APRIL 18, 2021
Episode 9: Buying PM companies with Mynd and now Atlas Real Estate with Vincent Deorio
Welcome to the Property Manager Broker Podcast with your hosts, Brad Larsen and Phil Mazur. Today’s guest is Vincent Deorio, and we are discussing the acquisition game that is going on in the property management world. We also talk about buying property management companies, his experience with Mynd, and now Atlas Real Estate.
Listen as Vincent shares his experience with acquisitions and what he looks for when looking at property management companies to buy. Phil discusses that it’s important to have your books in order and numbers ready when looking to put your company on the market, and Vincent says that a company with outstanding books is worth more to him as an acquirer.
Vincent discusses the challenges he has run across getting to the actual check cutting stage of an acquisition, some terms he sees when buying companies, and the difference between an earn-out versus a cash purchase. Brad believes an owner-financed situation is always the best because you can pay for it with earnings from the business.
Vincent talks about what property management companies should look at when buying another entity. He believes that although there is a lot of opportunity for consolidation, smaller local property management companies will always be around.
Vincent also shares that there has been an increase in interest in the residential single-family home property management system. Brad agrees but says that the real competitor for them will always be the individual landlords looking for a piece of the action.
In this episode:
[02:24] Vincent shares his background and the company he is with now.
[03:45] Vincent says that he did about 20 acquisitions with Mynd while he was there.
[05:02] Were there certain requirements that Mynd had when it came to acquisitions?
[06:30] Vincent speaks about what he looks for in property management companies when looking to buy.
[08:02] Phil talks about being ready to sell by having your books in order and having your numbers ready.
[10:09] If you walk into a company with outstanding books, is that worth more to you as an acquirer?
[11:21] Vincent discusses the challenges of getting to the actual check-cutting stage of an acquisition.
[13:43] Vincent talks about some terms he sees when buying property management companies.
[14:47] Vincent speaks about the difference between a price in an earn-out versus a cash purchase.
[16:58] Have you seen a situation where the staff or anyone who doesn’t need to know finds out about the sale and causes issues?
[18:22] Vincent shares how he retains talent with new purchases.
[21:50] Vincent talks about some war stories he had with the 20 acquisitions he accomplished.
[24:43] What should property management companies be looking for when buying another entity?
[27:02] Vincent says there is a lot of opportunity for consolidation but that there is always a need for smaller local operators.
[28:47] Vincent discusses the increase of interest in the residential single-family home property management system.
[30:57] Brad believes that the real competitor in the market is the individual landlords.
[32:13] Phil agrees with all of Vincent’s points, but he believes there will always be big business and the little guy.
[33:51] What are Atlas Real Estate’s goals for 2021?
[36:20] Vincent shares some final thoughts about what Brad and Phil are looking to accomplish with the Property Manager Broker.
[37:59] Thank you for being on the show!
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