It is important for a serious real estate investor and professionals to stay on top of the deal pipeline. Tracking multiple real estate deals can be challenging as each has a lot of information and nuances. We have developed a software called Reiance to keep track of our real estate deal pipeline. We now use it to handle our deal flow and it has been tremendously helpful. In fact, we have just closed on a deal a couple of weeks ago using the software.
Several years ago, my partners and I started investing in multifamily real estate properties. Specifically, we started to invest in mobile home parks. In the very beginning, we didn't have much of a deal pipeline. We looked at a handful of properties. Whenever we saw a potential deal, we emailed each other. Whenever we needed to reference information, we looked at our emails. This worked fine for a while.
As we started to look at more deals, we quickly became overwhelmed. There were often tens of emails regarding a single property. We found ourselves constantly digging through email messages to find the information we needed. To improve our organization, we moved to using spreadsheets and writing documents. Neither of them was a scalable and robust option. In other areas of our business, we had used CRM (customer relationship management) systems that keep track of interactions and information about customers and deals. We wished there was something like that for real estate deals - a CRM for real estate. It would let us track information on a real estate deal like note, rating, description, contacts, deal stage, tagging, etc. On top of that, it would handle the location information such as finding properties by address. After all, real estate business is about location, location and location. When we didn't find anything on the market, we built one.
As we looked for real estate to purchase, we added features to Reiance to reflect our search process. Now, when we find a deal, we enter its information into Reiance such as price, description, address, etc. Then the software automatically pulls street view and map from Google. It also generates links that take us to the property on sites like Zillow and Trulia.
As we get more information on the deal, we enter notes in Reiance. Then as we form our opinion on the deal, we update our rating section. This way, we can quickly see our opinion of the deal. For instance, we can see something is a C-class property, but is an A-class deal. We have customized the rating section for our acquisition criteria like property, market, economics of the deal. All of the deal information is one place.
Once we have deal information in Reiance, finding it is easy too. We can search by location, name, detail, or stage in the pipeline. So when my partner asks me, “What was the 50-space mobile home park in Columbus?" I can easily pull up that information.
We also set which stage in the pipeline each property is in - prospecting, reviewing, underwriting, negotiating, purchased. We can search by stage. Now, when we have to pull up information on a real estate deal, we simply search for it, and Reiance pulls up all of the information. We no longer dig through our inbox to find information. It is on our fingertip. This ease of access has saved us a lot of time.
Keeping deal information in Reiance and building information over time has created additional benefits. For instance, when we find a deal we can look up other deals that we reviewed in the area. We can review the information in the previous deals and compare to the new deal. We can also put tasks for a deal. When a deal is not quite right for now, we put a task in Reiance to follow up with seller in the future.
Thanks to Reiance, we have been able to really speed up our acquisition process. I believe Reiance will benefit other real estate investors as well. Try Reiance to effectively manage your pipeline!