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Commercial Real Estate Pro Network

Commercial Real Estate Professionals who work with Investors, Buyers and Sellers of Commercial Real Estate. We discuss todays opportunities, problems & solutions in Commercial Real Estate.
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Apr 23, 2020

My name is Leslie Smith. And I, my background really started in banking, like many people, but I started in the call center area. So I ran a call center for many years and then moved over to lending for a private company. And the reason I found that interesting is because if anybody's worked for a bank, you know, there are a lot of restrictions. Innovation is tough, and in product development and managing a team and making decisions and so moving outside of the banking space, but still in lending was really, you know, exciting and fun. And that's where I've been since then.

Complete transcript: http://commercialrealestatepronetwork.com/podcasts/?p=1358

Apr 21, 2020

Leslie Smith, what is the BIGGEST RISK?

 

Leslie Smith:

I think, you know, I'll speak about investing. I think what's really important when We see investors, one of the things that it's hard for us, and when we're trying to when we're when I mentioned earlier about the story is that, you know, they don't really know what their objective is as an investor.

So, you know, if they don't have like, an objective is okay, I want to, I want to own 12 properties, and they need to live like this, and this is how I'm going to manage them, it's really difficult for us to see whether they're going to be successful in growing that real estate portfolio.

You know, you know, investing in real estate is not it's not a sprint, it's a marathon. And you really have to be methodical and thoughtful about what you're doing. Because you can get yourself in a lot of trouble, you know, quickly, and you know, and that's your nest egg that you're building.

I think risk is that there's a lot of folks that say, Oh, you know what, I don't really want to invest in stocks, and I think I need to buy real estate. They're just they're not thoughtful about the plan, and then the plan.

Then if you don't have a plan, then what kind of lender Are you going to, you know, seek, and that could get you into some not so great. loans. And we've seen that a lot with refinance people were, you know, they thought they were getting, you know, they were buying this property and it was their investment and then, you know, it's like a double digit rate, and that's tough.

And so that's really what we see as risky, because then you have a lot more default, you have a person that, you know, really thought they were making a smart investment, and really protecting themselves long term. And it turned out to be, you know, a loss for them.

Apr 16, 2020

Minimizing Risk and Maximizing Return on Investment is how you build long term wealth in commercial real estate. 

Christian Olin with direct lender, On Q Financial Inc, provides a look into risk and what you can do to minimize your risk when investing in real estate.  They specialize in personal residences and small multifamily investment properties.

Minimizing Risk

Find a property with fewer competitors.  To do this, search the property on your own.  If you find a four plex, find out who the owner is and contact them directly.  If you are the only potential buyer, you are not in a bidding war.  

Get your finances in order.  When you approach a lender with a story that makes sense and is backed up by your financials, they are able to get comfortable and are more willing to provide financing.

Talk to multiple lenders.  When a lender knows they have competition, they are more willing to provide their best rate to avoid losing a good loan. Lenders have different requirements and different loan fees.  Shop, compare and save.

Getting a Loan

Technology has changed getting a loan.  The process starts with an online application, and you are updated throughout the process.  Get educated before you apply for a loan. Depending on your employment picture will determine what lending products you qualify for.

If you are a first time buyer, the lender will look closely at your credit profile.  If you have purchased a bunch of things when you are attempting to purchase a property, you can end up negatively affecting your ability to qualify for a loan. 

BIGGEST RISK 

Each week I ask my guest, “What is the Biggest Risk Real Estate Investors face?”  

BIGGEST RISK:   I think when we're talking about residential investment properties, there are a lot of them. I personally feel, because I fall in subject to it myself, the biggest risk for an investor, someone purchasing a home, a first time home buyer is getting emotional about the purchase. And a lot of us just get emotional, it's an emotional experience. It's your, you know, your first time home buyers, your first investment property. 

But to dive in a little deeper, what I mean about it is, is we're in a market right now where there's almost always more than one offer on that property, right? Um, that inherently creates more emotion than if you're just, you know, when you're in a bidding environment, it becomes more emotional. You, you sometimes would. And so how does that, and people say, well, how does emotion affect risk?

