Peter Lohmann's Podcast
00:31:27 · Peter Lohmann, Adam Willis
[00:31:27] S1: Yeah. I love that. It's so pleasurable when you find a highly competent person like that who can come into your business and, like, solve the specific issues that you've had in a way that makes you feel great. Like, you know that they're doing it the right way, and they're not just, like, guessing or making stuff up. We've had a lot of success with fractional folks as well. So we have a fractional HR team, Lauren Neisel with Red Cedar, who's been with us for many years now. And we also have, I guess, what you would call kinda like a fractional controller. Actually, Brie, who's a Crane member who sold her business last year. If you wanna listen to that episode, she came on the pod. But she has a background in finance, and so she's come in and really took off of my plate all the last little finance things that I was still handling and has has a bunch of projects, kinda similar to your fractional CFO, on her plate that she's doing, like, a one time cleanup on, training the team, documenting a Notion, and then, you know, she's out of it from there, which is awesome. So what... How do you recommend or how have you found these types of folks? Because I find that as the biggest challenges Because you're really making a bet on that person, and you don't wanna, like, get nine weeks into it and realize that they weren't the right person. So how do you how do you find and screen these types of people? [00:32:47] S0: Yeah. Who, I'm drawing a blank on his name, a guy that does EOS, he comes and does your quarterlies. Can speak with [00:32:53] S1: Chris.
00:32:53 · Peter Lohmann, Adam Willis
[00:32:53] S1: Chris. [00:32:54] S0: Chris. Love Chris. Yeah. I think he might have been... We're standing at a NARPM event. I think you were about ready to take stage, And he came and said hi to me, and he thanked me for me connecting him to several other people. I thank you as well. And I said, hey. I'm looking for... He goes, what's working? What's not working? I said, you know, accounting's not working. He's... I know some people. So And he made some recommendations. [00:33:17] S1: Oh, great. Love that. [00:33:19] S0: Yeah. He made some recommendations, and I think one of them was Ben. LinkedIn was super powerful. You can go in and be like, you know, CFOs. Mhmm. And you can search, and then all of a sudden, LinkedIn is gonna start serving you candidates. I think I had posted to a few groups. And so through my SOI, I had just made posts and queries, and I had, you know, three or four that were introduced to me. There was a local guy who was taking companies from, you know, 5,000,000 to 50,000,000 and then exited, and he just happened to be available as well. So it was a a toss-up between those two. In fact, if Ben can sunset everything and get everything done, I might bring in this local guy to do the same thing from a different perspective. Yeah. Just having the options. Sure.
00:34:04 · Peter Lohmann
[00:34:04] S1: This episode is sponsored by Haven AI. I've been hearing a lot of great things about Haven AI recently. Couple weeks ago, I was on a webinar panel about AI and property management, and Everness talked about how Haven's AI agent transformed their leasing operation, handling most of their top of funnel leasing interactions across text and email. And you might have heard Haven mentioned on a recent episode of my podcast where one of their customers, Matt Luke, told me about how he's managing 350 doors with no w two employees. That's not a typo or a misspeak. Zero w twos. He's using Haven's AI agents for maintenance and leasing to make that work. There's no shortage of AI hype in property management right now. Everybody's got an AI something, but what caught my attention with Haven is that it's not just a chatbot bolted onto your website. It's a platform of configurable AI agents that plugs into your existing software and actually takes action. We're talking creating work orders, dispatching vendors from your preferred vendor list, triaging emergencies, qualifying leads, scheduling tours, and following up with prospects across phone, text, email around the clock. They're Y Combinator backed and were just named one of the top 50 AI startups in real estate. The operators I've talked to who are using it seem genuinely impressed, which in our industry is not easy to earn. If you wanna see what the buzz is about, book a demo at usehaven.ai. And thanks again to Haven AI for sponsoring this episode. Staying on people for another few minutes. Tell me about creative compensation plans. What are you doing there?
