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.
How I Bought, Rehabbed, Rented, Refinanced, and Repeated for 14 Rental Properties
This is the dream right? Going from zero to 10+ rental properties, providing stable cash flow and long-term wealth for you and your family, and building a scalable business model to boot! Learn how this investor did just that, in this exclusive story featured on BiggerPockets!
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!