This post covers a few different real estate investing topics: what is happening in the market today, how can diverse teams make you stand out from the competition and increase revenue, and I'm also giving a quick update on our tech stack.
What is happening in the real estate market today?
- The following are four different people that are having issues that I learned about just last week:
1. We are already seeing people go bankrupt in the multi-family space: 3,200 units from one operator were just returned to the bank in Houson.
2. Another big time person in the multi-family space sent an email out to their investors saying they will be doing a capital call.
3. I spoke with someone else that is currently extremely busy helping several owners add value to their multi-family properties, they weren’t good managers and are now hanging by a thread, if the value isn’t added, it’s over.
4. I also met someone else that partnered up with operators, this person was responsible for raising the funds, and now the management company that the operators hired is so bad that they only have 3 months runway. This person asked them multiple times to change management companies, and because the operators think the management company is highly regarded, they are not budging. Now what? The capital raiser not only updated all of their investors on the situation that they're in, but they're also speaking with attorneys and the attorneys said to keep a record of all conversations that they're having with the partners.
Why is Diversity Important?
- This is a very important topic because I see a lot of non-diverse teams in the industry. And it's a proven fact that the most diverse companies outperform their less diverse peers by 36% in profitability. One study by Gartner revealed that a highly diverse environment can improve team performance by up to 30%. Diversity can also lead to better decision-making and higher profitability. When I talk about diversity, I don't only mean people of different colors, I mean people of different backgrounds, countries, younger, older and everything in between, because we have experienced different teams and therefore are more creative in the unique scenarios that arise when building companies.
Men vs Women
- This is, in my opinion, the best kept secret that is not a secret: women are fantastic operators, women led companies are simply ran better and are more profitable. This is because men and women are different in nature, and that is a beautiful thing because we must work with people that are strong where we are weak.
- If you don’t have a woman in your exec team, you definitely must look for one, and I’m not saying this because I’m a woman, I’m saying this because we are very different by nature, we care about different things, we observe different things, and we have different strengths and weaknesses that I think, combined, make for a super powerful team. And I’m not just saying this for the sake of saying it, it’s proven that women led companies perform better, and I’ve seen this both in the tech world and the real estate world. I’ll be generalizing, but according to my personal experience, men have big hairy goals and they don’t really think about the details of those goals. Women, on the other hand, are way more careful and conservative. Imagine how we can both lift each other up to a much better place? Women will be more careful in her underwriting and more conservative on her estimates, and the guys will be dreaming big and aiming high, in my opinion it’s a great combination, and a combination that must be implemented in your company asap.
Tech Updates
- We have moved our phone provider from Grasshopper to Openphone. I know this is a minute item but I have shared that we used Grasshopper with you before, and we have finally found a much better phone provider, that are not only cheaper, but they also have a much better design.
- VA saga update: we are still having a hard time finding reliable VA’s in the Philippines, we are trying one more person out from the virtualstafffinder.com company that we hired to look for candidates. If that doesn’t work out, I will be looking in Mexico and update you. As of right now we won’t be recommending virtualstafffinder yet. The reason is because they only give you 2 weeks to make sure that this person is a good fit, and if they don’t work out you will have to pay the finders fee again. The pro is that they don’t charge a percentage of their pay.
Links mentioned in this post: Diverse companies do better www.fastcompany.com/90753499/companies-perform-better-if-theyre-more-inclusive-take-these-3-steps-to-increase-diversity
Women led companies perform better: www.techrepublic.com/article/companies-with-female-ceos-found-to-be-more-profitable-on-average/
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