00:35:42 · Adam Willis
[00:35:42] S0: Yeah. I've talked about it a little bit. I think I spoke at NARPM events around performance based compensation on a no profit coach, and those guys are really high on it as well. So we have... When you're bringing in executives, you can do them in a consultative way where it's like, here's the 14 things that I'm going to do, and you negotiate a price for those deliverables. You give it to a c suite fractional type person. They go out and do it. That's what we've done with Ben. With other executives that we have on our team, it's like, you know, Phantom stock is something that we've toyed around the idea with or literally starting a sister company and saying, hey, Josh, do wanna be my business partner? And that has served us really well. The the goal here is for me to... As a CEO of what probably is going to turn into a conglomerate would be, like, finding really fantastic people, finding out what their needs values are, what their goals are, and then helping them achieve them together. I have my unique abilities. They have theirs. So if you can find those partners, then I'm totally happy to do, like, let's do an equity play on this, and that served me really well. I've done other type compensation structures where someone will come in and say, hey. I'm a customer making, you know, $304,100,500,000 dollars a year. And I'll say, okay. Cool. We can't pay you that. But if you can grow this division and you can pull these types of levers and being, you know, manager, director, vice president, you know, executive type roles, giving them the right tools that they could then get a piece of the pie. And so I'm trying to be very, very selfless in the sense, like, let's grow the pie together, and your slice of the pie gets bigger. In this... In one of the scenarios, it was like, you grow this division. You get x amount above cost recovery. So it's like we back out... You know, you take it from a $500,000 to a million dollars. I back out your salary operating expense, and we split the proceeds together. And that scales, and that really incentivizes them to be really judicious not only with what their needs are and... But, like, that need usually cost me money. And I'm like, cool. Like, I'm gonna recover my costs, and we're gonna split any upside. But my job as a CEO is to place bets now on these people who are way more skilled than I ever could.
00:38:00 · Adam Willis, Peter Lohmann
And so I'm... To your... I don't like poker. Don't like Las Vegas. I know you have a lot more fun than I do when we go to those events. But [00:38:09] S1: You make me sound like I'm some eye roller. I I think I've gambled maybe $200 of my whole life. [00:38:14] S0: I'm up on Vegas $350, and I have been that way since I graduated college. That's awesome. And I have not played since. But, like, we're just... I'm placing bets. I'm playing, hey, I'm putting this bet on red. And it's fun because sometimes they don't shake out, but a lot of times they do. But it's it's a risk mitigation too. Right? Like, you can gamble on on an unbeknownst... Something that you can't control. Or you can do really great interviews, really enjoy this person, really... And they are... They've gone further and farther than you ever could alone. You recruit them back to the cause and be like, I'm placing a bet on you. And these are 6 figure bets, and it's so fun to do that. [00:38:52] S1: Tell me about some creative compensation structures that didn't work out or that you considered and decided against.
00:38:52 · Peter Lohmann, Adam Willis
[00:38:52] S1: Tell me about some creative compensation structures that didn't work out or that you considered and decided against. [00:39:05] S0: Ones that have not worked out. Originally, I I read a book called Compensation by Vern Harnish. It's somewhere up here. One of the ones that we had done was... And I spoke about this, and I need to retract it. But it was, like, always bonusing over year over year growth. And for the most part, when the company is growing... Well, let me give you some context. If Nestwell Property Management does a $100,000 in net income in 2025, and then in 2026, we do a 150,000 in net income, I was taking that 50 k and dividing it amongst the entire company. And that worked well when the company is growing. What really sucks is in 2027, instead of 150 k in net income, we only did 75 in net income. And the bonus pool, the pool of money that's eligible is only on year over year growth. And so I'm always protecting the house. I always have working capital. In the example I gave you, I always have a 100,000 of working capital because that's protected. We're only paying on upside. What really sucks is you have a remote team member in, you know, Spain, and they work them. They're itself to, like, the bone, and they just grind. But then we don't have a really great year, and the bonuses are only based off of year over year growth. It's really disincentivizing saying, sorry. There's nothing for you. [00:40:34] S1: Mhmm. I go bonus amount was smaller than last year is what you're saying.