Are you into technology? Do people always ask you to help them set up their tech devices? Do you take on roles and jobs where technology helps industries?
That’s how Sean Miller from PointCentral describes himself. He was able to take home automation and build it into an enterprise platform for residential property managers to run their businesses better and provide an amenity that residents want.
[02:48] PointCentral focuses on residential property management; its software is designed for short- and long-term single- and multi-family property managers.
[03:21] Some vendors target both property management entrepreneurs and consumers, winding up undercutting and competing with the property managers.
[04:47] Convenience and operational benefits to home automation technology.
[05:05] PointCentral built an operational benefit with its system for property managers and owners; that’s the base of the ROI, and the rest just adds to cash flow.
[05:15] Operational benefits and savings through locks and history of who is on the property; addresses vacant property risks.
[06:45] Thermostats and energy settings for when tenants are home, property is vacant.
[08:45] Keyless-entry offers greater security because floating keys risk is eliminated.
[09:05] PointCentral home automation integrates with various systems and sites.
[10:18] PointCentral uses cellular lines ( AT&T and Verizon) for 99% uptime reliability.
[12:49] PointCentral is a wholly owned subsidiary of Alarm.com; gets access to robust architecture and policies.
[14:08] Home automation is popular right now, but most startups fail; PointCentral will be in business down the road.
[14:33] Leveraging and access to data; handling security and data privacy issues.
[17:25] Data is analyzed to determine how property managers can do their job better and what information can be useful for problems.
[19:56] PointCentral integrates with Property Meld to coordinate maintenance.
[20:35] Onboarding process to get a property set up; cost is around $125-150.
[23:12] Basic hardware package, which includes a cellular hub, thermostat, and lock, costs about $550.
[24:08] Property manager could charge a fee to have a connected home (turn into profit center) and have language in the lease to prevent changes to the equipment.
[24:22] Cost, operational, and other benefits of home automation with PointCentral.
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Jason: Welcome DoorGrowHackers to the DoorGrowShow. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others impact lives, and you are interested in growing your business and life, and you are open to doing things a bit differently, then you are a DoorGrowHacker.
At DoorGrow, we are on a mission to grow property management business and their owners. We want to transform the industry, eliminate the BS, build awareness, expand the market, and help the best property managers win. If you enjoy this episode, do me a favor, open up iTunes, find the DoorGrowShow, one word, subscribe and then give us a real review. Thank you for helping us with that vision.
I’m your host, property management growth hacker, Jason Hull, the founder of OpenPotion, GatherKudos, ThunderLocal, and of course, DoorGrow. Now, let’s get into the show.
Today, I’m hanging out here with Sean Miller. Sean is from PointCentral. I’m really excited to share with my audience, Sean, the stuff that you guys are doing over PointCentral, it sounds really cool. Tell us a little bit of background about you and how you got into working with PointCentral and getting involved then in this stuff.
Sean: Great. Jason, thanks for the time to be here, it’s awesome. At a high level, I’m a geek. I’ve always been a geek. I was that child who got called over to hook up people’s PC and stereo systems. I’m fortunate for almost 10 years of my career, I’ve been able to be involved in roles with technologies helping other industries.
If your listeners have ever heard of somebody called Generac, about eight years ago I started electric device product there and then moved on to run WeMo which was Belkin. Belkin’s Home Automation Division, and then joined PointCentral because I really got excited of how PointCentral had the opportunity to take home automation tech, at least today, realistically was DIY grade. The software was DIY grade. The hardware was DIY grade and what we’d done is take that and build it into an enterprise platform that allows residential property managers to both run their businesses better and provide the amenity that their residents want.
Jason: There’s a lot of home automations systems out there. This is kind of a thing right now and it’s kind of the Wild West trying to figure out which things you use and tools you use. Now, what really sets you guys apart is that you focus on residential property management, is that correct?
Sean: That’s correct. Our software is designed for short and long term single-family and multi-family residential property managers. We spent the past seven years understanding how those businesses work, really trying to understand where’s their pain points in operation then how can we take this task refine it, and develop the software to where it should be easy for property managers to deploy it and reliable and secure to help their businesses.