Well, emotion could affect risk books. It's our inherent nature to be competitive, right? So you can get into a bidding situation on a two, five, four Plex. You find a perfect white picket fence house as your first home, you have to have that house and your budget's 300,000 and the next thing you know, you've built yourself up to 350,000 while you can certainly probably still qualify for that.

Is that going to fit in well with the rest of your lifestyle? Are you somebody that eats out five times a week? You have to cut that part out. The emotional aspect of it. You find it investor property that's, that's redone and you're the seventh bid on it. So you, Oh, I got this, you know, all these, all these experienced investors are bidding on it. This has gotta be my first investment property. And next thing you know, you're bid number eight, you're outbidding guys who have a whole lot or women who have a whole lot more investor knowledge than you have because you've gotten caught up in that horse race, rat race and it's all done through emotions.

So the one thing that I learned, and I've learned it the hard way, even on my personal residence I live in now, that I've got a bidding war I got into a bidding war on, um, is that there will always be another property and you have to remind yourself. And when you're buying a home with a partner, you're buying a home, uh, with your wife, girlfriend, boyfriend, husband, whatever it may be. Um, now you've got twice the emotion. So kind of to answer that question, emotion is always going to be your BIGGEST RISK.

For more go to:

Website: OnQFinancial.com

Email: Christian.olin@onqfinancial.com

 

*Recorded 1/29/2020

Apr 14, 2020

Christian Olin, I'd like to ask you what is the BIGGEST RISK?

Christian: (00:15)

Sure. And I think when we're talking about residential investment properties, there are a lot of them. I personally feel, because I fall in subject to it myself, the biggest risk for an investor, someone purchasing a home, a first time home buyer is getting emotional about the purchase. And a lot of us just get emotional, it's an emotional experience. It's your, you know, your first time home buyers, your first investment property. But to dive in a little deeper, what I mean about it is, is we're in a market right now where there's almost always more than one offer on that property, right? Um, that inherently creates more emotion than if you're just, you know, when you're in a bidding environment, it becomes more emotional. You, you sometimes would. And so how does that, and people say, well, how does emotion affect risk?

Speaker 2: (01:10)

Well, emotion could affect risk books. It's our inherent nature to be competitive, right? So you can get into a bidding situation on a two, five, four Plex. You find a perfect white picket fence house as your first home, you have to have that house and your budget's 300,000 and the next thing you know, you've built yourself up to 350,000 while you can certainly probably still qualify for that.

(01:33)

Is that going to fit in well with the rest of your lifestyle? Are you somebody that eats out five times a week? You have to cut that part out. The emotional aspect of it. You find it investor property that's, that's redone and you're the seventh bid on it. So you, Oh, I got this, you know, all these, all these experienced investors are bidding on it. This has gotta be my first investment property. And next thing you know, you're bid number eight, you're outbidding guys who have a whole lot or women who have a whole lot more investor knowledge than you have because you've gotten caught up in that horse race, rat race and it's all done through emotions.

(02:12)

So the one thing that I learned, and I've learned it the hard way, um, even on my personal residence I live in now, that I've got a bidding war I got into a bidding war on, um, is that there will always be another property and you have to remind yourself. And when you're buying a home with a partner, you're buying a home, uh, with your wife, girlfriend, boyfriend, husband, whatever it may be. Um, now you've got twice the emotion. So kind of to answer that question, emotion is always going to be your BIGGEST RISK.

Apr 10, 2020

Scott Smith takes us through what real estate investors need to do in order to survive and thrive the Corona Virus.

Apr 9, 2020

Finding value in multifamily where others cannot is key to your success in a competitive market.

JP Albano is a computer hard drive equipment sales turned multifamily real estate investor / multifamily syndicator.  In a little under two years, he has invested in 230 plus units spread over 5 properties. 

Finding Value

Finding value in today’s competitive multifamily market is difficult.  JP’s most recent deal is a 60 unit property. It took almost 4 months of courting the seller, who was the original owner, and had operated the property for 60 years with no systems. Originally set up as a weekly rental for men, the current rents were less than half of the average market monthly rent.  

A poorly operated property with 24% vacancy, in a market with no vacancies, and market rents that are twice what is being charged, that sounds like an opportunity. 

