever. When you talk about a traditional IRA or 401(k), they're very finite, they're very linear, real estate being one of them, stocks and bonds being another, and there's a couple of others, and pretty much after that, you're out of luck. The flexibility that the BDRA brings to the table is phenomenal, and it is a great way to resource funds for enhancing your real estate business not only from the buying of the doors perspective, but from doing rehabs, for potentially using it for marketing money, to expand your net. There's many, many different ways that these moneys can be used that are all in conformity. Jason: Okay. Alright, BDRA is number three. Number four? Bruce: We have transactional funding. With our transactional funding, I'm sure a number of folks that are on this podcast are engaged with wholesale flips, where you're doing an A to B and B to C transaction. Well, we have transactional funding. We have $1 million on the sidelines at all time. You let us know, give us a couple of days notice. I mean, give us more notice than that, but within a couple of days, we can get the funds prepared, move them electronically to your escrow so that you can close and not have to be out of pocket if you're the wholesaler, and get the job done. The fee cost for that is the most reasonable that I've seen in the industry. The cost for funds is only 1.75% and a $495 transaction fee or our processing fee. Call it what you will. That’s another win-win strategy if you're a wholesaler, and you don't have the funds, and you're going to a traditional escrow. This is a perfect, perfect way to make everything come together so that you can get your property sold to that new buyer. Jason: Is that everything about transactional funding? Bruce: That's everything about transactional funding. Short and sweet. Jason: All right, let's look at number five. Bruce: Let's talk about number five. Now this is an esoteric way of getting funding, but saving the dollar obviously gives you $1 as I put it, redeploy or repurpose and I'm sure we all agree with that, and saving tens of thousands of dollars or more starts to become very, very interesting, let’s tell you how. On the other side of our business, we have our trust division. It's called platinum trust group. Platinum trust group is dedicated to bulletproof asset protection. I'll touch on that in a moment, but let me talk about the money aspect where you can redeploy. Real estate investors by the nature of who they are and what they're [...] are involved with two types in multiple streams of what we call passive income. The passive income that we're talking about would either be long or short term capital gains and/or lease and/or rental income. That is the sum and substance of what it's all about. One or the other. With our proprietary trust which we have 58 copyrights on, we've had the trust for over 20 years, we have over 31,000 clients on this program. As a real estate investor, when the properties are sold or the rents are collected, money goes into the corpus of the trust. However, the good news is, you can use the trust for any trust-related activities which would be anything other than what we call food, fun, or fashion. Now you're doing all your business out of the trust. Don't get me wrong. That doesn't mean you can't buy properties, you can't buy cars, that doesn't mean that you can't act in a fiduciary capacity as a trustee to do everything you would normally be doing on a daily basis. The good news is, that moneys, that long- and short-term capital gains which could be 20%, 30% depending, and/or the income from the lease and rental income, the fact that it goes into corpus and stays in the corpus, and that it’s deferred in perpetuity means you're not going to have the tax bill at the end of the year. Now, we have many investors who have tax bills in the $50,000, $100,000, $200,000 a year and are paying quarterlies that are enough to choke a horse. We're able to defer up to 97% of that annual tax liability, including the quarterlies, and deferred out in perpetuity, which means in 21 years, after the last of the beneficiary heir’s deceased, i.e., 100, 200, 300 years from now, we now have a vehicle that nobody in your family tree is going to have the tax consequence and certainly not you, and now we've got all of this additional liquidity that we can be using for investment purposes and is a huge win for our real estate investors. That's only one piece of the coin because the other side of that coin is the bulletproof asset protection, because you can never have a lien or judgment executed against you. It can't happen, let alone your properties because your properties are in the titanium vault of the trust. This is huge and this is a great, great income opportunity and/or savings opportunity for you. I think we're at number six or are we in number five? Jason: We’re at number six. Bruce: All right. Jason: That was number five. Basically. we will call that your trust division. Bruce: Okay, number six. We have a number of private money solutions and hard money solutions. Solutions that start as low as 4.9% on the APR and 1-2 points. Solutions for clients who have rental income properties and they want to do some cash out. We had even a blanket loan program which is available in 43 states. Again, if you've got properties, we have a solution for you to be able to access a ton of money that you are currently not able to access so that you can redeploy it on new projects. This could be huge for you by our hard end or private money funding. Should you have ground-up projects that you're looking to get underway, these are other ways that we can access funds for you depending upon what the project looks like. There's just so many different machinations without knowing more. We would really need to sit and talk, but not only can we get you the blanket loans, not only can we get you the cash out refis, we can do multifamily, we can do SFRs, ground-up projects. It just depends on what it is that you're looking for. Jason: Okay, great and that's number six. Bruce: That’s number six. Jason: Private and hard money lending solutions. Let's get into number seven. Bruce: Number seven is really a relationship-oriented proposition. Because I lecture on a nationwide basis and know so many people, I am constantly sourcing and/or resourcing and putting folks together. I speak. I meet sponsors. Sponsors are always looking for people to act as general partners for with other people who are newer and/or what I would call green peas and vice-versa. I have green peas that are looking for sponsors. Just by nature, the fact that I love to network, love to help people out, and if people are looking for a connection, I'll give you an example. Yesterday, I had a guy come to me in the Seattle area. He is looking to do a conversion. He’s got 93 apartments that he wants to build in one structure. He’s looking for general partners and money partners and he's got everything ready to go. He’s got the water. He’s got the utilities. He’s got all the zoning. He’s looking for money partners and he's also looking for some management help. Well, we have