August 16, 2025 • 34 mins
Diving into the world of property management with Derek Morton of NetGain Property Management reveals how a simple philosophy—"we try not to suck"—transformed into a thriving business managing 650 rental units in just nine years.
Derek's journey began in the title industry where he felt he'd hit a professional plateau. Seeking economic stability through market fluctuations, he launched NetGain with just two properties and a straightforward approach to balancing owner and tenant needs. What started as a modest goal of managing 100 units quickly expanded as Derek refined his systems and became increasingly selective about which owners and properties to take on.
At the heart of successful property management lies the ability to establish clear guidelines and stick to them—regardless of emotional appeals or difficult situations. Derek candidly shares how bending rules almost always leads to problems, noting "every time I make an exception, I get burned and have no one to blame but myself." This wisdom extends to screening tenants, handling maintenance issues, and setting appropriate expectations with property owners.
The podcast delves into practical considerations for anyone considering property management or looking to rent out their own home. Derek explains how NetGain's technology stack provides transparency to owners through weekly updates, streamlined maintenance approvals, and efficient vendor relationships. These systems allow them to handle hundreds of work orders monthly while maintaining quality service.
For first-time homebuyers wondering if they should keep their starter home as a rental property, Derek offers invaluable perspective on what successful landlording actually requires. His insights reveal why many accidental landlords eventually seek professional management—from the challenges of getting vendors to respond quickly to the reality of late-night emergency calls.
Ready to explore property management or connect with experts who can handle the day-to-day stress while you collect passive income? Visit netgainpm.com to learn more about Derek's approach to creating win-win situations for property owners and tenants alike.
Sarah Thress
614-893-5885
First Time Home Buyer course: https://sarahthress.graphy.com/
Instagram https://www.instagram.com/sarah_thress_realtor/
Facebook https://www.facebook.com/SarahThressRealtor/
https://www.youtube.com/@LIFEINCOLUMBUS
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:03):
Hi and welcome to this week's episode of Come to
Find Out.
This week we have Derek Mortonand he's of NetGain Property
Management, and what I thoughtwas really exciting about what
he does is I get clients all thetime that ask like, hey, I want
to get into property management, hey, I want to get into, like
investment properties, fix andflips, like all of those things.
(00:25):
And Derek's figured out how tokind of make that all work from
a property management standpoint.
So I was really excited when Iheard from Derek and he wanted
to come in and share hisknowledge.
So, derek, thank you so muchfor taking time out to join us
today.
Speaker 2 (00:43):
No problem, thanks for having me.
I'm excited.
Speaker 1 (00:45):
Derek, thank you so much for taking time out to join
us today.
No problem, thanks for havingme.
I'm excited.
Yeah, absolutely so.
Kind of walk us through, likehow did you get into property
management and you know, how didthis all kind of evolve, like,
did you just always know I'mgoing to be, you know, a
property manager, or did youkind of fall into it?
Speaker 2 (01:02):
Becoming a prick came naturally no, I'm just kidding
kind of fall into it.
Becoming a prick came naturallyno, I'm just kidding it just.
It just kind of just happenedLike I was in the title industry
for years and years and yearsand just kind of felt like I'd
plateaued.
I was marketing for the, forthe title company here locally,
and just was looking on, let'ssee if I can't do something else
(01:23):
, and tried a bunch of differentthings that weren't working.
And I had a buddy that's like,hey, let's start a real estate
brokerage.
And I'm like I hatetransactional real estate.
That's part of my struggleshere in the title.
I'm like that's not my thing.
And so we finally settled andhe helped me start NetGain.
And little did I know at thetime that you know, in Utah I
(01:48):
had to be at a real have a realestate brokerage and had to be a
licensed real estate agent.
So all the things that wetalked about a year before I
ended up having to do anyways uh, just for you know, for
property management.
So that's kind of how we did itand I started it nine years ago
here in about 10 days, so Julyone will be nine, nine years.
Speaker 1 (02:00):
Wow, wow, that's amazing.
So you're in Utah, that's great, and I'm sure that you have
different you know real estaterules than we have here.
But I would love for you tojust kind of walk us through,
like obviously you know you werein title and you know you were
like I don't really like this,you know.
(02:20):
Kind of walk us through whatwas your thought process then to
go into property managementKind of walk us through.
Speaker 2 (02:25):
What was your thought process then to go into
property management?
So some of the process reallycame down to I had survived.
I moved my family down to whereI'm at in 2006 and was
immediately upside down in myhouse the month after I bought
it and a year later, after Imoved my family, with the title
(02:46):
company I was with, I was let goand I got lucky enough to be
able to latch on with anothertitle company and so, like I was
just kind of going where I feltlike I'd plateaued, like it's a
smaller area where I was at.
So at this point I'm like allthe real estate agents that are
going to use use us are going touse us and those that hate us,
like we're, we're kind of theHatfield and McCoys at this
(03:06):
point, like nothing's going tochange for generations.
And so I just kind of felt likeI I plateaued and I wanted to do
something that I felt would beable to provide for my family
through different economic peaksand valleys.
And so we just kind of settledon it on this, and we kind of
looked at our competitors andjust said I wonder if we could
(03:30):
do it just a little bitdifferent and we try to find
that balance between owners'wants and needs and tenants'
wants and needs.
And you know, in some wayswe're nailing it, in other ways
we're still trying to improve.
But that's just kind of whereit came from.
I just figured it would give usa little bit more economic
stability through the highs andlows that I knew were coming.
(03:52):
And so here we are.
Speaker 1 (03:56):
Yeah, I love that.
So net gain whenever you guyscreated this, I'm sure it's kind
of evolved Did you start it oneway and it's evolved into like
a bigger, like bigger thing thanyou ever thought, I guess.
Just kind of walk us throughwhat does NetGain do?
Speaker 2 (04:12):
So, conceptually, the initial concept of what we
wanted NetGain to accomplish isstill in place.
The way that we look iscompletely different and the way
we're going is completelydifferent than anything I
envisioned.
Like I told my wife, I said, ifI had a hundred units, I'm good
.
And here we are at 650 units,managing 80% of the population
(04:33):
based in Utah and still growingrather quickly, and so with that
we've had a lot of adjustments,but we always just try like.
Our basic ethos in our office isuh, we try not to suck.
That's part of my sales pitch.
Everyone's like oh, like, I'mwith this person, what makes you
different?
And I'm like well, we just trynot to suck.
(04:54):
And it's amazing becauseeveryone's like I like that.
What does that look like?
Like?
Well, you know, here's, here'swhat we do, here's how we do it.
And we're not going to beperfect.
We're going to make mistakes,but we're going to try to fix
them and I'm pretty transparent,like I tell them.
I said you know, if it's notworking for us or for you, then
(05:14):
you can move on.
You deserve to have a managementcompany that's taking the
stress off of you that you needto and is doing it in the way
that you want to do, and so someof the big changes is I'm a lot
pickier on the owners that Itake on.
That's huge for investors Likeyou have people all the time,
(05:36):
little cops, like hey, we wantto use you, your reviews are
great, you sound fantastic, andthen they struggle with the way
we go about doing stuff.
I don't know if that's going towork for me and it's like
that's fine.
Go find someone, becausethere's there's.
You know, management companiesare a dime a dozen, so you can
find someone that can fit theway you want your property
(05:56):
managed.
And if the way we do it doesn'twork for you, then that's,
that's fine.
You know, no sweat off our backand you can go find someone.
If it does, that's fantastic.
We'll have a great time, we'lldo a lot of good and help you
make money, and so that's thebig thing is being able to be a
lot choosier on owners, morechoosier on vendors, the girls I
(06:23):
have in my office are awesome.
You're awesome in your officeyeah, I'm not awesome in my
office are awesome.
You're awesome in your officeyeah, like I'm not awesome.
Awesome in my office.
They kick me out all the timeso they can be productive, um,
but uh, but those sorts ofthings, um, and then, as we've,
you have different conversations.
We continue to scale and andhave different service areas,
that how do we keep that ethosof you know, we don't want to
(06:44):
suck at what we do but still beable to scale, like those are
hard conversations that I laughat as we're going through them.
