Peter Lohmann's Podcast
00:11:23 · Peter Lohmann, Bri Leichliter
[00:11:23] S1: What you wanted to get. [00:11:25] S0: Of what I thought that it would be worth it for me to leave, essentially. That's that's how I came to that number. And, of course, it wasn't me coming to that conclusion all on my own. You know, I talked to my family about it and talked to my boyfriend that I live with, and we made the decision on, you know, what mattered and what would make it worth it for our family. So it was... It wasn't an individual decision. I mean, it was to sell the business, but to come up with the number, you know, was based a lot on my life goals too. [00:11:59] S1: And if you hadn't gotten a bite from your initial outreach to those two, three, four folks, what would have been your next step then? [00:12:11] S0: I probably would have privately listed on, like, the online... What is it? Buy Biz Sell or Biz Buy Sell, whatever it's called. You know, done something like that with, again, the range in mind that I wanted. I would have probably put it out there in Crane, you know, put it out there on LinkedIn or one of the platforms that, you know, I know my people live, right Mhmm. In in our circles. And, you know, just to see what kind of bites that would get, it would at least start some conversation. Conversation. But there was... There's been no time... And I think it's probably because of the size that I had even considered hiring a broker or somebody to help me [00:12:51] S1: Just too small.
00:12:51 · Peter Lohmann, Bri Leichliter
[00:12:51] S1: Just too small. [00:12:52] S0: With the sales. Just... Yeah. It just wasn't it wasn't worth it to give a piece away when I'm just trying to get, you know, a relatively nominal number [00:13:02] S1: Okay. [00:13:03] S0: In comparison to other things.
00:13:04 · Peter Lohmann
[00:13:04] S1: This episode is sponsored by DoorLoop. They recently put out an ebook called the Property Manager's Guide to time and getting sanity back based on a study of hundreds of property managers across The US. And one number from that research really stood out to me. The average property manager is spending seventy six hours a month on administrative work and rent collection alone. Think about that for a second. That's basically two full weeks of work each month just to keep the machine running. Not growing the business, not improving operations, just chasing rent, updating spreadsheets, and dealing with manual processes. How can property managers solve these costly issues? The answer is simple. Switch to a more automated system, something you know I'm big on. The study showed on average time spent on property management tasks was reduced by about 30% and cut rent collection time by more than 40% when making the switch. In practical terms, that translated into 23 a month saved. That's almost three full workdays you can get back every single month. A lot of that came from pretty straightforward tools, online rent payments, automated payment reminders, maintenance request tracking, integrated accounting and reporting, and centralized tenant communication. Nothing magic, just systems that remove the manual work most operators are still doing, which again is something I have a huge focus on in my business. If you wanna dig into the numbers and see how other property managers are reclaiming their time, DoorLoop put the full guide together. You can download the ebook for free at doorloop.com, and we'll link it in the show notes. Thanks again to DoorLoop for sponsoring this episode. As much as you can, I'd love to hear about the actual deal. I understand, you know Sure. Certainly respect you don't wanna, you know, share the price and things like that. But if you're able to share the terms, like how it was structured, was there any type of a clawback? How was it financed? Anything you can share along those lines? I think people are interested in that stuff. Sure.
00:14:59 · Bri Leichliter, Peter Lohmann
[00:14:59] S0: Yeah. So when I originally sent out my mass text message to... Or group text, it wasn't even a group text. It was three separate text messages to our potential buyers. I [00:15:10] S1: The group text could have been fun. You know, rental process right there in the in the text thread. [00:15:14] S0: Right. Right. And I think in my mind, I... When I sent what I did send, I wanted there to be some competition. And that's why that part of the reason I didn't put a price on it, and I wanted them to know they were gonna... You know, I sent it to three specific people. So first come, first serve, or give me the best... You know, bring your highest and best. And that was [00:15:33] S1: Yeah.
00:15:34 · Bri Leichliter
[00:15:34] S0: Kind of how I approached it. But in terms of the actual sale, you know, in in reality, we went fast. We... I got an LOI. That's what kind of triggered the process. So send it out to the three people, had some preliminary conversations, sent over data. That was the initial part. And then based on the data that they received, they did their own due diligence, came back, asked me questions, and then submitted an LOI. The LOI obviously had, you know, the general terms on it. I did negotiate my LOI to a degree. I had a couple of things that were really important to me that I wanted to make sure were built into the contract. So we had some negotiation on the LOI. Once we firmly came to terms, I think that probably took us two weeks of back and forth, several phone calls of, you know, getting the details. Once that LOI... We were good with the LOI, then we had an attorney draft a purchase con... An official purchase contract and bill of sale and assignment of contracts, you know, kind of a bundle of paperwork. And with property management, you can go as fast or as slow as you want. I mean, if you think about... You onboard a new client that has a 100 doors. Right? If that is something that you've done before, doing a sale and a purchase is kind of similar in that regard. You gotta onboard all of these properties. You have to have systems and people and all the things in place. So you can go as fast or as slow as you want. So what we decided was we officially closed where we sat down and had a notary. You know, we signed our bill of sale and our contract or assignment of contracts and everything on October 10. In our arrangement... And my attorney kinda thought that I was crazy, and you can tell when people don't understand your business fully too because
00:17:40 · Peter Lohmann, Bri Leichliter
[00:17:40] S1: Attorneys don't know about business. I have [00:17:42] S0: a They partner who don't [00:17:43] S1: says that often.