Recognizing Opportunity

The condition of the property lent itself to the listing land broker as a redevelopment opportunity.  Local code violations made other potential buyers look past this property. If you had no imagination, you too would drive right past.  It was only through looking at the business and pulling the numbers together that JP and his team were able to realize the potential.  

Time lingered on, and the seller had become desperate. 

A Willing Seller

The seller was willing and ready to sell.  Recent sales comps for area apartments were $64,000 per door.  JP was able to negotiate a price based on the seller’s numbers about $17,000 per door.  For a down payment of $400,000, and seller financing of the balance with 0% interest for 18 months.  Additional opportunity, is the billboard on the property for which the seller has not enforced the lease for multiple years.  

Preparing for Opportunity

In order to know a market, you have to do the footwork.  JP was underwriting multiple deals per week, making offers on a fraction of those, and losing each time.  The multiple reps helped fine tune his understanding of the market, and expand the search to additional markets.  

The process can be frustrating.  For each offer, you are emotionally invested.  Losing multiple times, takes a toll. The antidote to loss, is making sure you have options.  Focus on the number, and remember this is business.  

If you only have one option and lose, it hurts.  When you have four options and get one, it’s a win.  Today, his team is underwriting in 12 markets, submitting letters of intent, raising money and closing deals.  

Momentum 

Meeting brokers face to face is where it all begins. If they present you a deal, you absolutely have to respond.  Even if the deal does not work for you, you have to respond to the broker and give input as to why it does not work.  This will give the broker additional direction for what you are looking for.

When you close your first deal it proves to the area commercial real estate brokers and lenders that you are a closer.  This is the proof that makes others take notice. Once you are recognized, the deals start to present themself. The shortcut is to go into a smaller market, or partner up with a proven closer.  

Partners

Multifamily is a team sport.  When selecting your teammates, it’s important to find out if you are on the same page.  To do so, JP recommends you underwrite a couple deals and see if you both recognize the same opportunity.  If not, there is no harm. When you find a good fit, the opportunity to run will propel your growth.  

BIGGEST RISK 

Each week I ask my guest, “What is the Biggest Risk Real Estate Investors face?”  

BIGGEST RISK:  So one of the BIGGEST RISKS that we were unaware of that we've since become aware of is one of my properties in Texas, a small property, 28 units. I guess I'll start with the summary and then I'll go into the story. If you're going to get started as an investor in smaller properties just because it's easier, right? Easy to raise money, less overwhelming than taking down a hundred units on whatever, really investigate your third party property management options thoroughly. Have a number of backups lined up. You know, getting into this business, I thought I had an expectation that there was going to be more pacivity into this business. Passive income, passive income is a lie. Unless you are a passive investor, if you're going to be a GP and even if you hire third party property management, there's work to do.

In my experience there aren't, I haven't run into many third party PMs that will have the same level of care and attention to detail that I do. You know, you would. So we found ourselves in a situation where we had an underperforming, when all came down to it, property manager for our property and it was hurting our numbers. 

Fortunately we were in a position where one of the partners is local to the property. So making sure that one of the partners is physically close to it, take over property manager roles. And, we were able in the course of I think four weeks to transfer to get, become 100% leased up and have a waiting list. Something that we were struggling for for weeks and months, um, with a third party PM. So, uh, part of the problem was we were having a hard time finding someone to take his role, uh, as a replacement.

And then one day he called us and said, Hey, I'm letting you guys go on changing our business model. So it forced us to figure something out. As a stop gap, we said, well, let's just take over self-management for now. And it worked out, still working out really well. Um, because we've been kicking butt. But we didn't, we didn't expect to find ourselves in a situation where, oh my gosh, who are we going to find to manage it? 

The smaller property sizes you'll find there's a lot of single family property managers, which is  cool, but they're not really well suited for multifamily. Four units sure, but not 12 or 20 or 30 or 40. And then it's also too small for the bigger players. You know, they want 50 units or 60 units and above. So there's this gray area of like 12 to 40 ish where there may not be in your area or your market. A lot of third party PMs. And that's critical to the success of your investment. Now that's an execution risk right there.

Finding value in multifamily where others cannot is key to your success in a competitive market.

