178: Building Technology That Aligns With Your Business Model with Chuck Hattemer
Sep 27, 2023
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Chuck Hattemer, Co-Founder of Poplar Homes, discusses their journey of building and scaling their proptech company. They talk about challenges with product-market fit, focusing on operations and scalable processes, their approach to M&A vs raising capital, creating branded digital experiences, expanding into new markets, navigating regulatory environments, and the role of proptech in real estate's future.
Poplar Homes successfully navigated the challenges of the property management industry, expanding their portfolio to 15,000 doors in 17 states through mergers and acquisitions.
By focusing on both strong sales foundations and optimized operational workflows, Poplar Homes achieved success in the property management industry.
Deep dives
Poplar Homes: Surviving and Thriving in the Property Management Industry
Poplar Homes is a national property management and technology company that has been in the game for nine years. They have successfully navigated the challenges of the industry, going from brute force product-market fit discovery to streamlining their operational processes. Poplar Homes has expanded their portfolio to include 15,000 doors in 17 different states and 24 metro markets. The company has also embraced mergers and acquisitions to accelerate growth, focusing on asset purchases and integrating acquired businesses onto their platform. They have built a one-click rental experience for residents and are committed to being a lifetime partner for property owners, helping them navigate the complexities of real estate investing. Poplar Homes is also exploring avenues to make affordable housing more viable by partnering with builders and developers to ensure positive economic outcomes. Despite the cyclical nature of the industry and varying regulatory environments, Poplar Homes remains focused on providing excellent customer experiences and leveraging technology to create value for owners and residents alike.
The Importance of Brute Force and Operational Efficiency
In the early stages, Poplar Homes relied on brute force to find product-market fit, hiring friends and immersing themselves in the property management industry. They built a sales team and sought guidance from experienced professionals to drive growth. As they progressed, the company realized the need for efficient operational processes to scale their business. They focused on enhancing their technology platform to streamline tasks like property showings, inspections, and maintenance. Poplar Homes expanded globally by setting up their headquarters in the Philippines, enabling them to achieve operational excellence cost-effectively. Their journey illustrates the significance of both a strong sales foundation and optimized operational workflows in property management success.
Building a National Brand and Embracing M&A
Poplar Homes is in its third era, with a focus on building a national brand that provides a seamless rental experience for both owners and residents. They have pursued mergers and acquisitions (M&A) strategies to achieve their vision. By acquiring properties and integrating them onto their platform, Poplar Homes has undergone significant growth and expansion over the past three years. Their technology investment has been crucial in supporting their brand-building efforts. The company has acquired approximately 22,000 doors through asset and equity purchases, while they continue to integrate and optimize their acquired businesses. Poplar Homes emphasizes the importance of preserving what attracted them to these acquisitions, including people, relationships, and successful business practices.
Technology, Data, and Enhancing the Real Estate Experience
Poplar Homes sees technology as a means to enhance transparency, clarity, and efficiency in property management and real estate investing. They have created a one-click rental experience for residents, with features like automated lease renewals that have dramatically increased renewal rates. The company's loyalty program, Street Cred, rewards residents with points that can be converted into cash back when they purchase a home through Poplar Homes. They are actively working on expanding this program to include property owners as well. Poplar Homes understands the importance of utilizing data to inform decision-making and help owners boost their NOI. They believe that by providing exceptional customer experiences and leveraging technology, they can make real estate investing more accessible, efficient, and financially rewarding for all parties involved.
In this episode of Profitable Property Management, host Jordan Muela is joined by Chuck Hattemer, Co-Founder of Poplar Homes, to discuss the journey of building and scaling their proptech company over 9 years.
Topics Discussed:
Origin story of Poplar Homes and early challenges with product-market fit
Pivoting to focus more on operations and building out scalable processes
Taking a measured approach to M&A vs raising lots of capital
The importance of preserving local expertise through acquisitions
Their vision for creating branded digital experiences for owners and renters
How Poplar thinks about expanding into new markets
Navigating differing regulatory environments across states
Perspective on role of proptech in the future of real estate
If you want to hear the inside scoop from a successful proptech founder, don't miss this episode!
Make sure to like ๐ this video and subscribe ๐ to the channel for more insightful conversations!
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