Some days I'm on this side andthe next day I'm on the next
side.
You know, sometimes I'm likeokay, I think we're going to do
this, and then the girls in myoffice no, no, I'm thinking I'm
(07:05):
like god, oh, we were there.
Um, so we're just constantlyjust kind of changing and
tweaking and society's changingand tweaking and like so it's
just a constant battle.
But we just try to have a basicethos that we just try not to
suck at what we do I love it.
Speaker 1 (07:21):
Yeah, I, um, I agree, I'm kind of the same way.
I um.
I just say, like, customerservices, uh, you know, top for
me, like, if you're not gettingfive-star customer service, you
know, then there's, there'ssomething wrong.
I must suck at something thatI'm you know that I'm doing Um,
and all the people that I workwith must deliver five-star
customer service, or I'm nolonger going to um, you know,
(07:42):
refer anybody to them.
So I love that.
Um.
Now, when you started this,though, did you have any
properties that you were alreadymanaging, like personally or
like?
How did this idea even pop up?
Speaker 2 (07:52):
I started with zero.
Wow, this property was a friendthat, um, he was going to be
selling it anyways, so he's like, just just manage it.
I offered to manage it for free, just so I could say I had a
property.
And, um, because I'm smartfinancially, we decided to start
this while we were just afterwe finished building a house.
(08:13):
Um, you know, cause that's thesmartest thing to do.
It was my wife's idea.
I didn't want to do it, but shepushed me into it, so that was
a good husband.
I said yes.
I said yes, dear, um, but thenthe town home we were living in
at the time we, uh, we decidedto rent it and so I had two
units and it was kind of a slowbuild at first and then had a
(08:35):
little bit of happenstance towhere, uh, our agent buddy of
mine was doing management and heoffered me that you know, hey,
I'm tired of having my wife dothis.
Um, do you want to buy like the25 units we have in our
portfolio that we're managing?
And?
And he offered me the.
You know, hey, I'm tired ofhaving my wife do this.
Do you want to buy like the 25units we have in our portfolio
that we're managing and I'm likesure.
And so I got a first paymentdeal and after that it's just
(08:56):
kind of been a rocket ship, wow.
Speaker 1 (08:58):
So if somebody has a property because I have a lot of
, I work with a lot offirst-time homebuyers.
I also specialize in divorcereal estate, so to kind of
there's a, you specialize?
Speaker 2 (09:10):
in divorce real estate.
Speaker 1 (09:12):
I do.
Speaker 2 (09:14):
That's one of those things that you wouldn't think
is a thing, but then you hear itand you're like that makes
sense, that's a thing, yeah itis, it is I mean, so I.
Speaker 1 (09:24):
So I've always specialized in first time home
buyers, cause I, just mybackground is a nonprofit.
I've always been all about theunderdog, and I think that first
time home buyers are underdogs.
Um, and then I really yes,especially now.
Um, and then I just was like Ifeel like I want to do more and
I found myself always coachingpeople, either on real estate or
divorce, Because after goingthrough a divorce a decade ago,
(09:48):
I've known other people friends,family, whatever that are going
through it.
Randomly, people in the airportwill literally start talking to
me about their divorce stories,like I've just met them.
So I was like, okay, theuniverse is trying to tell me
something here.
Speaker 2 (10:04):
So I started looking around.
You need to invest in the bussignage now Like divorce real
estate specialist, right next tothe attorney.
Speaker 1 (10:12):
Yes, I know, well, it's funny, because I looked
around and nobody in mycommunity specializes in it and
most people are like I wouldnever want to do that and I was
like why?
It's just a little bit ofpatience and, just like you know
, staying neutral and remindingeveryone like there's nothing
fair about this.
So what, what?
Where's our win-win?
What can we figure out here?
(10:33):
Like it's just, it's just nottake fair and throw it out the
window, cause nothing's fairabout divorce.
Speaker 2 (10:37):
So, um, but yes, so cool story you, that is.
That's awesome.
Non-profit to that.
Yeah, you're not, sorry, I'mgoing to turn.
I'm going to turn the tables.
What, what non-profit were youworking and what?
Was the yeah I'm on board for acouple non-profits, so like, I
love that, that world I lovethat, yeah.
Speaker 1 (10:58):
So I actually um, I kind of stumbled into it.
Um, so I was working at OhioState University and I was an
administrative assistant and Isaw this opportunity in their
development department and I waslike, well, like what do you
guys like develop?
And they were like well,relationships, and I was like
huh, okay.
(11:19):
So kind of just like I was likelet's just see where this goes.
And so I supported the seniorvice president, learned a lot
about like the ends and outs.
Someone was like I think you'dbe a great development officer.
So that's kind of how I gotinto fundraising.
I was like I'll try it out, whynot?
So I fundraised there at OhioState for diabetes transplant
and regenerative medicine.
So three really really coolareas.
(11:42):
Wow, really cool.
So I was there for about sixyears and then I went to a local
nonprofit called the furniturebank and they help families that
are experiencing homelessnessor coming out of the shelter
system and it they've got ahouse but they don't have any
furniture.
So furniture bank partners withtheir social worker and so they
(12:03):
get a whole house full offurniture delivered to their
house.
It's all free to them.
So I was their director ofdevelopment.
Yeah, that was really cool.
I got to help set up a socialenterprise and set up a new,
really cool event for them.
So I found that very, veryfulfilling.
But I missed the healthcare partof it.
So then I went to anotherhealthcare system here in Ohio
(12:26):
it's called actually Ohio health, um, and so it was an inner
city hospital, uh, grant um,which was in our downtown area
and, uh, so they help a lot ofunderserved, um, you know,
population.
So I kind of got to merge boththe underserved population and
the medical part of it and sothat was really cool, kind of
creating a medical respite, um,a place where people that, uh,
(12:49):
you, people that don't have ahome to go back to when they're
done healing if it was you or I,we'd just go back home and
finish.
They would actually have to goback on the streets, which means
they're just going to end upright back in the hospital.
So we created this medicalrespite, so we partnered with a
nonprofit down the road and theyhad the space but no money and
we had the money but no space,and so we were able to combine
(13:12):
that.
So, yeah, that's awesome.
Yeah.
So I really loved it, um, buthonestly why?
I was at Ohio health, I wasgetting my MBA and I thought
that I was just going tocontinue on with my career, um,
in nonprofit.
And then, um, and then therewas a girl in my class that was
like you should totally do realestate.
And I was like, really, like Idon't know, like I'm good.
(13:35):
And then the more I thoughtabout it, the more I was like,
well, I'll diversify.
And so, april 1st of 2020,parted ways with corporate
America and thought I was goingto do consulting and real estate
, and then the whole world shutdown and so consulting went away
and I've just been in realestate.
But I honestly think that, youknow, the universe put me on
this path for a reason, and Ifind it much more fulfilling
(13:56):
than I ever thought it would.
Speaker 2 (13:57):
And now you're in your podcast house too, yeah.
Yeah so that's, that's quitethe journey, that's yeah.
Speaker 1 (14:05):
Yeah, thank you, thank you.
Um, yeah, I appreciate youasking that.
Um, but yeah, so I will alwayshave that soft spot in my heart.
I'm a bleeding heart.
I love, all you know, theunderdogs and things like that.
So, um, you know, but a lot ofmy first time homebuyers, once
they purchase something, they'relike okay, so if I move on to
something else, could I keepthis and rent it out?
(14:33):
And I'm like, yeah, of courseyou could, and they're like okay
.
And then some people are reallyexcited about that idea and
others are like, but I have tomanage it and all of this stuff.
So what kind of advice wouldyou give to somebody that was
kind of in that spot, like ifthey came to you and said, hey,
I'm getting ready to purchasesomething, know, similar to what
you did.
What do you think you learnedon that path?
And what kind of like advicewould you give people you'll
(14:53):
need to go to the post office?
Speaker 2 (14:55):
so um for them to register I would talk to an
attorney, okay, um, so that wayyou have basic here.
Here's what the laws are Mostof the time, especially if
you're going to manage yourself.
99% of the people like sin outof ignorance.
Speaker 1 (15:17):
Yeah.
Speaker 2 (15:18):
You know.
