DGS 298: From Crisis to Connection: Building Your Dream Property Management Business and Team

How did you end up in the property management industry? Becoming an entrepreneur is often a difficult and lonely path with many ups and downs along the way. Many property management business owners are miserable in their own businesses.

In today's episode of the #DoorGrowShow, property management growth expert Jason Hull sits down with property manager and DoorGrow client Derek Morton to discuss how he was able to build his property management business and team around himself.

You'll Learn

[01:53] The Entrepreneurial Struggle

[09:03] Building a Business Based on Humanity and Care

[26:48] The Impact of The Right Company Culture and Team

[38:57] Masterminding with Savvy Property Managers

Quotables

"Property management really is a business of relationships."

"If people fail me, sometimes I don't have a proportional response. So why would I expect anyone else to act differently?"

"Your internal beliefs really, I think, shape the environment that we allow or create around ourselves."

"If you're relying on team members, it's really dumb to think you've got all of the best ideas and nobody else is as smart as you."

Resources

DoorGrow and Scale Mastermind

DoorGrow Academy

DoorGrow on YouTube

DoorGrowClub

DoorGrowLive

Transcript

[00:00:00] Derek: Sarah was like, "Hey, you did all this stuff, how did you do it?" And I'm like, I don't know. And so we went back and we ran the numbers. 88% of my growth has come from my network and just those relationships.

[00:00:13] Jason: They say your network is your net worth, right?

[00:00:15] Jason: Okay. I'm Jason Hull, the founder and CEO of DoorGrow, the world's leading and most comprehensive coaching and consulting firm for long-term residential property management business owners. For over a decade and a half, we have brought innovative strategies and optimization to the property management industry.

[00:00:32] Jason: At DoorGrow, we have spoken to thousands of property management business owners coached, consulted, and cleaned up hundreds of businesses, helping them add doors, improve pricing, increase profit, simplify operations, and build and replace teams. We are like bar Rescue for property managers. In fact, we have cleaned up and rebranded over 300 businesses, done websites for hundreds more than that, and we run the leading property management mastermind with more video testimonials and reviews than any other coach or consultant in the industry. At DoorGrow, we believe that good property managers can change the world, and that property management is the ultimate, high-trust gateway to real estate deals, relationships, and residual income. At DoorGrow, we are on a mission to transform property management business owners and their businesses.

[00:01:16] Jason: That's our mission statement. We want to transform the industry, eliminate the bs, build awareness, change perception, expand the market, and help the best property management entrepreneurs win. Now let's get into the show.

[00:01:27] Jason: So I'm hanging out today with one of our clients, Derek Morton, over at Net Gain Property Management.

[00:01:32] Jason: Derek, welcome to the show.

[00:01:33] Derek: Thanks for having me. I'm excited.

[00:01:35] Jason: So, Derek, you're doing a lot of unique things there and you've had a lot of success and things have been going really well. I'm excited to to, you know, get into you know, some of this unique stuff that you're doing and chat about this topic of 'from crisis to connection.'

[00:01:53] Jason: And so to kick things off, tell everybody how did you get into— when did you first figure out you were an entrepreneur? Like how'd you get into business? And then maybe that'll segue into starting a property management business and so on. Give us some back background on you.

[00:02:10] Derek: I still struggle viewing myself as an entrepreneur to be honest with you in that way.

[00:02:16] Derek: Like I've done sales stuff growing up and my parents are like, you suck at this. Like, you're not going to be able to make a living.

[00:02:23] Jason: They didn't believe in you.

[00:02:23] Derek: No, they're very self-aware. Like, I mean, trust me, I understood like they were right. But like, what was funny is like on the sales, like I couldn't close but I could present and I could put on a show and make it entertaining.

[00:02:37] Derek: And so, like, one of the things that I did is I sold Cutco knives. Okay. But I couldn't close. But I would have more people like, and I'd have a longer list of referrals of people's friends after the end of each one of the presentations than anyone else. But I couldn't close, so I was getting, I made a decent amount of money, because you got paid per presentation.

[00:02:57] Derek: And they couldn't figure it out. And they sat in on one of my things and they're like, "you need to close the deal." And I'm like, "I don't know how to close the deal." I just, you know, and then I ran a snow cone shack, and that was probably one of the funnest things I ever did. And we went crazy with stuff.

[00:03:10] Derek: Couldn't make any money, me and my partner, but we had a good time and made an impact. We had came up with all sorts of crazy combinations and all this time I was in the title industry when I was running that and marketing and just built relationships and that was all my sales, was just relationships.

[00:03:26] Derek: I can't do hard sales like it makes me sick. Yeah. But the relationships and all that stuff comes naturally. And so, I mean that's—

[00:03:35] Jason: and property management really is a business of relationships.

[00:03:38] Derek: It is.

[00:03:38] Jason: And people that lose sight of that think it's some sort of tech game or like a lot of these businesses have felt failed.

