6 Ways to Make the Most of your Investment Management Software
With several banks and businesses relying on investment management software, the market is flooded with several such software. However, most users are oblivious to the number of features as around 70% of them do not use the software to its full potential.
With increasing investor base, projects, and business interactions, investment management software is the way to go for a real estate fix and flipper. With home values increased by 7.2% since 2018, you can make business interactions easier and expand your investor base.
Investor management software provides a platform for investors to showcase their projects and share information. Most platforms also aid in good communication among fix and flip investors with a simple platform to view projects.
With many investment management platforms on the prowl, it is ideal for you to make the most of them as a real estate fix and flipper. Here are seven ways that help you make the most of an investment management software.
Explore the platform
As you get your hands on the new platform, don’t just create a new account, upload your projects and be done with it. Start by togging with the options and explore all the features in the tool. Look for built-in options and how to turn them on or off.
Try uploading project files without organizing them; most software will suitably re-arrange those files automatically.
Familiarize yourself with the tool’s layout and click on texts, who knows, some of them may lead you to another option. This will help you navigate faster and share projects instantly. Once you are comfortable with the platform, you can communicate with fellow investors and close deals with ease.
Play around with the platform more and look for more features. You will never know that some feature you would have probably missed out might have saved you a lot of time or made your job much easier.
Make it adapt to your working style
Each fix and flipper has a different working style and caters to a different audience. So the online platform that you use has to support all your needs. Completing a task with manual workarounds could be daunting. Odds are that product feature limitations are getting in the way.
Wouldn’t you want your investment management platform to simplify complex calculations? How about some customization? Tailor your platform by including accounting principles and make your calculations much easier.
The investment management platform’s user interface must suit your working style and environment. No feature should hamper your operations as it would otherwise kill the purpose of using the platform in the first place.
Make use of the Privacy feature
Your privacy is most important for your business operations. You don’t want to disclose unwarranted information to your investors. Go to the settings section of the investment management platform and look for privacy settings.
In privacy settings, you will have the option to toggle what information you want to keep private and public. However, some platforms let you choose this while you are uploading any project document/file itself.
Most platforms are designed to handle sensitive information quite well and would enable you to restrict access to specific information to certain users.
Look for Syncing options
Most investment management software designed for fix and flip real estate investors enable easy interaction with your team. Software platforms automatically export and import functions to excel. This makes it more flexible for you to work with any general ledger or chart accounts.
Most platforms allow you to sync your social media handles and display them to your prospects. This helps you to better connect with investors and engage with them easily.
Use the Filter/Organize feature
Investment management software designed for real estate fix and flippers often auto-arrange documents as soon as they are uploaded. However, most platforms let you filter, sort, and organize contacts, entities, and accounts according to your preference.
Make use of this feature to categorize contacts and statuses to enable easy operations and make better decisions.
Leverage its flexible and configurable nature
Most fix and flippers fail to unlock the true potential of the investor management platforms they use.
As your company grows, its requirements evolve. Sometimes, no matter how well the investment management platform is, you may still fall short of certain requirements as they don’t adapt with your businesses’ increasing needs.
More often than not, real estate platforms frequently update to keep up with the latest trends. Some of them are driven by AI and Machine Learning algorithms which are in a constant state of learning. Platforms driven by AI grow along with your business and achieve greater results.
Explore the platform and check whether you can add custom data fields to CRM contacts, customize email formatting, and accommodate different needs and returns.
With these six tips to make the most of an investment management software, you can reap the best returns for your fix and flip business. Start off by choosing the right platform for your fix and flip needs.
Are you looking for an investment management software that helps you meet your investment goals and expand your investor base? MAST is here to help you accomplish just that and more.
With a robust UI and the data enrichment feature, MAST helps fix, and flippers showcase projects to investors, monitor investment flow, and establish clear two-way communication with investors. So what are you waiting for? Sign up for a free trial now!
6 Tips to Find a Good House to Flip
Did you know that the location of the house you choose is crucial for fix and flipping?
Yeah, it is easy to tick off a checklist while you choose a house, but if you pick the wrong location, it’s not going to work out. You will have a hard time finding investors.
Just like it is ideal to know the depth of the water before you dive in, you gotta research the location before you pick your house. Choosing the wrong one would result in poor returns for you.
Having been into real estate fix and flipping for years, we have narrowed down some tips to help you find a good house to flip.
Find a Close-Knit Group in your Community
The best way to find houses to flip is to either connect with real estate investors or join a real estate group.
Never underestimate your local community. Your community is just like your friend’s circle, the more the merrier. Finding a house to flip can be so much fun with your friends.
Make the most of the community by looking for real estate deals just as they are going on the market and get in touch with fix and flip investors.
You can make the environment much lively by working with other people in your industry. Having a guide is most important at any point in your life, so connecting with a real estate agent is essential.
Narrow Down a Market
Too many choices can often blur your focus, narrow them down for flipping houses by targeting a specific real estate market.
You could focus on neighbourhoods that are up and coming but not yet popular. This could work in your favor, as you would spend less money on a home’s purchase price and property taxes.
You are more likely to get investors in a neighbourhood with decent amenities such as access to public transportation, parks, libraries, good schools, shopping, and local businesses. Real estate experts suggest choosing a neighbourhood that attracts buyers in search of a good deal.
Foreclosed Homes and Auctions are the way to go
Have you ever wondered how successful fix and flippers always land on the right home and get maximum returns? This is because they purchase investment properties below market value and add value to achieve the highest return on investment. In other words, they go for foreclosed homes in auctions.
So, why foreclosed homes? You may be wondering. What if I told you that you could purchase homes which are less than what they are worth.
Yes, that’s right. Foreclosed bank-owned homes are listed for less than what they are worth because it costs banks money to hold them. Banks want to sell off these properties quickly so they often provide excellent deals to real estate investors.
Another interesting way to land on a good real estate deal is through auctions. However, do so only if the bidding stays low. You need to be cautious, as you won’t get to see auctioned homes in person. Also, you might have to spend more on the renovation, which would impact your returns.