 

JP Albano is a computer hard drive equipment sales turned multifamily real estate investor / multifamily syndicator.  In a little under two years, he has invested in 230 plus units spread over 5 properties. 

Finding Value

Finding value in today’s competitive multifamily market is difficult.  JP’s most recent deal is a 60 unit property. It took almost 4 months of courting the seller, who was the original owner, and had operated the property for 60 years with no systems. Originally set up as a weekly rental for men, the current rents were less than half of the average market monthly rent.  

 

A poorly operated property with 24% vacancy, in a market with no vacancies, and market rents that are twice what is being charged, that sounds like an opportunity. 

Recognizing Opportunity

The condition of the property lent itself to the listing land broker as a redevelopment opportunity.  Local code violations made other potential buyers look past this property. If you had no imagination, you too would drive right past.  It was only through looking at the business and pulling the numbers together that JP and his team were able to realize the potential.  

 

Time lingered on, and the seller had become desperate. 

A Willing Seller

The seller was willing and ready to sell.  Recent sales comps for area apartments were $64,000 per door.  JP was able to negotiate a price based on the seller’s numbers about $17,000 per door.  For a down payment of $400,000, and seller financing of the balance with 0% interest for 18 months.  Additional opportunity, is the billboard on the property for which the seller has not enforced the lease for multiple years.  

Preparing for Opportunity

In order to know a market, you have to do the footwork.  JP was underwriting multiple deals per week, making offers on a fraction of those, and losing each time.  The multiple reps helped fine tune his understanding of the market, and expand the search to additional markets.  

 

The process can be frustrating.  For each offer, you are emotionally invested.  Losing multiple times, takes a toll. The antidote to loss, is making sure you have options.  Focus on the number, and remember this is business.  

 

If you only have one option and lose, it hurts.  When you have four options and get one, it’s a win.  Today, his team is underwriting in 12 markets, submitting letters of intent, raising money and closing deals.  

Momentum 

Meeting brokers face to face is where it all begins. If they present you a deal, you absolutely have to respond.  Even if the deal does not work for you, you have to respond to the broker and give input as to why it does not work.  This will give the broker additional direction for what you are looking for.

 

When you close your first deal it proves to the area commercial real estate brokers and lenders that you are a closer.  This is the proof that makes others take notice. Once you are recognized, the deals start to present themself. The shortcut is to go into a smaller market, or partner up with a proven closer.  

Partners

Multifamily is a team sport.  When selecting your teammates, it’s important to find out if you are on the same page.  To do so, JP recommends you underwrite a couple deals and see if you both recognize the same opportunity.  If not, there is no harm. When you find a good fit, the opportunity to run will propel your growth.  

BIGGEST RISK 

Each week I ask my guest, “What is the Biggest Risk Real Estate Investors face?”  

 

BIGGEST RISK:  So one of the BIGGEST RISKS that we were unaware of that we've since become aware of is one of my properties in Texas, a small property, 28 units. I guess I'll start with the summary and then I'll go into the story. If you're going to get started as an investor in smaller properties just because it's easier, right? Easy to raise money, less overwhelming than taking down a hundred units on whatever, really investigate your third party property management options thoroughly. Have a number of backups lined up. You know, getting into this business, I thought I had an expectation that there was going to be more pacivity into this business. Passive income, passive income is a lie. Unless you are a passive investor, if you're going to be a GP and even if you hire third party property management, there's work to do.

 

In my experience there aren't, I haven't run into many third party PMs that will have the same level of care and attention to detail that I do. You know, you would. So we found ourselves in a situation where we had an underperforming, when all came down to it, property manager for our property and it was hurting our numbers. 

 

Fortunately we were in a position where one of the partners is local to the property. So making sure that one of the partners is physically close to it, take over property manager roles. And, we were able in the course of I think four weeks to transfer to get, become 100% leased up and have a waiting list. Something that we were struggling for for weeks and months, um, with a third party PM. So, uh, part of the problem was we were having a hard time finding someone to take his role, uh, as a replacement.

 

And then one day he called us and said, Hey, I'm letting you guys go on changing our business model. So it forced us to figure something out. As a stop gap, we said, well, let's just take over self-management for now. And it worked out, still working out really well. Um, because we've been kicking butt. But we didn't, we didn't expect to find ourselves in a situation where, oh my gosh, who are we going to find to manage it? 

