Episode 361

What Does a CRM Look Like When Built by a Real Estate Investor with Justin Silverio

Justin Silverio is a long-time real estate investor, entrepreneur, founder, and educator.

Justin has been investing in real estate for nearly 20 years. He founded one of the most widely used real estate marketing firms called OLM and has been teaching investors his process for more than a decade.

Now Justin is launching a new CRM platform called Invelo. This tool incorporates all his learning from the last 20 years and is designed to help investors learn and implement proven best practices.

Check out Invelo at https://inveloapp.com/

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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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We have Justin Silverio on the call Justin and really appreciate your time and Justin got a new platform.

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I'm going to send everybody to your new website.

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It's in veloapp.com and I'll make sure to have that link in the show notes, but this is some. This is a new CRM that's going to hit the marketplace that frankly.

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Has some pretty interesting integrations and and concept here, so I really appreciate your time.

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I look forward to chatting and getting a little nerdy here.

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Yeah, that sounds great.

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I'm excited to be here.

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Thank you so much.

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So, let's start with let's back up you.

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You do have some experience or real estate investing, which I think is first of all kinds of a big stand out here because I get this.

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I've tried a ton of creams and and around real estate investing, but to be frank, most of them seem like they've been created by a bunch of developers and engineers instead of real estate investors who actually?

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OK.

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Do this well.

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What are your thoughts regarding that?

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o I've been an investor since:

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I'm definitely a data guy I enjoy like figuring out a process, making sure that I'm really efficient with my time, 'cause when I got started in investing, I was doing it five years while I had a full-time job, so I had to get really good with making sure that my time was invested wisely and for the best Bank of.

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For the buck, so that was like a big piece for me.

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Over the years I started developing my own CRM and I'm not a tech guy.

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That's not like my background, but I would mess around with like Podio and Zoho and try to figure out the best process.

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le most people use, you know,:

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To make sure that their sales pipeline is working properly.

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And you know, I had the same issue 'cause I was an investor and what I like to do is always solve my problem and when I solve my problem, I'm thereby solving a lot of other issues that other people are having.

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So that's how it all started and about a year and a half.

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Two years ago, that's when we really started digging into the root cause and figuring out.

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You know, from a strategic standpoint, how can we solve all these problems throughout the whole sales pipeline?

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Now most CRM's that people deal with either focus on prospects or leads or deals, but not everything, so when you don't have a system that incorporates everything, there's a lot of data and information gets lost in translation, so that's what we set out to solve.

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Sure, so let's start things off here and I'm going to just kind of if you go to inveloapp.com, you can probably follow along because I was looking at your homepage here, just kind of hitting some of these highlights here regarding.

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What it what it does?

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'cause so let's start with the list building feature when we do the list building feature are we talking about mailing lists?

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Like a lot of us are using list source and a few other products.

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Is it very similar to that?

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Yeah, yeah, so we purchased all the data property data in the whole country so we have all of that access to all of that data so you can pull your own lists, whether it be equity list, absentee list.

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In lists, you can pull any type of list that you want, and once you pull it you can.

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You can bring it right into.

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Your prospects database.

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Sure, and how often is that refreshed on a regular basis?

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Daily every single day we get new information that's going right to our system.

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OK, so this is like a pretty right here.

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Alone is a pretty big step.

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I mean there's some people who are spending a considerable amount of money on creating these lists.

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Is that part of the fee associated with the CRM?

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Is that an additional cost?

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How does that work into the to the numbers here?

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Yeah, so you have you have the ability to.

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Pull a certain amount of UM.

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Uh, prospects in your system within the list builder based on the plan that you have.

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So obviously the higher that you increase in plan, the more credits that you get.

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But if you all, if you ever want to pull more, you can always purchase at a very low cost compared to list source and those other providers.

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The other unique.

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That we have.

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Have and again when we build out the software is just not me.

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As an investor saying OK, how do I want to build this?

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I made sure that if I was going forward with in Velo and creating this platform that I was working with the absolute best on both sides of the coin investors that had a really good fundamental.

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Understanding of what is needed, but also the absolute best developers to make this platform as intuitive as possible.