Bear in mind that auction homes are not financed via a mortgage, so you need to buy them in cash. Your best bet is to consult a renowned real estate agent to guide you through the process.
Look for REO Properties
Ever wondered where foreclosed homes that remain unsold in an auction go? They become real estate owned properties (REO), which means that the ownership of these properties reverts to a bank.
Since banks are keen on unloading these properties quickly, they get rid of them in bulk at a low price. You could find it hard to purchase a single home from them.
Visit online forums and land on the right property
With the new normal in play, it is ideal for you to switch to online forums instead of visiting real estate investors’ clubs. Online forums enable you to check for different properties in your area, look at relevant images, and choose a house.
Online forums also let you connect with private money lenders and real estate investors for additional support. These forums would make house-hunting much easier and safer from the comfort of your home.
Use Online Platforms Dedicated to Real Estate Flippers
Organizing project documents, sharing them with investors, and chatting with them could be quite challenging. Getting in touch with like-minded investors and showcasing real estate projects could be hard. Also, it could be daunting to find new projects for investment in the digital world.
What if I told you that you could do all this with the help of a robust online platform. MAST can help you achieve your real estate investment goals and connect with investors with ease.
MAST enables you to view projects, choose a suitable one to invest in and monitor your investment through its data enrichment feature. Organizing your inbox and communicating with private money lenders and investors can be made easy with MAST’s user-friendly UI.
The best ways to find a good house to flip is by getting in touch with a community, making sure that the house is close to essential services and leveraging the use of online forums. You can showcase your projects to investors, monitor your investments, and communicate with investors and real estate lenders through robust platforms like MAST. Follow these six simple steps to invest in the right house and become a happy flipper.
If you’d like to explore more on this topic, simply get in touch with one of our expert advisors. We’d be happy to help!
Eliminate Your Doubts About How To Pitch To Institutional Investors and Start fix and flipping In Multi-family
Are you looking to start your fix and flip business? What if I told you that you could
pitch to institutional investors and start fix and flipping with multi-family investors?
Yes, that’s right, by connecting with institutional investors, you can get enough funding for landing on multi-family deals and kick start your fix and flip business.
Now, let us see how Lisa, a renowned multi-family fix and flipper, began real estate fix and flipping and landed on multi-family investment deals.
On a fine Sunday morning, Lisa ordered black coffee at a local diner. She had been saving money over the last few years and wanted to multiply it.
She decided to dive into real estate fix and flipping. As she began sipping her coffee, she read the newspaper and came across an advertisement of a real estate investors club.
Lisa decided to visit the club for more insights and find real estate investment opportunities to begin her fix and flip venture. She drove to the club and learned a lot about the real estate market and other investment opportunities.
Lisa Targets her Audience with a Perfect Game Plan
With her new-found knowledge, Lisa created a game plan that prioritized prospects. She started a segmented marketing plan with priorities. She got in touch with like-minded LPs who were keen on investing alongside existing investors. This enabled her to regain her pitch before approaching higher probability names.
Lisa targeted a set of investors and understood their preferences. She made it a point to research investor objectives before a meeting.
She visited investors’ websites and reviewed presentations made at conferences. She also had a word with investor peers and fix and flip experts before setting her pitch.
She takes time to prepare and understands what separates her from the pack
Lisa framed a pitchbook that covered all the crucial aspects and brought them to a meeting. She also followed up with a PPM tear sheet and a due diligence questionnaire. This helped her to pitch better and cover all the important points.
Being unique, let’s you stand apart from the crowd. Lisa gathered her investment philosophy, her approach, and the opportunity to invest before making her pitch.
In the pitch, she told what she hasn’t pursued, which pleased investors. This was because investors knew what Lisa thought about investment opportunities and how she deployed capital.
Upon added research, Lisa understood that institutional investors were the steward of their capital. So, she made decisions carefully.
Lisa Finds Multi-family Investment Opportunities
Once she established a good connection with institutional investors, Lisa met Harold, a renown spec home builder and a long time fix and flipper, at a real estate investor party.
Harold developed a good relationship with Lisa and understood her objectives quite well. He asked her to get in touch with multi-family real estate investors and land a deal.
Being backed by the support of institutional investors, Lisa was pretty confident and landed on a few multi-family investment opportunities that gave her business a big boost.
Lisa became more involved with changing entire neighbourhoods for the better with quality development, and that had a positive impact on the lives of residents.
Lisa Sketched out a Concrete Investment Plan
Lisa partnered with several investors and expanded her investments properly. With Harold’s help, she was able to level up the real estate investing game quickly.
She collaborated with other investors and attracted buyers by focusing on providing housing and empowering communities. She achieved this through public-private partnerships, tax credits, tax abatements, and other creative partnerships.
Harold introduced Lisa to impact-driven investors who were focused on making a difference with their capital. She also invested in rescission-resistant investments and started looking for long-term public-private partnerships.
Once she landed on them, Lisa was able to provide real value to communities across the US.
Lisa Lands on tax credit attainable housing development
With Harold’s help, Lisa landed on tax credit attainable housing development and began looking for deals that could be financed 100% with tax credits, loans, and other affordable housing grants.
Lisa’s investor base began growing immensely, and her profit turnover was also quite handsome.
While looking for multi-family properties to flip, she paid attention to the location, environment, accessibility, and zoning issues.
Lisa Begins Using Real Estate Investment Management Platforms
With increasing investors and an overloaded inbox, Lisa started facing issues in managing communication with investors. She was also unable to organize project files and share them due to its haphazard nature.
She was on the hunt to find a software platform that resolved this pressing issue. She stumbled upon MAST and was delighted to see its feature rich, robust interface.
Lisa was able to organize and share project files with investors with ease, thanks to MAST. She could also communicate with investors through a user-friendly chat platform.
She also closed some great deals with MAST, as it allowed her to look for investors who shared the same values. MAST enabled her to manage investments properly as she could monitor investment flow better.
