Talk Overview:

In 2012, Socrate Exantus’ team managed 750 properties in two locations. Three years later they grew to 2,200 homes by managing for institutional investors. His session covers what you should know about institutional investors and what he has learned by working on the front lines over the last four years.

Talk Notes:

What you should know about institutional investors

  • Less than 1% of all SFHs are owned by “institutional investors”
  • The business has a life cycle
    • It’s not about if they will internalize, it’s when they will internalize
  • The pressure and demand only increase over time
  • Many often want to, and have a define timeline to internalize
  • Usually want a PM to stabilize a challenging portfolio
  • Many want a PM to help simply help them launch in a targeted expansion market

Where do you find them?

  • National and Regional Investor conferences
    • IMN
    • Five Star

This is where Socrate’s first investor found him

  • Google Search

Ensure that your google reviews are high, so investors searching

  • Investor referrals
  • Managing the lead via LeadSimple

Navigating the bidding process

  • Understand and responding to RFPs

Respond quickly!

  • Presentation to Institutional Investors
  • Research the company and its strategy
  • Research decision makers
  • Differentiate yourself from competitors
  • Understand how they measure success

Example: make sure you understand the system requirements. A lot of mom and pop companies don’t have good systems in place, so this can set you apart.

  • What are their Key Performance Indicators (KPIs)

Most important: Be sure that your business is setup to self-sustain before you go for the big fish!

After the deal is closed:

  • Be Proactive
  • Manage the key personnel
  • Keep your team aware and motivated
  • Link your team’s performance to your investors Key Metrics.

Managing the growth

  • Is your system scalable?
  • Ensure that your organic business does not suffer as a result
  • Hire Just-In-Time (JIT)
  • Can your office space support the growth?
  • Maintain the culture of the team

Don’t grow so fast that you lose your culture.

  • Some companies lose their culture when they grow too fast
  • Be slow to hire and quick to part ways
  • Ensure that your team members who are not working on the investor account are not forgotten

Economies Of Scale

  • Economies of scale is a proportionate saving in costs gained by an increased level of production
  • As we scaled up, we began transitioning the business operations to improve the support without increasing headcount
  • PMs manage 100-200 properties with dedicated resources to perform operational tasks: Renewals, Listings, Maintenance, Other Admin tasks
  • Negotiate you fees early & renegotiate when ready

How to cope when they internalize

  • Communicate with the clients to understand their plans
  • Anticipate their strategy and timeline for internationalizing
  • Prepare your team and communicate what options they will have

You can even partner with your institutional investor to see if people from your team can go work with them when they internalize.

  • Work with investor to discuss their staffing needs to minimize unemployment of those impacted
  • Investors typically do not want to start with a whole new team
  • Work together to see if any PM employees are interested in working for the investors
  • Keep core team intact and prepare for life without the large investors
  • Notify impacted vendors of the change
  • Recommend key vendors to investor to minimize their losses

Sample Vital Signs report

  • Lease-Ups
  • Renewals
  • Move-Out
  • DQ – Delinquency
  • Market Assessment


  • Negotiate fees in the beginning and throughout – If you don’t have the right fee structure, negotiate!
  • Do not over staff – When you’re overstaffed you run your salary expenses way to high
  • Do not over build – Knock down walls before moving to a bigger space
  • Be prepared for the relationship to end – It’s not about if, it’s about when the relationship will end.
  • End it amicably; this is small industry
  • Do not lose your business or company identity because of a single client
  • Have an exit strategy

About Socrate:

Socrate manages and co-owns three All County Property Management franchises and leads a business strategy consultancy Critical Path.

Socrate’s is uniquely qualified as a leadership coach, mentor, speaker, and business strategist. At the age of 20, Socrate was promoted to a leadership position for a Fortune 500 company. Socrate is fortunate to have had a cross-functional view and experience during his 14 years in working in corporations. Socrate leveraged this experience, education and knowledge to leave a high-paying career to becoming an entrepreneur/business owner.

Socrate has a “Faith it to make it” attitude – if you have faith you can make it. This belief system along with the strategic planning, and the law of the inner circle has helped Socrate and his wife, Cassandra, build two multi-million dollar franchised property management businesses employing more than 20 people in less than five years. The enterprise has been the top-performing franchise in the country for three consecutive years.

Socrate attributes his success to his passion for attracting and developing leaders. He is committed to working with the best and brightest current & future leaders. He holds a B.A. in management from the University of Central Florida, and a master’s in project management from George Washington University. Socrate is a John Maxwell certified consultant, speaker and coach.