I love offering listeners fantastic benefits, such as some great discounts for products. These include the PM Grow Summit, website production through Property Managed Website, showing services through Tenant Turner, and more, with new offers coming all the time! You can see a complete list of the current offers at propertymanagementmastermind.com. For all of these offers, use the discount code “Brad” to secure your discount.
Before we dive into this episode, I want to take a moment to give you a quick update. On both of our websites, we’re adding a couple of new tabs. One of these tabs will highlight all the upcoming seminars and conferences through various organizations. The other tab will direct you to our property management mastermind listserv on Google. It’s a great no-holds-barred listserv where anything goes. Check out both of these new tabs to explore more of what we can offer!
My guest today is Scott Brady, a property manager from Southern California. Scott has been in the real estate business for over two decades, and jumped into the property management side of things about six years ago. As he’ll explain in our conversation today, he changed the slant of his company to attract self-managing property owners once he learned that a shockingly high percentage of people self-manage their properties.
Scott will also talk about some fascinating things that he’s doing in his marketplace that are a bit outside the norm. He veers away from the generic cookie-cutter thinking of many property management companies and doesn’t hesitate to think outside the box. As a result, he’s generating several different revenue streams for his business, of which property management is only one.
We’re fortunate enough that Scott isn’t shy to talk about the nitty gritty details and exact numbers. If you’ve been wondering exactly how the financial aspects of these things work, this is the episode for you. Scott will go into detail about how much (or how little) he makes in property management, how he compensates his agents and employees, and much more.
Here’s where you can find Scott:
Progressive Property Management
Scott Brady at Progressive Property Management
Show Notes
[03:09] - Scott gives us a quick introduction to who he is and how he got into property management. He explains that when he got started, he had no idea that 80% of people manage their own properties.
[06:16] - Brad backs up a bit to talk about several concepts, including the points of distribution (POD) technique, licensing, and franchising, and points out that what Scott has been describing is a hybrid of all three.
[07:23] - Whether we like it or not, property management is still a hyper-local business, Scott points out.
[09:54] - Scott tells his branch managers that every door they manage is a door they’re going to sell down the road.
[10:34] - We hear how Scott compensates his employees.
[11:40] - How much overhead and support does Scott have to give his employees to earn the 35% that he gets from them?
[12:43] - We learn how Scott finds realtors who want to work within his system.
[15:05] - In general, real estate is about meeting people. If you meet a lot of people, you’ll be successful, Brad explains.
[16:42] - Scott found out early on that most of his agents don’t want to spend their own money, so he spends the money on marketing and then sells the door.
[18:12] - Brad explains that one of the things he put in place when he did the portfolio model was putting the portfolio managers on a very bad split. Scott then addresses the question of whether his agents might be pushing the owners to sell.
[19:55] - How successful has Scott been in scaling up his model?
[21:42] - Brad and Scott dig into the topic of direct mail targeting, including discussing how far Scott generally goes in the process.
[26:13] - What’s the coolest implementation that Scott has done in the last six months to a year?
[27:58] - Brad responds to Scott’s mention of Rently.
[29:48] - Scott basically breaks even on property management, he reveals. He then talks about his other streams of income.
[31:58] - The biggest barrier to investing in real estate in Southern California is coming up with the down payment.
[33:32] - Brad talks about an upcoming seminar that he wants to go to in Dallas.
[35:38] - Scott talks about a program that he offers to local self-managing property owners.
[38:41] - We hear more about exactly what is included in the seminar in a box that Scott and Brad have created together.
[40:08] - What seminars does Scott have lined up for the California area?
[44:16] - If you’re interested in what Scott has been saying and want to get in touch with him or learn more, you can find him on Brad’s website or send him an email.
[47:09] - Scott has noticed a fundamental shift in the general perspective on property management.
Links and Resources:
Progressive Property Management
Scott Brady at Progressive Property Management
Tracy Jackson, Broker Owner
Hometown Properties of the Gulf Coast
Pensacola, FL