Lisa’s confidence in connecting with institutional investors helped her to kick start her fix and flipper by closing some great multi-family deals.
With a concrete investment plan to pitch and tax credit attainable housing development, Lisa was able to close many deals and reap profits. She established a good relationship with several investors and managed investment and communication through a robust platform.
From Lisa’s journey, we learn that it is possible to begin your fix and flipper by landing on multi-family deals. Make sure to plan your pitch and develop a rapport with institutional investors to progress in multi-family fix and flipping.
4 Tips to Scale your Business from Small Home Builders to Multi-family Developers
As a real estate investor, you would have thought of what would be the best strategy to scale your business from a small home builder to a multi-family developer. How do I widen my investor base and expand my projects and clientele? Well, the key is for you to focus on targeting the right market with the intent to spread your message through the right platform.
Josh was taking a bus back home after a meeting with an investor. He sat down disappointed as he couldn’t convince the investor to invest in his fix and flip project. As an emerging small home builder, Josh had gained a decent amount of credibility with investors in the fix and flip business. However, he tried his best to upscale his business and become a multi-family developer but fell short each time.
Josh was unable to strike the right chord to upscale his business and was about to lose hope when he met Carl in a real estate investors club. Just like Josh, Carl started his career as a small home builder, but he gained credibility over the years and became a spec home builder. As an experienced real estate fix and flipper, Carl gave four quick guidelines that helped Josh become a multi-family developer.
Josh Keeps his Mind on Niche
Carl began by incorporating a simple routine and mastered it. He believed that a jack of all trades is a master of none, so he simplified a complex world into a single organizing idea that unified and guided everything rather than focusing on various aspects.
Josh met Carl at a local cafe and sought his guidance. Carl advised Josh shared his experience through a mistake that he committed back in the day.
“Josh, back when I was an emerging fix and flipper, I focussed on fixing and flipping in middle-class areas and then moved to low-income housing and luxury housing.”
“That’s when I realized that I made a grave mistake as I was unable to achieve the desired results or focus on middle-class areas.”
“So what went wrong?” asked Josh.
“I focused on various audiences in the business and lost track of the area where I was a master; this resulted in myself having to re-prioritize my objectives and start again.”
“Oh I see,” said Josh
“Yes that’s right Josh, great multi-family and real estate entrepreneurs focus on certain key aspects to make their business shine like a bright star on a no moon night.”
Carl told Josh that multi-family developers identify their passion and evaluate whether it is suitable for generating revenue. They set priorities accordingly and strengthen themselves with these key aspects. Josh took Carl’s advice seriously and experimented on different methods to target investors and expand his business. He mastered one method that made a crucial positive impact on his business.
Josh Reinforces the Market Message
Josh thought of changing the marketing strategy for better turnover, so he called Carl for help. Carl asked Josh
“When you proceed to find a house to flip, what comes to your mind?”
“I think of maximum returns with minimal costs for rehab?”
“That’s great,” said Carl
“While selling the refurbished property, I think of increasing ad spending to attract buyers.”
“You took the words right out of my mouth Josh; you need to understand increased ad spending and additional resources while growing a small business.”
Carl told Josh that he had to keep the clientele in mind before brandishing the market message, and this would differ whether you are dabbling, wholesaling, flipping, or a bit of each.
“Josh, it’s time that you gather data from social media reports, website analytics, surveys, etc., As this would help you narrow down your search with demographics and the psyche of your ideal client.”
“ All right, now coming to the point, how can I modify the marketing message, Carl?”
“ Cool, once you are done choosing your marketing channel with the best ROI, you need to convey the message in the form of a story as it would help investors resonate with your brand values better.”
“Wow, thanks, Carl.”
“My pleasure Josh, and hey! Don’t forget to outsource your marketing to a third-party vendor as running and monitoring marketing campaigns is very time-consuming.”
Josh Incorporates KPIs that Boosts Employee Productivity
Josh’s new marketing strategy proved to be a great hit as he was able to expand his business to a nearby town. However, with a larger investor base, he found it difficult to monitor his employees as he was held up with meetings. He turned to Carl for advice in measuring employee performance and keeping them motivated.
Carl asked Josh to compare the expense to the budget for every rehab and create key performance indicators that help in measuring the performance of employees. This would drive employees to remain responsible and take objectives seriously and complete them. Carl told Josh to introduce KPIs on maintenance techs, leasing agents, property managers, and construction managers.
Josh incorporated metrics such as call back percentage, work orders completed per day, and number of complaints for maintenance techs. He introduced metrics such as leases per showing and applications per showing as KPIs for leasing agents. For property managers, Josh introduced metrics such as occupancy percentage and new leases versus move-outs.
With Carl’s guidance and the newly introduced KPIs, Josh was overwhelmed to see that employees began performing better due to the fear of falling short of their objectives or not meeting the recommended KPI.
Josh uses Online Platforms/Dashboards to Simplify Operations
Josh was impressed with the growth of the business as a new multi-family developer. He wanted to take it a step further and decided to go with automating some operations and investing in a platform that helped him achieve goals easier.
Josh knew that it was hard to get assistance for commercial real estate lending, multi-family investing, and finding a house to flip. With increasing projects, he found it hard to keep tabs on project documents, reply to emails, monitor investment, maintain accounts, and acquire investors. He found that employees found it hard to perform cumbersome excel calculations.
Josh began looking for third-party tools and online platforms to simplify operations and build better connections. He stumbled upon Mast, a real estate management platform that provided a dashboard to create a profile, manage documents, and showcase projects. He was also thrilled that Mast enabled him to connect with investors or organizations that deal with commercial real estate lending.
With Mast, Josh was able to customize his profile to appear credible to investors, and communicate with investors much easier. He was able to make better decisions by checking the credibility of other investors and monitoring the investment flow. He found Mast’s user interface simple and could access it from any device such as mobile, tablet, or desktop/laptop.
