The Secret to Scaling a Large Property Management Company (or Any Business!)

The Secret to Scaling a Large Property Management Company (or Any Business!)

2 min read
Matt Faircloth

Matt Faircloth, co-founder and president of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, N.J., is a developer and owner of commercial and residential property with a mission to “transform lives through real estate.” DeRosa creates partnerships to finance select real estate investments and has a proven track record of providing safe, profitable investment opportunities to their clients.

Experience
Matt, along with his wife Liz, started investing in real estate in 2004 with the purchase of a duplex outside of Philadelphia with a $30,000 private loan. They founded DeRosa Group in 2005 and have since grown the company to hundreds of units in residential and commercial assets throughout the East Coast. Under Matt’s leadership, DeRosa has completed tens of millions in real estate transactions involving private capital, including fix and flips, single family home rentals, mixed-use buildings, apartment buildings, and office buildings.

Matt is an active contributor to the BiggerPockets Blog and has been featured on the BiggerPockets Podcast three times (show #88, #203, and #289). He also regularly contributes to BiggerPockets’ Facebook Live sessions and teaches free educational webinars for the BiggerPockets Community.

Matt authored the Amazon Best Seller Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money. The book is a comprehensive roadmap for investors looking to inject more private capital into their real estate investing business and is a must-read for anyone looking to grow their business by using private lenders and equity investors. Kirkus, the No. 1 trade review publication for books, had this to say about Raising Private Capital: “In this impressively accessible introduction to a complex subject, Faircloth covers every aspect of private funding, presuming little knowledge on the part of the reader.”

Matt and his wife Liz live in New Hope, Penn., with their two children.

Education
Matt earned a B.S. in Industrial and Systems Engineering with a minor in Business from Virginia Tech. (Go, Hokies!)

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A few weeks ago, I was at a conference with fellow BiggerPockets blogger Chad Gallagher. He is owner and founder of a property management company called Slatehouse Group. I have met with many management companies over the years, but none that have grown as quickly or successfully as Slatehouse. I wanted to understand how they grew so fast, so I decided to turn the camera on and have a talk with Chad.

Why Systems Are the Key to Scale Your Business

Chad explains that no matter what type of real estate investing that you’re doing, the best and most efficient way to scale is by using systems. Systems make things repeatable, over and over again. The goal isn’t to take people out of the equation, it’s to give the people an easy process to follow in every circumstance. That way, there is no guesswork as to how to react to a situation or what to do next. In a company like Chad’s with many employees, systems allow teammates to predict each others’ next move and also to better support one another since they both know the steps in the process. For a management company, a prime example is the in-the-field manager dealing with the tenants and the service team handling tenant work order requests. There needs to be a great system of entering work orders, following up on the work order progress, and confirming that the work has been completed for both team members to be successful in their role.

Scaling With Tech

Chad’s company relies heavily on technology to implement their systems. They use everything from cloud-based technology to phone apps to increase productivity with their company. One of the biggest excuses that you hear from other investors is “I’m not a tech person.” I’m actually in that boat myself, as I don’t automatically seek out new technology to help me as Chad does. That said, I have found that most of these services are so user-friendly that the learning curve is very manageable.

What I got from Chad is that systems and technology are imperative to growing today’s property management company. These rules also apply to all other companies looking to grow big in today’s market. To hear what types of systems Chad is using for his real estate business, be sure to watch the video!

If you use systems or technology to optimize your business, be sure to share them in the comment section.

Have a great and profitable week!