[00:03:45] Jason: They just, they don't get it.

[00:03:47] Derek: As you say, the deals close at the speed of trust. Yeah. I do say, and so see, I listen sometimes and sometimes, enough to gather a few things. But being able to work on those relationships and just see people has like, been that secret elixir.

[00:04:03] Derek: And so when I was looking to start a property management company my parents were like, "you're an idiot. You failed at everything else." Even my wife was nervous. The only thing that convinced her was we were in the process of building a house and we were going to rent out our town home. And she's like, "there's too many property management companies where we're at. I'm not going to pay, you know, who's going to pay 10% or whatever for this, like, when you can do it yourself." And I said, "okay, you're going to do this on your own." And so I just let her do it. And she had asked questions and I said, "Google it." And as someone who's married yourself, you can understand how well that went over.

[00:04:39] Derek: And so, and then hearing everyone's stories and different things like that, my wife, by the time we had it rented out was like, "okay, you have my support." And then the, you know, the rest is history. Rough first year, and then we've just been on a rocket ride since.

[00:04:53] Jason: So you, how important do you feel like it was to get your wife's support?

[00:04:59] Jason: I've been the entrepreneur that didn't have support in a previous marriage, like that was a rough thing.

[00:05:05] Derek: Oh it's a hundred percent. Like, I mean, it's the only way I could do like, I mean, so about six months in, so I didn't take, really take a paycheck the first year. We were living off savings. Yeah. It was kind of a struggle. My partner was looking at me like, "you're going to make this work." And once again, like, I struggled one, you know, with hard sales and the hard part that I didn't realize that, you know, I was marketing for title companies, so I had all these real estate agent contacts. But it's a town. It's notorious. When you try something new, they're like, "we know you as the title guy. We don't know you as the property management guy. That's a different thing." And so I was like, "oh they know me, trust, and they sent me all these deals to close for them, you know, for the client.

[00:05:42] Derek: So they're going to try. And they're like, it's different. And I'm like, okay. Yeah. So I didn't anticipate that, but I remember one time, my partner had set up with the real estate brokerage he was in the management company or the broker of the business. Were going to start a statewide management company.

[00:05:59] Derek: And they were going to have me run Cedar and we had a conversation and my partner was laughing because I was, I had no leverage. But I was kind of belligerent because I'm like, your software sucks. Like, I know I don't have a whole lot of clients, but like why would I ask them to take a step down on the level of service? And with that being said, I'm like, I have a family to provide for, and I'm like, the dream's dead. Everyone's right, right? I can't do sales. I'm not an entrepreneur. I can't work for anyone else either, so I'm like, I'm kind of screwed.

[00:06:26] Jason: I'm unemployable. That kind of means you're an entrepreneur if you're unemployable.

[00:06:30] Derek: I mean, that's the funny thing is my family's like, "why don't you find a job?" I'm like, "I tried." All these companies, like, "dude, you've done so many cool, amazing things. We love you and everything. We can't hire you." "Why not?" "You just don't fit our culture." And I'm like, "**** you!" Oh yeah that's probably why I don't fit your culture.

[00:06:45] Derek: Right. And so like I had at that point decided I was going to sell out and I'm like, okay, I'll work for something else and if not something else, I'll just kind of, this will be the next step. I'll just balance and then figure out where I go to next.

[00:06:56] Sarah: Yeah.

[00:06:57] Derek: But I woke up at like three o'clock in the morning and I'm just like, I can't do it.

[00:07:00] Derek: I can't do it. And told my wife, I said, "I can't sell." And she's like, "okay, but when are you going to make money?" "I don't know. You know, I just know I can't sell." And I went to my business partner and I'm like, "I can't sell." And he looks at me and he is like, "I've seen you do dumber stuff. So, okay. What's your plan?"

[00:07:21] Derek: "I don't have a plan." And then I remember. So I'm just like, all right. Like I have to figure this out. Two weeks later, an agent buddy of mine like calls me and he is like, "I am tired of my wife doing property management. Come in, let's talk." And at this point I think I was like at 40, 40 units. And you know, accounting's not my strong point.

[00:07:41] Derek: because everyone's like, "oh, 40 units, you should been making money." I'm like, I was just trying to figure out the flow of money. Like that's not my strong point.

[00:07:47] Jason: And so this is the crisis. And the crisis to connection is like, you were just like trying to figure out mm-hmm we need money. Mm-hmm.

[00:07:55] Derek: And and so he goes, "here's the deal you pay me, you know, one month's management fee and they're all yours. Here's 25 units." We did the math, it was like five grand. And what's funny is my business partner's like "you do not make a deal without talking to me." We were 50: 50 partners and we'd always joke around about like, Hey, I'm going to use my 50% majority and make this decision.

