Episode Notes

In our three-part podcast series, Skip Thaler generously shared what it took for him and his family to build several multi-million-dollar businesses. Today you will learn the confluence of events that led to Skip’s decision to sell his 25-rental properties. The properties he and Jill worked so hard to acquire, fix up, and rent out. You will find out how our prior podcast conversations played a part in selling his last 7-bundled properties to one buyer.

Skip dives into how he made the decision and how it affected his wife, Jill, and their three adult children: Tim, George, and Sara. You will also hear Skip’s concerns for future landlords with rental properties in Minneapolis and St. Paul, Minnesota. There are long-term consequences to the social unrest and violence after George Floyd’s murder and a Renter Protection Ordinance passed by the Minneapolis City Council that went into effect on June 1, 2020. Plus, I found new rules for screening renters in effect for 2023. Please read it HERE. 

In 2021, another life-changing decision was made. Skip, and Jill moved to Bonita Springs, Florida. Find out why moving from Lakeville, Minnesota, to Florida made sense.

A Brief Recap of Skip’s Multi-Million Dollar Businesses

Skip’s first job out of school was in sales with IBM. He left there to start as a manufacturer representative, a business selling Fleetwood tires. That led to the most successful Fleetwood Franchise in the United States. Skip created a brokerage business to sell discontinued and blemished tires that grew into $13M in yearly sales. This financial success positioned him to merge his company with Tires Plus, combining the sales volume to $25M.

At Tires Plus, Skip worked to help grow the business to $50M, selling his ownership in 1991 to his two business partners. Semi-retirement allowed Skip to pursue his love of sailing and found an international tire wholesale business, Intercontinental Marketing Corporation (IMC) while upholding his 5-year United States non-compete agreement. IMC is the birthplace of three pledges Skip made to himself. No more hiring of W-2 employees. IMC will not carry accounts receivable. He will not own inventory.

Keeping faithful to his three promises, Skip prepared his company for George, his son, to join him in 1998 to learn the tire trading business. They diversified into motorcycle tires and used truck tires (casings) for retreaders. That business generated more than $10M in sales. Uniquely positioned in the marketplace, they kept their expenses under 8% of their gross profit, so 92 cents out of every dollar went to the bottom line.

In 2012, his other son, Tim, joined the business as Skip transitioned into a new business—the business of acquiring brownstone apartment buildings in Minneapolis and St. Paul. Skip acquired 25 buildings with more than 400 apartment units.

In our third podcast conversation, we learned that in December 2019, Skip purchased his 25^th and last acquisition, an 8-unit complex Brownstone apartment building built in 1890 by the Cathedral in St. Paul, Minnesota. Skip enjoyed 20+ years of renovating and restoring these 100-year-old apartment complexes making each complex a standout in the neighborhood. He describes himself as the opposite of a slum lord investing to make everything appealing, from the curbside to each building’s inside. Skip’s attention to detail was apparent with the purchase of his 25th property, too.

Original photographs from the late 1800s of the Brownstone properties were adorned in the hallways and entryways, giving a personalized touch. Beautifully landscaped yards with Mum-filled planters outside the buildings in the fall changed seasonally to make tenants feel good. New vintage lightwork, 100% wool carpets, restoring the house, and preserving past woodwork are a few examples of Skip’s effort for each tenant to feel they have a nice place to live.

‘A crowning blow’ turned 2020 into a liquidating year instead of an expansive one for Skip and his family when a confluence of events induced a stress-related wake-up call. The coronavirus pandemic hit—riots in Minneapolis and St. Paul. A growing adverse political climate towards Minneapolis businesses and, to some extent, in St. Paul created a hostile environment and a no-win scenario for business property owners. Skip made a huge decision.

Skip is starting anew in 2023. DOWNLOAD

P.S. Today is Martin Luther King, Jr. Day. A federal holiday and a national day of service. Go to this website for ideas to observe and serve today. 

NEXT STEP: Challenge yourself and do the Conscious Attentive Leadership Mentoring (C.A.L.M.) Activities below.