Uncovering Opportunity and Driving Growth Through Client Discovery

Alana Muller:
Welcome to Enterprise.ing, a podcast from Enterprise Bank & Trust that's empowering business leaders one conversation at a time. Each week, we'll hear from top business professionals about lessons on leadership and entrepreneurship that they've learned along the way. I'm your host, Alana Muller, an entrepreneurial executive leader whose primary focus is to connect, inspire and empower community. We at Enterprise Bank & Trust thank you for tuning into another episode.

Hello, and welcome back to Enterprise.ing podcast. Today, I'm visiting with Kathy Ilacqua. Kathy is Director of Marketing and Business Development for Southwest Equity Partners, or SWEP, a Solana Beach, California-based property management company with more than 2,000 multifamily units under management. Kathy lends her experience in sales and marketing with specific emphasis on digital marketing to the company where she's responsible for growth by developing new business to add to the SWEP portfolio of property management. Kathy Ilacqua, welcome to Enterprise.ing podcast.

Kathy Ilacqua:
Hi, Alana. Good to see you.

Alana Muller:
Great to see you as well. I know that you have experience from many industries, Kathy. What drew you to multifamily property management?

Kathy Ilacqua:
Well, it's interesting because I never would've imagined myself here in this day because I didn't even know what multifamily was, to be honest with you, about five years ago. So, my background is in media primarily, radio and TV, but sales and marketing. I'm a business graduate from Michigan. So, it's interesting because I learned a lot within that career in and of itself. But then I noticed slowly that things were… traditional was becoming less and less of a thing. Digital had to be, like, you had to be in the forefront. And I'm talking probably good over 10 years ago, I had to really get into the digital train. So, in that industry, we actually kind of moved pretty quickly to adapt. And a recruiter reached out to me, oh gosh, probably almost five years ago now through LinkedIn. They were telling me how there is an opportunity, not even at Southwest Equity Partners, but it was in multifamily space. And so, it just kind of piqued my curiosity. And one of the main things that they were saying is, “We are looking for digital marketers because this industry has been slow to adapt.”

And sure enough, when I came over… and at that point, I had been in media for quite a while, so there was something that I felt like… there could be more within that career. Because it's such a vast learning experience on all levels. And then quite frankly, it was just kind of… I might've peaked there, too, because it was time to just learn something new, different industry, but at the same time, apply my skills to what I already knew.

So, that's when I kind of jumped over to multifamily. And it became a really great experience to learn about a new industry, as well as becoming an expert and helping, really, the industry. At least my clients that I was working with at the time got up to speed on where they needed to be from a marketing perspective for their properties.

Alana Muller:
When you think about digital marketing, what aspects, what collateral, I guess, what channels… what does that look like to somebody maybe not as familiar with digital marketing as somebody in the business?

Kathy Ilacqua:
So, it is kind of a scary word for some people. I think more and more people realize that they're doing it and didn't even know they were using digital aspects of things. But, in a nutshell, it's just online marketing. So, where we used to have, and they would explain it to me back in the day… and I remember this, when I rented my first apartment, it was through a booklet. And there was print deadlines, what have you. And so you were stuck with this book. So, things changed. You had to wait until whenever they produced the next book.

With digital, it was all online. So then websites started being created, online platforms that once were in paper, they did away with paper, and now it's just going to be online. So, if you need something, go look it up. Hence, the success of Google because everybody kind of Googles things. Now there's other ways to find the resources that you're looking for. But that's really where things were happening naturally, organically, very quickly, that a lot of industries, not just multifamily, but I do see a lot that are still a little bit behind the curve. AI now, it's one of those things where you just have to keep up if you make that decision to be in the world of business and digital, to be in pace with your competitors, as well as just if you want your business to grow, you have to be able to be okay with not knowing things, but learning how to utilize the tools that are coming up very quickly.

