Young Entrepreneurs
A dream comes true in El Paso, Texas.
Melanie Bailey and K.C. Espinoza are living a dream.
After working for multifamily firms since they were teenage leasing consultants, Bailey and Espinoza decided to take the entrepreneurial plunge in 2003 by starting El Paso-based Integrity Asset Management, a third-party company that rehabs and manages apartment properties.
“K.C. and I dreamt of our future business prospering when we were 21, and now it has pushed our dreams to a new level,” notes Bailey, now 31. “I envisioned that the possibilities were endless. I never saw myself doing anything else.”
Espinoza, 32, concurs. “[The multifamily industry] was what I enjoyed and was good at and had the ability to go as far [in] as I chose to. I chose to never get down and ride the wave of ups and downs in our industry. Every door that was closed only made me look for an open window.”
Their dream came true quickly. Bailey and Espinoza founded the company with 13 communities and now have 35 under management. They expect five more properties to be added by the end of the third quarter, just before Espinoza delivers her third child (bringing her blended family to a total of five).
That growth is due to one thing, according to Richard Aguilar, chairman of El Paso’s Cash Investment and one of Integrity’s clients. “Integrity is different from most property managers because they look beyond economic occupancy,” he says. “A lot of management companies forget that everything has to work for everyone to win. Melanie and K.C. take a very balanced approach, focusing on keeping their employees, owners, and tenants happy, making sure the properties look good, and keeping costs down.”
Responsibilities are divided up based on skills and personalities. Espinoza is the president, handling new acquisitions and serving as general manager. Aguilar calls her “The Energizer.” “She’s all pumped up all the time and really makes sure each property produces.”
Bailey is the vice president, responsible for financial decisions and the Dallas and Austin properties. “She’s really strong at making sure cost is managed carefully,” Aguilar notes. “She’s sharp. Nobody’s going to pull the wool over her eyes.”
The complementary skills helped them weather their first year. “It was definitely challenging,” Bailey says. “We knew only one side of the business. Who knew what it took to manage an accounting department?”
They learned that and more on the job, which is an opportunity they also extend to their employees. “Our employees are what make us a strong force in the industry,” Bailey notes. “They have really stepped up to the challenge and stuck by us.”
Not surprisingly, Integrity prefers to promote from within whenever possible; some Integrity property managers were once housekeepers. Hiring counts too. The company prides itself on taking chances with people who have drive and personality, not necessarily multifamily industry experience. “You are nothing without good people around you,” Espinoza says.
And both Espinoza and Bailey had plenty of good people around them early in their careers. Each was motivated by family members who encouraged them to set and pursue their goals. They value the guidance they received from other multifamily colleagues they encountered along the way, particularly Jerry Carlson and Rhonda Aten of the El Paso Apartment Association.
“Throughout our careers, they have guided us in getting our education and making sure we followed the laws,” Espinoza says. “They have made sure we maximized our potential and stayed abreast of all the laws and trends. We have been truly blessed by their support.”