And then, once you have there,like here's the hardest part is
you're going to have to havefirm guidelines on what your
policies are going to be.
And this is something I stillstruggle with.
Yeah, Personally, the way I'mwired is I'm like, okay, these
people are going to be, you know, I think we can do it, you know
(15:39):
we can make it work, here'swhat.
And then I get burned and I'mlike son of a, you know, and I'm
like I have no one to blame butmyself on that.
And so, knowing what those are,and then don't compromise on
them, yeah.
No matter how bad you're goingto feel, no matter what they're
going to call you.
These are our policies.
Speaker 1 (16:03):
Yeah.
Speaker 2 (16:03):
Because one of the things I've learned and I didn't
know this until I started Well,I learned it two ways.
One, the way I convinced mywife to let me start a
management company is that townhall.
She's like that we were goingto rent.
I just had her do everything.
She's like I don't know and I'mlike, fine, you do it.
And she'd ask me a question.
I said Google it.
She's like all this.
(16:25):
By the time she was done shewas like just do it.
I don't know if you're going toactually do it, but I see why
people are hiring.
So just you know, mama's got toeat pretty much to make it work
, right, but we'll let you onthis.
I see the value.
But the other aspect of thisthat I didn't realize is so
there's a lot of people thatdon't want to rent from a
(16:48):
management company, and some ofthem the reason being is because
they know that they don't meetthe management company's
criteria, and so, as you'reposting and trying to rent this
property, you're going to haveall sorts of types appear.
And that are going to come toyou and they're going to have
(17:08):
all sorts of types of peoplethat are going to come to you
and they're going to tell youyour stories and they'll explain
why they're in the situationthat they're in, and so then you
have a decision.
But that's where you've got tohave your policies.
Here's our guidelines, and ifthey don't meet them, like it is
what it is, because most ownerslike, when we take over
(17:29):
properties, they're in thesituation they had.
I just there's the sob storyand I just did it.
And now I'm in the situationI'm like can you help me?
And then I have to jump in andbe the bad guy and, you know,
try to clean up the mess, and Ialways have to tell the owners
I'm like I'm guilty too.
So, just so, just so you know,like it's not just you, there's
(17:51):
already people that justnaturally aren't going to come
to us because they know they'renot going to meet a management
company's requirements, but aprivate owner.
A lot of times they just comeout of the woodwork Like oh, hey
, and so, like just knowing andhaving your guidelines and not
(18:12):
being willing to compromise onthose, yeah and just, this is
what it is.
Everything, like not every time,but more times than not, when I
bend and make an exception oh,I've got to get this place
rented.
I've got to do this.
I said I'd get burned and Ihave no one to blame but myself
and I did a disservice to me, mystaff and my owner.
(18:32):
Yeah and uh.
So your policies, you know, andyou can set your policies
however you want, like that's.
You just have to be consistent.
That's the beautiful thing.
Like if you're like this iswhat I want, you know, you've
raised the pros and cons andthere you go.
You know, that's what it is.
You can set them however youwant.
So you have that freedom, youknow, and that's what it is and
you can set them however youwant.
So you have that freedom, youknow.
Just don't, don't compromise onthem.
Speaker 1 (18:53):
So let's say I had a property that I was like man, I
really want to rent this out,but I do not want to take on the
management side of this.
And I reached out to you.
Can you kind of walk me throughthe process Like, what does
(19:13):
that look like?
You know?
Like hey, can you help me likewith this what?
What would you do Like you know?
Cause I know you said youexplain your processes and if
it's, if it's not, you knowyou're not their cup of tea,
then you know that's fine, whichis exactly what I say too.
I'm not everybody's cup of tea,so totally get that, but kind
of walk us through what doesthat process look like?
Speaker 2 (19:28):
So, like we always start the conversation and I
usually will just tell him, Isaid, look, I said I'm going to
ask you probably just as manyquestions as as you're going to
ask me, cause I want to try tolearn as much about the property
, I want to try to learn as muchabout them.
So one I always ask, like, whatgot you into real estate?
And cause that's going todictate.
So an accidental investor thatsay, hey, I can't sell my house,
(19:51):
so I need to rent it.
Or I was running this was anairbnb.
It's not going as well, but Idon't, I can't, you know, I
don't want to sell it, I want tokeep it because this was going
to be my retirement.
How do we do here, um, isdifferent than an institutional
investor, that this was the notinstitutional.
That's a bad, bad way to put it.
Um, uh, someone that's likethis is their fourth, fifth or
(20:12):
sixth right, and they're justbuying due in this area.
Yeah, and this was, this iswhat they do, this was their
business.
And so like, from there you'reable to.
So an accidental investor, orthey can't sell it, they're
going to typically be a littlebit more emotional and that's
not a bad thing.
And so they're.
(20:32):
They're going to be high Idon't want to say high
maintenance, but there's goingto be a little bit more handle
through the process.
And what does this look like?
What about this Like?
What about an eviction?
What about, like, how do youhandle this?
And you know.
And Then, if there's a repairwhich is what it's going to be
that faucet that was 250 bucksto replace that faucet the
(20:55):
handyman turns this oh man, howdid that happen?
That shouldn't happen.
Real estate said it was easymoney.
Those are some of the tricks.
When they start responding tothat, I'm like okay, this isn't
going to be an owner that Inecessarily want to work with.
Or if they're like I, you know,I have a house that was built
(21:17):
in the 1950s.
It's the original carpet.
I should probably replace it,but I think it can go another
two years.
And I know we've got crackedpaint and everything.
But can you manage this?
No one else will rent it.
And I'm like, well, it'sbecause it's a piece of crap.
Like I'm not.
I'm not going to change thefact that your house is a piece
of crap.
You're the one that has tochange that.
Speaker 1 (21:37):
Yeah.
Speaker 2 (21:38):
There's a reason you're charging Taj Mahal prices
for a piece of crap, and theremay be that's not going to work.
Yeah, there may be managementcompanies willing to take that
on right, because, oh, they'llput the for rent sign on, and I
know a lot of real estate people.
But they'll take any and alllistings, even if it's high
price, because they can getphone calls off the signs right,
(21:59):
get buyers leads and go thatway and that's fine, that could
be their thing.
I'm like I would just muchrather get this place rented
quick.
I don't want to waste my time,and so those conversations we
can have them.
I ask a lot about the property.
If we've got a property thatyou know, we've got like seven
(22:21):
others on there that we justadded, that's, you know, just on
the market and they're allempty and you're like I've got
another one, I may be lesslikely to take that because
that's not fair to them.
Yes, you know, I'm like youwould be my eighth.
I'm struggling to rent theseones, so I don't even know what
I'm doing wrong.
I don't know what's the market,me or the problem, right, I
don't know what to tell you,like you know, and so that may
(22:42):
not be fair to you, like and I'mjust transparent about it
sometimes like I still like youthink you would be transparent,
would I?
I would gladly be number eightand I'm just transparent about
it.
Sometimes like I still like youthink you would be transparent,
would like I?
I would gladly be number eightand I'm like okay and uh.
So those type of conversations.
Then I just go through myprocess and I go through my tech
stack and here's what this does.
On this, we use a lot oftechnology and some of it so
that you have the communicationthat you need, so that you don't
(23:06):
have to call in the office asoften to be like why is my place
not renting?
You're getting a weekly update.
Here is the feedback we gotfrom the people on the showings.
Or if you had no showings, youhad no, you know no leads on
this.
This property may be, you knowit's probably too high price and
that's a different conversation.
It's been on them for a month.
They don't know what's going on, but they have the strip system
(23:29):
.
It's a weekly update.
And then like maintenancehere's how this works and we
just walk through the process.
Here's you know we have $500 upto that Like, we're just going
to do it.
You're not going to have anysay.
And if they struggle with that,then that tells me like I mean
I'm at 650 units, we run 200work orders, we have a thousand
tenants, 140 owners Likesometimes I don't have time to
(23:51):
be like make a phone call hey,can I do this?
$300 repair.
Speaker 1 (23:56):
Yeah.
Speaker 2 (23:57):
Just need permission, you know, and not only that, to
try to get a vendor out there asecond time, because the owners
, through no follow-up phone, israrely ever going to be able to
answer the phone when you needto call and get the answer right
.