the perfect fit for him because we have people who are right up in the Seattle area because I've spoken recently up in the Seattle area to 800 people at one event. That’s an easy plug-and-play scenario. Oftentimes, you just never know. I don't know where you're calling in from on a nationwide basis because I know you have callers all over the place. I'm California-centric but I travel. I was just in Boston speaking to 1000 people. You never know who you know and tell me about the situation, and if there's a possibility that we can help, we certainly can try and plug to good ends into one another so that you can make a whole and get your project going, so you can take it to the next level. Jason: Perfect. Looking at all these different methods, let’s say I get a client that comes to me and they want to hire staff. They want us folks on marketing, maybe they want to do some coaching stuff with us, they need to get office space, these typical things to get their business going. Which channel would you push them towards first? What would be the best situation for them first? Bruce: Well, if the need is an average of, say, $75,000 roughly, somewhere between $50,000-$150,000. I’ll kind of use that $100,000 spread. invariably, our revolving line of credit program is the sweet spot and we utilize that at promoter events all the time for that $20,000, that $30,000, $40,000 to get them off the home plate, to get them the coaching program that they need to get them also the initial marketing moneys that they need so that they can really start to get traction and move forward in the marketplace. It's very easy and they don't need to have any collateral. Again, it's a state of program. If the person fits the parameters, it's by far and away, the easiest, fastest, most effective, and cost-effective solution. Jason: Now, what if they just wanted something smaller? They're just getting started, they're bootstrapping. Maybe they're looking for maybe $3000-$20,000, something in there. They just need to get some additional funds to get some things going in the business. Would the recommendation still be the same vehicle? Bruce: Depending. Let's just say today the need is $3000-$20,000. Let's just say they've got $100,000 locked up at the old employer that they used to work for, General Dynamics, let's just say. They're taking that money and they're turning it in the stock market, they're getting a horrible return, and they want to take control of it. I would move all of that to self-directed environment and then parse out where you've got total control over it. Then, I would parse out whatever that amount is that you need to deploy for whatever business purpose. If they only needed $3000, $7000, or $10,000 of that $100,000, they get immediately deployed because they have total discretionary use over the funds once it's in their dominion.  Likewise, another one of our programs might be for them to engage with the 25 lender platform. In a request, only request $3000 or only request $10,000, if that's what it is they're looking for. That could be another way to go. We really need to have a discussion. It's my best suggestion to the folks that are listening because sometimes during the course of discussion, we find a $3000, $7000, or $10,000, may not actually be the sum and substance of what you're looking for depending upon where you are, and where you want to go. Maybe it is. We will come up with based upon your credit what you bring to the table, what's going to be the most cost effective way to get you there. Jason: Let's address the mindset of funding. I'm sure there's people listening and they want to bootstrap everything. They're thinking, "I don't want to go into debt to do anything." What would you say to that? Maybe that mindset is holding them back from being able to grow their businesses quickly and generate more revenue as fast. Bruce: I don't mean to be pragmatic but I would say they might be thinking about being in the wrong business if they don't want to go into debt. I bought houses utilizing credit cards before. If you go to any REIA, anywhere in the United States—if you're not familiar with the term REIA, that's Real Estate Investors Association meeting—if you go to any Real Estate Investors Association meeting anywhere in the United States and you interview, take them out for coffee, talk to them after the meeting, what have you, you ask them how do they get the funds to buy some of their first properties, I can guarantee you, dollars to donuts, that they borrowed money from a friend, borrowed money from their parents, or borrowed money from their credit cards, to get their first property. Or a combination of all three coupled together to make it happen. They didn't have the money and their checking account. It was a little devoid or little depleted at that time.  Guys, this is truly a leverage play, and an arbitrage play, when you're borrowing money at X because you can make lie times X equally that new number which is the ability to compound on the amount of money that you're using to be able to get you that much bigger amount of money at the backend. I'm a firm believer in making the right decisions and not getting these moneys for a C shed or man cave. Forget it, you don't [...] it. If that's your ultimate goal, that's not leverage. That's just sheer stupidity, a waste of time, and a waste of money. If you're looking to get these moneys to be able to deploy them in an efficacious way and to utilize them to gain the leverage to be able to get a much bigger payday down the road when you exercise your exit strategy, let's go. Let's make it happen. We're here to help and get you to your financial goal. Jason: Plant some of these things. I know there's some property managers listening that are like, "I'm not a real estate investor." Some property managers that are running property management companies are not real estate investors. I think many of them are involved but they're thinking, "What about my business? Maybe I need funding for the business." I think the same principle applies. The idea that I want to point out is mindset-wise, I think a business is probably one of the most effective (if you do this well) investments you can invest in a period. Very few things give a return on an investment that a business can. I don't think even real estate, I think a lot of things cannot yield as high of a return as a business that is profitable, and highly effective. If the investment is moving the business towards those things, I would imagine that it's going to far outplay a 401(k) or any other sort of investment. They might be throwing them dollars towards in the long run. An effective business can yield a huge return especially once they sell it. Or it can just be an ATM machine feeding them once they systemize the business and they step out of being involved in it.  If you're going to that, I think it's wise to say, make sure it's going towards the right thing. It's going to yield the ROI you're looking to get.  