Jason: Cool. That’s really unique. One of the concerns that I’ve noticed in the DoorGrow Club and in the property management space is that a lot of vendors, as they call them, a lot of property management vendors try to target the property management entrepreneurs, their businesses, and then they also try to go direct to consumer and they end up undercutting them or competing against the property manager and so they’re having to juggle this price, is that a concern at all with PointCentral?
Sean: Yeah. We don’t go direct to consumers—or in this case direct to homeowners—our whole business is work with property managers, so we try and be in all the trade shows in all the events where we can meet property managers and work with them to understand their system and then deploy it and how do we help them explain it to their owners and their residents. One of the interesting things is that we’re seeing homeowners are starting to ask their property managers about this tech or even sometimes just go out and buy it and install it themselves at a turn and then somebody would just pop-in and just go, “Wait, there’s a nest in there, I can’t control that. That doesn’t help me, you’ve actually just introduced a bigger headache for me.”
We support all your property managers and we do it in the way where we help the property managers show the owner, “You can get all the benefits that you want from this tech, but we are going to be able to do it in a way where it doesn’t disrupt our daily business.
Jason: Everybody wants a tech. I love being able to just go on my phone right now, if I’m uncomfortable and control my thermostat that’s downstairs, I mean, it’s nice.
Sean: There’s a lot of convenience to it, but there’s also a lot of operational benefits, too. A lot of the technology that’s out there today focus on just the shiny bell, “The renters will want this, this is cool.” You have owners go, “Wait, it’s $250 for a thermostat? Do renters really want that?” What we’ve been able to build first was we built our system to make sure there was an operational benefit to the property manager and the owner. That’s the base of the ROI and then all the rest of the amenities just becomes gravy and helps produce a positive cash flow.
Jason: Let’s get into that, let’s talk about some of the operational benefits because I think that really is what set you guys apart from going and just trying to DIY this stuff as a property management business owner.
Sean: From an operational standpoint, first and foremost, there’s a couple of products and categories where we see good operational savings. First is when you think of locks. Our locks,k you get to move from a key lock to a keyless lock that helps that turn cost, you no longer have to rekey your locks now because codes are just changed automatically remotely, you also get better history of who was in the property, wandering in the property for how long.
Depending on how your relationship is with vendors, you can know that someone may have charged you for three hours of work, but you will only see the event history and see that they were in the home for 45 minutes, you can either question, did they do the right job? Or are they just overcharging for the job they’re doing?
You can also do things like unattended show. Whether you truly want to remove the property manager from being there during the showing or you just want to supplement it because every property manager knows, there’s always the potential resident who says they’ll be there at [3:00] and definitely show up until [3:30] or cancel at [2:58], now the property manager has wasted time driving to the property and waiting there.
With unattended showing they can say, “Let the person in on their own,” and then show up a little bit later on or let the person do the first viewing and completely on their own and then follow up with them to engage, “How did you like the property and what would you like to do next?”
There are a lot of saving here. The other bucket that a lot of operations sees in this is thermostat, HVAC. Our system knows when the property is vacant or occupied, the property manager, when they first configure the system always tells it, “I want the vacant property to stay, say at 78 degrees and our system will sit there and watch that and make sure it stays at 78 degrees so whether a resident comes in and tries to change it or a vendor, as part of the turn tries to change it, the system will sit there and make sure the property stays at whatever temperature the property manager has set. It’s cool and comfortable, but you’re not running the HVAC at 65 degrees 24/7 while the property is vacant and that typically saves up about 10%–15% on monthly HVAC cost, energy cost.
Jason: What’s the typical cost of getting a property rekeyed roughly?
Sean: Rekeying a property costs between $100-$150, depending on your margin.
Jason: They’re reducing 10%-15% on HVAC cost especially during vacancy or while vendors are working on stuff. I love the idea of creating greater accountability for the vendors that are going in and out. You could see when they were in, when they were out. What about the risks of vacant properties?
Sean: The one problem of vendors, with codes, you can make sure that a vendor or even even someone doing a kind of showing, they have the code that only works for that specific set of time where the actual work time used–– because you’re doing that on kind of a showing, whether that’s Monday through Friday, 8-5, if you’re a vendor is making a guy that does ongoing work for you or it’s tied to a little bit longer point, but again, it has a very definitive start and stop, that allows you to make sure the right person is in only at the right time, and again, you’ve got the full event history.
