Peter Lohmann's Podcast

What Private Equity Thinks About Property Management with Brent Beshore

Jul 17, 2024

Special guest Brent Beshore, Founder and CEO of Permanent Equity, discusses the challenges of businesses being 'loosely functioning disasters', the unique approach of Permanent Equity in acquisitions, and tips for SMB owners on finding quality people. He also talks about avoiding debt, being disaster-resistant, and the complexities of private equity investments in property management companies.

01:07:00

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Episode guests

Brent Beshore

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Quick takeaways

Optimal capital allocation is crucial for high returns and involves evaluating risk profiles and identifying high-value opportunities.

Private equity firms like Permanent Equity consider acquiring residential property management companies based on unique value propositions and growth potential.

Avoiding debt in small business acquisitions ensures disaster resistance and long-term stability, fostering sustainable growth.

Deep dives

Property Management Business Valuation

Property management businesses are recognized for their asset-light nature and stable cash flows. While some property management firms may offer recurring revenue models, pricing for such companies tends to be on the higher end. Due to the market's maturity, valuations are typically well-established. Entrepreneurs looking to enter the property management sector should be prepared for substantial competition and varying business models, ranging from association management to commercial real estate management.

Intro

3min

Navigating the Messy Realities of Business Operations

17min

Efficient Utility Management for Property Managers

1min

Exploring the Difference Between Compounding in Real Estate and Small Businesses

5min

Understanding Opportunity Costs in Capital Allocation

9min

Private Equity Investments in Property Management Companies

6min

Streamlining Maintenance Requests with Property Management and Traditional Private Equity Acquisition Strategies

3min

Private Equity Deals and Retaining Equity Stake

23min

Special guest Brent Beshore, Founder and CEO of Permanent Equity joins the show.

In this episode, we discuss:

(00:00:00) - Intro

(00:01:26) - Brent’s background and career

(00:02:39) - “All businesses are loosely functioning disasters”

(00:08:00) - How do you know which disasters to tackle and which to let play out?

(00:10:30) - How Permanent Equity is different from traditional PE

(00:17:54) - Distributions

(00:19:34) - Sponsor: Utility Profit

(00:23:21) - What kinds of businesses are you looking for at Permanent Equity?

(00:34:29) - Have you ever looked at buying a residential property management business?

(00:39:57) - Sponsor: Property Meld

(00:41:33) - Examining what PE would look like trying to acquire RLPM

(00:53:28) - What are some tips for SMB owners to find quality people to grow the business?

(00:56:15) - Why do you avoid taking on debt?

(01:01:00) - Focusing on being disaster-resistant

Learn more & connect with me here:

⁠Crane⁠, the private community for property management business owners.

⁠My Free PM Newsletter⁠

⁠RL Property Management⁠

Learn more about Brent Beshore & connect with him here:

Permanent Equity

Brent on LinkedIn

Brent on X

The Messy Marketplace by Brent Beshore

The content of this podcast is for informational purposes only and does not constitute professional advice. I may have consulting agreements with, or financial interests in, companies mentioned in this podcast. Additionally, some of the links included may be affiliate links, meaning I may earn a commission if you make a purchase through these links. Always perform your own due diligence before making any financial or business decisions.