Bruce: May I ask a brief question? Jason: Go ahead. Bruce: About your audience. I just heard or maybe I misheard, I heard you keying in on property management, and property management companies. Is there a broad segment of your listenership that are in that space? Jason: Yes. Most of the listeners listening are people that run property management companies. They manage properties for and on behalf of investors. Bruce: Okay. Let me just say this about that. I'm going to go back to, I think, it was number six. It might've been number five but it was right in there. We talked and drilled down a little bit about our proprietary trust. Guys, I'm going to say it just like it is, you are in an uber high risk business. Property managers and property management companies, they play it simple, they get sued. Facts are one in three Americans get sued. Two in three, 66% of all surgeons get sued. Property managers, I don't know what the numbers are, but everytime I talk to a property management company, they're constantly getting sued.  Just recently, we put on several property management companies who have gotten the trust. Their prime motivating reason was to have the trust be the owner of the property management company so that they would not have liens or judgments that could be affixed to the company. Guys, this is something you definitely want to explore further. It's very important for you because of the high risk nature of the business that you're in. Jason: Yeah. I agree. I have an asset protection attorney. I think it's a wise choice for everybody who has some asset protection struff going on with things in the trust and make sure the business is protected. Very cool. We've got several people that I've spoken to even recently. They're like, "I don't have the funds to work with, Jason, but I want to work with you. We're trying to get money." Or they're trying to get their business started. Or they know there's some things they need to do and they can't just afford to do it. How can they get in touch with you? How can they reach out? What's the best way to connect with you and what you've got going on? Bruce: If you're looking for funding, I'm going to give you a web address. That web address would be platinumfinancinggroup.com. There's a calendar on there. We will get you a complimentary consult. Please, we'll ask you, make sure that you've mentioned that you came from Jason. We always want to know where clients came from. Jason: Mention DoorGrow and the DoorGrow Show. Bruce: Please. Please, please, please. That'll get you the complimentary consultation now for financing. When Jason's got great programs which I've heard nothing but fabulous things about, that can be the genesis, give you the capital to be able to move your business forward, and get his programs. Secondarily, another way to access the programs, as I've said, from the savings from the tax deferral, from the trust program, and/or talking about the trust as well as an asset protection vehicle. Because if you get wiped out, you're done. You know that. This is one way to ensure that you're not going to get wiped out. I would go to platinumtrustgroup.com. We have another calendar there.  The difference between the two, other than the information that you're going to find and the calendars that you're going to find is that the calendar times that you're going to get blocked out for are quite different. If you go to platinumtrustgroup.com, we're going to block you out for an hour. We can talk about trust. Likewise, we can also talk about funding should you have an interest in both.  If you strictly go to platinumfinancinggroup.com, you'll be directed to a calendar for 15 minute blockout. Just be aware of that. When you make the choices to where's the best entry point to get in touch with us.  Jason: If they're really looking at everything and they want to get the full kit, the best place to probably to go the platinumtrustgroup.com. You can also help them with the financing side of things as well. Bruce: Absolutely. Jason: Perfect. Bruce, it's been fabulous having you on the show. Thanks for taking us through all the different options. I wasn't aware that there were so many different options for funding. I appreciate all the info that you're able to share with us today. Bruce: I certainly appreciate you're allowing me to come on your show. It's been a pleasure. I look forward to chatting with you guys. We'll get you taken care of. We'll get you the funding so that you can take your business to the next level and protected as well at the same time. Jason: Fantastic. One thing I just thought off. A lot of our listeners run property management companies. They're all connected to investors. Do you have a sort of program or a relationship that you can make with these entrepreneurs that are working and dealing with lots of investors trying to get them into multiple properties and new properties? Bruce: Absolutely. Not only that, we need to talk because we have an affiliate program. Give me a call, let's have that discussion. That's a whole other discussion and another income stream, potentially, for you. I'm glad you mentioned that, Jason. That was a great heads up. Jason: Perfect. Bruce, it's great to connect and I will let you go. Bruce: Thank you so much for the opportunity again. Have a great day, have a great weekend. Jason: If you're a property management entrepreneur, who wants to grow your business, who wants to add doors, you're looking, you're feeling a little bit stuck, you're dealing with some of the typical challenges, you're trying to do SEO, pay-per-click, content marketing, and social media marketing, you're just not getting the ROI, you're not adding the doors you're wanting to. There might be something different. There might be some things that you're missing. You might have some leaks in your business that you can't see. Reach out to DoorGrow. We'll help you shore those leaks up. We'll help you get on a trajectory of growth. I will be honored to be able to coach you through that stuff. We can certainly help you redesign your website.  If you need to go and test your shiny new website or your old website, go to doorgrow.com/quiz. See if it's got some leaks there. You could be losing tens or hundreds of thousand dollars in future ROI every month depending on how many leads or deals you are missing out on because your website isn’t upgraded. I want you to have an A+. Talk to DoorGrow and let's see if we can help you get that taken care of. Until next time, everybody. To our mutual growth. Bye everyone. You just listened to the DoorGrow Show. We are building a community of the savviest property management entrepreneurs on the planet, in the DoorGrow Club. Join your fellow DoorGrow hackers at doorgrowclub.com. Listen, everyone is doing the same stuff. SEO, PPC, pay-per-lead, content, social, direct mail, and they still struggle to grow. At DoorGrow, we solve your biggest challenge getting deals and growing your business. Find out more at doorgrow.com. Find any show notes or links from today’s episode on our blog at doorgrow.com. To get notified of future events and news, subscribe to our newsletter at doorgrow.com/subscribe. Until next time, take what you learn and start DoorGrow hacking your business and your life.