The other thing we’ve seen is there is data out there that says, “Unfortunately, rental homes have a higher approval rate than owned homes,” and that’s because you use flow. People can figure things out. They know if the house is unoccupied or not, so the lights are always off. There is this ability to now, using keyless, essentially you have a more safe home because you eliminate all that risk of $40,000. You can also tie in and say, a light bulb or a light switch in an occupied home that will turn and off at sunset, turn off at sunrise.
It sort of simulates occupancy and again, it helps keep that asset a little more safe and secure both when it’s unoccupied as well as when it is occupied.
Jason: As far as like unattended showings, I think a lot of people listening are wondering, does this integrate with either property management software? Does it integrate with some of these companies that manage sort of the showing pre-application sort of process like Tenant Turner, Rently, and some of these things. Do you guys integrate? Do you compete? How would they kind of piece this together?
Sean: We look to integrate with keyless systems and can be showing sites as much as we can. We have integrations with Propertyware, we’re working on the one for AppFolio, we integrate with Tenant Turner, we integrate with ShowMojo, we also have big basic unattended showing a site on their own if someone is syndicating their listings on their own. We try to be flexible at the end of the day, what we see that we do well is providing this safe and secure home automation platform and then we look to our partners to help augment that and integrate with it. Because at the end of the day, no property manager wants to have to log in to three systems to do things so the more we can integrate it and just make it seamless, the better it is.
Jason: I think some people listening just got really excited hearing that you connect and integrate. I mean, integration seems to be a big buzzword right now. In terms of reliability, one of the concerns with these kind of systems are what’s required in the property? Do they have to have some sort of internet connection, internet router? It sounds like that would be a pretty big point of failure.
Sean: We can speak to that from doing this live we had some internet problems. WiFi internet today, broadband into the home is great for streaming Netflix and stuff, but the reality is it’s still spotty. We stream Netflix and you see it pixelate or drop things. That’s fine when you’re streaming video, but what we found is Murphy’s Law, that’s exactly when you’re sending a code to the lock or a thermostat control will be when the internet drops.
Our system is cellular based. That cellular base gives us pretty much the 99.9% of time reliability that the cellular networks have. It also allows us to provide a more secure solution. All the devices in the home talk to our cellular hub, we encrypt that conversation using the same level encryption that actually the NSA and banks use to encrypt data. Then we encrypt it again from the hub to our cloud. The data from the hub to the cloud is unicellular, so cellular is less porous than WiFi also, we can download an app today and hack into a WiFi network pretty easily. Cellular, it’s not that easy to do.
We collectively, with our parent company, Alarm.com, we have five million homes that run our collective platform. With that scale, we’re able to buy a private line on AT&T and a private line on Verizon. We have a line with each of the carriers that can give that coverage and that ability to serve every customer, but it’s only our data going back and forth on those cellular lines, again, adds another layer of security to make sure that data is only being with us and only therefore being read by the people we want it to.
Jason: That’s awesome. You have Verizon and AT&T, now what if the signal is kind of weak in their market for both?
Sean: The good news is the amount of signal you need to say to a voice call is higher than what we need. In any market, people sometimes, they only have one bar. One bar is fine for us, we can send the data we need back and forth on one bar. But because we have both, networks also, when a customer comes onboard with us, one of things we do in the onboarding process is ask for the addresses, and we go and check the coverage in that area, so when we send out the hardware, if we see AT&T is miles above Verizon, we’ll send AT&T, and if it’s vice versa, we’ll send Verizon. If both are good, then we’ll mix them so that you don’t necessarily have two things right next to one another just gives you redundancy.
Jason: With being connected with Alarm.com, I think that’s a pretty great selling point. Explain how Alarm.com plays into being a subsidiary of Alarm.com placed into PointCentral, how does that relationship?
Sean: We’re a wholly-owned subsidiary of Alarm.com. What that means is we’re able to tap in to some of the strengths that the mothership has, while again, designing the system that’s different than what Alarm’s core business was which was security and home automation systems for owner occupied homes. What that gives us is that architecture that’s robust that’s been out there for 15 years and have been continually developed and refined.
Our platform is based on that same architecture so that our customers get again that reliability, and that robustness. We talked about cellulars, so again, that’s overall scale that we’re able to provide the cellular network that’s secure and reliable, it is only possible because we have the greater scale of a larger entity.
