The Property Management Mastermind Show

This time, I’m joined by Steve Rosenberg from Empire Industries in Houston, Texas. In addition to being an expert property manager, Steve is a distinguished speaker and international trainer who has a passion for helping people -- especially other property managers -- grow their businesses.

Steve and Pete Neubig, whose name you may remember from the last episode, are co-founders of Empire Industries, which now has around 600 properties in the Houston area.

Thanks to the massive growth in the area, Steve has been working on setting up different satellite offices, as he calls them, around the Houston area. This is important in reducing windshield time, which can be a huge problem in such a big area.

In this episode, we talk quite a bit about these satellite offices. Topics we cover include the financial and expense questions to consider when setting up a satellite office as well as the SEO challenges of having these offices. We also talk about the challenges that come with quick growth. Steve explains that about 50% of people and systems break under this kind of pressure, and we talk about solutions and strategies for managing this.

We also spend a while discussing marketing. Again, the importance of SEO becomes clear, but Steve offers some great suggestions for ways to increase exposure, and we explore the fact that great, value-added content isn’t limited to blogs.

You can find Steve here:

Empire Industries

Empire Industries on Facebook

Show Notes

[02:06] - Steve starts things off addressing the topic of setting up different management centers or pods.

[03:07] - The size of Houston is bigger than a lot of people realize. Steve explains how this contributed to their decision to open small satellite offices.

[04:55] - We hear more about the expenses involved in this strategy.

[07:41] - Did Steve have a break-even number, and is that for each satellite office? As he answers, Steve also talks about the point at which a BDM/marketing agent needs to pick one role or the other.

[11:34] - Steve talks about the SEO benefits of having satellite offices. He then talks about the SEO challenges.

[14:04] - We hear more about Steve’s strategy for SEO related to satellite offices. He then lists one of their biggest challenges: the mental hurdle of taking a big step and scaling up.

[15:27] - Brad steps in for a moment to talk about the structure of Empire Industries, which has two principals: Steve Rosenberg and Pete Neubig.

[16:09] - Steve shares more about Empire Industries and its growth process. He and Brad then discuss the necessity of changing things as a company expands.

[20:53] - We learn about making something scaleable and ensuring consistency. Steve offers an example using their 600 properties.

[23:34] - Brad offers an example of his own. He and Steve then talk about Pete Neubig, and how he implemented systems to work efficiently.

[25:23] - Most people’s challenge isn’t a toolset issue, but a mindset issue, Steve explains.

[28:26] - Steve talks about the marketing strategy at Empire Industries.

[29:00] - Brad talks specific numbers, using his company as an example. Steve then talks more about their marketing strategy, emphasizing the importance of keeping track of where money is being spent.

[32:17] - What’s one of the new, cool things Steve has done in marketing in the last few months?

[35:39] - Brad explores what constitutes good content, explaining that it’s not limited to a blog.

[36:25] - We hear about Steve’s company’s realtor referral programs.

[38:41] - Steve expands on dealing with brokers.

[40:42] - Steve is certified by the state of Texas to teach continuing education, and teaches around six classes. He touches on the things covered in these classes, then talks about the kind of momentum the classes generate.

[44:13] - How do you overcome some of the broker objections?

[47:54] - Steve explains that his strategy is to try to be top of mind, and goes into more depth about how to provide value and work with brokers.

[51:05] - Brad and Steve talk about the PM Grow Summit, where Steve will be speaking.

[52:52] - How can people reach Steve? He recommends the blog pages at Empire Industries.

Links and Resources:

Empire Industries

Empire Industries on Facebook

DISC Profiles

PM Grow Summit

BDMCoach

Ben White

For this episode, I had the pleasure of interviewing Deniz Yusuf, an expert business development coach from Australia. Since transitioning from being a real estate agent himself, Deniz’s focus has been on training other property managers on the best practices for attracting and signing up new business.

In our conversation, Deniz covers a wide range of topics of interest to any property manager who wants to excel in the industry. We start off by briefly discussing his background, and he touches on how the customer service skills he learned by selling fruit and vegetables have remained valuable throughout his career.

We spend a fair amount of time talking about business development managers. Hiring a BDM can be a great way to prevent burnout (or reduce it, if you’ve already reached that stage). In addition to hiring the right person, you need to make sure you compensate him or her effectively, so we talk about compensation best practices and whether it’s a good idea to hire a realtor as a BDM.

Deniz also emphasizes the importance of implementing a CRM system early on. He explains why you need to know your closing ratio, which is a vital piece of information that far too few property managers track accurately. We also spend some time talking about a couple issues that may seem counterintuitive at first, including cases in which it can be a good idea to take on business in a below-average area, and why it’s a bad idea to list a property as “no pets allowed.”

You can find Deniz here:

BDMcoach.com.au

On Facebook

On LinkedIn

Show Notes

[01:24] - Deniz’s background isn’t in real estate, but rather in selling fruit and vegetables. He walks us through how he got from that to his success in real estate.