Everybody needs and deserves a place to live that is clean, maintained, and safe. Better yet, It makes perfect sense to get someone else to pay your mortgage by giving them a great space at a great rate and share some resources. Today, I am talking to Lisa Wise, co-founder of Nest DC, which manages residential units throughout Washington, DC. The company is committed to customer service, quality spaces, and excellent living experiences. You’ll Learn... [02:23] Nest continues to experience exceptional growth and measures success by revenue and number of jobs it’s created.  [02:34] Fun Spaces: Fixing an Adobe duplex where nothing’s square and everything’s made of dirt led Lisa to love her accidental landlord role in property management.  [04:09] Non-profit Dedication: Do what you can for the community, in terms of what you want to do professionally, due to ability to manage and maintain properties.  [05:04] Origin of Nest DC: Grow one property at a time, and focus on service forward to take care of tenants, spaces, and places.  [05:56] Property managers can make a meaningful impact by helping people and families preserve a better quality of life in their homes. [11:00] Bad Strategies for Building Relationships: Ignoring problems, letting things fall into disrepair, not paying expenses for repairing things—none of those are good..  [11:23] Property Manager Opportunities: Daily variety, unique challenges, freedom, and direct impact. [13:32] Cycle of Suck: Bad managers control costs and fail to maintain property; if people are unhappy with where they’re living, they’re less likely to be great tenants.  [19:20] Onboarding Process: Set expectations on maintenance costs and educate them on why they need to maintain the property at the highest level to take care of tenants.  [21:28] Ways to strategically grow through painful stages: Evaluate technology, be nimble, and cherish staff.  Tweetables Grow one property at a time, and focus on service forward to take care of tenants, spaces, and places. It’s truly an act of trust and intimacy to be invited to manage someone’s home and personal space.  Property managers can make a meaningful and powerful impact by helping people. If people are happy where they live, then they’re just better neighbors. Resources Nest DC AppFolio National Association of Residential Property Managers (NARPM) Shark Tank Upwork Fiverr DoorGrowClub Facebook Group DoorGrowLive DoorGrow on YouTube DoorGrow Website Score Quiz Transcript Jason: Welcome, DoorGrow hackers to the DoorGrow Show. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others, impact lives, and you are interested in growing your business and life, and you’re open to doing things a bit differently, then you are a DoorGrow hacker. DoorGrow hackers love the opportunities, daily variety, unique challenges, and freedom that property management brings. Many in real estate think you’re crazy for doing it, you think they’re crazy for not, because you realize that property management is the ultimate high-trust gateway to real estate deals, relationships, and residual income. At DoorGrow, we are on a mission to transform property management businesses and their owners. We want to transform the industry, eliminate the BS, build awareness, change the perception, expand the market, and help the best property management entrepreneurs win. I’m your host, property management growth expert, Jason Hull, the founder and CEO of DoorGrow. Now, let’s get into the show. We’re here with Lisa Wise of Nest DC in Washington, DC. Lisa, welcome to the show. Lisa: Thanks for having me. Jason: Glad to have you hear. Lisa, I’m going to read a little bit of your bio. It says that you’re the co-founder of two companies—both anchored in the real estate management company, both entirely unique in their contribution to the housing landscape. Nest DC was co-founded by Lisa Wise and Jim Pollack at the start of the “Great Recession” in 2009. Nest manages residential units throughout Washington, DC with a commitment to customer service and an emphasis on quality spaces and excellent living experiences. From 2011-2015, Nest DC was voted a top property management company in the Washington City Paper’s “Best of DC” issue. In August 2016, Nest placed in the Inc 5000 list of America’s fastest-growing companies. That is a reflection of an investment in the workplace. In 2013, Nest DC was named a “Small Business Gem” in Washingtonian Magazine’s “Top 50 Places to Work” issue. Year over year, Nest enjoys exceptional growth, measuring success not just in revenue, but in the number of good jobs that have been created since inception. I’ll stop there, but why don’t you tell us a little bit about your background and how you go into property management? Lisa: I lived in Tucson, Arizona. I was going to graduate school there and had an 1893 Adobe duplex which was one of the coolest spaces I’ve ever lived in. I got a nice degree in Political Economy and enjoyed a long background doing political consulting basically, but I liked working with my hands and having an Adobe duplex is the best place in the world to get comfortable working with your hands because nothing’s square and everything’s made of dirt. There was no stem wall and it was actually pretty easy having […]. I liked the idea of being able to do a thing and then turn around and having adding proof to the space. I had worked on the plumbing to patching the roof to doing paint. I feel like I’ve painted, many, many, many square miles at this point. It was something that I think came really naturally to me and I enjoyed that process and working with my hands. I had grown up in an environment where working with your hands is definitely something that was what you did. The great thing about that duplex when I asked my landlord if I could buy it and he said yes was it was a duplex. I automatically became a landlord and I loved that. It made perfect sense to have someone else pay my mortgage. It made perfect sense to give someone a great space at a great rate and share some resources including a backyard, dog care, and all those kinds of things. I fell into being, I think what you might consider an accidental landlord, but really loved it. I have had an instinct that I would love it but I had always had this non-profit draw to do what I can for the community so there’s a little bit of tension and conflict there in terms of what I want to do professionally. If we fast forward many years, and we did bump up against that recession and I was in the non-profit environment, doing a lot of fundraising and felt like I wasn’t changing the world very quickly with my non-profit work. I was actually really ready to do a thing and get paid for it. At that point, I had a few more rentals that I had acquired over time and still really enjoyed that work. It was really originated as a side hustle. It was a great way of bringing in that extra revenue. I was good at managing and maintaining those