Alana Muller:
Yeah, I like how you said that. You don't want to get left behind. So understanding what those tools are, including AI, which I think so many people have such a negative relationship with, that if they can embrace it as a tool that they can control, it seems that, not only they, but their company, fares a better chance at using AI successfully. Is there something that you're doing specifically to affect the way AI either receives information about your company or the way that your users interact with the information?

Kathy Ilacqua:
Yes. So, one of the things that the president of the company, Jake Zeiter, did, and when he hired me, he signed me up even before he started. He said, "You're going to take a course as part of your training for marketing AI." So it was a boot camp course that took me about 60 days to really dig into some of the things I knew, but I was amazed at some of the other things, a lot that I didn't know. And I'll tell you, two months later, they're already revamping what we've learned because things have changed. And I mean, that's how quickly things are.

So, I'm with a group of entrepreneurs from different industries, there's some that are in real estate that it's most similar to the industry we're in, that I can connect with to talk about what are you using as far as tools to stay ahead? For me personally, being in sales development, I want to say, how can I reach out to property owners, investors, real estate people? LinkedIn has been a great way, but it's only one way.

So, the other thing I do is, hey, well, how do I speed up my outreach? How do I make it efficient? Because there's a lot that goes on on anybody's plate, including mine. So really, AI has helped me kind of narrow down how I can best reach people via email, maybe it's a phone call. Here's the best place that we tend to see who these ideal profile, they call it an “ideal profile customer” for you, here's where they mostly can be seen, show up, events, that type of thing. So, I kind of look to see where I can best reach them. And AI really does help speed up that process. And I've seen that in the short time that I just really delved into it.

Alana Muller:
So great. Well, okay. Well, so I want to take you back to your roots. I know you shared with me that you knew from an early age that business was really going to be your path, and especially sales and marketing, as you continued to sort of hone your areas of focus. How did those childhood aspirations lead you down your chosen career path, and has your career actually manifested itself in the way that you imagined?

Kathy Ilacqua:
So, it's funny because, when I was younger, I didn't even know that business was what I was interested in. So, in junior high, we had an economics class. And we sat in groups. There was maybe five of us in a group, five to six people, and we all had to come up with a business. And you had to make you a profit for the class. So, it was interesting because I took the lead on it. We created something really weird. I'm not even going to mention what it is. I don't know why we decided on what we decided, but we did.

And so we had to say, okay, who does it cater to? What's it going to look like? Where do we order the products? We had to do all of that, and then sell it to the school. So, by the time that was all done, we gathered up the collections of the money and we had actually raised the most money. So, I didn't even know that that was even really a thing. I probably didn't even realize it was a business, but it was something that I thought that was fun, it was collaborative with my classmates at the time. And then, just going in from there to high school to college, I just gravitated towards business courses. Not maybe quite sure what I was going to do and that it was going to end up in marketing. But quite frankly, if I looked back at all the things that I did, and I tried my own businesses a little here and there, I failed. But it was really good. And it was side gigs. It wasn't my real career. But it was just to see what it would take to reach out to vendors, shipping, that type of thing. And I do commend entrepreneurs that can make that happen because it's a lot of hard work when you're on your own. And it can be lonely, too.

But nonetheless, it helped me learn things about where I am today and how to apply it. I would say within maybe the last 10 years, I've started to do a little more about manifesting what I want as what's the end game for me. I've built up all this knowledge, so it's value to myself, to anybody, my company, or whomever I come across because I like to share my knowledge and I hope they could share knowledge with me, too. So, in that respect, I am a little more thoughtful and deliberate about who I talk to, and what kind of connections I can make to maybe grow within my continued education. I don't think it'll ever stop. And it always just leaned towards that business aspect of it.

Alana Muller:
Well, what I really admire is that this idea of trying something and maybe failing, but the failure, if you get back up, it really does, as you said, turns into more of a lesson and something not to do next time. So that you are actually growing as you experience these new things. And so, I think that's just fun. And certainly while those side hustles may not have panned into something long term, certainly the lessons that you learned helped the companies that you've worked for, right?