Right, and I'm no different.
People try to get home.
They're like, yeah, I was onthe phone with 10 other people,
so I'll call you back in twohours.
By that point the vendor's gone.
We have to just get stuff doneto make that person happy.
(24:18):
If you want to renew, do youwant to minimize?
And so here's our policies,here's what this looks like, and
if they're okay with that, thenwe can just we sign them on and
we do the best that we can andhopefully make them really happy
.
Yeah, so you guys really arefull service property management
(24:44):
, like you, the tenants, wefacilitate all the maintenance.
If there's evictions, wefacilitate that.
We facilitate the turns.
Yeah, all the notice posts, thethings.
Yeah, we, we do it all.
Speaker 1 (24:56):
Wow, which I think is so great.
And I think that people don'tunderstand and that's what I
always try and help people tounderstand whenever they want to
get into rentals understand um,whenever they want to get into
rentals, um and like okay, well,you know, are you?
wanting to do short-term rentals, midterm rentals, long-term
rentals, a mixture, um.
And then you know, like, well,do you understand that?
(25:17):
Like, if something breaks down,like you're the one that has to
like, fix it?
Um, you've got to, you know,get someone out there or fix it
yourself, or whatever, andyou're likely not going to be
able to fix everything you knowon your own.
So you know, do you have avendor list of people that you
could reach out to?
You know if the electric needshelp or a plumber is needed, or
whatever you know.
So that's great that you thenwould take all that stress from
(25:42):
them.
Speaker 2 (25:44):
That's.
It's funny.
Sometimes I'll talk to ownersthat they add and one of the
reasons they'll look to talk tous is they can't get vendors out
there, right.
And then they'll see theinvoice come through and they're
like I caught that plumberthree times.
How did you get a hold of him?
I sent him 20 work orders lastmonth alone and I think that
(26:04):
equaled about $7,000.
And they're like oh, and I'mlike, yeah, I can't say Plummer.
I laugh because I love him,he's fantastic.
And a friend was like hey, Ineed a good Plummer and I
referred him to this partner.
Plummer wasn't referred toreturn on his phone call and so
I got pissed and I was like dude, I sent you my buddy.
(26:28):
And he's like okay, I have tobe honest with you, I'm really
busy and I suck at returningphone calls, but I also don't
want to piss you off.
So next time just say hey,derek at net gain property
management referred, referred meover, and I will return that
phone call and get them takencare of.
I'm like okay, that's fair.
So then I'm like you're goingto have to use my name.
(26:52):
It's not an ego thing, he'sreally busy and I sent him
enough business.
He doesn't want to take me off,so so use my name and he will
respond.
If you don't you're going tohate him because he's not going
to respond.
Speaker 1 (27:01):
Yeah, I love that.
I'd say the same thing.
I have built a network of likecontractors electricians,
plumbers, cleaners, landscapers,like all the things.
And you know, I'll have clientsthat are like, well, I don't
even know like who to reach outto, and I'm like, oh, I got a
guy like here, you know, andI'll send them and I'm like but
just tell them that Sarah sentyou and they're like okay, and
(27:30):
I'm like and it's, you know,exactly to your point.
I'm like I'm getting nothing outof this, like I'm getting
nothing in return except knowingthat you're going to get taken
care of and that person knows totake care of you, because I
send them so much business like,especially my contractors, like
they're just like Sarah, likeyou keep us in business, so like
do not.
Uh, you know.
So make sure that you tellpeople that you know.
Tell us that Sarah sent you,because you know it's the same
as your plumber.
He's like, they're like wedon't want to piss you off.
I'm like okay, well, just takecare of my people and I won't be
(27:53):
mad, it's all good.
Speaker 2 (27:55):
And it's funny, as we expanded up north trying to
find new vendors, I'm like Iknow I'm a nobody up here.
I'm going like I have this muchbusiness, do you?
Do you want it or not?
If you want our business,here's our system, here's how
it's going to work and I canpromise you about that, this
much business.
So it's funny like as I'mlearning that other market and
expanding up there, cause hereI'm just like I'm going to leave
(28:17):
it up there.
I'm like please have mercy uponme.
I'm this big down here, justplease.
Speaker 1 (28:24):
I'll try to be right, I know, but it is.
It's all about thoserelationships and you know, if
this is not your business day inand day out and you're just
trying to get into propertymanagement, it is difficult
because you know you've got tobuild those relationships and
it's got to be a, you know, awin-win for everybody.
Speaker 2 (28:43):
Yeah, I mean especially cause I mean midnight
on a weekend or a holiday, youknow something's going to go out
a win-win for everybody,especially because midnight on a
weekend or a holiday,something's going to go out.
A lot of these have 24 hours totheir risk and different things
, but they still sometimesstruggle getting out there in a
timely manner.
(29:03):
If they know if I'm calling atmidnight, then we can call in a
timely manner, and so they knowif I'm calling at midnight then,
uh, we could, we can call in afavor, and very rarely they're
like.
Sometimes they're like I reallyjust can't and I'm like, okay,
no problem, yeah, you built meout every other time, I will let
you have this one.
Go back to sleep, um, or they'rein hawaii.
It always seems like they're inhawaii at this point, always in
(29:23):
hawaii, and I'm like I'm therelast week at this point, you
know, don't know why, and I'mlike I'm there last week at this
point, you know.
So, yeah, those relationshipsto where you can call in a favor
and then same, you know, samefor them with us Like sometimes
they're like I just need anextra day, or like here's what's
going on, and you're like, nope, you've been there for me Like
from day one, like we're good,do what you gotta do.
Speaker 1 (29:45):
Yeah.
So now, if someone's listeningand they're like, okay, hey, I
want to get into this, but, um,I do not want to handle the day
in and day out management of it,I just want to collect the
passive income from it, um, youknow how would they get ahold of
you?
And also, do you do this in anyother state except Utah?
Speaker 2 (30:05):
No, I just do it in Utah.
I'm not that crazy.
The rules and regulations fromcities and counties is enough.
Crossing state lines is a bittoo far, but I've got friends
that have management companiesacross the country so they can
still reach out and I can try toconnect them to people that I
know and trust and feelcomfortable with them taking
care of them.
Speaker 1 (30:25):
Yeah, that's perfect, it's the same as having a real
estate license.
I'm licensed here and inFlorida, two totally different
markets, two totally differentlike sets of rules and
regulations.
But yeah, like you know, I'llhave people that'll be like oh,
like, are you licensed inColorado too?
Like, can you just get like onelicense for, like, all of the
United States?
And I'm like, yeah, no, it's,it's very difficult and every
(30:49):
state has their own, you know,regulations, and then every area
within a state has its ownthings.
So it's a lot.
So I totally get that.
But if someone wanted to reachout to you, either to work with
you in Utah or to see if you hadsomeone in their area, what
(31:14):
would be the best way for themto reach out to you?
Speaker 2 (31:15):
Best way so you can reach out on my website
netgainpmcom.
N-e-t-g-a-i-n-p-m for propertymanagementcom.
Perfect, and then all the webforms that I can just fill it
out.
They come directly to my emailand we just go from there.
Speaker 1 (31:22):
Yeah, I love that.
And then do you have anysocials or anything?
Speaker 2 (31:46):
Yeah, I love that so literally if I have to walk
through stuff on video and I'mlike, here we go, that's awesome
.
Speaker 1 (31:54):
I love that.
Well, I'll make sure that, um,every one of those things, uh,
there's a link in the show notesto all of that.
So you know, if someone'sdriving and they heard that and
they did not get a chance towrite it all down, um, it'll be
in the show notes so that waypeople can get ahold of you, uh,
and they can start followingyou on socials.
And you know, especially, Imean I'm going to follow that
(32:14):
TikTok page cause I want to seeall the, all the things.
I love it.
Well, derek, thank you so muchfor taking time out of your busy
day to come on here and justkind of talk about property
management and how you got intoit.
I love what you're doing, lovethat you kind of fell into it
and then created like this.
You know this big thing.
So I'm super excited for youand I can't wait to see where
(32:36):
this all goes.