[03:30] - Eventually, Denif burned out on what he was doing. He discusses this as well as his experiences with authorization forms.

[05:53] - Brad steps in to discuss the problems of trying to do everything yourself, and talks about his mistakes with his first hire.

[07:14] - A business shouldn’t be paying a business development management the same bonus for leads generated by the office as for those that the BDM personally sourced.

[07:51] - If Deniz could have given Brad advice at 100 homes, what would it be?

[08:42] - Deniz and Brad discuss the 20% of the company’s homes that were lost during 2016. Deniz then offers advice for compensating a BDM based on the homes they’ve brought in.

[10:29 - At Brad’s company, there are now two hires: one inside person and one outside person. He and Deniz discuss this in light of advice from Andrew Reece.

[12:32] - Deniz expands on the concept of a business health check that he had mentioned earlier.

[14:46] - The 10-10 rule is worth following when you’re in the field.

[16:18] - Getting your face out there has become more of an electronic thing these days.

[17:14] - What success stories have Deniz had with his business health check?

[19:49] - Deniz is partly looking at the implementation for a CRM during these health checks. He and Brad discuss the topic.

[20:19] - Knowing your closing ratio is very important, Deniz explains, yet many companies don’t know what theirs is.

[23:00] - What would Deniz do in terms of helping a new business development manager? Brad then discusses his initial training of his BDMs.

[26:04] - Do realtors make good BDMs?

[30:05] - Deniz talks about having properties in less-than-perfect areas with owners willing to put in the necessary work.

[31:18] - What are some of the key indicators at a listing appointment that you might be talking to a class-C landlord?

[32:59] - There have been a couple of occasions when Deniz has needed to turn around and walk away from a property.

[35:28] - Deniz talks about conversion rates again. His was 88%, and reached a high of 92% in one year. He then defines how he’s calculating these rates, and explains what an “opportunity” is in the sense he’s talking about.

[37:29] - Where can people reach Deniz?

[37:51] - Deniz talks us through the products he has for sale on his website.

Links and Resources:

Andrew Reece

ShowMojo

Empire Industries

Pete Neubig

Greg Watson

Elizabeth Hood

BDMCoach Products

Welcome to the first episode of the Property Management Mastermind podcast!

Let me take a moment to introduce myself. I’m your host, Brad Larsen, the owner and real estate broker of one of the fastest-growing property management companies in the San Antonio, Texas region. I grew up in a small town in Iowa, and both of my parents were schoolteachers. Before I got involved in real estate, I was an army infantry officer.

The book Rich Dad Poor Dad completely changed my perspective on life, work, and careers, and it became clear that it was time for me to make a change. I decided to enter the real estate business, and started Larsen Properties from scratch in 2011. Today my company manages over 600 single-family homes, and it generated over $2 million in revenue in 2016.

I’ll be straight with you: despite these accomplishments, I’m not someone famous, and I know I still have more to learn. With this podcast, I’m here to facilitate conversations with some of the best property managers in the industry so you (and I!) can benefit from their experience, insight, and expertise.

This podcast is for property managers, by property managers. It’s your opportunity to learn about the latest industry buzz surrounding property management, as well as tips and strategies to improve your business. In this introductory episode, you’ll learn a few details about the techniques my company has used to achieve its fast growth and success. More than that, I’ll cover the intent of the show and the direction it will take in future episodes.

Thanks for joining me in this first episode, and I look forward to sharing real estate industry insights with you now and in the future!

Show Notes

[00:51] - We hear the goal of the show: to facilitate conversations with great property managers.

[01:29] - Brad introduces himself, explaining his background and how the book Rich Dad Poor Dad inspired him to change his life.

[02:54] - We learn more about the intent of the show.

[05:03] - Brad shares more about the company he runs to give context on himself as a host.

[08:04] - Some of the techniques Brad’s company uses to do so well include, for example, custom lease agreements and custom management agreements.

[09:07] - Brad’s company uses a three-tiered pricing model, he explains, then talks more about pricing using the example of how car buying has changed in recent years. He also discusses why he doesn’t use a discounting structure.

[12:10] - Videos and fee maximization are important topics that will be covered in future episodes. Acquisitions, mergers, partnerships, and selling companies will feature as well.

[13:46] - Brad talks about his other affiliation, as a cofounder of National Property Management Network (NPM). He also touches on the qualifications and backgrounds of the other cofounders.

[15:40] - The Tenant Liability Insurance product offered by NPM generated over $15,000 in additional revenue in 2016 after Brad implemented it in his company.

[16:24] - We hear a bit more about the upcoming interviews on the podcast.

Links and Resources:

Rich Dad Poor Dad

NARPM (National Association of Residential Property Managers)

Todd Breen

Virtually Incredible

NPM (National Property Management Network)

Tenant Liability Insurance