Kathy Ilacqua:
Absolutely. I think it teaches you grit. It teaches you about what doesn't work. So, just because it doesn't work doesn't mean you're dead in the water. It's like, okay, like you said, it's lessons learned. Okay, what not to do, but what can we do? And I think it's just being okay with trying. But, as you get to keep trying over and over, you become a little more skilled in what could work and couldn't work. So, you kind of reduce the risk, which is really the idea, but you really do have to take in order to see what the outcome could be.

Alana Muller:
Totally makes sense. Well, okay. Well, so with that in mind, is there something you're working on right now that you're especially excited about, something either new or innovative, or something that you're trying for the first time for Southwest Equity Partners?

Kathy Ilacqua:
Yes. I think, well, one of the things we do is still tried and true. It's getting out and meeting people at events. Because I think the person-to-person thing is always, you can't trump that in the world of AI. But how can I get to those people quicker? I'm just a name on a piece of paper or an email. So, what I am excited about, and I don't want to overuse ChatGPT at all, but if you can say, hey, it's going to make your job more efficient, it's going to help you get to the result that you're looking for faster, what should you do? So, I've been using a lot of prompts, and the sessions that I've been taking have been helping us create prompts to really say what could I say though, if I'm crafting, even if it's not in an email, maybe it's something that helps me from the standpoint of if I'm in front of someone who I meet them at an event, what are some of the things that they would be looking for in a partner when it comes to property management?

So, I can actually pull that from Chat and it'll kind of say, here are the list of things that are important to them in this order based on information that are trends coming up in Google. People are searching. And it really helps me guide that conversation because really it's about what can you do for them and how can you be a partner? But until you know them, until you're a trusted advisor, there's a longer play in the beginning. And that's okay. That's okay to build trust. And I think that's a smart way to move. But your hope would be that, as you go further with a person, once you're able to connect with them and become partners, you become lifelong partners. So, that's the goal.

Alana Muller:
Well, okay. So, you've said a couple of things that I'm particularly excited about. My personal area of focus is always around relationships and relationship building. And you talked a couple of times, you were mentioning the cohort of entrepreneurs or the cohort of the AI students that you're taking the courses with and how beneficial it is to be connected. And even when you were talking about actually getting out into the community, talking to prospective tenants or investors or whoever it is that you are working with… I would love to hear a little bit more about how just this power of relationship building, the power of connection, how has that benefited you, how has it benefited Southwest Equity Partners, and what does that look like in your line of work?

Kathy Ilacqua:
So, as far as partnership with myself and Southwest Equity Partners, for example, I had mentioned to you that they were my client prior to me joining the company. And one of the things that I realized when I was up against competitors, we all looked like commodities. So, obviously had a lot of properties, they needed to market them, they had units available. I happened to be one of those vendors that supplied that. We had a platform where renters would go to look for homes or apartments, apartment homes. So, what I realized is the reps at the other companies were not that good, to be honest. We always had to push a little bit harder, though. We were kind of like the third tier. And everyone would look at us after they added these are the ones we use first. But really it was just about customer service.

And I think Jake kind of saw that. I cared about his success, I cared about what he told me his needs were. And so really, I just brought to the table what he was asking me to provide. And it was just an organic thing that happened. Again, it comes down to relationships. He would just tell me, "Here's our goal. We are looking to pitch new business. Part of the plan is the marketing aspect. Would you mind putting together X?" There was no guarantees he was even going to get it, therefore I might not even get the business. But it was that relationship that we had knowing that I wanted him to win and he wanted me to be his partner if that happened. So, of course I was going to do that for him.

But it kind of parlayed into a working relationship where he's like, "I need to hire because I want to grow. I don't have a marketing person in place, and at the same time, I need to have someone who can develop sales." And I had both of those criteria. So, we talked for a long time until the timing was right because I was good where I was for a while, but we continued to work together. And I think that, even in that time, that we were just working together really just helped me understand the company even better.

