You’re Already Behind: How AI and Systems Are Changing Property Management Forever

Tyler Casey (00:00)
Yeah, I I think I think it’s Agentic AI. I mean, I think that’s the thing, right? I mean, there there’s

I already have, I right now have a Agentic AI that is answering my phones for leasing and maintenance requests. I right now have a Agentic AI that’s responding to every single, ⁓ new lead that comes into our business immediately. I right now have Agentic AI that while we’re talking is prospecting. Right? While we’re talking is texting, texting, proc prospects is emailing prospects.

⁓ and can carry on very realistic conversations with people ⁓ and push people through a funnel,

Scott Bursey (02:17)
Welcome back to the Real Estate Pros podcast powered by Investor Fuel. I’m your host, Scott Bursey. And today we are absolutely firing on all cylinders with a guest who brings high octane fuel for your operational efficiency.

If you own rental properties, you know the game changes when you move from being a hobbyist to a serious operator. Today’s guest is the person who builds the system that makes that scale possible. We’re talking about maximizing profits and creating systems that truly work. Get ready pros because we’re about to unlock the blueprint for success. I’m thrilled to welcome the CEO of Pro-X Property Management, Tyler Casey. Tyler, welcome to the show.

Tyler Casey (02:57)
Hey Scott, thanks for having me.

Scott Bursey (02:59)
It is just a pleasure having you in studio, Tyler. And for our listeners who may not be familiar with your journey, please tell us, how did your career begin and what is your main focus now?

Tyler Casey (03:10)
Yeah. So, I mean, I started out ⁓ wanting to be a real estate investor. I had went and spent some summers part-time working for my, grandfather actually on his small real estate portfolio that he had in Tulsa, Oklahoma through high school. And so that’s how I kind of, you know, and he would.

Take me and go teach me how to refinish hardwood floors or paint or put in trim or replace a wax ring or whatever on his rentals. ⁓ when I was down there and, then at night, you know, we would sit out in his office in his garage and he’d show me the backend of his books and things like that. So kind of started to get a feel for that. This could be a pretty good, you know, and he, he had sold his stock portfolio after the.com bubble. ⁓

and invested in real estate because he was wanting to retire and he felt like that was too volatile. So he was like, and he bought like, I think he had 15 rental properties that he bought and this was his whole retirement plan. And he, he self-managed them. Still does. He’s 87 years old now.

And so I wanted to be a real estate investor. So I ⁓ went back to Pittsburgh, Kansas, where I lived and I bought a fixer upper house and, you know, got a Home Depot credit card to fix it up and fix it up myself.

⁓ Just kind of started from one house and scaled it up to now. We manage properties for other people too, but in total, we manage ⁓ just over 2,100 properties across six cities in four states.

Scott Bursey (05:38)
And what are those states, Tyler?

Tyler Casey (05:40)
⁓ Kansas, Missouri, Arkansas, and Florida. Specifically, have offices in Pittsburgh, Kansas, Joplin, Missouri, Springfield, Missouri, Bentonville, Fayetteville, Arkansas, Ocala Gainesville, Florida, and Winter Haven, Lakeland, Florida. ⁓ full local teams in place in those markets there.

Scott Bursey (06:04)
and definitely having a huge impact in those markets. If someone’s listening and they’re thinking to themselves, hey, this is somebody that I like to partner with or learn from, what would you like them to know first about your business?

Tyler Casey (06:16)
yeah, I would say, you know, if you have a portfolio of properties, or if you have a multifamily property and you just want us to take a look, you know, and see if there’s something that, ⁓ you could be missing, you know, something that maybe we could help. could potentially help you execute on that would, that would improve your properties performance, you know, in some way. ⁓

You know, we… ⁓

And me or my directors of property management, each of those markets are, are, you know, well versed in those local markets. uh, you know, as we talked about, I, you know, have a very high level, uh, construction expertise in house as well. So if your problem that you’re experiencing, you know, happens to be, you know, maybe deferred maintenance or condition issues. Um, those are things that we’re well versed in helping in and helping overcome to get a property back to top.

performance so ⁓ you know if that’s something that you’re needing help with if you’re having a problem with one of your properties or your portfolio right now we may be able to be a resource in that regard.