Josh gained a good reputation in the state with a strong rapport with senior investors. With these four simple steps and Carl’s guidance, he upscaled from a small home builder to a multi-family developer. What are you waiting for? Follow these four tips and become a multi-family developer, just like our protagonist – Josh.
6 Types of Real Estate Financing to go for
Did you know that your money is better off in real estate than in the bank? Well, this is because borrowers could use their equity capital to purchase properties with upside and enable lenders to earn healthy returns.
Fix and flipping sure does involve a lot of expenditure and capital investment. It could get really hazy and cumbersome while hunting for financial support. There are several private money lenders and financing options which showcase attractive interest rates but don’t be carried away by their nice deals.
A circus stunt man always spreads a large net over a wide area rather than just in the area where he performs stunts. Similarly, since it takes a lot of capital to build portfolio investments, it is ideal to rely on a combination of real estate financing options to manage investment properties.
The best way for you to manage funding for flipping houses is by leveraging borrowed money wisely as it ensures better delivery than paying cash. Read on to know six real estate financing options that you can rely on.
Go for a Mortgage
Did you know that American mortgage has changed over time? Yes, that’s right thirty-year mortgages are relatively new. Before the great depression, mortgages had short maturity times and usually required a very high down payment. Also, they featured varying interest rates and renegotiated every year.
A conventional mortgage is ideal for acquiring fix and flip loans. If you are a rental property investor who actively buys and holds for monthly cash flow, going for a conventional mortgage is the best option. Visit your local bank or larger financial institution for conventional financing at competitive rates. Hey, don’t forget to keep tabs on your credit score as it is the determining factor obtaining loans.
Get Hard Money Loans
Get in touch with fix and flip hard money lenders who provide short-term loans that help you finance fix and flip deals to quickly get your money back and repay the loan. You can also bridge the gap between investment property purchase and longer-term financing.
Hard money loans carry higher interest rates than other options, and the eligibility is less stringent than institutional financing. Make it a point to study the loan guidelines set by fix and flip hard money lenders thoroughly before availing the loan.
Ever heard of SDIRA Self-directed IRA
SDIRA is the best option for finding funding for flipping houses as it is a special type of IRA account that lets you invest in a wide range of investments beyond typical stocks and bonds. Invest in retirement-qualified savings into real estate, and other alternative investments.
Don’t hesitate to go for SIDRA if you have a sizable IRA and abide by the rules as it is one of the best sources of funding. Use SDIRA through a non-recourse loan as this loan uses just the property as collateral rather than your creditworthiness.
Seller Financing Makes fix and flipping a Walk in the Park
Did you know that some sellers may finance for you if they own the property? That’s right; this allows you to make payments to them instead of a private money lender or a bank. However, if the seller has a mortgage on the property, you need to repay the loan in full before the title changes hands unless a clause that you can assume their loan.
Since every house is unique, make sure to repay the mortgage in instalments. Unlike financial institutions and money lenders, seller/owner financing lets you negotiate the interest rate, downpayment, and length of the loan. It sure does sound like a great deal.
Make Financing easier with Life Insurance Loan
Did you know that you can get fix and flip loans for your real estate business from life insurance companies? Yes, that’s right, a life insurance loan lets you borrow against the policy’s value if you have a permanent or whole life policy.
So, what about the collateral? Insurance firms use the policy as collateral for the loan. Most insurance firms would allow you to borrow loans up to 90% of your policy value, but this number entirely depends on the firm’s norms. It is ideal to borrow against the cash in the whole life policy to fund your property.
Did you know that availing life insurance loans enables you to obtain funds quickly as you don’t have to qualify for the underwriting process? Better yet there would be no effect on your debt-to-equity ratio as the amount borrowed doesn’t show up in your credit report. Since interest accrues each month, there is no need to follow a strict repayment schedule. With competitive interest rates, going for a life insurance loan is one of the best options for real estate financing.
Engage in Real estate Crowdfunding
Have you ever contributed to a business with your investment and shared profits among your fellow investors? Well, this is what crowdfunding is; it allows you to get small amounts of capital from many investors. You can start by visiting some renown real estate crowdfunding platforms such as Patch of Land, Roofstock, Lending Home and Fund that Flip. Use these platforms to build a rapport with investors as most crowdfunding platforms offer to finance experienced or trusted investors.
Weigh your options carefully and make decisions while choosing a real-estate financing option. Your best bet is to contact financial advisers for clear, unbiased advice on what financing option to choose according to your nature of the investment. Most advisers provide the first session free of cost and charge in the subsequent sessions. If there are any costs, the adviser must inform in advance.
Don’t be worried about the fee as some advisers will charge a fee for arranging the mortgage whereas others are paid by the lender. Keep an eye out and check whether the financial adviser you are consulting is registered with the financial conduct authority.
It is natural for fix and flippers to fret about managing financing, but these six options will help you narrow down your search better. Also, communicating with lenders, investors, and showcasing project files would become challenging in the long run.
One of the best ways to get in touch with investors and connect with crowdfunding platforms for financing is via Mast. Mast is a robust communication platform that not only helps you connect with investors but also provides a platform to showcase your projects, and monitor investment.
5 Powerful Online Platforms that Scale your Fix and Flip Business
Fixing and flipping houses involves a tedious process and a lot of manual effort with data and project management. There are different types of software that provide the most impeccable platform for you to improve data management, deal analysis, manage projects, get estimates for fix and flip, and maximize project profitability.
Let’s say you are excited to meet a potential investor after listening to their credibility through word of mouth. Instead, you end up being disappointed with the investor’s poor experience and lack of judgement. Online platforms provide dashboards that help you gauge the credibility of investors, message them, and decide whether to proceed with the deal or not. These platforms help you analyze deals, manage massive projects, establish seamless communication with investors, and monitor investment flow.
Whether you are a fix and flipper, multi-family developer, or a spec-home builder, real estate investment software helps make your business process smooth and secure. You can rely on tools for real estate investors to find investment opportunities in real estate. Here are five powerful online channels that provide a robust platform to scale your fix and flip business with ease.