So when I came in, it was pretty quick getting acclimated. It didn't take too long. So that really helped. And now that I'm going out to talk to prospects, I really can feel and understand and I can talk, but not even being an employee yet, but I understood what was happening as I was a partner, even on the outside. I can share that story and say, "This is why you should choose working with SWEP. I chose to work with them. I could have gone to any other property management company that had openings. I was being very particular as well. This is why I think this would be the right choice for you."

Alana Muller:
That's so great. And I love that you'd already built a professional relationship with somebody, so they kind of had seen you in action in a different way. And I always think that there's something really special about that because they know what you're capable of, even if you don't realize, that sort of just this constant job interview in a way, right?

Kathy Ilacqua:
Exactly. Yeah. Now that you say that, it probably was, and we didn't even know that.

Alana Muller:
Yeah, which is really cool. Well, so you've talked a lot about Jake and how that relationship has sort of developed over time. Tell me, do you have a mentor? Is there somebody in your life who's had a particularly meaningful impact on your career or your personal journey, and is there a particular piece of advice that you've received along the way that has just stayed with you?

Kathy Ilacqua:
It's funny. Because I always, depending on where I am in my career, there's always been a mentor. It tended to be my manager, to be honest. Because I would look at them if they were good, I would say, “What are they doing right that I can now glean off of?” And we all had the same goal. If I was working for that company, obviously, and I reported to them, obviously we had the same goal. So, in my mind, it was always about, I don't know who told me this, just make sure you make your boss look good. If you make your boss look good, it's a two-way street, they will take care of you. Conversely, if you don't care, and you're just going to fall short and no effort on your part, that's going to show, too. And what kind of relationship are you going to have with your boss, your coworkers?

Because at the end of the day, if we all can be accountable as a group, everybody will do their best and everybody will know that people will make mistakes, people will fail within it. And then if we could talk amongst each other. I think that… so, it hasn't been one person per se. I think it was any given moment where I was, I would make sure that I would find what that mentor is, whether it was the person, the team, my counterpart that sat next to me. There was always someone that I could find that I could learn from, and then over time, I found they would come to me as well because they found some value in what I could give them.

Alana Muller:
Which is really cool. In a way, it's sort of wherever you went and where you continue to go, that you sort of look for role modeling. Somebody at multiple levels to see what it is that they're doing right and how can you utilize that skill set or that approach for your own work and your own success?

Kathy Ilacqua:
Absolutely. It's worked for me every time. So, I don't know why I wouldn't do that now. And who I look to now is Jake, of course, because he's got a vision. He knows where he wants the company. There's a plan. And I want to help execute that plan.

Alana Muller:
Yeah. Well, okay. Well, so speaking of that, talk a little bit about what is that plan? I know that you were brought in to really help the company grow. So, what's on the horizon for Southwest Equity Partners? Is there something specific that you're working on, or something, a particular direction that the company is looking to go?

Kathy Ilacqua:
Yeah. So, within property management, the way we generate revenue is through units. So, if a property owner, let's say he has 100 units, we charge a certain property management fee, and then there's opportunity to just really help maintain those properties, those units. Whether it's through maintenance, CapEx projects, renovations. Really what is the goal of the property owner? Is it to build it up, which we call “lease up?” Is it a new construction for the goal of them, they're just basically an investor and they want to sell it in three to five years? We have to know what that goal is to help them get there quicker and to make it set up for success for whatever they're ready to do down the line with it.

So we, really, for us, we do have a nice blend of what we call “stabilized properties.” Ones that have grown. Those are going to probably be longtime owners that are going to pass down the properties to the next generation, usually their kids. So, they want to make sure that we set it up correctly for them, so there's recurring revenue for them. And like I had mentioned, there's some that have investors that are going to probably sell it within the next five years, but they have this goal, too, that they need to hit from a revenue standpoint to be able to sell it.