Scott Bursey (07:29)
And what does your construction background look like?

Tyler Casey (07:31)
Well, it started there working for my grandpa part-time doing kind of little handyman things. And then I worked part-time for a general contractor for a while. And then I got into doing my you know, my own renovations on houses when I was still in college. I mean, the first house I bought, was 18 years old.

And then I scaled that up by buying fixer upper remodel houses in Pittsburgh, Kansas, ⁓ to 48 units by the time I was 24 years old. ⁓

And I’ve done, you know, I’ve done hundreds of new builds now, hundreds of rehabs, you know, thousands of units in total, you know, in rehab and new construction. So, um, and I’m a licensed general contractor in three states. So I’m licensed in Kansas, Missouri, and Arkansas. Haven’t taken the step in Florida yet. Cause our Florida affiliate, our offices there are just a little bit newer and, um, there’s not quite as much demand for that there yet. So.

But intend to do that at some point in the near future.

Scott Bursey (08:30)
With all of your

experience in new construction, what are some of the opportunities right now out there as you see it, Tyler?

Tyler Casey (08:39)
Well, we’ve really leaned very heavy into kind of small multifamily developments, ⁓ especially in this marketplace where ⁓ deals are a little harder to come by. We figured out how to create our own. And we really started this build to rent program ⁓ and started scaling it up a few years ago as that market developed that way. ⁓ And we’ve got a pretty good process now where we’re specifically

specifically building just a few different sort of standard duplex plans that we have. ⁓ And we may we may buy an acre or two and put four or five or six of them on one site like a plan development.

But we also might just find a lot in town that’s got the right zoning. know, we can meet setbacks, we can meet parking requirements. We might build one. Right. So or or our clients are doing the same thing. So not just us. We’re doing it for all of our, you know,

several hundred third-party property management clients we have also.

⁓ And that’s just working out about as good as you could imagine an investment working out. ⁓ You know, we’re our average cost to build those in our markets right now is $245,000. And that includes our fees and markup. ⁓ They’re they’re 2400 square feet, both sides, roughly 1200, both sides, three bed, two bath. ⁓ Depending on the market, you know, those costs and rent prices and things vary a little bit.

but the average rent’s around, you know, $1,250, $1,300 a month ⁓ per side. ⁓ And they’ve been appraising for between like $295,000 and $330,000. So ⁓ depending on location, in some of our Northwest Arkansas areas, the rents are much higher than that and the values are much higher than that also. like,

You just get a really nice equity spread right off the bat when you do these deals. And you also can actually cash flow on a brand new bill even at 75 % LTV or so.

Scott Bursey (11:25)
And on that note, what is some short-term strategy? And I know that you’re playing the ⁓ long game and some long game ⁓ strategic strategy as well.

Tyler Casey (11:36)
Well, some of those that we’ve built, we’ve built, you know, three or four and sold one or two and, you know, taking some cash off the table or taking some capital off the table while retaining the others for, you know, long-term cash flow. ⁓

You know, I don’t normally go into real estate deals that I do personally ⁓ thinking that I’m going to sell them. ⁓ But, you know, sometimes I do, you know, just sometimes an opportunity presents itself. Somebody wants to, you know, like, I mean, I did a storage deal with a partner where we bought three storage, self-storage facilities. ⁓

In total, they were 1500 units, you know, and we had a just a private equity group come along and make us an offer on the portfolio. They were all in the same city. ⁓ And so like, I don’t go into the deal thinking I’m going to sell the deal. Usually I think about it long-term. think about it in terms of cashflow and appreciation and debt pay down and tax strategy, right? But it’s, ⁓

You know.

