Staying Small and Profitable with Steve Crossland
Today, I’m talking with Steve Crossland, the owner of Crossland Real Estate Team, a local team in Austin, Texas working with Keller Williams.
Steve has been on the show before, but we had to have him back to discuss 2019.
Steve is pretty much the opposite of one of these guys that’s trying to get to 10,000 doors at all costs. He’s running a clear, tight playbook and there’s a level of intentionality around balancing profit and growth that I want to tease out and discuss on the show.
So this should be an exciting episode for anybody that is managing less than 500 doors and is kind of wondering, “Do I need to – do I have to grow? Can I be profitable where I’m at?”
If you want some more clarity around those types of issues, then this should be the episode for you.
- (00:15) – Intro
- (01:23) – What’s new in business operations this year?
- (01:36) More involved with numbers, profit, seller’s discretionary income
- (02:15) – Market Salary
- (03:50) – Profit percentage
- (04:48:) – What numbers are you currently focusing on?
- (05:30:) – “C” Bundle properties
- (06:30:)- Flexibility in properties
- (07:03) – What is the class of the owner for larger portfolio property?
- (07:50) – Training for replacements of property
- (08:35) – Communication, setting & holding boundaries
- (09:50)- Number of properties
- (13:25) – 100 Door Club
- (17:35) – Reasons for limitations to owners/operators
- (18:44) – Criterion when creating groups
- (19:20) – “How to Operate a Low Effort, High Profit Small Property Management Company”
- (20:50) – Profit Assumptions
- (21:15) – How knowledgeable are people regarding a baseline in their numbers?
- (22:04) – Measures & clarity on numbers
- (22:35) Costs to Manage
- (26:55) – What are you doing to not become overworked when managing properties in portfolio?
- (27:10) – Property management is not a collaborate project with owner but an assignment.
- (31:00) Owner vs. Manager
- (35:00) – Competencies
- (37:00) – Positioning with potential owners and clients
- (37:23) – Individual differences from other property managers
- (42:23) – At what point does one start dialog with owners?
- (44:42) – Defining scope of services
- (45:11) – Uniformity of operations/decreased effort
- (45:50)- No home warranties
- (46:55) – Other examples of “saying no” to tenants
- (47:50)- Uncontrollable variables
- (48:50)- Uniformity of operations
- (49:25:) – Chicken vs. Egg- How did you get to where you are now?
- (50:09)- Mistakes made/Lessons learned
- (52:57) – Creating Technical Debt
- (55:00)- Growth strategy process
- (58:02) – Perspective on Keller Williams technology transition?
- (59:25) – Closing