spaces. I kept telling people, “You should start property management company. I think it’d be a really great business model.” Until one day I thought, “Maybe I should do that. It seems to be something I have an aptitude for, and interest, and enthusiasm, and a passion for.” Around 2009, we decided to launch Nest and the idea was just to grow one property at a time, very organic, focus on being very service forward and taking great care of tenants, spaces, and places. It worked, especially in DC where service doesn’t always tend to be stellar and where a lot of the management companies were high volume and not really building relationships one tenant at a time or one owner at a time. We came up with a really refreshing approach to the business. A really refreshing approach in terms of our relationship to community. The city was clearly ready for us. That’s the origin story of Nest DC. Jason: Love it. You’ve got sort of an activist built into you it sounds like. In property management, I wanted to touch on this, I think a lot of times we get so caught up on business, but I think property management can have a really big impact—on families, on people. Maybe you could touch on that a little bit because I get a sense that that’s something you’re passionate about. What impact you feel like you get to have or ripple effect you get to have as a property manager? Why is that interesting or inspiring to you? Lisa: That’s a great question. It’s truly an act of trust and intimacy to be invited to manage someone’s home and personal space. Doing it well is really an opportunity for us to create meaningful impact in people’s lives every single day. Everybody needs to live someplace. Everybody deserves a place to live that is clean, well-maintained, and safe and we get the chance to make that happen. We get the chance to be responsive and make people feel that their home base is that safe space for their family. It’s been pretty intriguing to feel that I can make more impact on people’s day-to-day lives in this business than I did in a lot of the healthcare and environmental work I did in my previous professional career. Because I do think that we give people a chance to have a better quality of life from them living in one of our spaces. We do get a chance to take good care of these properties. A lot of our properties are older and older as in historic. There is really a lot to be said for the fact that we’re stewards of these legacy places and historical buildings, we’re preserving them, and we’re making sure that the landscape of our city, which is architecturally really significant, is in good repair and well-maintained. That’s an important contribution we get to make as well. That’s part of our whole value-space philosophy for us to be around management, but at the core, we’re being invited to help people have better quality of life in their homes and that’s a pretty important role to play. Jason: You’ve really discovered something that I think was really significant. You said that you’re able to have a bigger impact by being a property manager than by the environmental work that you’ve done and other non-profit stuff that you’ve done. Lisa: Yeah. Jason: Just to explain that a little bit because I don’t think people realize the impact that they can have as property managers. I think we can paint a bigger picture for the industry of that inspirational aspect. I think we would attract better property managers into the industry. I think there would be a better perception of the industry out there. I think tenants would have a better experience. I think families’ lives would be better. People that are living in these different units underneath the property manager would have a better experience. The owners would be happier. I think the industry could use a little taste of this so explain that a little bit because you have experience with this. Paint a little bit of the contrast there? I think that’s fascinating for me. Lisa: When you’re in a non-profit environment, you’re sometimes very far removed from the outcome. If you’re working in healthcare policy or if you’re creating new systems for people to green their procurement supply chain, you’re very distant from the end user, you’re very distant from there being a positive outcome and this is in high contrast to that. We’re working with clients and we had a flash flood this week. We had probably 55, 60 affected buildings and units. We were able to pick up the phone every single time and help people walk through something that was very stressful for them. They’re worried about their things; they’re worried about mold, they’re worried about their safety, they’re not sure whether or not they’re going to experience damages. That comes down to protecting the actual space, helping tenants and residents navigate how to deal with a threat to their belongings and their own quality of life in that day, and then owners making that someone’s responsive in an emergency. That’s all about building relationships, being a trusted partner, and helping people make sure that, again, their quality of life is preserved and someone’s honoring that. It’s every single day when you get to see the person who is that end user, recipient, or benefactor of how we do our work differently. That’s not always a luxury that people get in their day-to-day work. In fact, I’d say it’s probably pretty rare unless you’re a provider. Let’s say you’re an ER doctor. Someone comes in and they’re hurt, or they’re scared, and you can help them. That’s a pretty powerful place to be. We’re in similar situations often when someone’s been—maybe they had a fire in their unit, maybe they have no hot water and they’ve got a baby—all these things that can impact the livability of a unit that isn’t just about inconvenience. It’s truly about making sure that people are safe and protected in their spaces and we want to solve those problems cheerfully. We want to take care of those people and want them to feel like we’re a good partner in making that that part of their life is taken care of. Ignoring problems, letting things fall into a state of disrepair, not caring about style, not caring about the building, avoiding paying for the actual expense of repairing things—none of those are good strategies to building solid relationships that help people feel that it’s a good partnership. We like to emphasize partnership as one of our key strategies for doing the work well and to success. Jason: Lisa, something that I think is probably really appealing to property managers, I mentioned in the intro some of the things that I’ve noticed clients mentioned to me that they resonate with. They love the opportunities, daily variety, unique challenges, freedom that property management brings. I think there’s quite a few property managers or maybe most that really do love that direct impact that they get to have. As the company scale, they lose the ability as the business owner to maybe have