APRIL 2, 2021
Episode 8: Buying and Selling Property Management Companies with Stacey Salyer
Welcome to the Property Manager Broker Podcast with your hosts, Brad Larsen and Phil Mazur. Today’s guest is Stacey Salyer, out of western Washington. We are going to be talking about buying and selling property management companies and specifically Stacey’s experience with buying a management company and buying a group of homes under management as a way to increase her company’s size for revenue.
Stacey shares how she came across the company she acquired, some details about the process of purchasing the company, and the size of the company she was able to buy. Stacey speaks about how the deal was financed and says that she didn’t know what she was doing but still believes she got a good deal.
Stacey discusses some challenges she faced, like the old school platform the company ran and keeping the old owner on to manage the business. Stacey also talks about how they bring the new accounts over to the system she uses and when transitioning the tenants over to her way of doing business.
We finish up with the three questions Phil asks at the end of each episode. Stacey shares what she would do differently when she bought her first business; if she knew then what she knows now, some advice Stacey would give to someone thinking of selling their property management company. She believes that the property management industry will see more regulations being handed down in the next ten years.
In this episode:
[02:22] Stacey shares her background and what she is doing now.
[03:07] When you got started in the property management world, did you start from scratch?
[05:18] Stacey speaks about how she came across a decent size company to acquire.
[08:45] Stacey shares some details about the process of purchasing the company.
[09:45] Phil discusses asset purchases and how to protect yourself.
[11:20] What is the size of the company you were able to purchase?
[12:07] Stacey speaks about how the deal was financed.
[14:05] Stacey says, to be honest, she didn’t know what she was doing, and while going through the company’s books, there were some red flags.
[15:50] What are the challenges you faced in this purchase?
[17:59] Stacey talks about the old school platform she ran into.
[18:52] Phil gives his insights into what Stacey went through during this purchase.
[20:35] Brad speaks about the seller still being part of Stacey’s business.
[22:17] How did you close the transaction?
[23:17] Stacey discusses bringing the new accounts over into the new system.
[24:13] How are you transitioning them into your style of doing business? Are you changing their management fees?
[25:44] Stacey talks about how she feels about the revenue versus the new company’s expenses.
[27:25] Stacey shares what she would have done differently if she brought her knowledge into her first business.
[28:01] What is one piece of advice you would give someone thinking of selling their property management company?
[30:12] Stacey believes that the industry will see more regulations in the next ten years.
[33:30] Thank you for being on the show!
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