Some deals, you know, like there’s another deal. just, I I’m not buying the deal, but I brokered the deal, help structure the deal. ⁓ and you have put together the scope of work and budget and help with the banking side and all that for a client, ⁓ to basically, for us to then operate the whole deal for him. ⁓ and part of that deal is there was an additional lot with one of the houses that came in the portfolio. ⁓ and it’s happened.

to be right by the country club in Joplin, Missouri. So like in that case, it just makes sense, you know, to build a spec home there at about $120 to $25 a square foot and then flip it for, you know, $165 to $70 a square foot. there’s always, that’s a very difficult question to just answer blanket because there’s a lot of nuance and

You know, I’m looking at a lot of different things. You know, I’m looking at what’s how much equity is somebody going to need to inject in this deal? ⁓ You know what cash on cash returns makes sense relative to what somebody could go do on a very safe, you know, long term investment like a treasury bill or something like that. ⁓ You know, so.

And there’s in most deals, there’s a way to structure them.

where you can maximize all of those things. You can maximize your returns on that particular deal based on how you put it together, right? How you utilize equity, how you utilize debt. ⁓ And that’s not all something that, how you utilize maybe other partners, right? All these things. ⁓ And that’s not something I can necessarily teach somebody on a 20 minute podcast either, but.

Scott Bursey (15:20)
Tyler I love the long-term vision I really do is there any challenges you’re watching closely you know this could be market risk competition access to perhaps deals or capital you know that sort of thing.

Tyler Casey (15:35)
I mean, kind of all those things you just mentioned right now. mean, you know, raising capital has gotten a little more challenging in the last couple of years. ⁓ just because, ⁓ think investors are a little spooked with all the uncertainty going on in the world. but. You know, I think the biggest threat that’s kind of comprehensive and it’s different. The biggest threat could be different depending on where you’re located in this business too. Right. But, but as far as just a threat that I think is facing every.

property manager, whether you’re managing for yourself or you’re managing or your third party management firm, ⁓ is not staying ahead of technological advancement and not figuring out how to integrate the things that are coming down the pipeline in your business to make your business more efficient.

Scott Bursey (16:21)
Absolutely, that makes a lot of sense. And what single regulatory change could most significantly disrupt the property management landscape this year in your view?

Tyler Casey (16:32)
Well, again, that depends heavily on where you’re located and where you’re operating properties. I I don’t know if I was in New York or Chicago or, ⁓

You know, lot of places in California, I’d probably just be thinking about selling my real estate portfolio or getting out of the business entirely because, know, ⁓ you never know when the next new, ⁓ you know, rent control law or, know, just anti landlord or, or no evictions allowed or, ⁓

You know, you never know what’s coming down the pipeline in some of those areas that are that are like that ⁓ But I mean I would say again the technology things probably the biggest threat across the board right if you’re not it because

I think, I don’t think AI will eliminate property managers. I don’t think it’ll eliminate brokers. ⁓ I think you could have some short-term blips in the next three to five years where automation starts taking a lot of jobs. ⁓ And maybe, you know, maybe the government hasn’t figured out a plan of how to help those people replace their income, you know, so you could have some.

challenges with ⁓ collections maybe that’s probably more of a three to five year at least window ⁓

You know, you could have, but, as a business owner, if you’re not the business owner who’s adapting to all that right now and figuring out how to implement it, and figuring out how to deliver your services more efficiently and at a lower cost, utilizing that technology, ⁓ you’re already behind and maybe you’re already dead and you just don’t know it yet.

Scott Bursey (18:23)
Let me ask you this, what technology could become a threat if ignored?

Tyler Casey (18:27)
Yeah, I I think I think it’s Agentic AI. I mean, I think that’s the thing, right? I mean, there there’s

I already have, I right now have a Agentic AI that is answering my phones for leasing and maintenance requests. I right now have a Agentic AI that’s responding to every single, ⁓ new lead that comes into our business immediately. I right now have a Agentic AI that while we’re talking is prospecting. Right? While we’re talking is texting, texting, proc prospects is emailing prospects.

