All Forum Posts by: Dominic Madrid

Not sure if posted to right forum but I have never been organized. I'm a great creative deal maker and initially flourished with operating on the fly. However now, with many rentals, real estate contracts, flips, and still practicing transactions as broker, the details are killing me.

I've tried all these appfolios, tenant clouds etc. Trying to utilize for all functions.

I think maybe just Google calendar and spreadsheet may be the answer but thought I'd ask if anyone recommends some kind of software or app that encompasses several aspects and with in conjunction te details of accounting etc...

Realtor type software/prop mngmt/ flip budget cost trackers/ allocating/task assigning and allocating and possibly customer database/campaign type functions.

And most importantly easy (or at least wort the effort) to use as I always end up back to million lost sticky notes.

Thanks in advance

@Jason Whitsell

Hi Jason, I'd like to think iinventedthis awesome strategy but who knows.

My first deals I borrowed X amount and paid 10 pointsand 12%interest....ouch i know. I imagine 5 points went to "broker."

Not only did they sting but I needed it, but it also kept me out of deals because they would be too thin. I figured if I'm not borrowing someone not making money. So I went to guy that loaned to me...

Say he got 12% on 100 but only took me 6 months. That's only 6k in $ and there was lot of effort of him getting every property or deal I did, plus he had LOT of money just waiting for these perfect deals that they in fact reduce the chance of by outrageous returns.

I presented no points 10% but all the time. % are nice but what counts is actual dollars and less risk time. So anyway it ultimately became 800k credit line where I pay20k every quarter. Now here is the neat part. He keeps his money and trades it to me for 1st position mtg... so since all his money not gone all the time his yield is more than 10% and he sleeps well. Now the other way he would have to do 14 deals likely with multiple people and not have that underlying trust and systems.

Now for me, I figure if I could use the money twice in one year than really it's like I'm only paying 5%. (Access to 1.6 for 80k).

This relationship worked nice as also created flexibility to release cash (that I'm paying for) say if have several on mkt but now values way more he would feel comfortable releasing more on the original note.

This is what I do, and here is a really cool part. If other people i know are in deals but need money, I'd simply structure research and throw some points on there while my lender has no issue.

Hope this helps. Ik m interested to see other answers as this is where i ended up and havent really done it any other way.

@Nathan G.

This post really hits home. I'm in here searching for software tips. I have 50+ units and have spent countless hours messing w appfolio, tenant cloud, etc etc especially to train assistant when havent had under control myself.all the while,I have been an excel whizz from my acctg days!

However I do need something for calendar and tasks. I tried all those trying to assign vendors to props etc but maybe just the ol excell and Franklin covey are the key.

@Andrew Taylor

Aside just re-read I realize now my answer may be more applicable for your next one, lol... anyway here we go again. The best thing I learned is "you dont make money when you sell, you do when you buy."

That being said, how is your deal structured? The non equity, is it high hard money/short term? One thing I've became good at is having several outs with different resources to control the deal. I may borrow 100 at 10-12% put my own 30 in to be ARMVof 200. If not getting results quick, i can open up owner financing of say 215k 30k down and carry the 185k. That still leaves me negative cash after costs so I could possibly simultaneously refi the house instantly with a lower 7% investor of 140k. (60-70% ltv of awesome house ). I got my 30 plus 10 and prob clear 20 of the down as llesscostsinstead ofnetting 40-50 with unknown holding costs, now got money back 30 profit and a 45k notewith 7 % interest. Which later can sell, fet back or make deal w buyer if they want to move to buy at a discount etc etc..

My point being is lot of flippers focus and buy and sell

But there are many other variables to control your business instead of hoping or conforming. So

To get you thinking...do you know someone that had good amount of cash that would appreciate virtually risk free investment if you can give them 50-60 ltv...if so, just align those resources and can try to offer a owner contract, or a lease option to buy. Or a combination of them both.

Maybe someone you know changed jobs and has big 401k..they can roll that issue a mortgage and make 6-8 or whatever all day and they are now controlling their retirement with certainty and things people understand.

Wow I sound like a self help seminar...good luck

@Andrew Taylor here is what I do....

When planning costs, I contemplate what I know someone will ultimately want, but i can leave out without bringing down the quality of the house... ie in my area refrigerated air is big upgrade, so may leave existing swamp cooler. Maybe make the house spectacular but not focus on yard too much other than cleaning, or maybe, windows arent perfect, but not junk etc....but make sure it has the cosmetic appeal

Now my realtor hat on...once you've done everything, now you're just chasing price you would like. Whether or not overpriced is somewhat irrelevant because once those DOMs accumulate, you've now lost all your negotiating power and at mercy of buyer.

Ex...I go all out and in for 140 and would like 200 as perfect comps...may get brought down to 180 if dont move right away. Instead may go in for 120, list at 180 (20k below comps). And offer as incentive if would like xyz price hike of 10k. Now that's 60 vs the 40, quicker sale, happier buyers and flexible as maybe someone cant afford the 200 and will pay the 180as is which is same result to me.

Now make same without stress and really helped someone as customized instead of having a specific need. Also I always list little higher, offer all the buyers cost and broker bonus with acceptable offer in first 14 days.

So to answer your current situation. A price drop costs you alot more than a buyer. 25k to you is only 100/mo to buyer. Soi would do a small proce drop to get the listing fresh but also add an incentive.

(excuse grammar from phone text)

Hope this helps