 

The smaller property sizes you'll find there's a lot of single family property managers, which is  cool, but they're not really well suited for multifamily. Four units sure, but not 12 or 20 or 30 or 40. And then it's also too small for the bigger players. You know, they want 50 units or 60 units and above. So there's this gray area of like 12 to 40 ish where there may not be in your area or your market. A lot of third party PMs. And that's critical to the success of your investment. Now that's an execution risk right there.

Finding value in multifamily where others cannot is key to your success in a competitive market.

 

JP Albano is a computer hard drive equipment sales turned multifamily real estate investor / multifamily syndicator.  In a little under two years, he has invested in 230 plus units spread over 5 properties. 

Finding Value

Finding value in today’s competitive multifamily market is difficult.  JP’s most recent deal is a 60 unit property. It took almost 4 months of courting the seller, who was the original owner, and had operated the property for 60 years with no systems. Originally set up as a weekly rental for men, the current rents were less than half of the average market monthly rent.  

 

A poorly operated property with 24% vacancy, in a market with no vacancies, and market rents that are twice what is being charged, that sounds like an opportunity. 

Recognizing Opportunity

The condition of the property lent itself to the listing land broker as a redevelopment opportunity.  Local code violations made other potential buyers look past this property. If you had no imagination, you too would drive right past.  It was only through looking at the business and pulling the numbers together that JP and his team were able to realize the potential.  

 

Time lingered on, and the seller had become desperate. 

A Willing Seller

The seller was willing and ready to sell.  Recent sales comps for area apartments were $64,000 per door.  JP was able to negotiate a price based on the seller’s numbers about $17,000 per door.  For a down payment of $400,000, and seller financing of the balance with 0% interest for 18 months.  Additional opportunity, is the billboard on the property for which the seller has not enforced the lease for multiple years.  

Preparing for Opportunity

In order to know a market, you have to do the footwork.  JP was underwriting multiple deals per week, making offers on a fraction of those, and losing each time.  The multiple reps helped fine tune his understanding of the market, and expand the search to additional markets.  

 

The process can be frustrating.  For each offer, you are emotionally invested.  Losing multiple times, takes a toll. The antidote to loss, is making sure you have options.  Focus on the number, and remember this is business.  

 

If you only have one option and lose, it hurts.  When you have four options and get one, it’s a win.  Today, his team is underwriting in 12 markets, submitting letters of intent, raising money and closing deals.  

Momentum 

Meeting brokers face to face is where it all begins. If they present you a deal, you absolutely have to respond.  Even if the deal does not work for you, you have to respond to the broker and give input as to why it does not work.  This will give the broker additional direction for what you are looking for.

 

When you close your first deal it proves to the area commercial real estate brokers and lenders that you are a closer.  This is the proof that makes others take notice. Once you are recognized, the deals start to present themself. The shortcut is to go into a smaller market, or partner up with a proven closer.  

Partners

Multifamily is a team sport.  When selecting your teammates, it’s important to find out if you are on the same page.  To do so, JP recommends you underwrite a couple deals and see if you both recognize the same opportunity.  If not, there is no harm. When you find a good fit, the opportunity to run will propel your growth.  

BIGGEST RISK 

Each week I ask my guest, “What is the Biggest Risk Real Estate Investors face?”  

 

BIGGEST RISK:  So one of the BIGGEST RISKS that we were unaware of that we've since become aware of is one of my properties in Texas, a small property, 28 units. I guess I'll start with the summary and then I'll go into the story. If you're going to get started as an investor in smaller properties just because it's easier, right? Easy to raise money, less overwhelming than taking down a hundred units on whatever, really investigate your third party property management options thoroughly. Have a number of backups lined up. You know, getting into this business, I thought I had an expectation that there was going to be more pacivity into this business. Passive income, passive income is a lie. Unless you are a passive investor, if you're going to be a GP and even if you hire third party property management, there's work to do.

 

In my experience there aren't, I haven't run into many third party PMs that will have the same level of care and attention to detail that I do. You know, you would. So we found ourselves in a situation where we had an underperforming, when all came down to it, property manager for our property and it was hurting our numbers. 