⁓ and can carry on very realistic conversations with people ⁓ and push people through a funnel,

right? And if you’re not somebody who’s on top of all that stuff, ⁓ you lost already.

Scott Bursey (19:20)
Yes, you have to implement AI. You have to do it correctly. And it sounds like you’re a big proponent of AI.

Tyler Casey (19:27)
I mean, I think you have to do it because if you’re not the one who figures it out, you’re in trouble. ⁓ I think there’s some scary things with the technology also, right? Like I don’t want I don’t really know that it’s a better world where ⁓ human beings don’t have jobs and don’t have a don’t have a purpose or reason to wake up in the morning. Right. ⁓

I mean, I think that’s a big part of life is people having a reason to live, having goals to chase, having incentive structures that pay them more for working harder or for working smarter or for building a better system. And I think it’s a little scary to think about a future where maybe that is not even a possibility or a reality for a large percentage of the population. So while I’m a proponent of AI,

for survival of business. I don’t know that the way that people see it developing or that people are talking about it potentially developing ⁓ looks overwhelmingly positive for humanity, but we’ll see how that goes.

Scott Bursey (20:38)
Tyler, we’ve covered so much here today, but is there any golden nuggets or advice you’d to leave with our listeners?

Tyler Casey (20:45)
⁓ any kind of business that you’re running, ⁓ there’s really three pillars that I would say matter. This is for real estate investors, property management companies, brokers. and that’s, know, people process technology. And if, if you’re not taking care of your people.

establishing a strong culture that gets people excited about the kind of organization you’re running and the values that you have. ⁓

And then if you’re not building an infrastructure and a system and a process for those and a framework for those people to work within and holding them accountable to working within that system and that infrastructure, ⁓ and then you’re not implementing technology where it’s possible to implement it to make your operation more efficient. ⁓

you’ve got problems and you don’t even know it and they’re just compounding in the background, right? I’ve been there and I’ve done it. I’ve had, gosh, thousands of problems, right? I mean, and the great thing is, is ⁓ me, my wife, our team, you know, I think we all have the mindset of, okay, we have a problem once or twice and we put something in place that solves it forever. And I think that’s ⁓ kind of the most

important thing in everything that you’re doing is just to have a framework and a system and not have it be just winging it.

Scott Bursey (22:17)
Tyler, this has been an absolute master class today. I can’t thank you enough for bringing the fuel. And for those of our listeners that want to follow your journey or collaborate with you, what’s the best way for them to reach you?

Tyler Casey (22:29)
Um, yeah, so they can, uh, go to our website, www.proxproperty.com and there’s forms for them to fill out regardless of what it is that they’re interested in. If they’re interested in a franchising opportunity, um,

You know, there’s, there’s a tab for that. If they’re interested in property management services or investing in one of our markets, there’s a, there’s a form and a tab for that. ⁓ and that’ll get them routed to the appropriate person that can help them with whatever it is that they’re looking for. you know, we also have a real estate investment fund. So if somebody is a totally passive investor, you know, iron Harbor real asset fund, you want us just to, ⁓ help you grow your, grow your money and grow

capital without you know without any effort or input ⁓ you know that’s a that’s an option for you as well.

Scott Bursey (23:20)
Thank you for joining us today, Tyler.

Tyler Casey (23:22)
Thanks for having me, Scott.

Scott Bursey (23:23)
absolutely. It has been a pleasure and you’re welcome back at any time. This has been a clinic and to our listeners, we appreciate each and every one of you. If you got value from today’s episode, please subscribe. We’ve got exceptional guests, just like Tyler Casey, who are making huge moves in the market. Until next time, keep your standards high and your vision clear. We’ll see you in the next episode, everyone.