Unfiltered by PropertyManagement.com
00:08:37 · Dylan Scroggins, Thomas Perfect
[00:08:37] S1: So how'd you find the staff in order to service what you needed? I mean, it's a massive jump in company size. Were y'all just hiring as soon as possible? Were you able to take any PM from that other group? [00:08:49] S0: I mean, so on-site managers, lot of times, will transition over. Right? Because they live there. So we ended up hiring all four of them, because, you know, their company was essentially getting shut down. Their job got taken away. So if they wanted to continue doing their regular job, they would they would sign on with us. They did. And some of them stuck around for longer than others. We actually have one of those original four. She's amazing. So shout out to Dawn down there at Vista Bonita. She's been, on that property longer than we've managed it now, and that's been a little over a decade. And, you know, we're super glad that she's on our team, but we definitely had some big staffing issues that came up with, you know, when you have a a company that's doing things illegally, the chances of their employees doing things the wrong way or illegally, it was kinda rampant. Literally duct tape and gum fixes on stuff, and we really had to pull these properties from a c level up out of out of that, like, c, c minus level property. [00:09:45] S1: So what is your breakdown now? Is it... Do you still have those properties, you know, multifamily? What... What's your breakdown single family versus multifamily now?
00:09:45 · Dylan Scroggins, Thomas Perfect
[00:09:45] S1: So what is your breakdown now? Is it... Do you still have those properties, you know, multifamily? What... What's your breakdown single family versus multifamily now? [00:09:53] S0: Yeah. I mean, everything else outside of those four apartment complexes, we... We've taken on a few of them over the years and, you know, hold periods versus requirements and whatnot. You know, asset managers have a different, goal on things sometimes. So we've we've done management for a few other complexes over the years, but we... We've kinda trimmed through those as, you know, hold periods expire. So those are still our main, you know, 400 units under... For those large multifamily. The other 600 units are all scatter site properties. So the small, like, under eight unit multifamily units and single family homes. [00:10:29] S1: Yeah. That's a great breakdown. So for you, starting out in your role to now what it's become, when did the conversation start to shift towards, Hey, I'm a hire, now I'm a leader. How did that conversation go from being leader to owner? And when did that happen? Was that fairly recently? Was that five years ago? Walk me through that kind of last bit of from you two to more partner transition.
00:10:29 · Dylan Scroggins, Thomas Perfect
[00:10:29] S1: Yeah. That's a great breakdown. So for you, starting out in your role to now what it's become, when did the conversation start to shift towards, Hey, I'm a hire, now I'm a leader. How did that conversation go from being leader to owner? And when did that happen? Was that fairly recently? Was that five years ago? Walk me through that kind of last bit of from you two to more partner transition. [00:10:53] S0: Yeah. Definitely. I, you know, I was able to negotiate a great equity agreement. We started talking about that really early on because, you know, it was let's build an empire together. Right? So I was excited at that opportunity and we kind of went into that knowing that it wasn't gonna be a w two situation forever. You know, there are some things, you know, as, you know, people who know me have heard a little bit about that story and it was really nice for me to be able to jump in. So 2019, we kinda had negotiations come into a head, and it went effective in in 2020 where I essentially was able to earn 25% by being the CEO for five years and letting my business partner kinda step out. And I earned another 25%, gradualized over the five years for doubling the net profit of the business. Smashed those goals out of the water, then... Done that. And so I I currently own 50% of the of the business, and, it didn't cost my partner anything outside of giving up equity. But as I was earning equity, I was essentially growing the net profit so that he wasn't affected.
00:10:53 · Thomas Perfect, Dylan Scroggins
[00:10:53] S0: Yeah. Definitely. I, you know, I was able to negotiate a great equity agreement. We started talking about that really early on because, you know, it was let's build an empire together. Right? So I was excited at that opportunity and we kind of went into that knowing that it wasn't gonna be a w two situation forever. You know, there are some things, you know, as, you know, people who know me have heard a little bit about that story and it was really nice for me to be able to jump in. So 2019, we kinda had negotiations come into a head, and it went effective in in 2020 where I essentially was able to earn 25% by being the CEO for five years and letting my business partner kinda step out. And I earned another 25%, gradualized over the five years for doubling the net profit of the business. Smashed those goals out of the water, then... Done that. And so I I currently own 50% of the of the business, and, it didn't cost my partner anything outside of giving up equity. But as I was earning equity, I was essentially growing the net profit so that he wasn't affected. [00:11:57] S1: Yeah. Performance based equity. You have a lot of clients who would kill to have that scenario of someone come on board, really earn their keep those first five years, and the next five years step into more of that ownership role. I love that. Would you consider yourself more of a, like, integrator? Are you the visionary? Do y'all run on EOS? Just curious.
00:11:57 · Dylan Scroggins, Thomas Perfect
[00:11:57] S1: Yeah. Performance based equity. You have a lot of clients who would kill to have that scenario of someone come on board, really earn their keep those first five years, and the next five years step into more of that ownership role. I love that. Would you consider yourself more of a, like, integrator? Are you the visionary? Do y'all run on EOS? Just curious. [00:12:15] S0: Yeah. We've been running on EOS for about eight, nine years now. It's really good. I've kinda gone through several of those seats through EOS as as, like I said, we we had to delegate and elevate as we built the business. Right now I would say I'm I'm more of the visionary role for the company. Definitely fill that seat. I also fill a couple other seats, though. For example, I've... I'm taking on the marketing seat for Uplift right now. We... We've had some staffing changes and and some goals that have gone around for, you know, using influence in the industry to build trust with potential clients. So we definitely focused on that really, really heavily right now. But then we were able to hire of operations pretty early on. You know, she's been amazing too, so we'll give a shout to Marley because I know she's more of that integrator role at this point for our business.
00:12:15 · Thomas Perfect, Dylan Scroggins
[00:12:15] S0: Yeah. We've been running on EOS for about eight, nine years now. It's really good. I've kinda gone through several of those seats through EOS as as, like I said, we we had to delegate and elevate as we built the business. Right now I would say I'm I'm more of the visionary role for the company. Definitely fill that seat. I also fill a couple other seats, though. For example, I've... I'm taking on the marketing seat for Uplift right now. We... We've had some staffing changes and and some goals that have gone around for, you know, using influence in the industry to build trust with potential clients. So we definitely focused on that really, really heavily right now. But then we were able to hire of operations pretty early on. You know, she's been amazing too, so we'll give a shout to Marley because I know she's more of that integrator role at this point for our business. [00:13:07] S1: Gotcha. So going from past and kind of the history of Uplift and you to now the present, what are some takeaways? Now that you've had, you know, just a time stamp this episode, we're about what, two or three weeks past it, what are some things that are still rattling in your mind from broker owner and not just the responsibility to have to plan the next one?