Strike Better Deals with Deal Analysis Tools
Making a purchase decision or overpaying for a property is the worst nightmare for fix and flippers. You can glide over this problem with robust tools that are focused on analyzing deals and drive better purchase decisions.
Choosing between spaghetti with meatballs and pepperoni pizza for dinner could be quite difficult. Deal analysis tools help weigh your options and analyze deals on any platform, i.e. your desktop, laptop, tablet or phone. These tools help you calculate project costs and determine the maximum purchase price of a property. They are like powerful fog lamps that light up a misty road.
Deal analysis tools help both investors and fix and flippers from overpaying or overcharging. They allow you to create investment reports professionally and help build credibility to obtain funding for rehab projects. Active investors can also narrow down their hunt for investors with deal analysis tools and close deals faster.
Be on Track with Flipping Cost Calculators
Have you ever been down a rabbit hole while looking for returns and estimating rehab costs? Flipping cost calculators will help you create a detailed scope of work accurately and estimate rehab costs without the contractor’s help.
Taking precautions in advance will help you overcome risks and adapt to different situations. Similarly, flipping cost calculators help you to pre-build starter templates and pricing databases in seconds. Customize the estimate database with your repair items and prices for specific project requirements. With flipping cost calculators, you can create custom estimate templates and pricing databases that could be reused on future rehab projects.
Use flipping cost calculators to know the after-repair value, purchase price, rehab costs, fixed costs, financing costs, and desired profits. This will drive you to make better purchase decisions, create a clear portfolio for your fix and flip requirements and plan how to target your investors.
Manage Workload with Project Management Platforms
Project delays and mismanagement are the biggest disasters to fix and flippers. Managing, organizing, completing projects on time, and meeting budgets is like completing all sides on a Rubix cube. Well, project management platforms help you do just that. With added precision, these platforms help you create project schedules, manage contractor start dates, and project milestones with ease.
Just like ticking items off a to-do list, project management platforms help you track tasks, customize the database with your requirements, and schedule your projects on a calendar. Most project management platforms have a calendar that helps you manage all your project schedules, tasks, and events in one project calendar. Make the most of it to achieve effective workload management.
Scattered files are difficult to locate; project management platforms help you organize your project files for better access. Use the platform to sort files according to your priorities and share them with prospects. Also, most platforms prioritize your project files and ensure privacy management with restricted access. This allows you to share project files only with your consent. Use these platforms to smartly track projects and find investors for real estate.
Easy Accounting with Accounting Platforms
Transform a boring, time consuming and the confusing job of accounting and track your budgets with accounting platforms. Forecast profitability on deals, manage budgets, and track expenses by vendor, category, or account, and create final profit statements beforehand.
Finding tax consultants and managing accounts can be quite challenging. Use accounting platforms to manage accounts keeping the current market value and tax norms in check. Even if accounting is not your cup of tea, it becomes a walk in the park with accounting software.
Build a Strong Rapport with Chat Platforms
Even as an expert fix and flipper, you could lose track of replying to emails and deal with a cluttered inbox as email communication could get harder to manage in the long run. Most emails also have limited cloud storage, which is a letdown. With a dedicated chat platform, there are a few best apps for real estate wholesalers.
Wouldn’t it be amazing if you could replace that cluttered inbox of yours to an easy to use chat platform? Yes, that’s right, there are dedicated chat platforms for real estate investors that help you chat with prospects and manage communication much better. Stay ahead of the competition with chat platforms as they give you an edge over email clients as you can use them on the go, and communicate with investors with an intuitive interface.
You don’t have to worry about losing out on follow-ups as most investor chat platforms automatically detect the due time to revert and notify you beforehand. Adhere to TAT and never miss out on updates and catch-ups with investors via chat.
Whether you are an active or passive investor, you can gain more investors or get sizable returns with these five powerful online platforms. Instead of losing time by manually tracking emails, missing attractive deals, and drowning in excel sheets, make use of these robust platforms to pack a punch for your real estate business.
Get your hands on Mast, the best platform to take your fix and flip business to the next level. Mast lets you build a custom profile, showcase projects to prospects, build strong partnerships with investors, organize and track projects, and monitor your investment flow.
5 Strategies Followed by Pro Fix and Flippers to Get Investors
Jim was sipping his morning coffee at a local diner looking for funding for flipping houses in a newspaper and came across an article that was quite misleading. Being a renowned fix and flipper, he knew that the media was misleading real estate businesses into believing something that could result in clickbait. He had been attracting investors by showcasing the perks of financing for real estate to prospects with attractive deals that promote the best real estate investment return.
Although this method sparked an interest in potential investors and drove them to flock to him for investment, he wasn’t getting the reach he expected. He was worried about losing out on investors and had to look for newer methods to enable him to stay on track. His objective was to make sure to knock on the right door to find investors and expand his business.
This article is about how a well-established fix and flipper – Jim, meets an unknown benefactor who guides him in getting more investors and expanding his business.
Jim’s First Meeting with Kevin
Jim finished his morning cup of coffee and was on his way to meeting a prospective investor. As he parked his car in the parking lot and got out of the vehicle, he was greeted by a well-built man in his late 30s who happened to be a real estate agent. Jim made small talk with the man and agreed to meet him again in half an hour after the meeting with the investor.
Jim met the man at a fast-food restaurant nearby. The man introduced himself as Kevin and told him that he was well-connected with several investors interested in real estate flipping. He actively collaborated with agents on various projects, shared updates, and helped them with investing in various projects.
Jim was instantly overjoyed and befriended Kevin, who opened the door for investment opportunities. This was the right opportunity for Jim to find more investors for real estate. Kevin connected Jim with several investors who shared the same objectives and helped him come up with a unique real estate investing plan and gain strong investors for his fix and flip business.
Jim Joins a Renowned Real Estate Investment Club
A few weeks later, Jim meets Kevin at a local bowling alley to express his gratitude. He was able to close a few deals with a few investors with Kevin’s intervention.
