Real Estate Investing : Property Management Software Solution

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Last November, we had seven evictions in progress. This did not count several other late tenants that we were trying to work with and had yet to file evictions on them. With a little over 50 tenants, that means that around 20% of our tenants weren’t paying us. That just sucks!

To keep track of our income records, we had created a simple excel spreadsheet to log the incoming rents and the dates they were received. Check out an example of what we were using below.

Most of our tenants had not been trained very well and paid several days late consistently. This created a nightmare because each individual tenant file had to be referenced to find out detailed info about their lease and contact info. Because of everything else going on in the business, we were not diligent in collecting late fees. We had so many tenants that were in the process of being evicted, we did not pursue our late fees on the other tenants. I was thinking that if we did, it might alienate even more tenants.

I knew that something had to change. Once we put the intention out in the world, it did not take long for something to cross our path. One of our employees forwarded an email to me about some property management software called PropertyBoss. The clouds had parted and the lights shined down from the heavens! I downloaded the free trial and we were off to the races.

We ended up evicting 2 of the 7 tenants and today, we have ZERO evictions in progress. We have made far more in collecting late fees from our tenants than the cost of the software. We had more tenants pay early, on time, and online, than ever this month. We were in contact with all of the tenants more than ever over the past months because we had to get them all set up within the software. Every one of our tenants knows that if rent is not received by the 25th, late fees are do and will be collected. Each tenant can log into their account online and see when their next payment is due, what is currently owed, they can update their contact info, and submit a work order if need be.

And we have only scratched the surface in regards to the functionality of the software!

Over the years, one thing that I have learned is that property management must be handled with an iron fist from the get go. You train your tenants how to do business with you. If you give an inch, they’ll take a mile. Now that our property management software tracks everything for us, we can focus on enforcing what’s owed. All we have to do is log into PropertyBoss and see where everything is at. And it’s internet based so I can log on anywhere in the world.

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How to Turn Your Real Estate Investing Desires into Gold

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More people attribute their financial success to Napoleon Hill’s classic, Think & Grow Rich, than any other book in the history of the world. That should be enough said to get the point across to any serious student. After interviewing over 500 of the wealthiest men of his time and more than 20 years later, Hill crystallized the science of personal achievement.

I just started reading the book again for probably the 5th or 6th time, and it still amazes me. I have also listened to the abridged and unabridged CDs countless times. But just reading or listening to the book is not enough. You must follow his advice and take the practical steps outlined to achieve the results. As I was writing out my definite chief aim again, I decided I’d share his “Six Ways to Turn Desires into Gold” as quoted directly from the book:

“FIRST: fix in your mind the exact amount of money you desire. It is not sufficient merely to say “I want plenty of money.” Be definite as to the amount. (There is a psychological reason for definiteness which will be described in a subsequent chapter.)

SECOND: determine exactly what you intend to give in return for the money you desire. (There is no such reality as “something for nothing.”)

THIRD: establish a definite date when you intend to possess the money you desire.

FOURTH: create a definite plan for carrying out your desire, and begin at once, whether you are ready or not, to put this plan into action.

FIFTH: write out a clear, concise statement of the amount of money you intend to acquire, name the time limit for its acquisition, state what you intend to give in return for the money, and describe clearly the plan through which you intend to accumulate it.

SIXTH: read your written statement aloud, twice daily, once just before retiring at night, and once after arising in the morning. As you read–see and feel and believe yourself already in possession of the money.”

Several paragraphs later he says, “…you can never have riches in great quantities unless you can work yourself into a white heat of desire for money, and actually believe you will possess it.”

Real estate investor or not, this is extremely powerful advice. In life, you decide who to listen to. Anyone that has studied hundreds of successful men and women and was commissioned by one of the wealthiest men in America to do so has my attention. How about yours?

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How to Set up a Balanced Marketing Attack : “How To” Real Estate Investing Class

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Earlier today, I was riding around with a friend looking at some houses. He is a fellow entrepreneur and was telling me about one of his businesses. He has created an incredible product that is superior to its competition and can be sold at a competitive price.