[00:08:17] Derek: And we just, you know, this is kind of, we were interacted. So I came out of that meeting and I said, "I'm buying them." And he was pissed. He is, like "I told you—" and I said, "dude, it's $5,000." And he's like, oh yep, nope, we're good. We're good. We didn't tell anyone. Didn't make a big announcement. Yeah. But there was something about that moment like that led to credibility.

[00:08:37] Derek: For whatever reason there was just a threshold of units. All of a sudden, now I'm at 65 and I was like, oh, like you're kind of legit. And then it's just kind of has been spiraling since then. And within six months I'd hired my first employee. because we were at a hundred units and I was adding 20 that month.

[00:08:51] Derek: But but yeah, so that's just kind of the story and I still laugh because I don't view myself as an entrepreneur. It's just kind of, I view myself as a guy who's really good at relationships and magic happens with that.

[00:09:03] Jason: So, and you know, you mentioned at the beginning that you really, that's kind of your area of genius is you're really good at connecting with people and building relationships.

[00:09:13] Jason: One of the things that I, you know, that one of the gifts I see in you that I've noticed, you know, as a coach is you genuinely care about people. You genuinely care about your team. You genuinely care about your clients, you care about the tenants. And I think it's that care that's really allowed you to have the success that you've been seeing.

[00:09:35] Derek: Oh, a hundred percent. Like we, we laugh all the time. I said people as a whole are awesome and so good. There's so many incredible things. Individuals can be idiots, some, you know, me included. I'm an individual. But by and large, I mean that's,

[00:09:48] Jason: That's a very different belief though. And there's a lot of people that are like, "I don't like people, but I like you."

[00:09:53] Jason: You know, or stuff like this. My wife's Sarah, she's like, "I don't generally like people, but I like you." You know, she likes Derek, you know, but Yeah. But you have this belief that people are awesome and I think that belief is, you know, that's a unique belief.

[00:10:07] Derek: Yeah. And I, you know, and especially in property management, like I, I mean, "oh, you're going to get yelled at all the time."

[00:10:12] Derek: And I'm like, yeah. I mean, yeah. You know, sometimes it's deserved, sometimes it's not. And as long as you can separate those, like that's what's amazing. Like sometimes you're like, we failed and I can't control how people are going to respond. because if people fail me sometimes I don't have a proportional response.

[00:10:27] Derek: So why would I expect anyone else to act differently? And so we just own it and try to fix it and apologize and, you know.

[00:10:36] Jason: Yeah. Yeah. Yeah. And I think that another attribute, you know, there's generally, you know, the idea of not having to be perfect or look perfect all the time, there's a certain level of humility.

[00:10:48] Jason: You joke about yourself like a lot, and you know, you, even from the outset of this, you know this podcast you recognize you're not this perfect unflawed person. And I think there's, that level of humanity, it's disarming, it allows people to feel even safer. And I think a lot of property managers listening could take note is they're always trying to maintain this perfect perception that there is this thing that never has a problem.

[00:11:15] Derek: Oh, like, yeah. I mean, yeah, it's life's messy. I'm messy. Like, I mean, like everyone's messy. Yeah. We try to put on this show, you know? And I mean, that's one of the things, like part of the, my background coming into property management has given me the different perspective. I mean, so I served on the board for the local homeless shelter.

[00:11:37] Jason: Okay.

[00:11:37] Derek: And so, like I saw on a day-to-day basis, like people going through crisises and seeing them and realizing, I'm like I was one or two decisions, or one or two friends from being there.

[00:11:50] Jason: Yeah.

[00:11:50] Derek: And so being able to recognize like that going, you know, if I would've gone to this, or if I would've done this, or, I mean, I can count on one hand, like times in my life that I'm like, you know, that was divine intervention.

[00:12:05] Derek: I had a friend gimme a call at the right time and invite me to go do that before I did something stupid. You know, and it's like, I tell my kids all the time, I said, you're going to make mistakes. You know, the deci the hard part is making sure that those mistakes aren't life changing. And unfortunately, outside of a few, like big obvious ones, you never know when those life changing ones are until you know they're past.

[00:12:27] Jason: You know, I really believe we are the creators of our own reality, and I believe that your belief that in divine intervention, belief in God being able to take care of you and that you trusting in that has allowed you to avoid some of those. Because I'm sure when you were talking to people at that local homeless shelter, you're getting this perspective, oh man, they just made one bad decision that led to this. Or they were just like, I'm one step away from this. But they probably, a lot of them you probably picked up, they have a different belief system than you do.

[00:13:01] Derek: Yeah. And I mean, what's fascinating though, when you work with those, they're generally trying to change.

[00:13:06] Jason: Yeah.

[00:13:07] Derek: And this is a perspective of it, and it was eyeopening. So like when we set up our first transitional house for men and women coming out of homelessness and domestic violence, my kids still call it the stinky house. Like it was the stink, it was stinky house, it was a dump.