 

Fortunately we were in a position where one of the partners is local to the property. So making sure that one of the partners is physically close to it, take over property manager roles. And, we were able in the course of I think four weeks to transfer to get, become 100% leased up and have a waiting list. Something that we were struggling for for weeks and months, um, with a third party PM. So, uh, part of the problem was we were having a hard time finding someone to take his role, uh, as a replacement.

 

And then one day he called us and said, Hey, I'm letting you guys go on changing our business model. So it forced us to figure something out. As a stop gap, we said, well, let's just take over self-management for now. And it worked out, still working out really well. Um, because we've been kicking butt. But we didn't, we didn't expect to find ourselves in a situation where, oh my gosh, who are we going to find to manage it? 

 

The smaller property sizes you'll find there's a lot of single family property managers, which is  cool, but they're not really well suited for multifamily. Four units sure, but not 12 or 20 or 30 or 40. And then it's also too small for the bigger players. You know, they want 50 units or 60 units and above. So there's this gray area of like 12 to 40 ish where there may not be in your area or your market. A lot of third party PMs. And that's critical to the success of your investment. Now that's an execution risk right there.

For more go to:
Website: www.jpalbano.com

Apr 7, 2020

Darrin: (00:08)

JP Albano, what is the BIGGEST RISK?

JP : (00:12)

So one of the BIGGEST RISKS that we were unaware of that we've since become aware of is one of my properties in Texas, a small property, 28 units. I guess I'll start with the summary and then I'll go into the story. Um, is if you're going to get started as an investor in smaller properties just because it's easier, right? Easy to raise money, less overwhelming than taking down a hundred units on whatever, really investigate your third party property management options thoroughly. Have a number of backups lined up. You know, getting into this business, I thought I had an expectation that there was going to be more pacivity into this business. Passive income, passive income is a lie. Unless you are a passive investor, if you're going to be a GP and even if you hire third party property management, there's work to do.

In my experience there aren't, I haven't run into many third party PMs that will have the same level of care and attention to detail that I do. You know, you would. So we found ourselves in a situation where we had a underperforming, when all came down to it, property manager for our property and was hurting our numbers. And fortunately we were in a position where one of the partners is local to the property.

So making sure that one of the partners is physically close to it, um, take over property manager roles. And, uh, we were able in the course of I think four weeks to transfer to get, become 100% leased up and have a waiting list. Something that we were struggling for for weeks and months, um, with a third party PM. So, uh, part of the problem was we were having a hard time finding someone to take his role, uh, as a replacement.

 

And then one day he called us and said, Hey, I'm letting you guys go on changing our business model. So it forced us to figure something out. As a stop gap, we said, well, let's just take over self-management for now. And it worked out, still working out really well. Um, because we've been kicking butt. But we didn't, we didn't expect to find ourselves in a situation where, Oh my gosh, who are we going to find to manage it? Because the smaller property sizes you'll find there's a lot of single family property managers, which is a cool, but they're not really well suited for multifamily. Four units sure, but not 12 or 20 or 30 or 40. And then it's also too small for the bigger players. You know, they want 50 units or 60 units and above. So there's this gray area of like 12 to 40 ish where there may not be in your area or your market. A lot of third party PMs. And that's critical to the success of, of your investment. Now that's an execution risk right there.

Apr 7, 2020

CARES Act has multiple options for relief.  

 

Complete text of the act: https://www.congress.gov/bill/116th-congress/house-bill/748/text#toc-HCC079DAB5D724A3B9AE86D4E64A83BBE

 

Jonathan McGuire takes us through the different elements and describes the different attributes and which might work for you. 

 

Coronavirus Relief Options: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options

 

Paycheck Protection Program: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp#section-header-1

If you have employees, W2 wages, this is likely your best option.   

 

Economic Injury Disaster Loan EDIL https://covid19relief.sba.gov/#/

If you do not have employees, this is likely your best option.

There are additional fixes in the bill to correct prior measures.  

For additional information, go to:

Website: aldrichadvisors.com

Email: jonathanmcguire@aldrichadvisors.com

Apr 2, 2020

Custom software solutions can make real estate professionals more productive for less cost.