that experience of having the direct impact, but they still get to have that ripple through their chains. How many doors does Nest manage or units does Nest manage presently? Lisa: We manage about 1000 doors. Jason: That’s a lot. Lisa: Yeah, it’s a lot and all in the district proper. We’re very focused on managing condos and buildings that will be like associations or single-family homes. We have a lot of townhouses. It’s probably a 70/30 split. Anything in the suburbs, it’s easy to get around the District of Columbia. We have a high-density portfolio and we really focus on an urban landscape for our work. That’s become our specialty. Jason: DC has some of the highest rent, probably in the nation, right? Lisa: Yes. Jason: Okay, we’re not going to talk about fees, but I would imagine if you charge anything, you probably do alright in DC as a property manager. Lisa: Honestly, it’s a good environment from that perspective but at the same time, all of our cost of living as a business… Jason: Is really high. Lisa: …so, I’m going to pay more in salaries. I’m going to pay more in occupancy. I’m going to pay more for insurance. Certainly, the cost of doing business is much higher in this environment. Jason: Got it. Why do you think it’s such a challenge in some of the inner cities or the larger city markets for there to be good property managers? Is it because the costs are high for the management companies or they’re just not charging enough? What’s your perception because it does seem like in some markets, there are some bad manager. It gets really difficult and it’s not that small-town feel, especially when you get into large multi-unit. What’s your take on that? Lisa: I think if you are trying to control costs and you’re unwilling to maintain the spaces at the highest possible standard and keep them in good repair and not wait until something is just broken, but you’re upgrading on a schedule or you’re making sure that these properties perform really well so that people are having a good experience in them. I understand that people don’t want to spend a lot of cash in making sure that these units are well-maintained, but not doing so means that you’re going to start renting spaces that are not comfortable, not attractive, not appealing. When people aren’t happy where they’re living, they’re a lot less likely to be great tenants. For us, if you have a great product, you’re going to attract great tenants. If you have people that you enjoy working with, you’re going to have a better reputation, better relationships, and better outcomes but you have to start with a great product. For us, we’re very choosy about managing spaces that we think meet particular standards for us. We’re not going to be the owner’s beard and make bad maintenance decisions and undercut the needs of the space because somebody wants to save money. If we have an owner that is insisting that we not keep that space in good repair, then that’s not a relationship that we’ll keep. That’s a boundary that we’ve set, and we set it early. Every time we’ve been stressed from a business perspective and we’ve got to increase doors because we need to grow faster and we’ve compromised on those values, it’s never […] out. It really works—great property attracts great tenants, when people are happy where they live, they make better neighbors, better neighbors equal better neighborhoods. It’s the same formula we’ve had from the very beginning. When we’ve strayed, we’ve definitely suffered from that. I hate when people manage crappy properties. They’re making excuses for why it’s crappy. They’re having to explain bad decisions. That’s a bad relationship float to get started on. Jason: I’ve talked quite a bit and people for me talk about the “cycle of suck” but I think this is an interesting ingredient that’s overlooked is as a property manager, in order to stay out of that “cycle of suck” of having bad properties, bad tenants, and bad reputation in the market, one of those ingredients is to have a philosophy of maintaining the properties at the highest level because that is going to dictate the types of tenants, that’s going to dictate the type of situations that you’re going to have to deal with. Something you mentioned that I think is really key is the importance of having a proactive strategy towards maintaining these properties rather than a reactive strategy towards maintaining these properties. I think there’s probably a little gradient scale. You should draw on a piece of paper, “Am I reactive or are we proactive?” I think most property managers could figure out where on this continuum they sit. If you’re off of middle towards reactive, they’re probably a company that’s dealing with pain and problems that are unnecessary, and it’s because they didn’t maintain that boundary like you’ve talked about with the client from the beginning, and they haven’t continued to maintain that when those problems arise with an existing client. Lisa: We’ve had owners who say, “I can’t believe I have to replace this hot water here. It’s been working perfectly for 25 years.” You’ve been rolling the dice and getting lucky but just because it’s now a rental and it worked fine for you doesn’t mean these things doesn’t have an actual lifespan. Sometimes there’s a tension between owners who just truly don’t see the value of maintaining things to the highest possible standard, but the cost of dealing with the flood is much higher than replacing the hot water heater in the first place. Sometimes you can’t explain to simple math and logic and people if they’re emotionally attached to the idea that you shouldn’t spend any money on it. We’re actually in the opposite position where, say, it’s a rental, take great care of it, it’ll take great care of you. Someone’s paying for your mortgage. You can capture depreciation. You’re probably saving some money, substantially, on taxes. You’re going to build an asset and make money basically on the interest rates of a mortgage and I think replacing a water heater is not that big of a deal in the grand scheme of things. They look at it transactional instead of looking at the big picture which is too bad. I think it’s on the part of the property manager, we have to educate our owners on what it means to be engaged with that property and keep it in good repair. We give them estimated costs for maintenance over the course of the year and what they should expect. We have them sign off on that, being the expectation over the course of the relationship, that they will spend money on the properties. We make the counterpoint that properties that are in great shape and well-managed tend to keep tenants in them for longer periods of time which means that the turnover costs—the things that you don’t necessarily have to do annually like painting. If people hold over as tenants, you’re going to have to do it. If you’re having a high turnover, you’re going to have to pay a leasing fee. There’s a lot of advantage