Peter Lohmann's Podcast
00:33:22 · Matt Luke, Peter Lohmann
[00:33:22] S1: Yeah. I know where my skill sets end right before that. [00:33:26] S0: Yeah. Same. Okay. Yep. So So when you say automation, I mean, this is just... This is basic. Not... Nothing exotic is being applied here. [00:33:35] S1: LeadSimple, AppFolio. Yep. You know, some AI receptionists Got it. And agents, and that's that's pretty much it. Because, again, I think I've dove into a little bit of software that might handle some of the things like you're talking about, and I'm just going, you know what? If I have to get that intense, something's wrong with the process first. Let's make the process simple first and then figure out how to automate Can [00:34:03] S0: you think of any AI tools or software that you tried and didn't work as promised and so you just stopped using it? [00:34:10] S1: I hate to say this one, but probably the RealmX in AppFolio. [00:34:16] S0: Okay. [00:34:16] S1: Still haven't really figured that one out yet. Yeah. Some of the prompts that I put in there aren't really providing the solutions I need, and they come back more with an answer than a tool to make the workflow better. Okay. That's fine. And maybe I don't know how to use it exactly. But [00:34:35] S0: Yeah. And I know they've been working on it quite a bit. I've heard even just from Crane members in the last month or two, people are saying like, oh, yeah. It's working way better now. So how about... I'm just going through my list... My mental list of the most painful and manual parts of property management. How about bill entry? Like, all the vendor bills, utility bills Sure. All that.
00:34:35 · Peter Lohmann, Matt Luke
[00:34:35] S0: Yeah. And I know they've been working on it quite a bit. I've heard even just from Crane members in the last month or two, people are saying like, oh, yeah. It's working way better now. So how about... I'm just going through my list... My mental list of the most painful and manual parts of property management. How about bill entry? Like, all the vendor bills, utility bills Sure. All that. [00:34:55] S1: Yep. So the vendor bills, all the vendors are required to upload them into Property Meld. [00:35:00] S0: Yeah. [00:35:01] S1: Mhmm. Once they get into Property Meld, then they sync with AppFolio. Yep. So there is one pain point in AppFolio. I do have to approve all the bills and create the bills after they come in. But it does give me a a moment to just get an eye on them to make sure they look accurate, or if we need to charge a tenant for a service, then that's that point to do that. I don't know if that process would ever come off somebody's plate. That'd be pretty tough to automate, not getting an eye on every bill quickly. Yeah. But, yeah, the vendor bills are all synced through Property Meld. We don't have a mailbox. We don't have a office. There's no place to mail anything or stop and drop things off. So... And then utility bills are sent to a service that scans them in and puts them into smart bill pay in AppFolio. [00:35:54] S0: Okay. What's that service? [00:35:56] S1: So we just have a local [00:35:57] S0: Okay. [00:35:58] S1: Virtual mailbox service [00:35:59] S0: Oh, got it. Got it.