“Thanks, man, I owe you a beer for this,” says Kevin.
“Hey don’t just thank me yet, wait until you visit Real Estate Flippers.”
“Real Estate Flippers – what’s that?”
“It’s a popular hangout spot for reputed real estate investors.”
“Oh wow, that sounds great! A real estate investment club huh, can’t wait to go there, Kevin.”
“Well, what are you waiting for Jim? Grab your car keys now.”
As the duo drive to Real Estate flippers, Kevin tells Jim that they also have an official online forum that lets him connect with investors and organize a meetup. He also tells him to be on the lookout for investors who share his priorities and have a strong reputation with other investors.
Jim visits the real estate investment club and befriends a few folks who are looking for investing in real estate. He also meets the club organizer who narrows down his search by making it much simpler. The organizer asks Jim to outline his investor needs to several attendees as this was a sure-shot way for new networking opportunities.
Jim began visiting this investment club and became an active member. He was able to get periodic updates of real estate investors looking for investment opportunities in his locality. He attracted established opportunities in financing for real estate investors, upscale his business and expanded his fix and flip projects quite well.
Jim Stays Tuned with Online Classified Ads
Kevin called Jim on a fine Wednesday morning and enquired about his health.
“I am doing quite well Kevin. Thanks for introducing me to Real Estate Flippers, it was really helpful,” says Jim.
“That’s wonderful Jim, have you looked into classified ads today?”
“What? Why should I do that? Isn’t classifieds outdated?.” asks Jim.
Kevin explains to Jim that advertisements and online classified websites never go out of date. He asked him to visit classified websites such as craigslist as it is the hot hub for real estate investors to post online classified ads. Jim was intrigued as this was yet another opportunity to find investors for real estate and asked Kevin how to start.
Kevin asked Jim to do an online search to look for investors who wanted to buy distressed properties. He suggested posting ads on classified forums, social media, and other platforms announcing the need for investors to fund for flipping houses. He said that the ads should also showcase the perks of financing for real estate investors.
Jim Starts to Fix and Flip with Friends and Family
Jim was very pleased with seeing numerous benefits that helped his real estate business soar higher. He was desperately looking for investors to fund for a large project that could turn things to a different plane but faced difficulties in narrowing down on a bank that could finance real estate flipping.
On a Friday afternoon, Jim received a call from Mark, his cousin, who wanted to invest in real estate. Jim told Mark of his new project that would spearhead his fix and flip business to the next level. Mark was quick to respond and agreed to aid in financing his project.
Jim was thrilled as this would be an added benefit in gaining an attractive return of investment. He knew that investors and private financiers would ask for a fixed return on their investment, thereby resulting in a higher percentage of interest compared to CD or savings account. Jim knew that collaborating with a family member or friend would avoid increasing costs.
Jim Establishes a Strong Connect with Investors through a Robust Platform
With his newly developed real estate fix and flip business, Jim was over the moon. However, he faced difficulties in organizing projects, reverting to emails, and showcasing them to investors. He had to deal with cumbersome calculations on excel and maintain numerous records that were kept haphazardly.
Not knowing how to overcome this challenge, Jim turned to Kevin for a solution. Kevin told him that there were a few online real estate dashboards that helped him overcome these challenges. These dashboards would help him track emails, organize project files, and showcase projects to investors easily.
Kevin did some research and stumbled upon Mast, a robust platform that helped real estate investors communicate with investors through a dedicated channel, and manage projects easily. Jim began using Mast, and he was delighted with its ease of use and was able to organize his projects quite well. He established a great rapport with his fellow investors, monitor the performance, and track the investment flow easily. By establishing a concrete communication channel, his business operations turned over a new leaf and got funding for flipping houses easier.
By getting in touch with a renowned real estate agent, enrolling in a real estate investment club, following online classified ads, connecting with Mark, and using a robust communication platform, Jim was able to get more investors and become one of the most successful fix and flippers in the industry. So, what are you waiting for? Follow these five strategies to gain more investors and take your fix and flip business to the next level, just like our protagonist – Jim.
How To Get Into Real Estate Investing
Real Estate Investing for Beginners
So, you have a nest egg that you’d like to put to good use. Or, maybe you’d like to see greater returns on your savings than banks can provide. In any case, investing in residential or commercial real estate is a stable and profitable option. However, if you’re a beginner, you’ve probably got a lot of questions.
What are the advantages of investing in real estate?
First, let’s look at how real estate can benefit you. While you may not be ready to dump your life savings into real estate, there are a number of reasons to invest in real estate as soon as possible:
Diversification – Most people focus on their 401(k) or traditional stock portfolio when the time comes to invest. Real estate is a great way to move away from the stock market and bring greater diversity to your portfolio. This will help minimize some of the risks that are involved with investing in general and make your investments more stable. A diversified investment portfolio with real estate as an asset class is a good marker for a well-balanced approach towards investing.
Appreciation – Property generally appreciates in value over time. In other words, if you buy a property and sit on it for 10, 20, or even 30 years and beyond, you can likely sell it for a substantial profit. It may require you to play the long game, but it will be well worth the wait. Unlike the stock market which is constantly fluctuating, real estate investments offer a chance to more stability.
Cash Flow – You can rent out a purchased property to create a regular income stream. You can also use the property to run a business. Either way, real estate offers you the chance to make profits in addition to the value it appreciates over time.
Versatility – Finally, real estate is extremely versatile. You can use the property or home to live in, rent out, or operate a business. You can even use your property as a tangible asset that you can leverage.
How much can I expect to make from a real estate investment?
If you currently own property and are looking to sell, now is a great time to do so. That said, it’s also a good time to acquire a new property, as property values continue to rise. According to research from Attom Data Solutions and Clear Capital, median house prices increased by an average of 5.95% nationwide in 2019.
