Episode 359

FREE Property Planning Template

This is a different sort of episode as Jack shares his Property Planning Template that he uses for basic Property Management.

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"You can invest 10,000 hours and become an expert or learn from those who have already made that investment." - Jack

Transcript
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Welcome to the REI Mastermind Network where host Jack Hoss gathers amazing stories from leaders in real estate investing.

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In each episode, our guests will tell you what they're doing that works what they've tried that failed, and best of all, you'll learn actionable steps to take your real estate investing.

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To the next level now, here's Jack with another value packed episode.

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Hey everyone, it's Jack with another tip Tuesday and this is going to be quite a bit different than what we've done before because there's going.

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To be a visual element.

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To this, so I'm going to direct you over to bit dot LY slash REI YouTube and I'm going to make sure to have that link in the show notes here, so it should be an easy click for you, but on Twitter we've had some discussion, and somebody asked a question. What spreadsheets is everybody using when managing their properties.

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are doing their real estate investing, and that's kind of an open-ended question, but it did make me think there are situations where I typically seem to fall.

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And continue to go back to one particular spreadsheet that I've developed, and it is regarding planning and managing and tracking vacancies in in some of my properties.

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So, with that being said, what I've done is I've turned it into a template and we're going to.

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I'll share you the Bitly link to this, and then you can copy it to.

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Your own Google.

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Drive and edit it and do what you will from it.

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I'm not going to say this is the beginning and the end regarding.

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This type of strategy.

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But at least it gives you a starting point.

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So, head over to bit dot LY slash bit dot LY property plan template and I'll make sure to have that link in the show notes as well what you're going to find is the spreadsheet that looks like this, and if you're on my YouTube channel you're going to.

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You're going to see what I'm talking about.

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But to make a copy of this when you're on this page, you're going to go to file.

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And make a copy and it'll ask you and prompt you on where you want to save it.

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And a few other things.

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So just save it to your own Google Drive and then you can start editing, editing it from there.

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But what you're going to, I'm just going to give you kind of a quick breakdown as some of these fields are calculated, some of them aren't, and you're going to see that this is quick and dirty, and it has evolved.

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But I'm not going to.

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I haven't made notes or any kind of change.

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Is here any of these fields that are green or red?

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You're probably going to find out pretty quickly if there's a color associated with it.

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Most of those are in fact calculated, but a lot of the other fields are going to be ones that you're going to.

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Want to edit?

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For your own use, so in column A, for example, it's just the unit number in this situation.

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In this example, there's 12 units and then column BI have the number of beds and baths. This is just for your own personal information and in personal tracking.

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The next column is the tenant's name.

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If there's something somebody in there, but then I also put a quick.

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Note in that field, right now just kind of regarding its status.

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In this case I have rehab in progress.

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For example, something to explain why there isn't a monthly current rent number.

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Column D is one of those ones that I think is probably the most important and in, and because I see time and time again.

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When people are self-managing their properties, they do not track the target rent and when I say target rent, I mean what your market consume.

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Short, so make sure you put that number in there because when you acquire properties and what makes some properties very attractive is that the current landlord or the current owner never kept up with the current market conditions in the current market rent.

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So, I put a target rent and I update that on a regular basis.

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Especially lately with the economy as it is, rent has been increasing quite quick.

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Quickly and I always want to make sure that my target rent is accurate.

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I don't want to be one of those landlords that has undervalued my rental spaces.

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The next one is monthly current rent.

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What you're currently getting for it.

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And you're going to notice that more times than not, you're going to have units that aren't at your current monthly rent.

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Especially when we're seeing fluctuations as large as we.

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Are right now.

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But we also have to take into account that you're going to say to yourself, man, I'm going to have to increase those rents so the current monthly.

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Rent well on average.

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As far as I can tell, at least in my market and.

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Market conditions can change.

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But in my market, people typically can only handle maybe a 10 to 15% fluctuation or an increase in rent.

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At a time.

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So, it's kind of a step-up process and then you also have to take into account is that if you increase it too far, it's going to scare some of your residents out and in some situations that might be the.

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Affect your after.