Dan Moore is the founder and CEO at Vaporware Vaporware Custom Software headquartered in Raleigh, NC.  After graduation form Georgia Tech Dan first worked for large software companies where he was not close to the problems the software was designed to solve.  Wanting to be closer to the users with problems his software designs could help, he started his own consulting firm.  

Custom software weighs viability, feasibility and utility.  There is a great deal of satisfaction when the software solution to the problem contains all three.

Custom Software for Real Estate 

An example of custom software for real estate that Vaporwrare has worked on is 

Servusconnect.  This is a software solution for multifamily maintenance scheduling, which helps reduce the time necessary to turn a unit.  The service order is initiated by the resident, and instantly, maintenance calendar is scheduled.  

Upon completion of the repair request, the resident receives a satisfaction survey, which feeds the online reputation platforms.  A good custom software solution allows the user to communicate easily, collect measurable data, and generate useful reports that enable the user to be more prepared for future events.  When data is used properly, you can run a more profitable operation.  

Levels of Software

Custom software ranges from fully custom to just one function that plugs into another software platform through API.  Dan believes that the selected custom software operation is a better use of time and money. In this way you are able to customize the part you need to work better and get a robust solution.  If you try to build the entire solution from the ground up, you end up with lesser degrees of great all the way around.  

There are multiple excellent software solutions already available for things like payment collection.  If you use MRI or Yardi for your property management software your custom software can plug into and work with these using API.  Therefore you do not have to build a complete system from the ground up and your staff will not have to be retrained to utilize your custom software.   

Ideas for Custom Software

For any data you collect and track in a spreadsheet, a custom software solution can be created to make data collection easier and more user friendly.  Some reasons to consider a custom solution include;

  • You have created multiple spreadsheets, and cannot find them when needed.  So, you recreate the information.
  • You organize information, but are not able to access it on a mobile device when you are in the field.
  • Speed is critical
  • Standardization is desired
  • You work with large data bases on a regular basis
  • Custom communication to many individuals is desired.

When Custom Software Makes Sense

The decision to have custom software created is involved.  For organizations that are large enough to adopt the software for your own use.  The cost tends to be more justifiable for companies with more than 50 employees and $10-$20 million in annual revenue.  

If you can identify a single problem, and then find others with the same problem, you can start to determine if there is a market for your solution.  When there are enough people with the problem who are willing to pay, it can make sense to spend for a custom solution that you could then sell to others.

Depending on your needs, custom software can cost as much as you want to spend.  Vaporware approach takes into consideration the clients current solution cost and tries to determine what are the minimum output that will be helpful.  Small custom software solutions can start as low as $5 - $10 thousand dollars.  

User Benefits

User benefits are maximized when the programmer and user are able to communicate to develop specific benefits for the user.  More input allows the developer to continue to improve the product so that the end product is easy to use and collects the wanted data.   The output allows the company to put the info to future use and improve the output..  

BIGGEST RISK 

Each week I ask my guest, “What is the Biggest Risk Real Estate Investors face?”  

BIGGEST RISK:  I think the BIGGEST RISK for all of us in our personal, professional lives is speed. Time is a very limited resource for us all. Time is how opportunities kind of come and go. If we talked a little bit earlier about being able to know if a property is going to go on the market before it does, being able to operate faster than the competition. 

So I would definitely have to say speed. The speed at which we can operate, the speed at which we can save our time and do passive investments and be able to realize value faster and see more opportunities and the right opportunities faster. So anything that we can do to be faster at what we do and relying on computers is a good way to do that.

For more go to:

Website: www.vaporware.net

Email: Dan@vaporware.net

Mar 31, 2020

Darrin:  Dan Moore, what is the BIGGEST RISK? 

Dan:  I think the BIGGEST RISK for all of us in our personal, professional lives is speed. Time is a very limited resource for us all. Time is how opportunities kind of come and go. If we talked a little bit earlier about being able to know if a property is going to go on the market before it does, being able to operate faster than the competition.

So I would definitely have to say speed. The speed at which we can operate, the speed at which we can save our time and do passive investments and be able to realize value faster and see more opportunities and the right opportunities faster. So anything that we can do to be faster at what we do and relying on computers is a good way to do that.

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