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Because there's a lot of people in the real estate space that are not all that tech savvy.

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So, the goal for me was how do I get people to get into the platform and to understand it without any other help.

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So that was kind of the trajectory and we wanted to implement automations and best practices, so people don't really have to.

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Think about things.

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So, for instance, when you go into the list builder, we have about 6 different types of lists that are pre.

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You set so all that you have to do is enter in your geography and you can click a button and you're pulling an absentee list or you're pulling an.

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Equity list and.

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Not only that, when you pull the list, we have this feature that's auto add.

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So anytime our list builder is updated on a daily basis and new records.

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Meet the criteria that you specified.

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They're automatically looped into your prospects database without you having to go back in and re pull the list again.

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Oh, very neat.

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So, I would assume then that based on your other company this you could probably order mailings, and everything ran out it out of the system.

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Yes, yeah so.

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Marketing is a big piece of this.

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So not only can you do direct mail, but you can do e-mail.

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You can do ringless voicemail and after launch within about two months we're going to add in calling and text messaging capabilities to the platform, so you'll be able to do everything within the platform.

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OK, so.

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Yeah, that's a particular and you could have multiple phone numbers depending on your in your flow, and it's great because that's a great way to track different things too.

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Yeah, yeah.

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Sure, so it says manage your full sales pipeline is your next category.

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Do you do?

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Are you able to break things apart?

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You know, like a wholesaler versus a fix and flip are versus a buy and hold person.

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How do those workflows look in here?

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Yeah, so how we have it set up is there is it looks like you have.

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It's almost looks like you have 3 databases, so you have different tabs.

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You have a prospects tab.

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So, prospects are people that you have not contacted, and you know we make sure that we have the features and functionality that you need there so you can segment your prospects so you can identify your highest quality prospects so that you can market to them properly.

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And then we have your leads pipeline.

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So once somebody converts from prospect.

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Leads, now you can bring them through your lead pipeline.

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And then we have a deal pipeline as well.

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So, once you purchase the property or once you have it under contract as a wholesaler, now you still need to manage that property because at the end you need to sell that property to somebody else or rent it out.

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So, we have a whole pipeline for that, so they're broken out into those three categories.

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And they allow you to be very flexible on what your investment strategy is and how you utilize those pipelines.

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Sure, so yeah, this this is a particular interest, so when you get there at a certain point you get so many leads and prospects and and everything in your pipeline.

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How do you help somebody stay on top of it so that, like some sort of automation, or whether it's a task list or what have you?

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Yeah, yeah.

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What have you?

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Yeah, good question.

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So, for leads.

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You know we can.

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We can talk about each one of them.

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Or do you want to?

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Talk about leads specifically.

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Well, let's maybe go through the pipeline like, OK, it starts with a prospect and then goes to a lead.

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Yeah, OK.

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So, let's talk about prospects and just keeping organized and how this system helps you automate things properly.

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Again, that you have in prospects.

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n investors that are spending:

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And what I think that everyone should do and to give you an example and how we've built it into the platform is that if you are able to identify prospects that are on multiple lists, higher quality lists like a driving for dollar list to me is much better than an equity list because there is some sort of need for like renovation.

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But if you can segment these prospects into high, medium, and low-quality buckets.

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Then you can still use your same marketing spend, but you're just allocating it differently. So instead of spending evenly over all of your prospects, you can spend 60% of your marketing budget on your high quality 30% on your medium quality, 10% in your low quality, thereby focusing more appropriately on the more.

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You know people that might want to sell soon.

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So, which increases your ROI.

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So, with that you can segment all your prospects if a new prospect comes into your database and is, you know within the criteria how you set up your marketing because within your marketing you can say send this marketing piece or this campaign to everybody that's on.

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This list or that has this tag or on these different lists, so any new prospect that comes into your database, they automatically get routed into the marketing campaign.

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And not at the point at which the existing prospects are.

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It starts at the top, so you always have a constant flow starting at the beginning of the marketing and going through the pipeline.

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And then let's say again, that prospects sell their homes again.

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We get that data updated daily, so we will automatically take people.

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Out of your prospects database into a removed database.

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The and will automatically stop the marketing for you on those people, so you don't have to spend and waste any marketing dollars.