We can show someone that we’re part of a publicly listed entity that continues to invest in us, invest in the space, and we continue to refine our products and that we’ll be here for them down the road.
Jason: You guys are collecting a lot of data, I would imagine because you have access to this, how are you able to leverage that and then are there security issues? I think one of the big things people are thinking about is like reliability with tenants like if you’re seeing their video doorbells and you can see when people are coming and going, that might raise some privacy red flags or concerns among the renters and so maybe you could touch on that a little bit, too.
Sean: A couple of things in there, first and foremost, a lot of that system architecture helps us provide a secure experience and also that we put ourselves forward at protecting that data.
I think one of the core things of data privacy is what happens to the data? At the end of the day, our system has recurring feeds, that’s how we make money. There are other large entities coming in the space like Amazon or Google.
At the end of the day, their business model is to collect data and sell it. We’ve been pretty open with people. That’s not what we’re looking to do. We want to collect the data, we want to analyze it, we want to provide valuable information to our property managers in a secure and private way, but we’re not looking to sell out that resident data to other people looking to monetize. I think that’s one core policy.
Again, from a privacy standpoint, besides all the things like the app and the website, two-factor authentication, and how we protect people’s logins. We also, at the end of the day, we just look to make sure that we do the right thing and only provide the right information to people when it’s appropriate and not overstep our bounds or we won’t do anything too aggressive.
But we respect that, we know at the end of the day that property managers, being entrusted by both the resident and the homeowner, we respect that and look to make sure we’re enabling them by not giving them any unneeded hot water because we’re struggling to do something or struggling to make ends meet. We’re looking for different ways to monetize,but we think we can protect and respect that privacy need.
Also the system, one thing about the system is it knows when things are changing state. We’ve already pre-programmed the hardware to know a video doorbell when it’s unoccupied, the property manager has access to it. But as soon as it becomes occupied, that goes away because that just gets property vendors into a lot of trouble.
Jason: Right. You’re preventing the property managers from hurting themselves and digging where they shouldn’t.
Sean: Yeah, whether intentionally or unintentionally, you don’t want to get a video clip that something maybe you shouldn’t see. Same thing with thermostats, once it’s occupied, property manager probably shouldn’t change your that temp. A lock on the other hand, we still allow the property managers to create access codes when it’s occupied, but it will now drive notifications to the resident because even in today’s world, the property manager can key into a home. They have a copy of the key, so we still want to respect that access to that potential need for access, but it’s done in a different way that balances the resident’s needs with the property managers.
Jason: Tell us what’s done with all this data? Is there a benefit to all the data that you’re capturing for the property managers?
Sean: You asked earlier, Jason about integration, so one of the reasons we also value innovation is, with our partners, they’ve also seen what they do well. The reality is, if all we are doing is connecting device data hub B, some of our partners can do that, but you’re adding the security, you’re adding reliability, that adds value, that’s part of what makes us––you’re adding that sort of system architecture and knowledge in the property management space to add some value, but then we’re able to collectively go is, last year, we analyzed 20 billion data points on what was happening in these homes.
We’re looking to use that data again to how do we help a property manager do their job better? The first way we’ve deployed some of that analysis is in HVAC. Today, if a property manager gets a call from a resident and says, “Hey, I’m trying to cool the house, it’s not cooling.” Historically, that meant a property manager probably had to go out to the property or have an HVAC technician go out to the property.
Today, they can log into our system and look and see what the set point is and how the system is performing and without having to be a tech themselves, just say, “Do I see a nice smooth line of temperature decreasing? Or do I see a jagged line that tells me the system is not performing correctly?” Then they know when to send an HVAC tech out. They can even send that chart to the HVAC tech if they want, so the tech gets an idea of what they are going out––what problems may they potentially see to make sure the right tech goes out.
We’ve also on top of just that data set to now rolling up some predictive notifications, so say for example, Phoenix, we have 30,000 homes in Phoenix who will say, “Look, it’s summer time.” On average, it takes a home in Phoenix two hours to cool 4 degrees. We can now notice if one home suddenly starts to take six hours. The good news, the resident probably hasn’t even noticed that yet, but we can tell the property manager that we noticed something. They can give that data to their tech and find an opportunity to go to service that equipment at a very low cost point. Because now, you can schedule it when the tech is not busy, you can schedule when it’s convenient for the resident. You don’t have a resident screaming at you and looking for concessions or putting a bad review of your company on Yelp or something like that. It just makes the whole process more efficient on how to service it.