Speaker 2 (32:37):
Sounds great.
I appreciate you having us.
This has been a lot of fun.
Speaker 1 (32:40):
Yeah, absolutely.
Thank you so much for tuning in.
Hopefully you got as much outof this as I did.
I found it fascinating to talkwith Derek and also appreciated
that he turned the tables on me.
That rarely happens, so I lovethat.
But please make sure that ifyou heard this and you got some
(33:00):
value out of it, make sure thatyou're leaving a review.
A five-star review obviously ismost appreciated, and anything
that you give in feedback is agift.
A five-star review obviously ismost appreciated, and anything
that you give in feedback is agift, so we'd really appreciate
that.
Please make sure that you'resharing this with others,
especially if you have people inUtah that are looking for
property management or anyonethat you know that is even
considering property management.
(33:20):
Send this to them and, finally,make sure you're following
along so you never miss anotherepisode.
Thanks so much and we'll seeyou next time on Come to Find
Out.
Hi and welcome to this week's episode of Come to
Find Out.
This week we have Derek Mortonand he's of NetGain Property
Management, and what I thoughtwas really exciting about what
he does is I get clients all thetime that ask like, hey, I want
to get into property management, hey, I want to get into, like
investment properties, fix andflips, like all of those things.
(00:25):
And Derek's figured out how tokind of make that all work from
a property management standpoint.
So I was really excited when Iheard from Derek and he wanted
to come in and share hisknowledge.
So, derek, thank you so muchfor taking time out to join us
today.
Speaker 2 (00:43):
No problem, thanks for having me.
I'm excited.
Speaker 1 (00:45):
Derek, thank you so much for taking time out to join
us today.
No problem, thanks for havingme.
I'm excited.
Yeah, absolutely so.
Kind of walk us through, likehow did you get into property
management and you know, how didthis all kind of evolve, like,
did you just always know I'mgoing to be, you know, a
property manager, or did youkind of fall into it?
Speaker 2 (01:02):
Becoming a prick came naturally no, I'm just kidding
kind of fall into it.
Becoming a prick came naturallyno, I'm just kidding it just.
It just kind of just happenedLike I was in the title industry
for years and years and yearsand just kind of felt like I'd
plateaued.
I was marketing for the, forthe title company here locally,
and just was looking on, let'ssee if I can't do something else
(01:23):
, and tried a bunch of differentthings that weren't working.
And I had a buddy that's like,hey, let's start a real estate
brokerage.
And I'm like I hatetransactional real estate.
That's part of my struggleshere in the title.
I'm like that's not my thing.
And so we finally settled andhe helped me start NetGain.
And little did I know at thetime that you know, in Utah I
(01:48):
had to be at a real have a realestate brokerage and had to be a
licensed real estate agent.
So all the things that wetalked about a year before I
ended up having to do anyways uh, just for you know, for
property management.
So that's kind of how we did itand I started it nine years ago
here in about 10 days, so Julyone will be nine, nine years.
Speaker 1 (02:00):
Wow, wow, that's amazing.
So you're in Utah, that's great, and I'm sure that you have
different you know real estaterules than we have here.
But I would love for you tojust kind of walk us through,
like obviously you know you werein title and you know you were
like I don't really like this,you know.
(02:20):
Kind of walk us through whatwas your thought process then to
go into property managementKind of walk us through.
Speaker 2 (02:25):
What was your thought process then to go into
property management?
So some of the process reallycame down to I had survived.
I moved my family down to whereI'm at in 2006 and was
immediately upside down in myhouse the month after I bought
it and a year later, after Imoved my family, with the title
(02:46):
company I was with, I was let goand I got lucky enough to be
able to latch on with anothertitle company and so, like I was
just kind of going where I feltlike I'd plateaued, like it's a
smaller area where I was at.
So at this point I'm like allthe real estate agents that are
going to use use us are going touse us and those that hate us,
like we're, we're kind of theHatfield and McCoys at this
(03:06):
point, like nothing's going tochange for generations.
And so I just kind of felt likeI I plateaued and I wanted to do
something that I felt would beable to provide for my family
through different economic peaksand valleys.
And so we just kind of settledon it on this, and we kind of
looked at our competitors andjust said I wonder if we could
(03:30):
do it just a little bitdifferent and we try to find
that balance between owners'wants and needs and tenants'
wants and needs.
And you know, in some wayswe're nailing it, in other ways
we're still trying to improve.
But that's just kind of whereit came from.
I just figured it would give usa little bit more economic
stability through the highs andlows that I knew were coming.
(03:52):
And so here we are.
Speaker 1 (03:56):
Yeah, I love that.
So net gain whenever you guyscreated this, I'm sure it's kind
of evolved Did you start it oneway and it's evolved into like
a bigger, like bigger thing thanyou ever thought, I guess.
Just kind of walk us throughwhat does NetGain do?
Speaker 2 (04:12):
So, conceptually, the initial concept of what we
wanted NetGain to accomplish isstill in place.
The way that we look iscompletely different and the way
we're going is completelydifferent than anything I
envisioned.
Like I told my wife, I said, ifI had a hundred units, I'm good
.
And here we are at 650 units,managing 80% of the population
(04:33):
based in Utah and still growingrather quickly, and so with that
we've had a lot of adjustments,but we always just try like.
Our basic ethos in our office isuh, we try not to suck.
That's part of my sales pitch.
Everyone's like oh, like, I'mwith this person, what makes you
different?
And I'm like well, we just trynot to suck.
(04:54):
And it's amazing becauseeveryone's like I like that.
What does that look like?
Like?
Well, you know, here's, here'swhat we do, here's how we do it.
And we're not going to beperfect.
We're going to make mistakes,but we're going to try to fix
them and I'm pretty transparent,like I tell them.
I said you know, if it's notworking for us or for you, then
(05:14):
you can move on.
You deserve to have a managementcompany that's taking the
stress off of you that you needto and is doing it in the way
that you want to do, and so someof the big changes is I'm a lot
pickier on the owners that Itake on.
That's huge for investors Likeyou have people all the time,
(05:36):
little cops, like hey, we wantto use you, your reviews are
great, you sound fantastic, andthen they struggle with the way
we go about doing stuff.
I don't know if that's going towork for me and it's like
that's fine.
Go find someone, becausethere's there's.
You know, management companiesare a dime a dozen, so you can
find someone that can fit theway you want your property
(05:56):
managed.
And if the way we do it doesn'twork for you, then that's,
that's fine.
You know, no sweat off our backand you can go find someone.
If it does, that's fantastic.
We'll have a great time, we'lldo a lot of good and help you
make money, and so that's thebig thing is being able to be a
lot choosier on owners, morechoosier on vendors, the girls I
(06:23):
have in my office are awesome.
You're awesome in your officeyeah, I'm not awesome in my
office are awesome.
You're awesome in your officeyeah, like I'm not awesome.
Awesome in my office.
They kick me out all the timeso they can be productive, um,
but uh, but those sorts ofthings, um, and then, as we've,
you have different conversations.
We continue to scale and andhave different service areas,
that how do we keep that ethosof you know, we don't want to
(06:44):
suck at what we do but still beable to scale, like those are
hard conversations that I laughat as we're going through them.
Some days I'm on this side andthe next day I'm on the next
side.
You know, sometimes I'm likeokay, I think we're going to do
this, and then the girls in myoffice no, no, I'm thinking I'm
(07:05):
like god, oh, we were there.
Um, so we're just constantlyjust kind of changing and
tweaking and society's changingand tweaking and like so it's
just a constant battle.
But we just try to have a basicethos that we just try not to
suck at what we do I love it.
Speaker 1 (07:21):
Yeah, I, um, I agree, I'm kind of the same way.
I um.
I just say, like, customerservices, uh, you know, top for
me, like, if you're not gettingfive-star customer service, you
know, then there's, there'ssomething wrong.
I must suck at something thatI'm you know that I'm doing Um,
and all the people that I workwith must deliver five-star
customer service, or I'm nolonger going to um, you know,
(07:42):
refer anybody to them.
So I love that.
Um.
Now, when you started this,though, did you have any
properties that you were alreadymanaging, like personally or
like?