He has 10 or 15 clients now but hasn’t sold anything lately. So I asked him, “Why aren’t you making more money off of it?” After going back and forth for several minutes, we came to the answer…MARKETING!

An excellent marketer can sell out an inferior product. I was thinking, “If he has a superior product that can be priced competitively, they should be selling like hot cakes. What’s the hold up?” Well, we figured it out. It’s the marketing plan!

If you want to be an active investor, handing out business cards is not a plan. It can be part of a plan. But you’re going to need more than that.

There are two sides to marketing for a real estate investor. The buying side and the selling/leasing side. If either side is lacking, your profitability is going to suck. If you don’t have any seller leads coming in, you’re definitely not making money…you’re not losing it either but come on. What are you trying to do here. If you already own properties but aren’t able to sell or lease them, you stand the chance to lose a bunch of money.

A Balanced Marketing Plan

On the buying side, you hand out business cards to everyone you come in contact with, you attend every real estate investors meeting in town, an ad in the “Housing Wanted” section of the newspaper every day, mailers going out to houses going into foreclosure, and a website that is optimized in search engines to bring you seller leads. Any combination will do, but it will take a combination to bring in a good deal flow.

On the selling side, a website where all of your properties are listed for sale, lease, rent to own, bandit signs out in the community driving traffic to your site, a newspaper ad, and as simple as this might sound, a sign in the front yard.

There are many ways to market on the buying and selling side for investors. No one way is right. After reading book after book in the marketing field, I know the secret formula. Have a multitude of lead generating strategies and test, test, test. What’s bringing in most of your seller leads? What’s the price per lead? Which lead source is bringing in the most deals? Where are most of your tenant buyers coming from? You get the idea.

No matter what business you’re in, marketing will make or break you. Determine to become an excellent marketer, and you’ve just established your success no matter what field you enter.

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Real Estate Investment Tips and Strategies: Don’t be a Columbus Type Investor

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When Columbus embarked in search of a new world, he didn’t know where he was going. When he got there, he didn’t know where he was, and when he got back home, he didn’t know where he’d been.

Clearly defined finite goals are the cornerstone of success. If you have yet to buy your first investment property, take out your pen right now and write down the closing date for the property. There is something about the physical act of writing that makes something more real. Until the pen hits the pad, all you’ve got is a vague dissipating loosely held thought that equals one big “someday.”

Someday I’ll take the plunge into real estate. Someday I’ll plan for my retirement. Someday I’ll be rich…more like someday you’ll be tired and broke.

Even if you are a seasoned veteran, having clearly defined goals are what can take you to the next level. When I started reading personal development books years ago, I thought it was interesting that every book that I read started off by suggesting to set goals. I had ignored the excises and suggestions long enough. “If every book I read suggests to write down your goals,” I thought, “there must be something behind doing it.”

How many houses are you going to buy this year? How much cash flow are you going to be making from your investments in 5 years? Write down at least 3 short term goals for this year and 3 long term goals for your investment portfolio. Do it now!

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Secrets of Real Estate Negotiations : The Wolf’s Negotiating Tip # 6

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What is the best way to overcome a seller’s suspicion about what your intentions are in buying their house?

Be honest with them!!

You can say, “John and Jane, I want to be real straightforward with you and I hope you’ll do the same with me. The company I work with has to see some kind of way they can make a profit by buying this house in order for this to work. Is that going to be any kind of a problem for you? They typically have to be able to buy a property at around 65-70% of value to make the numbers work in a way that will make sense for them. Obviously they’d have to figure out someway to be able to make a profit doing this or we wouldn’t be able to stay in business very long, right? Also, it has to be a situation that works for you and achieves what you need out of the deal. Does that sound fair? Great!” This simple statement will set you up for success in your meeting with the seller. They already know you are there to make money, so you might as well acknowledge that and explain what kind of deal you must have to make it work for everybody. Enjoy!

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