Let’s assume you purchase a home for $250,000. Based on nationwide averages, you can expect your investment to appreciate like this:
Assuming your property aligns with nationwide averages, your $250,000 investment could be worth $1,400,000 or more in 30 years’ time. Even if your property value underperforms, appreciating at half the average rate (2.975% per year), you could expect to double your initial investment over the same period. This is all assuming that you only sit on your real estate until you’re ready to sell.
If you choose to rent out your property or use it to start a business, you stand to make significantly more off of your investment. While it’s hard to predict the profits you would make from a business, it’s a little easier to calculate your returns from rental income. On average, landlords charge about 1% of a home’s value in monthly rent. Thus, if you choose to rent your $250,000 home, you can expect around $2,500 per month in real estate income.
Get Into Real Estate Investing with MAST
Are you ready to become one of the millions of real estate investors who are reaping the rewards of tangible assets? If you’re ready to invest in real estate, you shouldn’t do it alone. You’ll need expert advice to either choose a property to purchase or sell to the right buyer.
In either case, MAST is here to help. MAST can help with every step of the process. We provide opportunities to invest, network with buyers and sellers, raise funds, and monitor deals to make sure you get the most bang for your buck.
So, are you ready to get started? To learn more about how to get into real estate investing, explore new opportunities with MAST today!
3 Things Every Real Estate Investor Needs to Know
1. Real estate values are cyclical
It happens every 10-15 years—values are skyrocketing, everyone has a cousin who made $50,000 flipping a house with no repairs, and people start whispering the dreaded words that represent investing poison—“The value of real estate always goes up!”
Oof … okay. No. No, it doesn’t. If you need to be reminded, rewind the clock to 2008. Or 1981. Real estate lost a ton of value in both of those recessions.
It doesn’t have to be as dramatic as a national or global recession, either. Local markets tend to run in cycles. As companies open up shop and job growth ensues, people move into the market or upgrade their housing. Builders rush to fill that need. Inevitably, the market gets overbuilt, and property loses value to “correct” the overpriced market.
This creates a wave-like cycle of “buyer’s markets” and “seller’s markets.” In a buyer’s market, too much property is for sale. Due to the high supply and low demand, prices plummet. This is a good time to buy.
In a seller’s market, too few properties are on the market and demand is high, pushing prices up. This is a good time to sell.
Over a long enough time-frame, the value of real estate usually does go up, on a gradual trend line, despite these cyclical peaks and valleys. But if you purchase a buy-and-hold property in a buyer’s market, you could sell in 3-5 years for a tidy profit. If you mess up the timing and sell during a seller’s market, however, you could end up holding the property for fifteen years to make the same profit.
This applies less frequently to fix-and-flip investments … but if you time a flip wrong, the effects are more dramatic. If you buy at the top of a seller’s market, local values could end up crashing before your flip is done, and you could have wound up investing a fortune rehabbing a property that is now worth less than you bought it for! Flippers really can’t afford to ignore market cycles in real estate. As a real estate investor, you should have a firm understanding of the entire process of real estate investing.
2. The Lower the Risk, the Lower the Return … and Vice Versa
If a fix-and-flip or a commercial property reposition goes swimmingly, producing a double-digit or even triple-digit return, you might be tempted to think “Wow! That was easy! Real estate investing is a sure thing!”
Not so fast. You may have just gotten lucky, or made a very prudent investment decision. Now is not the time to get cocky and assume you have the magic touch. The truth is, the higher the potential returns, the higher the risk. This principle can be mitigated somewhat, but never eliminated entirely.
The most obvious example of this is buying all-cash vs. buying with a mortgage. If you have no mortgage payment, you are almost guaranteed a healthy monthly cash flow … but that cash flow will still probably be a small fraction of what you invested. Meanwhile, if the property appreciates, your gains will be proportionally smaller because you used no leverage.
Meanwhile, with a mortgage, even a small appreciation in property value could double your money … but if a pipe bursts and you use the mortgage money to fix it, you could end up losing the whole property.
Another example is buying a brand-new property vs. buying a fixer-upper. You could potentially add a lot of value in the rehab process … but if the rehab goes badly, the real estate investment could be a total loss. By comparison, the lower-maintenance lower-performing new build is a bird in the hand.
3. Expect the Unexpected
“What could possibly go wrong?” is the Achilles’ heel of real estate investing. Many moving parts have to come together to make a property habitable. A lot can go wrong.
You can hire professional inspectors to scan the foundation, poke the roof, scope the sewer drain, or tug on the electrical outlets. But as thorough as you try to be, a veteran real estate investor knows that something unexpected always arises. A tree root puncturing a sewer pipe, mold growing between wall panels … something
It pays to be extremely conservative on your rehab budget or your deferred-maintenance budget. Smart real estate investors plan for it to cost 15-30% more to manage their property than they expect. If that kind of buffer negates the profit of the deal … don’t make the deal!
Being prescient as a real estate investor is an acquired skill and you can develop it as you grow in your investment journey. However, keeping these pointers in mind will surely help avoid certain pitfalls of real estate investing. With a steadfast and smart approach coupled with a bit of luck, you might just make it big as a real estate investor.
How To Start Investing In Real Estate
Investing in real estate
Real estate investments provide various long term benefits. They can also prove to be more stable and consistent when compared to the volatile stock market. But investing in real estate can be confusing for many. If your investment experience is limited to a mutual fund, bonds, or the stock market then this article will help you understand how to start investing in real estate and its scope.
Who can invest in real estate?
When it comes to investments, there is a common assumption that floats around. Being a real estate investor is only possible if one owns properties under his name or if one belongs to a certain high-income level group. The SEC has strict guidelines on accredited vs non-accredited investors in place. These guidelines act as barriers to entry into the realm of real estate investment.
But, there are various opportunities that allow individuals to start investing in real estate even if they don’t own property or have a large financial reserve. All you have to do is choose the type of investment to go for.
How to invest in real estate without owning property?