We’ll continue to look at ways of how do we bring value of analytics to this, so there’s areas like water where sensing on how much water is being used and knowing if that’s a normal use or a drippy faucet. Video–there’s a lot of different applications that we’re looking to deploy our selected brain power into.
Jason: Do you guys compete with or do you guys think you can integrate with somebody like Property Meld who does the text message and coordination for maintenance.
Sean: We actually do integrate with Property Meld.
Jason: That’s amazing.
Sean: Someone using a Property Meld to do their processes, essentially, you have an ability for our locks to help automate that data––when did someone actually enter, make sure they’ve got an access code, make sure it’s being used by them.
Jason: He’s our platinum sponsor for DoorGrow live for 2018. I’m really excited about him. I’ve heard really positive feedback about their system as well. You’ve got like HVAC analytics, you’ve got this predictive features for like cooling and different things, you’ve got the video doorbells, maybe even light switches and I think even maybe water sensors and all these different things could be connected into this thing. What’s the onboarding process? How long does that typically take to get a property set up with this? What’s the typical cost per property and how can the property manager offset that?
Sean: Onboarding typically is when someone decides to go onboard with us. You actually get handed off from the sales team to––we have a dedicated project management team. That team works for the property manager on their schedule to sort of teach them the system, teach them how to install the product or if they want to use one of our nationwide contractors to do that, and hold them through that and then sort of graduate them into using the system on their own.
When the property manager has a question, whether it’s during, that is deletion and learning process, they can always call a project manager, but also during that time, and even once they’ve graduated, we have a US-based support team in Minneapolis that’s a dedicated team that a property manager can call into, so it’s just for the simple question, maybe they knew how to do something originally and they just sort of forgot how to do it and they––we have a bunch of resources online, but let’s just say they need a quick answer, they call this team, they get someone in Minneapolis are pretty good people and will help them answer your question in a relatively short amount of time.
We do see ourselves as partners and not vendors, we’re not just looking to make the initial sale, we’re looking to make sure people get on board and are successful and then once they’re onboard, keep them successful so that core team helps keep them successful. We have another team, called customer advocacy, all they do is run webinars to show people new features. Like that HVAC analytics, how do we do webinars and show people how do they get value out of this so that they can continue to see the system?
Installation, you asked about costing and stuff. So, installation, if you do it yourself if you have a maintenance guy, it should only take 20-25 minutes, a thermostat replaced with a standard thermostat, the door bell replaced with the standard doorbell, the hub for––now, it’s not long. It just goes into the coat closet or set up above the microwave and that’s pretty easy. If you had to pay an outside party, there’s a nominal fee to the outside guys typically cost by $125-$150 per month.
Jason: They can offload that if their maintenance guy is not able to get to it.
Sean: Yeah. If you have a maintenance person, this outside team can usually get into a market and do it for you.
Jason: What’s investment per property to get this system up and running then?
Sean: Typical hardware, we’ll call it base packages, it’s our cellular hub, our thermostat, and our lock, that’s going to cost about $550. That’s if you look at the lock or you look at the closet thermostat that’s more competitive. Actually, a thermostat retails for about $150, less than other connected thermostats, but we feel that’s competitive from a hardware standpoint and then there’s a monthly recurring fee of about $12–$15 depending on the property manager size that they’ll pay it out every month, but that covers all the cellular connectivity, all of the apps, all of the integrations, everything.
We’ve had peers who recently said, “This is everything you need right here. Whether you have two devices at home or 30, everything connects to it and we’ll make sure we cover all the data mapping, back and forth and provide that value to the property manager for that.”
Jason: The property manager could potentially charge a fee for having a connected home also put language in their lease to preclude them from screwing with any of that like installing their own nest thermostat that they’re going to leave in and you’re not going to know how to get into or any of those potential challenges. They can turn this into maybe even a profit center or at least to offset the cost of this happening.