How did this idea even pop up?
Speaker 2 (07:52):
I started with zero.
Wow, this property was a friendthat, um, he was going to be
selling it anyways, so he's like, just just manage it.
I offered to manage it for free, just so I could say I had a
property.
And, um, because I'm smartfinancially, we decided to start
this while we were just afterwe finished building a house.
(08:13):
Um, you know, cause that's thesmartest thing to do.
It was my wife's idea.
I didn't want to do it, but shepushed me into it, so that was
a good husband.
I said yes.
I said yes, dear, um, but thenthe town home we were living in
at the time we, uh, we decidedto rent it and so I had two
units and it was kind of a slowbuild at first and then had a
(08:35):
little bit of happenstance towhere, uh, our agent buddy of
mine was doing management and heoffered me that you know, hey,
I'm tired of having my wife dothis.
Um, do you want to buy like the25 units we have in our
portfolio that we're managing?
And?
And he offered me the.
You know, hey, I'm tired ofhaving my wife do this.
Do you want to buy like the 25units we have in our portfolio
that we're managing and I'm likesure.
And so I got a first paymentdeal and after that it's just
(08:56):
kind of been a rocket ship, wow.
Speaker 1 (08:58):
So if somebody has a property because I have a lot of
, I work with a lot offirst-time homebuyers.
I also specialize in divorcereal estate, so to kind of
there's a, you specialize?
Speaker 2 (09:10):
in divorce real estate.
Speaker 1 (09:12):
I do.
Speaker 2 (09:14):
That's one of those things that you wouldn't think
is a thing, but then you hear itand you're like that makes
sense, that's a thing, yeah itis, it is I mean, so I.
Speaker 1 (09:24):
So I've always specialized in first time home
buyers, cause I, just mybackground is a nonprofit.
I've always been all about theunderdog, and I think that first
time home buyers are underdogs.
Um, and then I really yes,especially now.
Um, and then I just was like Ifeel like I want to do more and
I found myself always coachingpeople, either on real estate or
divorce, Because after goingthrough a divorce a decade ago,
(09:48):
I've known other people friends,family, whatever that are going
through it.
Randomly, people in the airportwill literally start talking to
me about their divorce stories,like I've just met them.
So I was like, okay, theuniverse is trying to tell me
something here.
Speaker 2 (10:04):
So I started looking around.
You need to invest in the bussignage now Like divorce real
estate specialist, right next tothe attorney.
Speaker 1 (10:12):
Yes, I know, well, it's funny, because I looked
around and nobody in mycommunity specializes in it and
most people are like I wouldnever want to do that and I was
like why?
It's just a little bit ofpatience and, just like you know
, staying neutral and remindingeveryone like there's nothing
fair about this.
So what, what?
Where's our win-win?
What can we figure out here?
(10:33):
Like it's just, it's just nottake fair and throw it out the
window, cause nothing's fairabout divorce.
Speaker 2 (10:37):
So, um, but yes, so cool story you, that is.
That's awesome.
Non-profit to that.
Yeah, you're not, sorry, I'mgoing to turn.
I'm going to turn the tables.
What, what non-profit were youworking and what?
Was the yeah I'm on board for acouple non-profits, so like, I
love that, that world I lovethat, yeah.
Speaker 1 (10:58):
So I actually um, I kind of stumbled into it.
Um, so I was working at OhioState University and I was an
administrative assistant and Isaw this opportunity in their
development department and I waslike, well, like what do you
guys like develop?
And they were like well,relationships, and I was like
huh, okay.
(11:19):
So kind of just like I was likelet's just see where this goes.
And so I supported the seniorvice president, learned a lot
about like the ends and outs.
Someone was like I think you'dbe a great development officer.
So that's kind of how I gotinto fundraising.
I was like I'll try it out, whynot?
So I fundraised there at OhioState for diabetes transplant
and regenerative medicine.
So three really really coolareas.
(11:42):
Wow, really cool.
So I was there for about sixyears and then I went to a local
nonprofit called the furniturebank and they help families that
are experiencing homelessnessor coming out of the shelter
system and it they've got ahouse but they don't have any
furniture.
So furniture bank partners withtheir social worker and so they
(12:03):
get a whole house full offurniture delivered to their
house.
It's all free to them.
So I was their director ofdevelopment.
Yeah, that was really cool.
I got to help set up a socialenterprise and set up a new,
really cool event for them.
So I found that very, veryfulfilling.
But I missed the healthcare partof it.
So then I went to anotherhealthcare system here in Ohio
(12:26):
it's called actually Ohio health, um, and so it was an inner
city hospital, uh, grant um,which was in our downtown area
and, uh, so they help a lot ofunderserved, um, you know,
population.
So I kind of got to merge boththe underserved population and
the medical part of it and sothat was really cool, kind of
creating a medical respite, um,a place where people that, uh,
(12:49):
you, people that don't have ahome to go back to when they're
done healing if it was you or I,we'd just go back home and
finish.
They would actually have to goback on the streets, which means
they're just going to end upright back in the hospital.
So we created this medicalrespite, so we partnered with a
nonprofit down the road and theyhad the space but no money and
we had the money but no space,and so we were able to combine
(13:12):
that.
So, yeah, that's awesome.
Yeah.
So I really loved it, um, buthonestly why?
I was at Ohio health, I wasgetting my MBA and I thought
that I was just going tocontinue on with my career, um,
in nonprofit.
And then, um, and then therewas a girl in my class that was
like you should totally do realestate.
And I was like, really, like Idon't know, like I'm good.
(13:35):
And then the more I thoughtabout it, the more I was like,
well, I'll diversify.
And so, april 1st of 2020,parted ways with corporate
America and thought I was goingto do consulting and real estate
, and then the whole world shutdown and so consulting went away
and I've just been in realestate.
But I honestly think that, youknow, the universe put me on
this path for a reason, and Ifind it much more fulfilling
(13:56):
than I ever thought it would.
Speaker 2 (13:57):
And now you're in your podcast house too, yeah.
Yeah so that's, that's quitethe journey, that's yeah.
Speaker 1 (14:05):
Yeah, thank you, thank you.
Um, yeah, I appreciate youasking that.
Um, but yeah, so I will alwayshave that soft spot in my heart.
I'm a bleeding heart.
I love, all you know, theunderdogs and things like that.
So, um, you know, but a lot ofmy first time homebuyers, once
they purchase something, they'relike okay, so if I move on to
something else, could I keepthis and rent it out?
(14:33):
And I'm like, yeah, of courseyou could, and they're like okay
.
And then some people are reallyexcited about that idea and
others are like, but I have tomanage it and all of this stuff.
So what kind of advice wouldyou give to somebody that was
kind of in that spot, like ifthey came to you and said, hey,
I'm getting ready to purchasesomething, know, similar to what
you did.
What do you think you learnedon that path?
And what kind of like advicewould you give people you'll
(14:53):
need to go to the post office?
Speaker 2 (14:55):
so um for them to register I would talk to an
attorney, okay, um, so that wayyou have basic here.
Here's what the laws are Mostof the time, especially if
you're going to manage yourself.
99% of the people like sin outof ignorance.
Speaker 1 (15:17):
Yeah.
Speaker 2 (15:18):
You know.
And then, once you have there,like here's the hardest part is
you're going to have to havefirm guidelines on what your
policies are going to be.
And this is something I stillstruggle with.
Yeah, Personally, the way I'mwired is I'm like, okay, these
people are going to be, you know, I think we can do it, you know
(15:39):
we can make it work, here'swhat.
And then I get burned and I'mlike son of a, you know, and I'm
like I have no one to blame butmyself on that.
And so, knowing what those are,and then don't compromise on
them, yeah.
No matter how bad you're goingto feel, no matter what they're
going to call you.
These are our policies.
Speaker 1 (16:03):
Yeah.
Speaker 2 (16:03):
Because one of the things I've learned and I didn't
know this until I started Well,I learned it two ways.
One, the way I convinced mywife to let me start a
management company is that townhall.
She's like that we were goingto rent.
I just had her do everything.
She's like I don't know and I'mlike, fine, you do it.
And she'd ask me a question.
I said Google it.