[00:13:18] Derek: And like we fixed it up. Like, I mean, I've told the story like Home Depot, like called and walked off the job. because they were pulling up carpet. There was like dog crap, like somehow shoved underneath the— like, like, it was horrible. They had like 20 people and 15 dogs and 13 cats living here before this owner bought it.

[00:13:37] Jason: Yeah.

[00:13:38] Derek: And he wanted to do student housing. And we're like, and I was like, all right, let's do it.

[00:13:42] Jason: Because all their parents paying the bill want them to be in that property.

[00:13:45] Derek: This was not like student housing at the time, but he is like. You know, as far I'm like, and it was still, to this day, it's like one of the best property pitches I've ever done.

[00:13:53] Derek: And I'm still kind of a little bitter and I still manage this owner. I'm like, "we've done a lot of good with this house. But remember that pitch?" And it is like, "I know," and that pitch would've cost me a lot of money that I wouldn't have been able to make. It was awesome. It's what sold me on you and trust me.

[00:14:09] Derek: because you put a lot of work into that. And so we pivoted because it's, you know, it was funny. It's like going back to divine intervention. Yeah, he spoke numerous times. He's like, "this house was speaking to me." Like, he's just like, "I have to have this house. I don't know why. I don't know what, despite everything," and so, you know, we kind of pitched and we made it up and worked with the homeless shelter going, here's what we think, there's, here's some funding.

[00:14:33] Derek: Like, let's just figure it out. And he was on board and you know, so when we moved the first three in, they were so, so ecstatic. Hearing their stories, one of them grew up not far from where I grew up, and I laughed because, you know, he left where he grew up because he didn't want to get into drugs.

[00:14:52] Derek: Lo and behold, he came to Cedar City and he got into drugs. So he left where I'm like, "dude, yeah, no wonder like you, you didn't do drugs in that area where you grew up? Like that's impress— but you got into it in Cedar?" he goes, "I know it doesn't track. I left to get away and then it was just. It just, you know," and it goes back to the connections that he made and the friends that he made and

[00:15:12] Jason: Yeah.

[00:15:13] Derek: And all of that, their ability,

[00:15:14] Jason: ... really that's who you are and how you're showing up and your beliefs and what you feel you deserve and what you you feel you're worth. And so really boils down to your internal belief.

[00:15:24] Jason: And your internal beliefs really, I think, shape the environment that we allow or create around ourselves.

[00:15:30] Derek: Yeah. And these people like with, as their belief group, like their ability to celebrate like small victories.

[00:15:37] Jason: Yeah.

[00:15:38] Derek: That were just like, you wouldn't think we're that big. I remember they threw a party—

[00:15:42] Jason: Things they didn't have that most people would take for granted.

[00:15:44] Derek: Yeah. I mean, the one got a job and he was able to hold it for a week, and so they threw a party. They bought a big old huge cake. I don't know how they got the money held. And they're like—

[00:15:53] Jason: yeah.

[00:15:53] Derek: They're like, "he kept his job for a week. He hasn't done that for years. Like, we're going to throw a party. You should come."

[00:15:59] Jason: Right. Celebrate the wins.

[00:16:01] Derek: I mean, they had a cake and they were celebrating and like the music was loud, and I'm just like, " you kept a job for a week and you're celebrating?" Like, it was just I'm like, is this real life? Like this is, we're celebrating? I'm like, this is like common sense. Like, you know what I mean?

[00:16:18] Derek: But it was a big deal for them. And then, you know, same thing with—

[00:16:21] Jason: it's common for you and it's maybe common for others, but for some that's not common. And so, yeah. We got to celebrate progress.

[00:16:29] Derek: Like, it was amazing. And just, you know, when you look at their sobriety coins and stuff they get at, those are always huge things.

[00:16:35] Jason: Yeah.

[00:16:36] Derek: To do and being able to, you know, and they have to fight. Like, holy crap. Yeah. I mean, I wish people fully understood how hard they have to fight.

[00:16:45] Jason: Well, I think it was Alex Hormozi one of my former mentors and coaches, and he was also in a mastermind with me. He mentioned that you don't get self-esteem or self-worth by saying a bunch of affirmations in the mirror.

[00:16:59] Jason: You get it by getting evidence. And these little wins that they're getting is giving them some evidence that maybe is in conflict with the current identity they've been holding.

[00:17:09] Derek: Yeah, I mean. When you look at these people, I mean, they, you know, and I love them. I love that population.

[00:17:15] Derek: Like it, it's amazing.

[00:17:17] Derek: The insights that I've gotten into life and everything is unbelievable. And it's changed the way I operate my business and understanding to make sure that we can try to find support because you really are, there's these moments as we hinted at that you know, like, I think sometimes we have an inkling that these are moments, right?

[00:17:37] Derek: But not always. And there's these moments that if you can get the support or the right person, like they're life changing and they go it makes a huge impact. Way more than it would on my life.

[00:17:49] Jason: Yeah.