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You know, if you want to do clean house and you want to get in in rehab units, and unfortunately that is one way.

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To do it, but if you want to maintain your current long-lasting residence, you're going to have to play that game of stepping them up over time versus all at once, so keep that in mind.

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And then of course, when you do.

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Have a vacancy that's the perfect time to go directly to your target rent.

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Monthly HUD is another column.

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If somebody is on Section 8 or is getting subsidized in some way.

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If part of their payment is coming from another source, you want to keep the track of that and as separately or at least I do.

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And then column G is extra garage if there's any additional features that you charge for.

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You know in this case I have extra garage, but you could put pet rent.

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You know that type of thing in there anything.

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That you would.

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Charge an additional monthly fee for and then you have a calculated column of total rent.

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Deposits a great place to track your deposits, because if you do sell that unit, you're going to want to be able to reconcile and make sure that that those deposits are transferred to the new owner.

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And then this is where things get interesting on the spreadsheet, and I'm going to jump all the way to column, oh.

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Because you're going to see quite a few colors there right now because column.

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Oh, and you can click on one of those things.

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It relies on a couple other fields, and one of those fields is the least two column which is column K.

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So, you're going to put your lease from date to your lease two date.

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And your move in date just.

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This is just so.

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That you, as a property manager, can keep track of a few things, but the least two dates.

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When the?

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Lease ends is particularly of interest because what's going to happen is that every time you come in here and update this spreadsheet.

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You're going to want to update this field and it's on quadrant.

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You know a row 16 column M every time you're in there, you're going to want to update when you last updated the spreadsheet, because when you do, it will look at the lease two or when the lease ends column and.

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Update the days remaining in lease.

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And this is conditional formatted so that as it gets smaller and smaller number there like for example, Row 12 has 45 days left.

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It's starting to turn red, so you know.

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That it needs.

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To be on your on your mind to.

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Get the lease.

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Up started ask what the tenant is planning.

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You know that type of thing so that you can plan accordingly.

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So that's really what that is.

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It's just a visual aid for me to know.

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When leases are ending, so the bottom half of the spreadsheet is, you know, we got a.

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I got a calculation on the annual potential gross rents.

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I got the gross rents just tallying there and it takes into account if there's any additional fees that you might be collecting.

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You know in this case.

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There's laundry, but if you have vending machines or anything like that, for example, you can add that potential additional.

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Income, but then in the end on the left side.

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Here I have monthly known expenses, mortgage, property taxes, insurance you know, et cetera.

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If there's anything additional there, you're probably going to add it.

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I have dumpster rental in this property, for example.

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There might be something you want to substitute there, but it's tallying the known expenses.

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That are fairly.

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Instant and then I have a calculation here net income and the net income per door.

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I like to know those numbers and then on the right side I have the in big red blocks so you can see that that's an indication to me that these are important to me anyway, because as we've been talking, we're running a business here, so we want to keep the vacancy.

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Rate as low as possible, of course, but I also want the apartments monthly potential.

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Those are.

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In regard to the target rent, if there is an if there is a difference between the total rent and the target rent, that's the potential that's remaining in that property, and I want that number as close to zero as possible as well.

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So, as I'm marketing and managing this property, I'm trying to tick away.

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At that apartment, monthly potential well again, if you want a copy of this, head over to bit dot LY slash property plan temp.

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But and I'll make sure again to have that link in the show notes, but you're free to use this.

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It's probably going to change it.

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It's just been something that's been constantly changing for me, but I hope it.

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I hope this is beneficial to somebody, and if you found value in this episode, could you do me a favor?

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And return some of that value by leaving me a quick positive review on your podcasting app that would.

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That would really mean the world to me.

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So again REI mastermind.net. If you weren't able to follow along, or if you weren't able to find those links in your podcasting app, you're always going to find those there.

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REI mastermind.net and we'll see you next.

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Time if you learned at least one actionable step to incorporate into your real estate investing.

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If so, please consider returning some of that value by leaving a positive review, subscribing to our YouTube channel, or joining our growing network on Facebook and Twitter.

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You can find links to all of our.

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Social media accounts in the show notes. See you next time.