to having the nicest possible property and taking great care of it, but it can be hard to walk owners through that. If you’re a proxy for owners, and management company has not given the resources to adequately take care of the space, then they’re really truly not able to take good care of the tenant and then you’re stuck being the bad guy. I think a lot of property managers have been in that position. It’s hard to explain that to a tenant. They don’t care who owns the property. They just want it to operate really well. Jason: All of this really starts with your onboarding process with new perspective clients, it sounds like. You’re throwing little things out there that I think people are missing. You are taking people through an estimated maintenance cost and you’re giving it to them upfront, so they have an expectation to spend money to take care of these things. You’re talking about educating them. You have some sort of verbiage, process, or something. You’re taking them through to educate them on why they need to maintain this property at the highest level. You’re shifting their mindset away from trying to keep cost low and charge rent high and over the life of the property, make sure it’s a good investment. You’re also helping educate them on the importance of keeping in it long-term, and there’s probably other things that you guys do as a company to shift towards this. It sounds like you’ve really worked backwards from the idea of, “How can we have really great properties and how can we make sure that we have owners that will allow us to keep them really great?” I’m guessing based on your background, what really seems to drive this, what I’m hearing is that you really want to take care of the tenants. Lisa: Oh, absolutely. A happy tenant is going to take great care of that space. If they’re feeling well taken care of, then it’s truly in the best interest of the owner and property to do so. Again, people are happy where they live then they’re just better neighbors. That’s what we’re all about. We live next door to a lot of our properties. We’re around our tenants all the time. We’re part of this community. We want them to have a happy living experience. We want that to not be a stressful thing for them because life is stressful enough. When they have a maintenance request, we can respond to it and take care of them quickly and swiftly and they know that we were on top of it for them. Jason: Lisa, for those that are listening, they’re like, “Lisa’s got 1000 doors.” You’re like one of the whales in the industry. You’re one of the unicorns that’s made it magically to this place, that every property manager maybe dreams of, or they think would be incredibly painful to get to and doesn’t dream of. What things do you think you did early on that allowed you to grow through some of those really difficult, painful stages? There are painful stages in property management in terms of growth. How did you weather through those while other companies get so stuck? Lisa: I’d say technology, being nimble, and staffing are the three top things that we do. Being nimble is the first one. We stop all the time and evaluate our systems and strategies for how we do our work. We’re very open to the idea of changing the way we do things for the better. That is something that I think over time we all know that you’ll hit a certain number of doors and all of these systems that worked great for under 200 doors suddenly, it’s just the house of cards at 300. We had to get really deliberate about stopping and pausing long enough to study the work and reconfigure it so that it was working well for us. That led to us being really thoughtful about using technology really effectively. Our property management software, we kept using these workarounds for different tasks that had to be done. We weren’t pausing often enough to go back and see if the tool had changed enough to accommodate our needs where in fact, it had. We get a lot more focused on making sure that—AppFolio is the software that we use—that it was meeting our needs. We keep […] just in terms of how we relate to that company. We’re asking for the change that we wanted and needed. We started relying even more heavily on it. We started creating, really tried and true conventions around how we work with the software, the tools, and the processes. Lastly, and definitely not least and the most important thing we did, was really honor and cherish the staff that we have that comes in everyday to deliver on this promise—that we’re going to provide exceptional places for great people. The talent, the staff, and the commitment has been extraordinary to me and something I think I’m most proud of in the work. If you’re not taking good care of your team, then you cannot be an exceptional service-based company. Making sure to profit share, being as generous and thoughtful about benefits and any other extra that you can be, working as a team member, not taking people for granted, giving people a lot of time off and flexibility—basically, anything we can do to underscore a culture that makes this a great workplace will lead to better outcomes for management as well. It’s the staff, it’s hard work, and it’s technology, all of that is the secret sauce, but it has worked to get by in and get people to get very invested in the work that we’re doing. I think the tenure of our team really indicates that we’ve nailed that one. Jason: I think everybody knows they need really good staff. I think everybody goes, “Yes, we need really good technology.” I think you mentioning being nimble is not something you typically would hear. I think a lot of property managers are like, “What?” I love this idea. How do you actually go about being nimble? How do you maintain that? I think every company likes to believe or hope that they can stay young, stay fresh, and not get stuck in their ways, but it happens. Over time, they start, “This is how we do things,” and they […]. Do you have a process? Is this something you tactically sit down and do on a regular basis? How do you guys actually become nimble? Lisa: We actually spend a lot of time retreating and having conversations about our systems. We commit a lot of energy to those conversations. We’ll do a quarterly all-staff, all-day retreat. Often times, those retreats are about how can we streamline and be better at our work and we’ll break into different teams. We did a really fun thing that I actually picked up from someone that had presented in NARPM where we had people do a shark tank session. We had teams get together and proposed different ways of engaging with our clients that would accelerate the client experience. We implemented every single one of them. When you’re asking for everybody to contribute, to revisiting and focusing on how our systems can be more improved, from the plumber to the CEO, we have everybody participate in those all-day meetings and coming up with ideas for how we can be even