[00:17:49] Derek: But it's huge on theirs.

[00:17:51] Jason: Yeah. So I mean, and this goes to your kind of core values that you've kind of built your business and your life around is, you know, related to contribution and making a difference.

[00:18:02] Derek: Yeah, I mean, it's something, I mean, my, my parents raised me that way and I laugh like they, they always think that they failed me. because I just I'm different and quirky as you can attest. Yeah. And they just are like, you are not our child. Like we don't know where you came from.

[00:18:17] Derek: And I just said, "I am both of your guys' best and worst qualities on steroids. So you struggle because you're looking in a mirror going, that could have been me. And instead we made it and now we can't control it." But I know my dad and mom were always heavily involved in different things and I watched that.

[00:18:35] Derek: My poor kids have experienced too. I don't think they're going to be as heavily involved because they've seen more of the bad as opposed to the good.

[00:18:41] Jason: Okay.

[00:18:41] Derek: Sometimes with being willing to put yourself out there and be involved. And we're in a small town, so my kids can't escape dad. They go over, "oh you're Derek's boy, or you're Derek's daughter," and they just go, "yes."

[00:18:54] Jason: right.

[00:18:54] Derek: But those values and being involved and realizing, you know, that was something that was instilled. Like, I can make a difference. And just, you know, my parents didn't put it this way. It's what I tell my kids all the time. I'm like, "you can go far in life. Just don't suck as a human being." Like you really just don't suck as a human being.

[00:19:12] Derek: Like I said, my kids, my parents didn't put it that way. But they, I mean, it's through their actions and

[00:19:18] Jason: stuff.

[00:19:18] Jason: Are your parents, I mean, you strike me as pretty extroverted and connect and comfortable with people. Are your parents pretty introverted?

[00:19:26] Derek: Actually, my mom after the divorce, like she came out like pretty extroverted.

[00:19:32] Derek: My dad was pretty extroverted. Okay. I grew up pretty introverted and it's still like my social battery, like it winds down and it's like, yeah I'm on a battery. When that battery's done, I just like but I've trained myself and I've just had to do so many different things that I'm like, I put myself out there and here's what it is, and that's how I have to get stuff done.

[00:19:52] Derek: It's the only way to accomplish it. And then I can decompress and not have to worry about people until the next time.

[00:19:58] Jason: So, yeah, I'm very much the same way. I would categorize myself as an ambivert. So give people some context of kind of your journey here. How long ago did you start this property management business?

[00:20:11] Derek: I started nine years ago in July.

[00:20:13] Jason: Okay. Nine years ago. And how many units are you at right now?

[00:20:18] Derek: We're at 650 units. Nice.

[00:20:20] Jason: Okay. Yeah, and I generally don't see people break four or 500 units unless they've got really good culture and a really good team. It just generally doesn't happen. And so you've built kind of a, it sounds like a unique culture.

[00:20:33] Jason: You had mentioned earlier you didn't fit other people's culture. I. Like it was hard for you to get a job or stay in a job because you just didn't fit. In what way did you not fit that culture and how has that changed the type of business you've created around you? Because you have a very different culture in your business.

[00:20:49] Jason: Obviously you fit in it because you're at the helm.

[00:20:52] Derek: It's my culture.

[00:20:53] Jason: It's yours. Yeah. It's your culture. So you built the business that didn't exist that you could work at. You know?

[00:21:00] Derek: So I'm pretty outspoken. And that doesn't always fit with the typical corporate job or working for other people.

[00:21:07] Derek: because I'm not afraid to be like, "this is dumb and here's why I think it's dumb." And then with that, I think the other thing is I'm not as risk averse. I was really risk averse at one point in time, and then I got fired. And at that point I was like. Yeah, screw it. Like, like I survived once and so like, let's try this.

[00:21:27] Derek: Um, Why not? You know, I like, but I also do a lot of research, so like, what seems risky the most like, is just the next step and it's logical. And I'm like, okay, yeah, we're going to do that. And you know why? Everyone's like, I, you know, I can't believe you're doing that. And I'm like, why? Like, this is the next step.

[00:21:46] Derek: Why are you doing what you do? Like. You're selling yourself short. Like this is not risky to me. Yeah.

[00:21:51] Derek: And so because I just, you know, you get all the things in place and then you make the leap and you know there's going to be mistakes going back to, you know, the messiness. You're like, okay, I make that leap at 60, 70% certain and, you know, and realize that 30% may kill me off.

[00:22:06] Derek: But because there's always stuff I miss, but, you know, life's more enjoyable that way and so those cultures just don't fit. You know, a lot of corporate and working for someone else. And then with us, like, you know, we try to let the girls in my office, I have three full-time employees.

[00:22:20] Derek: And then and then a virtual assistant that, you know, they can speak openly and sometimes that is pretty open and honest with both of us with all of us. Yeah. And can be pretty gruff, but that's what we need. And like I tell them all, I said, "if you think I'm being an idiot, you can tell me I'm an idiot. Just, you know, make sure you have the evidence."

