10,795 Doors Managing Communities in Two Western States!

NAICS 531390 Other Activities Related to Real Estate / 531311 Property Management

$2,360,000 list price

2022 Income $1,428,076

2022 SDE $589,963

YTD 2023 (Jan 1 through May 31):

Income $693,940     

SDE $246,579          

The following narrative is compiled and written by Margot Murphy, principal with Sage Advisory Group, a California business brokerage firm which acts as a marketing engine, sale facilitator and sell-side representative for business owners and corporations seeking to transfer sale of companies typically generating $2MM - $15MM annual revenue. www.sageadvisors.biz

The Company has earned a reputation as the solution to homeowner association management. The system and scalable model created by its owner and founder is thoughtfully designed to convert community-based clients into remote operations.

The Firm provides support for community association boards and property owners through management of vendor payments, financial reporting, bank account reconciliation, property owner invoicing and payment collection, compliance activities, budget comparisons, and transfer services when real property is sold. The Firm’s goal is to help HOA boards serve their communities more efficiently. And, the Company achieves this outcome with finesse and expertise.

The greater majority of community clients served in the Southwest have been onboard with services by the Firm since 2008.

Stats at a Glance

• $388,780/month in collected dues
• 30 communities / 858 doors served in one Western state
• 36 communities / 9,733 doors served in one Western state
• 26,700 residents served

The Company’s operational results? A highly efficient, recurring, contract-centric business model which provides steady, predictable growth.

Notwithstanding, since 2018, the Firm’s owner’s focus and approach has been on growth, not oriented toward maximizing revenue and profit. The Firm’s owner states, “I’m estimating there’s an out-of-the-gate opportunity to raise fees up to 20% with our larger community associations. Their fees are currently under market. My focus over the past six years has been to hone the service aspect of the business model. The Pandemic helped us become more efficient. We try to plan ahead in hiring new employees in order to have sufficient training time for new employees to get up to speed on our system.”

100% of property maintenance is outsourced. Bringing this service in-house could provide an additional operational profit arm.

The Company employs 17 full-time employees, in two different locations. Details of employee positions, tenures and rates of pay are available post-NDA.

One owner is legitimately an absentee operator. His duties encompass the following: Provide strategic direction for the Company from his place of residence out of state. This entails several calls per week to the two offices to check in with staff members. The owner is also the board of director contact for one large community they manage. The owner travels to that location to meet with the board member onsite an average of once every two months.

The Company utilizes two software applications to manage and control its operations.

A new owner could scale and enhance new customer relationship engagements through several ongoing, unsolicited requests for proposals every month. Medium-sized accounts managed by either unsophisticated local managers or managed by one of the larger players, who are not giving communities the attention they deserve, could also be a focus of attention. Seller has specific “secret sauce” ways of accomplishing this, which will be shared with a successful new owner.

Seller suggests a successful buyer provide a nominal working capital contribution for first month ownership of operations, since a majority of community contracts remit payments 30 days in arrears. Expenses which might require initial ownership operating capital could include: insurance, lease fees, payroll and IT support.

It is helpful if buyer has experience in real estate/property management.

If you are interested in learning more, please complete the contact form in the window pop-up on this listing page. You will be emailed a link to an electronic NDA and Buyer Profile form. Once those forms are completed and submitted, you will receive a second automated email with a link to access documents within the Company’s data room of information.

Information presented herein is represented by Seller. Information is deemed reliable, yet not guaranteed. Interested parties should verify all information to their fullest satisfaction.