Episode Overview

Host: Daniel Shaked (Home365)
Guest: Mark Brower, Owner of Arizona's Premier Property Management Firm
Duration: 54 minutes
Topic: Real estate investing, property management business transformation, and wealth building strategies

Key Topics Covered

• Property management vs. wealth management mindset
• Business model transformation in real estate
• Technology's impact on property management
• Investment alternatives and competitive landscape
• Owner psychology and education strategies

Complete Detailed Transcript

Introduction: Authentic Leadership in Property Management

[00:02:00] Daniel Shaked: Welcome to Real Estate Investing Open Kimono by Home365. I'm Daniel Shaked here. We are discussing real estate's biggest traps with brutal honesty, no fluff, just raw truth to help you win. And today, get ready for Mark Brower, a brilliant thought leader and owner of Arizona's premier property management firm. This ultra marathon rock star, incredible human being - he is on fire helping good people do good things.

[00:30:00] Mark Brower: Yes.

[00:31:00] Daniel Shaked: I'm so happy to have you here. The first time I came across you was when I saw an interesting post, I think a short video that you posted about some crappy review you got and you took it so personally and you were discussing like how should I comment? How should I respond to this owner? And I'm like, this is the guy I want to meet. I want to talk to this person. He's like in pain. So emotionally codependent...

[00:53:00] Mark Brower: This emotionally codependent, overly caretaker personality, I wanna meet this guy.

Personal Growth and Professional Authenticity

[01:06:00] Mark Brower: Yeah, no, no. That's what we got to do, man. Just like show up and you know, it's, it's, you know, I don't know. Like early in my career, there was a, there was a sort of a wall between personal Mark and like the professional persona Mark. And I'm going to be honest, it's taking a long time to get familiar and sort of blend those two together. And I feel more comfortable than I ever have before. Cause the reality is we all have infinite worth self-worth and we all, if we're committed to

[01:36:00] Mark Brower: This is what I've been thinking a lot about recently. If we're committed to love, honesty, and commitment to others, our attachment to those things immediately qualifies us for infinite intrinsic self-worth. We don't need to do anything to try to earn our self-worth. It's already there. And we can feel that. And everybody says, well, you should just feel that. You should just know that you're worthy of love.

[02:06:00] Mark Brower: Easier said than done. It's been a long journey for me. I'm 47 years old and I feel like I'm for the first time in my life, I'm getting really close to the point where I don't have to perform for anybody. I don't have to, I don't have to earn, you know, through performance, my own self-worth. It's just there. And so now that, now that that anxiety is gone, you know, how do I show up in a way that's most useful to other people that, that,

[02:35:00] Mark Brower: honors and loves other people as much as I honor and love myself. I've been listening to Brene Brown recently and others talk about boundaries, right? And so, so if we can, if we can honor and love other people the same that we honor and love ourselves, then we're in the right place to have the right kind of relationships and connections. We don't have to figure out how we're supposed to show up. We just show up and then we know we're enough. So.

The Core Problem: Property Management vs. Wealth Management

[08:20:00] Daniel Shaked: I think that everything starts with the real estate investing as an alternative for gaining wealth as a store of value. And is it competitive in today's world versus other alternatives? And then if the answer is yes, and real estate investing is a great store of value, still attracts half, it's like $500 trillion of global wealth in it.

The Real Competition: S&P 500

[32:22:00] Mark Brower: Who is our biggest competitor? Do you know?

The Mr. Cooper Case Study: Transformation Example

[23:25:00] Mark Brower: Nation Star Mortgage, one of the country's largest loan servicers. Very similar characteristics to property management: mature industry, low profit margins, boring. These guys were sitting around thinking like, how do we go paperless to increase our bottom line? It was a commoditized super low margin service industry until Nation Star Mortgage rebranded as Mr. Cooper.

[24:50:00] Mark Brower: They're taking an audience that's requisite that you engage with this company every month until you pay off your house. And they're saying like, what can we do to expand trust and opportunities and profitability with this client base? They started getting statements that would say things like: "You have $187,432 equity in this house. Which of these life events is coming up next for you? Kids going to college, marriage, important family vacation."

Technology's Inevitable Impact

[28:52:00] Mark Brower: It won't be long, Daniel, before AI does most of the property management tasks for us. I would guess under 10 years tops, probably under five years, where most of the tasks are done by AI and they're done better than humans and they're standardized.

Home365's Revolutionary Model

[49:09:00] Daniel Shaked: When you can guarantee someone a financial outcome, suddenly you completely change the business model. I'm not guaranteeing the outcome, but I have skin in the game. If the owner is not profitable, we are not profitable. We're losing money. And that's exactly the fund management mindset.

The Rent Guarantee Innovation

[52:13:00] Daniel Shaked: 80% of the new owners that are joining Home365, around $7,200 every month of new owners, are coming in with vacant properties. Vacancy drives almost all of the decisions. Vacancy is the biggest enemy of the real estate investor, stresses them out like crazy.

[53:12:00] Daniel Shaked: We are going to protect your income so that you know that we have zero incentive to make your property sit vacant. We're going to pay you a guaranteed rent while we are marketing and turning this property and making it rent ready. If the property sits vacant, we are paying your rent instead. Your income is protected.

Guest Information

Mark Brower is the owner of Arizona's premier property management firm and a thought leader in the real estate investing space. He advocates for transforming property management from a service business to a wealth management partnership.

Episode Keywords

Property management, real estate investing, S&P 500, wealth management, rent guarantee, business model innovation, AI automation, landlord education, investment returns, profit sharing, data analytics, underwriting algorithms