She's like all this.
(16:25):
By the time she was done shewas like just do it.
I don't know if you're going toactually do it, but I see why
people are hiring.
So just you know, mama's got toeat pretty much to make it work
, right, but we'll let you onthis.
I see the value.
But the other aspect of thisthat I didn't realize is so
there's a lot of people thatdon't want to rent from a
(16:48):
management company, and some ofthem the reason being is because
they know that they don't meetthe management company's
criteria, and so, as you'reposting and trying to rent this
property, you're going to haveall sorts of types appear.
And that are going to come toyou and they're going to have
(17:08):
all sorts of types of peoplethat are going to come to you
and they're going to tell youyour stories and they'll explain
why they're in the situationthat they're in, and so then you
have a decision.
But that's where you've got tohave your policies.
Here's our guidelines, and ifthey don't meet them, like it is
what it is, because most ownerslike, when we take over
(17:29):
properties, they're in thesituation they had.
I just there's the sob storyand I just did it.
And now I'm in the situationI'm like can you help me?
And then I have to jump in andbe the bad guy and, you know,
try to clean up the mess, and Ialways have to tell the owners
I'm like I'm guilty too.
So, just so, just so you know,like it's not just you, there's
(17:51):
already people that justnaturally aren't going to come
to us because they know they'renot going to meet a management
company's requirements, but aprivate owner.
A lot of times they just comeout of the woodwork Like oh, hey
, and so, like just knowing andhaving your guidelines and not
(18:12):
being willing to compromise onthose, yeah and just, this is
what it is.
Everything, like not every time,but more times than not, when I
bend and make an exception oh,I've got to get this place
rented.
I've got to do this.
I said I'd get burned and Ihave no one to blame but myself
and I did a disservice to me, mystaff and my owner.
(18:32):
Yeah and uh.
So your policies, you know, andyou can set your policies
however you want, like that's.
You just have to be consistent.
That's the beautiful thing.
Like if you're like this iswhat I want, you know, you've
raised the pros and cons andthere you go.
You know, that's what it is.
You can set them however youwant.
So you have that freedom, youknow, and that's what it is and
you can set them however youwant.
So you have that freedom, youknow.
Just don't, don't compromise onthem.
Speaker 1 (18:53):
So let's say I had a property that I was like man, I
really want to rent this out,but I do not want to take on the
management side of this.
And I reached out to you.
Can you kind of walk me throughthe process Like, what does
(19:13):
that look like?
You know?
Like hey, can you help me likewith this what?
What would you do Like you know?
Cause I know you said youexplain your processes and if
it's, if it's not, you knowyou're not their cup of tea,
then you know that's fine, whichis exactly what I say too.
I'm not everybody's cup of tea,so totally get that, but kind
of walk us through what doesthat process look like?
Speaker 2 (19:28):
So, like we always start the conversation and I
usually will just tell him, Isaid, look, I said I'm going to
ask you probably just as manyquestions as as you're going to
ask me, cause I want to try tolearn as much about the property
, I want to try to learn as muchabout them.
So one I always ask, like, whatgot you into real estate?
And cause that's going todictate.
So an accidental investor thatsay, hey, I can't sell my house,
(19:51):
so I need to rent it.
Or I was running this was anairbnb.
It's not going as well, but Idon't, I can't, you know, I
don't want to sell it, I want tokeep it because this was going
to be my retirement.
How do we do here, um, isdifferent than an institutional
investor, that this was the notinstitutional.
That's a bad, bad way to put it.
Um, uh, someone that's likethis is their fourth, fifth or
(20:12):
sixth right, and they're justbuying due in this area.
Yeah, and this was, this iswhat they do, this was their
business.
And so like, from there you'reable to.
So an accidental investor, orthey can't sell it, they're
going to typically be a littlebit more emotional and that's
not a bad thing.
And so they're.
(20:32):
They're going to be high Idon't want to say high
maintenance, but there's goingto be a little bit more handle
through the process.
And what does this look like?
What about this Like?
What about an eviction?
What about, like, how do youhandle this?
And you know.
And Then, if there's a repairwhich is what it's going to be
that faucet that was 250 bucksto replace that faucet the
(20:55):
handyman turns this oh man, howdid that happen?
That shouldn't happen.
Real estate said it was easymoney.
Those are some of the tricks.
When they start responding tothat, I'm like okay, this isn't
going to be an owner that Inecessarily want to work with.
Or if they're like I, you know,I have a house that was built
(21:17):
in the 1950s.
It's the original carpet.
I should probably replace it,but I think it can go another
two years.
And I know we've got crackedpaint and everything.
But can you manage this?
No one else will rent it.
And I'm like, well, it'sbecause it's a piece of crap.
Like I'm not.
I'm not going to change thefact that your house is a piece
of crap.
You're the one that has tochange that.
Speaker 1 (21:37):
Yeah.
Speaker 2 (21:38):
There's a reason you're charging Taj Mahal prices
for a piece of crap, and theremay be that's not going to work.
Yeah, there may be managementcompanies willing to take that
on right, because, oh, they'llput the for rent sign on, and I
know a lot of real estate people.
But they'll take any and alllistings, even if it's high
price, because they can getphone calls off the signs right,
(21:59):
get buyers leads and go thatway and that's fine, that could
be their thing.
I'm like I would just muchrather get this place rented
quick.
I don't want to waste my time,and so those conversations we
can have them.
I ask a lot about the property.
If we've got a property thatyou know, we've got like seven
(22:21):
others on there that we justadded, that's, you know, just on
the market and they're allempty and you're like I've got
another one, I may be lesslikely to take that because
that's not fair to them.
Yes, you know, I'm like youwould be my eighth.
I'm struggling to rent theseones, so I don't even know what
I'm doing wrong.
I don't know what's the market,me or the problem, right, I
don't know what to tell you,like you know, and so that may
(22:42):
not be fair to you, like and I'mjust transparent about it
sometimes like I still like youthink you would be transparent,
would I?
I would gladly be number eightand I'm just transparent about
it.
Sometimes like I still like youthink you would be transparent,
would like I?
I would gladly be number eightand I'm like okay and uh.
So those type of conversations.
Then I just go through myprocess and I go through my tech
stack and here's what this does.
On this, we use a lot oftechnology and some of it so
that you have the communicationthat you need, so that you don't
(23:06):
have to call in the office asoften to be like why is my place
not renting?
You're getting a weekly update.
Here is the feedback we gotfrom the people on the showings.
Or if you had no showings, youhad no, you know no leads on
this.
This property may be, you knowit's probably too high price and
that's a different conversation.
It's been on them for a month.
They don't know what's going on, but they have the strip system
(23:29):
.
It's a weekly update.
And then like maintenancehere's how this works and we
just walk through the process.
Here's you know we have $500 upto that Like, we're just going
to do it.
You're not going to have anysay.
And if they struggle with that,then that tells me like I mean
I'm at 650 units, we run 200work orders, we have a thousand
tenants, 140 owners Likesometimes I don't have time to
(23:51):
be like make a phone call hey,can I do this?
$300 repair.
Speaker 1 (23:56):
Yeah.
Speaker 2 (23:57):
Just need permission, you know, and not only that, to
try to get a vendor out there asecond time, because the owners
, through no follow-up phone, israrely ever going to be able to
answer the phone when you needto call and get the answer right
.
Right, and I'm no different.
People try to get home.
They're like, yeah, I was onthe phone with 10 other people,
so I'll call you back in twohours.
By that point the vendor's gone.
We have to just get stuff doneto make that person happy.
(24:18):
If you want to renew, do youwant to minimize?
And so here's our policies,here's what this looks like, and
if they're okay with that, thenwe can just we sign them on and
we do the best that we can andhopefully make them really happy
.
Yeah, so you guys really arefull service property management
(24:44):
, like you, the tenants, wefacilitate all the maintenance.
If there's evictions, wefacilitate that.
We facilitate the turns.
Yeah, all the notice posts, thethings.
Yeah, we, we do it all.
Speaker 1 (24:56):
Wow, which I think is so great.