Investors shouldn’t shy away from investing in real estate because they don’t own property themselves. It’s actually quite possible to invest in real estate without buying a property. Your investment strategy in such a case should rely on certain investment vehicles that bypass the need for ownership of tangible assets. Let’s explore these options:
Real estate investment trusts (REITs)
REITs or real estate investment trusts are companies that buy and manage income-generating commercial properties. Individuals who can’t invest in real estate properties can invest in REITs. Based on the mutual funds model, REITs can provide individuals high dividends that make them a very lucrative investment option for many.
REITs are the perfect entry into real estate investing for those starting out. But, REITs can also prove to be quite complex and varied. It’s generally sensible to invest in publicly-traded REITs like a stock via a brokerage firm rather than going for non-traded REITs that are harder to value since they aren’t sold easily.
Real estate mutual funds
Real estate mutual funds are another way to start your investment journey in real estate. This model doesn’t require you to own a property. While it sounds similar to REITs, a real estate mutual fund is quite different as it is a collection of investments that are overseen by an investment manager. Unlike REITs which are actual companies, investing in mutual funds is actually investing in the securities of a company. The returns then get realized through appreciation.
With this system in place, investing in REMFs can give individuals, flexibility in their financial goals and scope of investment. However, at the same time, REMFs are prone to market risks due to the volatile nature of a mutual fund. Since the investment is an indirect one, external factors like the market and interest rates play a major role in achieving financial success.
REIT exchange-traded fund(ETF)
A REIT ETF(exchange trade fund) is another indirect form of investment where individuals invest in REITs instead of putting their money on a property. This method offers less risk than investing in REITs or a property. However, the returns from ETF investments are lesser compared to other types of investments.
Online crowdfunding platforms
Ever since the JOBS Act was passed in 2012 by the U.S Congress it transformed investing. Before this act, regulations set by the SEC restricted private investment opportunities to have public access. Only the wealthiest and most well-connected had access to institutional-grade real estate investment opportunities. This was done to prevent rookie investors from risk as well as reduce fraudulent practices.
The JOBS act opened up the investment horizon for a lot of individuals who previously did not have access to opportunities in real estate investments. With the emergence of crowdfunding platforms, the ability to network and connect with investors and find investment opportunities expanded.
The Act also allowed crowdfunding platforms to expand their offerings to non-accredited investors as well through the sale of equities in REITs. Overall, the investment landscape became more inclusive and adaptive and the elitist approach to real estate investing saw significant change.
Crowdfunding platforms are a wonderful place for investors to connect directly with project managers and sponsors who are looking for investments in high-value projects. Popular platforms like Fundrise and Crowdstreet offer a chance to invest in real estate, however, the platforms either function as intermediaries in your investor journey or have high entry points, making it an exclusive platform for select investors.
The MAST platform provides a direct experience where investors and sponsors can connect and form strategic partnerships. Being primarily a platform, it does not act as a middleman in users’ investment journey and simply enables them to find investment opportunities tailored to their needs.
How to directly invest in real estate
“Ninety percent of all millionaires become so through owning real estate.”
Owning a property or having the means to buy a real estate asset is one of the best ways to start your investment journey. Real estate investments that are made to buy or develop an existing property show great potential. They can bring in passive income through cash flow as well as long term appreciation of the property itself.
There are many ways to directly start investing in real estate. Let’s look at some of the examples:
Residential real estate investment
Jason Hartman bought his first investment property at the age of 20. Despite being a newcomer at the time, and starting with very little, he realized the importance of investing in real estate. Over the years, Jason bought various kinds of properties as he went deep into the real estate market. He went on to become a part of the top 1% realtors in the United States and a millionaire.
Jason’s journey is difficult but not unrealistic and if one has the right mentality and temperament, they too can follow the same route to success with a little bit of hard work.
As someone who is starting their real estate investment journey, one might think that it’s not practical to buy a home. However, getting your hands on a residential property and then renting the place for regular returns can help you with maintenance costs.
Moreover, owning a residential property can be beneficial if you choose to reside in it while renting out parts of it. Not only will it help you save on living costs but will also provide a passive income in the form of consistent cash flow. This kind of investment strategy is commonly known as house hacking, a term coined by BiggerPockets.
This investment strategy is for more experienced investors. Those who have large financial reserves as well as time on their hands. Remember, time is of more essence than money with this process. A fix-and-flip strategy requires an investor to buy an under-priced property for a short term, estimate the cost of repair work, and then sell it later at an opportune time.
The strategy sounds simple but it’s not because there are a lot of processes involved in the background when it comes to a fix-and-flip model. An investor not only needs to estimate repair costs for the property but also has to oversee and assess the condition of the location. There’s a bigger risk involved in a house flipping project since external factors like economic growth potential of the area, proximity to major parts of the city, crime and accident rates, and market trends play a major role in deciding the profitability of the property.
All this assessment requires a lot of time and experience. Partnering up with an expert realtor or an experienced investor can help you with all the due diligence requirements. At the same time, it can enhance your own experience with real estate projects and investing in real estate.
Commercial real estate investment
Investing in commercial real estate is another strategy that is quite popular among real estate investors. However, this strategy comes at a major cost since investing in commercial real estate requires an investor to have sizable pockets. Should you choose to invest in commercial property like an office building, make sure to assess the market condition and vet the companies or businesses that are renting the office spaces in the building.
Investing in commercial real estate is definitely heavier on the pocket. It could mean more expenses on repairs and property management. At the same time, it also offers steadier long-term income and higher appreciation compared to a residential property.
So far we have discussed various ways to start investing in real estate. But the ultimate question is which process is best for you. Is buying a rental property and slowly making your way among the big leagues of commercial real estate investment the ultimate strategy? Your investment potential as well as the time and resources you put in will play a crucial role. But what matters the most is how important financial freedom is to you.
No one invests in real estate just for the sake of it. Everyone has an exit plan and an outcome that they wish to achieve. It could be amassing multiple properties under your name or increasing your net-worth or both. So talk to industry experts, real estate agents, real estate developers, and people who are as passionate and ambitious as you and understand the different types of real estate investments and which one is the best for carving out your success story!