[00:22:37] Jason: How would you describe the culture then in your business? Like everybody has a voice. You mentioned outspoken, you mentioned basically, it sounds like you're willing to take feedback and you know, and I would imagine that allows the business to innovate and move forward much faster than most companies that don't foster environment of feedback or honesty.

[00:22:58] Derek: I mean, there's a lot of times the girls in my office are right. They see stuff that I don't see. Yeah.

[00:23:03] Jason: If you're relying on team members, it's really dumb to think you've got all of the best ideas and nobody else is as smart as you.

[00:23:10] Derek: Well, and they, and we all balance each other out.

[00:23:12] Derek: Like, you know, as you in your coaching terms I'm the visionary, right? The craziest thing you ever told me when we did the jumpstart.

[00:23:19] Jason: Yeah.

[00:23:19] Derek: And I still laugh. For this past year and I wanted to, I brought it up at DoorGrow Live as part of the breakout session. When we did that, you're like, dude, you thrive in chaos. And I'm like, nah, yeah, maybe like, they're like, no, that's your life. And then as I was going through and putting together that breakout session, I'm just like. Jason was right, like is the girls are all stressed and everything. And my wife's like, what is going on? I'm like, this is amazing.

[00:23:45] Derek: Like every said, you know, I got to figure out the student housing thing. And then we got this and we got this. And I'm like, this is fantastic. My mind's on overload. I'm going a million miles an hour, and I'm just like, this is great. All well, the girls are like ready to be balled, you know, baller than me pulling their hair out and, you know, and all of this stuff.

[00:24:02] Derek: But that's where the balance comes in.

[00:24:04] Derek: And so, because with a visionary, there's certain tendencies that are pretty horrible and self-destructive that I've learned.

[00:24:12] Jason: Yeah.

[00:24:12] Derek: That have, it's been painful lessons over the years.

[00:24:16] Derek: Which is why like, we spent the last three years really just cleaning up. Most of the stuff is still cleaning up our database from like eight years ago. That's like, why is not all this information in the property? I was just running, you know, who has time for that?

[00:24:29] Derek: And so having that balance has been huge to kind of tone down those different aspects of my personality. So that we can move forward in a way that works and fit that's much better for us, much better for our owners that we work for, and much better for our tenants.

[00:24:50] Jason: Yeah. Well, you know, yeah I definitely can thrive in chaos and I think those that a lot of visionaries that might be like that, that are listening, that, you know, there's a certain amount of chaos that we feel really effective in while the everybody else are like freaking out. Sometimes I call it the Amon principle because like you've got, I was raised Mormon, and in that, there's this story where like, they're running around, freaking out. "We're going to get killed by the king, because the, these bad guys scatter our flocks." And Amon was the one that was like, "Hey. There's chaos. Here's an opportunity. I can create something out of chaos." And that he was able to show up as a leader. And everybody's like, "yeah, we'll do whatever you say because we're all going to die probably." So anything's better than dying. So they're like, let's do what this guy says and instantly is leading a group, even though he is the new guy.

[00:25:40] Jason: Those are those in Myers-Briggs that have a P at the end that are listening. Like the raw material of chaos and new ideas and different things allows you to formulate some new thinking and to innovate and to create stuff.

[00:25:52] Jason: Whereas those js, they're like, they're the ones that kind of keep us stable and they think inside the box and the box is a nice container and we need those team members that like can keep us a little bit, you know, protected and away from the, a little bit too crazy. And sometimes I jokingly call them the crusher of all hopes and dreams, but they keep us grounded and they keep us connected to reality and they protect the business, and they help us know when we're getting a little too wild, but we're the ones that stretch them outside the box.

[00:26:22] Jason: We're the ones that help them lean into new ideas. And so I think depending on what you are as a business owner, we need that alternative. We need somebody that kind of can stretch us into growth or stretch us into maybe constraint and into some guardrails and some protective measures. And having a good planning system eventually and having team members that have a voice, I think is really important.

[00:26:48] Jason: So. You built the business and built this culture and in nine years getting to 650 units that's, you know, that's no small feat. That's pretty decent growth. How have you gotten most of the doors up to this point?

[00:27:02] Derek: This is what's crazy. So when I was asked to do that breakout session and Sarah was like, "Hey, you did all this stuff, how did you do it?" And I'm like, I don't know. Yeah. And so we went back and we ran the numbers and so 88% of my growth has come from like my network and just those relationships.

[00:27:22] Jason: They say your network is your net worth, right? Yeah. So,

[00:27:25] Derek: so I mean, current owners expanding their portfolio, which is like awesome, right?

[00:27:29] Derek: Because that means you're doing a really good job. They're like, "Hey, I'm comfortable, I want to buy more."

[00:27:33] Jason: Yeah.