So, the one thing that we need to do is really we look at ways that we can approach these partners, whether it's a business owner, a developer, a real estate investor and to see what we need to do to help gain that business. So, the nice thing is we have all these tools though. We are very much into the technology of how do we make, if we're going to help them do their maintenance, to get it up to par, we will work with, even if it's an outside vendor, to help us maximize the efficiency of the maintenance team, for example. So, everything we do is very thoughtful for the owner at the end of the day to make sure that we're doing our job as we say we're going to do. But, how do we also make it efficient internally? So, my job is to just grow the unit count, and then do our best job that we can do as a partner, and we succeed with them in whatever goal they tell us it is from the beginning of our relationship.

Alana Muller:
That's so great. So great. Well, I admire the work you're doing. It's really important. It's important, especially in this moment. So, I think it's terrific that you're doing that. As we begin to wrap up our conversation, as you know, there's a question that I ask of all of my guests, and I've been eager to hear what your answer is going to be. But of course, the question is, if you could sit down for a cup of coffee with anybody, living, not living, fictional, or non-fictional, who would it be and why?

Kathy Ilacqua:
I was telling you, you're probably never going to guess. There's a few. But in the last few years, and maybe it's why, and it wasn't even connected, but it's Frank Lloyd Wright…

Alana Muller:
Oh, interesting.

Kathy Ilacqua:
…who was a famous architect. Now that I'm seeing new builds and whatever, I get very excited about doing the tours. Because I want to see what was the thought of the design. This is talking to these real property owners and then developers. But what I really, I don't know, I go to Palm Springs a lot because I'm into the modernism design of things. I don't live in a mid-century modern home, but I just kind of relish in seeing what the thought process might've been and how they designed it. And he is known for his simple design for the natural, the water, the rivers, everything, that he tried to bring it all in.

So, a couple years ago, I took a tour of one of his homes in Arizona where I learned he actually brought his apprentices. So, I went into one room and there were all the drafting tables. And I just kind of envisioned them all working to make their masterpiece. And he's been gone for many years, but people to this day can always go back to see his art, and then think about all the people that he had helped grow within their careers with what he was doing. So, I would love to have a cup of coffee with him if he was still here.

Alana Muller:
Terrific. Oh, that's a great answer. Nobody's ever suggested Frank Lloyd Wright. So, that is a first. I love that.

Kathy Ilacqua:
That's a first one.

Alana Muller:
That is fun. Really fun. Yeah. Maybe you can use that in your work also. That's fun.

Kathy Ilacqua:
Yeah. Never say never.

Alana Muller:
That's exactly right. Well, Kathy Ilacqua, it has been such a privilege to meet you, get to know you and hear about your journey. Where can our listeners go to learn more about you and about Southwest Equity Partners?

Kathy Ilacqua:
If you go to southwestep.com, that will take you to the Southwest Equity Partners website. We have all our team members there. We'd love for you to get to know us there first, and hopefully in person, and then talk to us about our full service that we do on behalf of all of our properties, the portfolios that we manage. And then for me, if you LinkedIn, I love LinkedIn. It's Kathy Ilacqua, I-L-A-C-Q-U-A, it's a lot to learn. But if you go to Southwest Equity Partners, and follow us on any of those platforms, you'll connect with me through there, too.

Alana Muller:
Terrific. It was a privilege to have you on. Thank you so much for being on Enterprise.ing podcast.

Kathy Ilacqua:
Thank you, Alana. So glad to be here.

Alana Muller:
Thanks for joining us this week on Enterprise.ing. Be sure to visit our website, enterprisebank.com/podcast, to subscribe so you'll never miss an episode. If you found value in today's program, please consider leaving a review on Apple Podcasts or telling a friend about us. Enterprise.ing, powering business leaders one conversation at a time. The views expressed by Enterprise.ing presenters or guests are those of the presenter or guests, and not necessarily of Enterprise Bank & Trust or its affiliates. All content of this podcast and any related materials are for informational purposes only. Enterprise Bank & Trust does not make any warranty, expressed or implied, including warranties of merchantability and fitness for a particular purpose, and specifically disclaims any legal liability or responsibility for the accuracy, completeness, or usefulness of any information presented. Enterprise Bank & Trust is not under any obligation to update or correct any information provided in this podcast. All statements and opinions are subject to change without notice.