00:35:59 · Peter Lohmann, Matt Luke
[00:35:59] S0: Oh, got it. Got it. [00:36:00] S1: In Sioux Falls. So the utility companies mail it to them. They scan it to my AppFolio email, and then it goes into Smart Bill Pay. [00:36:08] S0: Okay. So you have some email with AppFolio where if you forward a bill attached as a PDF, it automatically... Like, AI scans it and gets it into AppFolio for you? Correct. [00:36:19] S1: Yes. That's that's amazing. I love that. Yep. And it tries to read the bill as best as possible and enter in the information. It's not a 100% accurate, but it does save a lot of time because it'll get about 90%, if not more. So you can just look at the bill quick, click approve, and then it puts it into your Yeah. Bill pay flow. [00:36:41] S0: So taking a pause and zooming out for a second, most property managers who start a business would not have followed the path that you followed. You're reminding me a lot of the stuff I was doing when I started back in 2013, except we didn't have any AI back then. Like, did you come into this with a background with, like, processes, or what led you down the path of, like, I'm gonna kind of ignore what other people are doing and just figure out what I think is the most efficient way? [00:37:08] S1: Yeah. If you talk to my wife, she's gonna maybe have a different opinion, but I I am a a nerd for organization and and creating systems and being optimized. I don't know. For whatever reason, it's some sort of passion, weird hobby for me. So as I was building the property management side, I thought, you know what? I can take that weird hobby
00:37:08 · Matt Luke, Peter Lohmann
[00:37:08] S1: Yeah. If you talk to my wife, she's gonna maybe have a different opinion, but I I am a a nerd for organization and and creating systems and being optimized. I don't know. For whatever reason, it's some sort of passion, weird hobby for me. So as I was building the property management side, I thought, you know what? I can take that weird hobby [00:37:32] S0: Give it an outlet. [00:37:33] S1: Over to a business. Yeah. Then I I get to spend my time doing that instead of reorganizing the spice drawer at home Yes. And having my wife getting annoyed with my OCD habits. So, yeah, it's given me a good outlet, like you said, to be able to flex those brain muscles and try to [00:37:50] S0: eat the best thing. I find it to be really fun. [00:37:53] S1: Yeah. And and most people don't get it. They don't understand it. But, like, what are you doing? I'm like, this. And, like, oh, that's boring. [00:38:01] S0: Move [00:38:01] S1: on. Next topic. [00:38:02] S0: Yeah. I think you would find some friends inside Crane. There's a cohort of us who are quite nerdy in that way. [00:38:08] S1: So Oh, that's great. [00:38:10] S0: On the financial side for a moment, if you're comfortable sharing, like, I have to imagine your margins are pretty good. Are you able to share, like, your... Let's pretend... I don't know what you pay yourself. Let's pretend you pay yourself a $100,000 a year. Once you back that out, what would be, like, your net margins percentage wise?
00:38:10 · Peter Lohmann, Matt Luke
[00:38:10] S0: On the financial side for a moment, if you're comfortable sharing, like, I have to imagine your margins are pretty good. Are you able to share, like, your... Let's pretend... I don't know what you pay yourself. Let's pretend you pay yourself a $100,000 a year. Once you back that out, what would be, like, your net margins percentage wise? [00:38:28] S1: Sure. So we we do have a separate property management LLC for the property management outside of the properties we own ourselves. [00:38:37] S0: Mhmm. [00:38:38] S1: And that that is how we also work with our investors and owners as well too. So we are paying ourselves a property management fee even for properties that we own. [00:38:47] S0: Got it. [00:38:48] S1: And that goes into that bank account. And from there, I forgot to mention, but I also own a marketing and advertising agency that I started in 2002. Wow. So I did that for income. That was my income for many years as I was building up the real estate business, and I still have that business. But from an income standpoint, I don't pay myself anything out of the property management side. So I am able to use a lot of legal tax write offs with the property management side to keep my income low. [00:39:26] S0: Mhmm.
00:39:26 · Peter Lohmann, Matt Luke
[00:39:26] S0: Mhmm. [00:39:26] S1: And we just keep that money in investments and bank accounts and reuse it to invest into more properties. So I'm not actually pulling any wages from the business, but the margins are very good. We could talk about that. We do have a resident benefits package. And what I have done is I've created a spreadsheet to keep track of the cost of goods sold on per unit. So I know what we're spending on either outsourced vendors or software per unit. Yep. And that actually comes out to less than what we charge for the resident benefit package. [00:40:01] S0: Wow. Okay. So that would be, like, all your hard costs, like your software and your benefit package and your, you know, contractors who are doing leasing and all that stuff. Your haven.ai, all that. Yeah. [00:40:15] S1: Yep. So all of the charges we have for managing a property, including the software, the vendors, the leasing, the photoshoots, end up per unit less than the cost of the resident benefit package. [00:40:31] S0: Wow. That's amazing. So the rest is gravy. Correct. Yeah. The actual management fees. Got it. Okay. How about note, like, posting notices and going to court for evictions and stuff like that?