[00:27:34] Derek: Then they refer their friends. And then just kind of my group of friends that I have and then agents relationships that I've had over the years. Yeah. And so really only like 12% of my business has come from Google over the years, which was eyeopening.

[00:27:48] Derek: Yeah. You know, because you hate when I say this phrase, but I don't know any other way like.

[00:27:53] Derek: You know, the really the ethoses of our companies, we just try not to suck. And I'm like, that was like the most—

[00:27:58] Jason: yeah,

[00:27:58] Derek: the best validation of that philosophy. I haven't figured out a better way to say it, to make it more Jason approved.

[00:28:06] Derek: But it was awesome. Like, I mean, and so, and it was just validation for all the crazy stuff we've done. Like the owner's conference we do, the owner's gifts.

[00:28:16] Jason: Yeah, you do some unique things.

[00:28:18] Derek: Like just all those different things that it was like, alright, like the craziness worked. Like it was, you know, I have my own way of doing things.

[00:28:25] Derek: I have my own way that I view the world. And that was like the best validation ever. Like it was awesome. And it was empowering because it just. You know, it played into my strengths as opposed to making, you know, cold calls and trying to do that way where I'm not as good at. It was a slower growth.

[00:28:41] Derek: It was a slower burn. But now it's just—

[00:28:44] Jason: now you can build systems for growth and we're working on some stuff with you, which is, which

[00:28:48] Derek: is the step that we're, that I'm on now, so.

[00:28:51] Jason: So, you know, there's a lot of property managers listening that maybe they have maybe more similar personality to you and they're good with people and they can make friends.

[00:29:01] Jason: But one of the challenges I've seen with some of these individuals. They get stuck in this thinking as a business owner, that they have to be a business owner and what that looks like, and maybe it's more that corporate environment and they're like, I got to step out of being the guy that's connecting and networking and creating relationships and friends, and I've got to run this business and do all this stuff that's like not even aligned with their personality.

[00:29:22] Jason: And so they really, it prevents them from being able to grow and creates a business that makes a miserable job for them. And then there's those listening that are like, "man, I suck at friends. I don't believe that people are awesome, as Derek says. And I just, I'm not into connecting with people," and they need to maybe.

[00:29:40] Jason: You know, get a business development manager or salespeople or that like people, that can connect with people to bring in business and that's not their strength, you know? And so I think it's really awesome that you've been able to focus on building a business that you actually enjoy being in where most business owners think they need to build a business to please everybody else.

[00:30:01] Derek: Well, and this is really a credit to you, Jason. So, I mean, I've been with you just over a year now.

[00:30:06] Derek: Like I stumbled across you. Yeah. Wow. Yeah, it's

[00:30:09] Jason: been a while. Little while. I didn't realize it's been that long.

[00:30:11] Derek: Yeah. Like, just kind of stumbled across you. because we'd, I had owners tell me like, "Hey, you need to expand up north and manage our properties. It's no longer a question of of if, you can no longer tell me no, it's a matter of when." I'm like, I can't do that, that my mind doesn't work that way. There's a reason I've been telling you no for years.

[00:30:27] Jason: Yeah.

[00:30:28] Derek: And so like we just stumbled across you and you know, I signed on pretty quick.

[00:30:33] Derek: Yeah, because, you know, you spoke to me like you understood kind of at a level that I'm like, yeah, you know where I'm at. I understand,

[00:30:39] Jason: I understand your level of crazy for sure.

[00:30:41] Derek: I'm still that, like I'm in parts of the business that I'm not good at. I've pulled back so much and I'm in the process of pulling back more.

[00:30:51] Jason: Well, what do you feel like over this year, what are some of the changes that you feel like you've made or that have been beneficial? How did. DoorGrow, me, Sarah, team help. Like what's changed?

[00:31:03] Derek: So one, trusting those that I hire, like I've had amazing staff, you know?

[00:31:08] Derek: Yeah. But I'm also like, I need to do this. I'm the owner. And so being able to offload some of that. And so when you look the biggest thing is, you know, we all have certain ways that we think our business needs to look right, certain positions, we need to do this, we need to do that. And you gave me the freedom, and this is going to be kind of counterintuitive, but the time studies.

[00:31:32] Jason: Yeah.

[00:31:32] Derek: You know, like was eye opening. because it's like, oh yeah, let's just take that off the girls' plate. Like, they don't like doing that. Why am I having them do that? Like, okay, so where does this need to go? And so being able to shift some stuff and now like now it doesn't matter, like what it looks like. It's based on my current staff.

[00:31:51] Derek: And you know what I need and what the business needs. And so now like as I scale, I don't know what it's going to look like and nor do I care.

[00:32:00] Jason: Because you feel like you have a system for figuring out

[00:32:04] Derek: Yeah. Like, I mean, you, I remember you telling me that you know, each progressive time study, you're going to get more mad at yourself.

