The Property Management Mastermind Show Matthew Whitaker on Acquisitions
In this episode of the Property Management Mastermind, Brad is speaking with Matthew Whitaker. Matthew runs a company called GK Houses, which is in 8 different markets, he is also a marque keynote speaker at the Property Management Mastermind Conference where he will be giving out a killer deliverable of his checklist and outline for acquisitions.
Matthew speaks about his company and the three types of money available to most people. He chats about his presentation at the PMMCon, and what you can expect to learn. Matthew discusses the industry trends he is seeing on how to value a property, how the price might deviate depending on the terms and the benefits of the seller financing.
They discuss why it is essential to know what the seller is hoping to achieve from the sell and the steps that you need to follow once a verbal agreement has been made. Matthew talks about the most labor-intensive part of the acquisition, contracts, clawbacks, and how easy it is to close when you are buying assets. He also tells us what to expect in the first 90 days once the acquisition is made.
Listen in as they chat about how to message the property owners about the sell, how property management companies are a hot commodity and sell almost instantly without the need to advertise and what the cap is on growth in the industry. He believes that not every property management company needs to increase in size and that there is a market for smaller companies.
Matthew talks about the Property Management Mastermind Conference, what his presentation will be about, and the outline he is giving everyone that attends his class. This is an excellent conversation about acquisitions and the best way to go about them.
Have you purchased your for PMMCon 2020 yet? Don’t hesitate. Tickets are selling fast!
Show Notes
[03:01] Welcome to the show, Matthew!
[03:16] Matthew gives us the five W’s on him and his company.
[05:05] He gives us the rundown on the three types of money out there. Venture capital, private equity and friends, and family. He speaks about which one he uses the most.
[07:42] Matthew discusses his presentation for the conference and what you can expect.
[09:32] Brad and Matthew do some role play to walk through his checklist.
[11:33] Is there an industry trend on how to value a property? What are you seeing?
[14:07] The price will deviate depending on the terms and what that means.
[17:59] What do you do once you have verbally agreed on a price?
[21:38] When selling your livelihood, you need to know that you are getting what you want out of it.
[23:38] What paperwork is done first? Do you need a non-disclosure?
[26:54] They talk about being on a need to know basis when it comes to information that is shared.
[28:54] The due diligence part of the acquisition comes next. This is where the actual probing comes in.
[31:08] Look at the NARCUM accounting standards at NARCUM.org to see your options.
[32:08] What happens after the due-diligence part is done? Are you working on a contract at the same time?
[33:47] Matthew gives his opinion on what you need to know about clawbacks.
[35:51] Matthew speaks about how smooth closing is on businesses.
[37:51] Explain what you are purchasing? Assets or Stocks?
[39:13] He walks us through the first 90 days after the acquisition is over.
[41:01] Messaging the owners is a critical factor that you must take into account.
[42:42] Management companies are such a hot commodity that they don’t need to advertise a sale. They can keep it in house.
[45:10] Could you grow by 10% every year indefinitely?
[46:16] Matthew speaks about the deliverable he will be at the conference.
[47:40] Contact Matthew by text at 205-585-0415 or mwhitaker@gkhouses.com
Links and Resources:
Property Management Mastermind
Property Management Mastermind Group on Facebook
adisarro@sccombank.com
(619) 988-6708 (Allison DiSarro from Seacoast Commerce Bank)
(918) 728 8992 (Derek Scott with Insurance Management Group)
NARPM Southern States Conference
National Apartment Association
For the Property Management Mastermind Conference information https://pmmcon.com/
For the Business Development Mastermind Seminar https://www.eventbrite.com/e/bbc-business-development-mastermind-tickets-70402370385