And I think that people don'tunderstand and that's what I
always try and help people tounderstand whenever they want to
get into rentals understand um,whenever they want to get into
rentals, um and like okay, well,you know, are you?
wanting to do short-term rentals, midterm rentals, long-term
rentals, a mixture, um.
And then you know, like, well,do you understand that?
(25:17):
Like, if something breaks down,like you're the one that has to
like, fix it?
Um, you've got to, you know,get someone out there or fix it
yourself, or whatever, andyou're likely not going to be
able to fix everything you knowon your own.
So you know, do you have avendor list of people that you
could reach out to?
You know if the electric needshelp or a plumber is needed, or
whatever you know.
So that's great that you thenwould take all that stress from
(25:42):
them.
Speaker 2 (25:44):
That's.
It's funny.
Sometimes I'll talk to ownersthat they add and one of the
reasons they'll look to talk tous is they can't get vendors out
there, right.
And then they'll see theinvoice come through and they're
like I caught that plumberthree times.
How did you get a hold of him?
I sent him 20 work orders lastmonth alone and I think that
(26:04):
equaled about $7,000.
And they're like oh, and I'mlike, yeah, I can't say Plummer.
I laugh because I love him,he's fantastic.
And a friend was like hey, Ineed a good Plummer and I
referred him to this partner.
Plummer wasn't referred toreturn on his phone call and so
I got pissed and I was like dude, I sent you my buddy.
(26:28):
And he's like okay, I have tobe honest with you, I'm really
busy and I suck at returningphone calls, but I also don't
want to piss you off.
So next time just say hey,derek at net gain property
management referred, referred meover, and I will return that
phone call and get them takencare of.
I'm like okay, that's fair.
So then I'm like you're goingto have to use my name.
(26:52):
It's not an ego thing, he'sreally busy and I sent him
enough business.
He doesn't want to take me off,so so use my name and he will
respond.
If you don't you're going tohate him because he's not going
to respond.
Speaker 1 (27:01):
Yeah, I love that.
I'd say the same thing.
I have built a network of likecontractors electricians,
plumbers, cleaners, landscapers,like all the things.
And you know, I'll have clientsthat are like, well, I don't
even know like who to reach outto, and I'm like, oh, I got a
guy like here, you know, andI'll send them and I'm like but
just tell them that Sarah sentyou and they're like okay, and
(27:30):
I'm like and it's, you know,exactly to your point.
I'm like I'm getting nothing outof this, like I'm getting
nothing in return except knowingthat you're going to get taken
care of and that person knows totake care of you, because I
send them so much business like,especially my contractors, like
they're just like Sarah, likeyou keep us in business, so like
do not.
Uh, you know.
So make sure that you tellpeople that you know.
Tell us that Sarah sent you,because you know it's the same
as your plumber.
He's like, they're like wedon't want to piss you off.
I'm like okay, well, just takecare of my people and I won't be
(27:53):
mad, it's all good.
Speaker 2 (27:55):
And it's funny, as we expanded up north trying to
find new vendors, I'm like Iknow I'm a nobody up here.
I'm going like I have this muchbusiness, do you?
Do you want it or not?
If you want our business,here's our system, here's how
it's going to work and I canpromise you about that, this
much business.
So it's funny like as I'mlearning that other market and
expanding up there, cause hereI'm just like I'm going to leave
(28:17):
it up there.
I'm like please have mercy uponme.
I'm this big down here, justplease.
Speaker 1 (28:24):
I'll try to be right, I know, but it is.
It's all about thoserelationships and you know, if
this is not your business day inand day out and you're just
trying to get into propertymanagement, it is difficult
because you know you've got tobuild those relationships and
it's got to be a, you know, awin-win for everybody.
Speaker 2 (28:43):
Yeah, I mean especially cause I mean midnight
on a weekend or a holiday, youknow something's going to go out
a win-win for everybody,especially because midnight on a
weekend or a holiday,something's going to go out.
A lot of these have 24 hours totheir risk and different things
, but they still sometimesstruggle getting out there in a
timely manner.
(29:03):
If they know if I'm calling atmidnight, then we can call in a
timely manner, and so they knowif I'm calling at midnight then,
uh, we could, we can call in afavor, and very rarely they're
like.
Sometimes they're like I reallyjust can't and I'm like, okay,
no problem, yeah, you built meout every other time, I will let
you have this one.
Go back to sleep, um, or they'rein hawaii.
It always seems like they're inhawaii at this point, always in
(29:23):
hawaii, and I'm like I'm therelast week at this point, you
know, don't know why, and I'mlike I'm there last week at this
point, you know.
So, yeah, those relationshipsto where you can call in a favor
and then same, you know, samefor them with us Like sometimes
they're like I just need anextra day, or like here's what's
going on, and you're like, nope, you've been there for me Like
from day one, like we're good,do what you gotta do.
Speaker 1 (29:45):
Yeah.
So now, if someone's listeningand they're like, okay, hey, I
want to get into this, but, um,I do not want to handle the day
in and day out management of it,I just want to collect the
passive income from it, um, youknow how would they get ahold of
you?
And also, do you do this in anyother state except Utah?
Speaker 2 (30:05):
No, I just do it in Utah.
I'm not that crazy.
The rules and regulations fromcities and counties is enough.
Crossing state lines is a bittoo far, but I've got friends
that have management companiesacross the country so they can
still reach out and I can try toconnect them to people that I
know and trust and feelcomfortable with them taking
care of them.
Speaker 1 (30:25):
Yeah, that's perfect, it's the same as having a real
estate license.
I'm licensed here and inFlorida, two totally different
markets, two totally differentlike sets of rules and
regulations.
But yeah, like you know, I'llhave people that'll be like oh,
like, are you licensed inColorado too?
Like, can you just get like onelicense for, like, all of the
United States?
And I'm like, yeah, no, it's,it's very difficult and every
(30:49):
state has their own, you know,regulations, and then every area
within a state has its ownthings.
So it's a lot.
So I totally get that.
But if someone wanted to reachout to you, either to work with
you in Utah or to see if you hadsomeone in their area, what
(31:14):
would be the best way for themto reach out to you?
Speaker 2 (31:15):
Best way so you can reach out on my website
netgainpmcom.
N-e-t-g-a-i-n-p-m for propertymanagementcom.
Perfect, and then all the webforms that I can just fill it
out.
They come directly to my emailand we just go from there.
Speaker 1 (31:22):
Yeah, I love that.
And then do you have anysocials or anything?
Speaker 2 (31:46):
Yeah, I love that so literally if I have to walk
through stuff on video and I'mlike, here we go, that's awesome
.
Speaker 1 (31:54):
I love that.
Well, I'll make sure that, um,every one of those things, uh,
there's a link in the show notesto all of that.
So you know, if someone'sdriving and they heard that and
they did not get a chance towrite it all down, um, it'll be
in the show notes so that waypeople can get ahold of you, uh,
and they can start followingyou on socials.
And you know, especially, Imean I'm going to follow that
(32:14):
TikTok page cause I want to seeall the, all the things.
I love it.
Well, derek, thank you so muchfor taking time out of your busy
day to come on here and justkind of talk about property
management and how you got intoit.
I love what you're doing, lovethat you kind of fell into it
and then created like this.
You know this big thing.
So I'm super excited for youand I can't wait to see where
(32:36):
this all goes.
Speaker 2 (32:37):
Sounds great.
I appreciate you having us.
This has been a lot of fun.
Speaker 1 (32:40):
Yeah, absolutely.
Thank you so much for tuning in.
Hopefully you got as much outof this as I did.
I found it fascinating to talkwith Derek and also appreciated
that he turned the tables on me.
That rarely happens, so I lovethat.
But please make sure that ifyou heard this and you got some
(33:00):
value out of it, make sure thatyou're leaving a review.
A five-star review obviously ismost appreciated, and anything
that you give in feedback is agift.
A five-star review obviously ismost appreciated, and anything
that you give in feedback is agift, so we'd really appreciate
that.
Please make sure that you'resharing this with others,
especially if you have people inUtah that are looking for
property management or anyonethat you know that is even
considering property management.
(33:20):
Send this to them and, finally,make sure you're following
along so you never miss anotherepisode.
Thanks so much and we'll seeyou next time on Come to Find
Out.
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