[00:32:13] Derek: And I didn't believe it. because at first I'm like, oh yeah, like I love doing the showing. It's like, no problem. You know, I'll keep the girls in the office. Like, like I said, I love people. So me interacting with people you know, a lease and everything's like, dude, I love this property.

[00:32:25] Derek: Like, cool, what do you do? Like, and just be able to like, I want to rent from this guy. And all of that. And then just certain other things. And so then the second time study I did, I was like a little more aggravated. And then the one I did in January with the girls in my office, because I said, we're going to do one and, you know, and kind of get some stuff into place for as we continue to grow and what that needs to look like. My whole thing was like, why am I doing this? He was all like, I was angry. Yeah. And Shaunna, as we're going through this, she goes, "your whole thing's angry." I'm like, "yeah, I'm shocked."

[00:32:53] Derek: Like this was the worst thing ever. Like I was pissed. I'm like, why am I still doing showings? This needs to get off my plate.

[00:32:58] Derek: And she's like, you love doing showings? And I'm like, I do, but it's stupid for me to be doing showings. Like it just makes no sense. And so like over time having that and looking at the girls time studies and seeing certain trends, I'm like, okay, like yeah, I've got this.

[00:33:13] Derek: I'm like, I have data and we're going to do another one here at the end of June to kind of make our next step because we're looking at another hire that we're trying to figure out exactly. This one will be, honest and frank conversations between me and my staff because I'm like, this is what I think we need and we can have them do.

[00:33:28] Derek: And I think this is what they think going to be and well, so it may come to rock paper scissors, we'll see how that how that's decided. But having that time study and realizing. Like systems and people, you know, peoples and processes, right? You can, as long as you have those in place, you can scale.

[00:33:42] Jason: So for those listening, they're like, "time study. Like what? Like tracking your time?" Like could you explain to them the time study process and why it's beneficial?

[00:33:50] Derek: So it's basically every 15 minutes, here's what I did. And was it, you know, was I interrupted? Is this something I enjoy doing? Is this something I don't enjoy doing? Yeah. And so you can learn, you know, how to minimize the interruptions, you know, if there's certain things.

[00:34:04] Derek: And then, you know, how do you get some stuff that you don't enjoy doing as much? You know, there's always the nature of it. There's always going to be things you don't enjoy doing, right? Yeah. But if you can kind of farm those off and then let those focus on. You know, those that are, be good at that be able to take that on because they actually enjoy doing that.

[00:34:24] Derek: I think you described it to me like, because it was like, this doesn't make any sense. You're like, how many plumbers are there in the world and they love it.

[00:34:32] Jason: Yeah,

[00:34:33] Derek: they love swimming in the muck and here's what it is and they make good money with it. And I'm like, that makes sense to me. Like it just, it's, I'm like, oh yeah, there are a lot of plumbers.

[00:34:40] Derek: Yeah, there,

[00:34:41] Jason: there's people that love doing everything that you don't enjoy doing. There's somebody out there that loves doing that and I think the time study, the purpose of it, isn't just to see where your time goes, there is that advantage, but it's really to figure out, not just time, but it's to figure out energy, like which things are giving you life, which things are taking it away?

[00:34:59] Jason: What are the plus signs? What are the minus signs? And I love that you're already having team members do it because if you want to keep team members, and keep them happy and have really good culture and really good team, you want to move them towards their areas of genius, the things that they're naturally inclined to be great at in their personality.

[00:35:15] Derek: Well, and it also like the way we did it, I had, I promised the girls, I said, I'm not looking at what you're doing. I know you're doing your job.

[00:35:21] Jason: Yeah.

[00:35:22] Derek: And they had all come from a corporate environment, so when they're hearing time studies, they like, there was huge fear.

[00:35:27] Derek: There's a reason it was took nine months after I hired you, before I was finally like, you need to do this, right? Like, I'm going to die on this sword and you're going to have to trust me that I'm not looking at going, "Hey, like why are you doing this instead of you doing this?" and so when I went to with Shaunna, like I looked at it and we went through, I was like, man, we're taking a lot of phone calls.

[00:35:48] Derek: Is there ways we can do that? And not that we had to make out actions on any of that right now, but it's like it started the conversation that now even six months later are starting to come to fruition that, that look, hey, like we are still dealing with a lot of this. We're dealing with a lot of this. Is there ways we can do this?

[00:36:04] Derek: Things that I've put on the back burner for years, I'm like, I really need to look into this. That, like, looking at it, I'm like, oh yeah, this is like crisis. Like I've failed my staff, right?

[00:36:14] Jason: Yeah.

[00:36:15] Derek: And so kind of put some of those solutions in place and get answers for them and make things like that work.

[00:36:19] Derek: So it was eyeopening, but it doesn't really. You don't matter how it looks. I mean, so like, I joke all the time, you know, at one point in time my office staff, because you're used to, when you hear property management, like