Investment Info:

Single-family residence fix & flip investment.

Purchase price: $390,000

Sale price: $425,000

Contributors:
Peter Vekselman

Partner Driven, in collaboration with o...

Unfortunately there is no magic template that works everywhere and we often let the market drive choices as that is what will put $$ back in our pocket.

If 2x, 3x, 10x the # of burger trucks flood onto a given street to offer burgers to the people, to meet demand 1:1 it has an economic effect of competion driving prices to REMOVE any bloat, any false margins, right.

For argument's sake, and to keep the math simple, let's say you have $1 Million in ETF's or some other safe-ish, well-diversified assets.Step 1:  Take out an SBLOC (Security backed line of credit) on said portfolio. 

For two reasons I could drive to the property anytime and handle whatever myself - I did not have a team in place to do what was needed to make the investment Successful and the second reason was control. 

While we are not truly concerned with making it someones dream home, we do want it to be smooth/safe with a modest level of eye appeal and without a massive time or money investment.

Current systems and tools:- Assistant to manage payments, invoices, ensure rents come in and chat with tenants for issues- Melio for vendor payments- Baselane for banking - separate accounts for each rental and deposit- Google sheets for Income and Expense reporting- Azibo for rent collection automation with late fee automations- Drive for my leases, SOPs, and documentations of tenants move in/move outGoals of improved system:  ensure I have a read out of how each property is preforming month over month, check on big expense items, ensure vendors get paid, mortgages get paid and rent is coming in, generate APY on float and savings for any big CapEx that comes up, and make my life easier come tax season.Is there a single software people use or what do you do for your business systems to optimize all of this?

I was thinking of properties that were more 3-4 hour drive away rather than the midwest but I can still have these same issues. 

I can post on my social media and drive 50-60 additional people through one of my open houses.

I can't speak to the return thresholds for development but it's safe to assume it's higher given the larger risk profile.That being said, it doesn't hurt to give it a try as you never know where those new relationships will take you.