The 2008 housing crisis turned a lot of homeowners into renters, and therefore turned a lot of investors into landlords. This created a surge in the need for property management, especially once the Wall Street hedge funds created a new asset class and started actively and aggressively buying single family homes for rentals.
Real estate agents jumped in to help solve the problem so that they could sell more rental properties. This took the number of property managers from about 40,000 to 72,000. Most were amateurs with no real business experience.
Many of us landlords know the pain of that time. At RealWealth, we saw many mom and pop property management shops implode, as they didn’t know how to scale or grow or create systems. Thankfully, the industry has shifted a lot since then, thanks to new software programs, systems and franchises that help small business owners plug into something bigger so they can get the help they need. Many companies are becoming far more professional and standardized than ever in U.S. history.
Our guest today has had a lot to do with that. Bob Pifke was a Senior Vice President at Visa USA, where he was instrumental in growing the VISA debit card business from $25 billion to over $500 billion in less than 10 years.
When he learned that only 20% of property owners use a professional property manager, he became intrigued. He jumped ship to become the CMO of Real Property Management where he could be instrumental in boosting this under-served market.
As CMO, one of Bob’s jobs has been to forecast what landlords can expect in the coming year. Last year, his predictions were 90% accurate.
This year he has 5 predictions, which he will share with us here on the Real Wealth show. Welcome, Bob Pifke!