The typical cost of getting rekeys done is a cost that they’ll be offsetting and there’s additional cost and benefits. I would imagine in the end, they’re able to have all these benefits, have a more connected home, lower their internal operational costs, make sure vendors can get in and out more easily, increase the level of security and safety of the property, decrease liability, and they’re going to be able to basically create a system that pays for itself, it sounds like.
Sean: You’re heading on a good point, so one thing, once property managers get into this, they start to understand the operational benefits, they have those pain points, they understand them. Pain points are keys, and thermostats, et cetera.
One thing that they may forget sight of is, this technology actually is in demand by the residents. About a third of US household today have some form of automation tech in it. But that’s the average. If you look at rented properties, it’s a lot lower because for renters, it’s difficult to get this tech. The tech is sort of expensive when you think about the $500 for a lot of that thermostat.
There’s questions about how they would install. There’s questions about how they build the app and configure it? Who do they call for support? What’s the landlord’s take? What’s the property owner going to say? What’s the owner going to say? They just avoiding it, but the reality is there’s this pent up demand. What we’re seeing, when the property managers will have this system, that core system of a hub, thermostat and a lock will typically be offered to the resident at a $20 a month price point and we see north of 50% adoption.
I don’t want to disclose this to you of everyone’s adoption but I can tell you it’s definitely north of 50 and what that creates is essentially a positive cash flow under recurring every month from that system, you marry that with those term cost savings, and most of the hardware is paid usually in that first term savings.
By the second term, it’s all paid off, and everything is just gravy at this point. It’s just incremental feels and we’ve even found some property managers that create a base with residents, stay in the house longer because they have this feature, it helps them make it feel like a home, they’ve also been able to be creative.
Knowing that the residents like this, instead of maybe having to offer a concession, a dollar concession, when someone leases up, they can go to them and say, “Hey, guess what? How about I install a connected line switch for you,” or “I’ll give you a Google home,” things to augment and help them get more value out of the system which kind of keeps them attached to that home.
Jason: Yeah, it’s going to increase tenant retention, it’s going to decrease turnover in the properties which is going to lower a lot of operational costs and there’s a lot of things that go into turnover.
Sean, tell everybody how they can get connected to PointCentral and what sort of the next step that you’d love people to take?
Sean: If you want to connect to us, just go to our website, pointcentral.com. I’d asked people––we have some videos on there, we have some testimonial white papers, etc. I’d ask them, go learn a little bit about what we do, get comfortable, and when they’re ready to have a conversation, there’s an easy way they either call us or fill out a form and we’ll call you.
As part of that process, we can provide references to people, who’s using their system so I can tell you we have customers as small as two homes that use our system, and we have customers that own over 80,000 homes that use our systems. We think we’ve designed a system that’s robust and scalable that is providing value to everyone, no matter how they run their business, how they do it, but it’s flexible enough to fit their needs.
Jason: Sean, this is awesome and it sounds really exciting. I’m excited to see how thing progress for PointCentral so keep us posted. Shameless plug, hopefully we’ll be seeing you at DoorGrow Live as one of our vendors, so we can chat about that later. Thanks so much for coming for coming on the show. I really appreciate it.
Sean: Yeah. I look forward to engaging with you guys live and I appreciate being here, so thank you, Jason.
Jason: Awesome. Everybody heard Sean here. We appreciate him coming out, check out pointcentral.com. It sounds really cool that it’s integrating with all these different things. If you are a property management entrepreneur, you are interested or curious about the best practices in the industry, you want to connect with other property management entrepreneurs, make sure you get inside our Facebook group, the DoorGrow Club, you can get to that by going to doorgrowclub.com.
If you want to have a conversation, our mission is to take struggling property management entrepreneurs that are the best in the industry that care about owners and tenants, and we want to help you win and take you out of that mode of struggle and we’re really great at doing this. Check us out at doorgrow.com and have a conversation with my sales team, and let’s see if we can get you out of what we call the cycle of suck which is property management help.
I’m Jason Hull with DoorGrow, here on the DoorGrow Show. Thanks for tuning in, be sure to like and subscribe to us in iTunes and leave us a testimonial, we read those, we look at those and we want to see that we’re adding some value to the space, we’re obviously not getting paid to just do podcast all the time and so share testimonial or share your review of us, we want to hear your feedback, what you like, and what you’re enjoying, and we really appreciate that. That would make the world to me and my team. That’s it everybody, bye everyone.
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