better at what we do. They see that the fruits of that time. We did something with those ideas. I think everybody’s really motivated to make sure that we take that time away from our work to revisit how we’re doing it. To be honest, everybody will hate a certain aspect of their job, they’ll dislike something, or something will get tedious and I invite people everyday day, like, “Stop and steady it. Ask yourself, do you have to do that task? Can you do it differently? Can someone else do it? Is there a faster, better, smarter way of doing it?” If you’re inviting everybody to ask themselves whether they have to do something that they don’t like doing, that’s pretty motivating. Like, “I really hate doing this data entry or this workaround on managing the utilities or something.” I’m like, “Should we be doing utilities at all? Is this something that we have to be doing the same way?” I think everyone is being invited to find better ways of doing their job and enjoy their job more. That’s the investment. When that’s the incentive, then I think people are a lot more engaged in being nimble. Jason: I love it. We do that as a company as well and that’s built into our cadence of planning system that we do as a company. It’s amazing when you allow your team members to give you feedback, the ideas that they come up with. Because our perspective as CEO or entrepreneur as the head of the company, we have what we think we need from the top view but my graphic designer, she’s going to have a different perspective from what her standpoint, what we could do differently in our process when we get into that piece. I imagine it’s the same in property management businesses. There are so many moving parts, especially when you get into to your size and scale, everybody sees things from a different perspective, and they see things that bother them. They see things that could be improved. They have ideas to innovate and when you allow them the space. I think the magical thing that you’re doing is you’re allowing your entire company to shift at a tactical day-to-day operation for a short period of time into strategic planning. You’re allowing this step and strategic time in a business is the time that grows companies. Companies that only are doing tactical work, maintenance requests, leasing, tactical day-to-day, emails, phone calls, sales, whatever, if you’re only doing tactical work, the business can’t grow. It just doesn’t seem to grow. It’s the strategic work that helps you trim the tree so that it can grow. It’s the strategic work that help you plan and figure out what you can do next to innovate and create. You built that in as part of your process that you do every quarter. Lisa: Yeah. 100%. Jason: Okay, very cool. I love the idea of the idea of the shark tank sessions and you said you implemented every idea. Lisa: I did. It was really fun. People thought about infographics that we could use to describe what happens you become a tenant and who you’re interacting with. We were able to use different Upwork tools and Fiverr tools to get access to talent that before we had thought was out of reach and being really thoughtful about how we used different modern-day side hustle economies to capture talent, and skill sets that we don’t have inhouse so that we can some of these big dreams come true for our team. It’s been awesome. Jason: Okay, I love it. Is there anything else in the new paradigms in property management, or topic at hand, that you think we should bring up? Because that a really good one, maybe even one to end on. I love that idea. Lisa: I think you ask varied questions and I really appreciate your patience with my technology snafus. Jason: Okay. That’s alright. Everybody has technology snafus that has technology. It’s just part of what happens with technology, right? Lisa, really appreciate you for being in the show. Thank you for sharing those insights. I think there were some really practical takeaways for people watching that they could implement. Lisa: Awesome. Thank you, so much and great luck, with all of your work. Jason: Okay, thank you. All right. A little bit of delays and lags but that’s the internet. I’m at a remote location and doing things a bit differently. Hopefully, you guys can hear me okay today. I appreciate you guys tuning into the DoorGrow Show. If you could take a moment, if you’re listening to this later on iTunes, be sure to subscribe in iTunes to the podcast. You’ll get notified when episodes come out. You can listen to them while you’re driving around, get insights. Be sure to leave us a review on iTunes. We really appreciate that. As a team, that really makes a difference for us. If you are a property management entrepreneur that wants to add doors and make a difference, we would love to have you inside of our Facebook group, the DoorGrow Club. You can join that. It is free. It’s for business owners of property management companies. Go to doorgrowclub.com. If you are wanting a more effective website, you are wanting to optimize the frontend of your business, dial in your pricing, dial in sales, dial in […] age of your business, that is what we are experts at DoorGrow. Please reach out to us. You can check us out at doorgrow.com. All right, everybody until next time. To our mutual growth. Bye, everyone.

Welcome to Jason Is 40. I’m Jason. And I’m 40.

  Casey Judson, Jason McBride and Seattle comic Will Diercks have a sensational talk about Louis CK's latest scandal from his 50 minutes at a Long Island comedy club (definitely NOT run by the Mafia). Casey thinks it’s genius and wants to suck Louis’ dick. Jason IS a genius, sees technical flaws and wants Louis to suck Casey's dick. Will thinks it’s so offensive that its boring, and wants to suck his own dick (as long as it is dipped in vodka)! Happy New Year! Enjoy the talk. Wrong Again!   - Casey and Jason  

On this episode of the podcast we are joined in studio by Jason Meekhof. Jason Is the Back Country Hunters and Anglers Great Lakes Regional Coordinator. We cover a number of different hunting topics from fall whitetail to spring turkey to hunting brand loyalty. Thanks for listening!

Sandwiched between 80s metal and 90s alternative, Mindfunk occupy the same limbo space as Mother Love Bone and Saigon Kick. We’re checking out their self-titled 1991 debut, a mix of big metal riffs, groove rock with funk influences and some slow burn nods to what would later be called desert or stoner rock. While Jason was familiar with this from when it was released and bought it on cd when it came out, Tim had never heard a note prior to reviewing the record. Does it still hold up for Jason? Is it a worthwhile discovery for Tim? Tune in to find out. Songs in this Episode: Intro - Sugar Ain’t So Sweet 14:17 - Bring It On 16:55 - Sister Blue 22:21 - Blood Runs Red Outro - Innocence Request a 2017 Review / Subscribe at Patreon   Facebook / Twitter / Instagram   Zazzle Merch Store   http://www.digmeoutpodcast.com