Help your team buy real estate with an Employee Fund- Talking w/ Jake Durtschi
Welcome to the Good Life Property Management podcast! I’m your host, Steve Welty. This is a show for property management entrepreneurs who want to build not only great business, but also great lives. I’m here to help you gain the freedom to live life on your own terms while creating a positive impact in the world. Also, please check out Steve Welty's Music!
Jake Durtschi joins me today for a conversation about helping your team to buy real estate with an employee fund. Jake and I met less than a month ago at the Tribe Mastermind, and I’m so glad we did! He owns a property management company in Idaho, and I was blown away and inspired to learn his take on things and how he manages his team and his business.
As you’ll learn today, Jake runs an employee fund that helps his team to buy real estate or become part owner in a real estate investment. He found that it was challenging to have his team really understand what it’s like to be an investor, and struggled with the empathy gap. He also wanted to help his team members create some passive revenue. This employee fund achieves both.
Jake’s company gives annual profit-sharing, and the profit share that each employee receives gets matched in the employee fund. With that money, they’re able to buy equity in the company, so their equity amount increases each year. This helps them financially while also developing that empathy for investors that Jake finds so important.
Tune into this episode to learn exactly how Jake runs this fund and makes it work for his company. He’ll talk about how employees vote (and how he protects himself from bad votes), how he handles active versus inactive members and people who have less interest in learning to invest, and the biggest lessons that he’s learned and things he would do differently. If you’re ready to increase employee satisfaction and retention, all while helping them to better understand the world of investment, absolutely don’t miss this conversation!
In This Episode:
[00:15] - Steve welcomes listener’s to today’s episode, which features a conversation with Jake Durtschi.
[01:28] - Jake talks about his employee fund and the challenge he was solving by originally creating it.
[03:15] - We learn about whether this program helps Jake’s team stay happy and stick around longer.
[05:19] - Jake explains where the money that goes into the fund comes from, and talks about being the majority shareholder in the company.
[08:07] - We hear about what power the team has as far as control and how voting works for shareholders.
[09:24] - What if Jake’s entire team wants to buy something that he thinks is a horrible investment? How does he protect himself?
[12:17] - Because Jake has more equity than anyone else, he has the most votes.
[12:37] - Jake talks about how he handles active versus inactive members of the fund, and people who have zero interest in learning real estate but would like to be involved financially.
[14:01] - How does Jake handle the sweat equity part of the equation?
[15:34] - We learn about how money goes into and out of the employee fund.
[17:10] - Are there any big issues that come to mind that Jake has dealt with, or something he wishes that he had done differently along the way?
Links and Resources:
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