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Your updated immediately and those removed prospects will never get back into your prospects database unless you manually push them in.

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So, you can see there's like a lot of automation there and keeping track, so that's kind of on the prospects.

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With on the lead side again, you can still market.

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You can send individual; you know handwritten pieces to people.

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If you went on an appointment and they haven't followed up with you, you.

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Can send a.

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Handwritten letter or run.

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This voicemail or text or anything like that, but also the automation is to make sure like you asked.

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How do I know who I should contact or who's?

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Falling off, and maybe I'm forgetting about them, so we have an automation built in.

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When you're going through your scripting, we have a way to we ask you how motivated this is.

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Person, high, medium or low and depending on where you put them.

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We have different triggers.

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If this person is a high, highly motivated and you haven't touched them in 14 days, they go on a follow up list on your dashboard saying you need to reach out to these people.

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I mean we have those automations built in for the different types of vacation and last contacted.

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Sure, you know is there a way in your in your system where you could actually?

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Have it I, I think you mentioned it might be coming, you know regarding the texting and and a few other things but where?

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Let's say I don't follow up in the.

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Allotted time you.

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Know it's got the To Do List it.

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Would at least.

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Automatically send a follow up text or e-mail or something on my behalf.

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Yeah, so for those ones there.

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If you can do that right now if you tag them as such.

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So, if they fall off, you can tag them and as soon as you put A tag on them, they will go into your marketing pipe.

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Line as far as like just automating and saying if I don't talk to these people in X amount of days, put them on this marketing campaign.

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We that will be coming soon in the future, right after we launch.

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So just a reminder everybody this is.

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Bill envelope app and I'll make sure that put this in the show notes. It's inv LO app.com so you can take a look at this and and right now as we were talking, we are in sign up for early access, but it sounds like maybe when the show goes live, you'll be you'll be fully launch.

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One of one of the things that I struggle with actually is and I hate to admit this is the do not contact.

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You know, I get people telling me all the time do not contact when I send things off to my marketing person.

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Today I typically send two files and and hope that they can match them up, but.

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It's an:

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Is that fairly easy to do in here?

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Yeah, so we have.

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We have the ability to skip trace in our.

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System, so in addition to skiptracing, we're also pushing those phone numbers through the do not call list and all the phone numbers through a litigator list.

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So, if a particular phone number is on a do not call list, it's going to be tagged as such as do not call, but if it's on a litigator list, the whole contact itself will be flagged as a litigator.

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Because you never want to call anybody on any of their phone numbers.

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If they're on the litigator list.

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But do not call list, it's OK to call a different number that's not on.

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You know if they have an alternative number that's not on the do not call.

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So, we have the functionality in the platform to have as many phone numbers as many emails and you can have as many contacts for one record.

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So, for instance, if you're trying to find out, you know if somebody passed away, you can skip trace that record again to find alternatives and relatives.

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Sure no, that make that makes a lot of sense.

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'cause yeah, like I said today it's kind of a crapshoot really whether it's gonna we're gonna stop bugging, bugging them or not.

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We hope that it works.

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But more times than not I.

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Get that follow up call.

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Yeah, absolutely.

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So, you did mention earlier, you know I, I think a lot of people who get into real estate investing.

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They start with the cheapest thing possible and the reason I asked regarding the follow up is that I've actually seen people who've gone as far as buying one of those 31 day.

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Xylophone folders and you know it's great.

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It works for them is the fact that they to do the follow up, they'll call somebody, write it on a piece of paper, call somebody, and then they're their habit.

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Is, well, three days later, I'm going to follow him, so they'll advance it.

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That piece of paper 3 days.

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You know so, but you know if that works for them, but frankly, that that is the resort some of us have gone to in order to make sure something works for us.

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I mean, and that's where it comes back to.

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It seems like engineers have been developing these things instead of somebody.

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Who has real estate investing background?

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Yeah, and I.

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I mean I started that way when I got started right?

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I didn't have many leads calling in so I was able to manage it with just paper.

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But then after a while it was like you know which ones do I call back.

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I had a huge stack, so really leveraging the technology to help you do that is really important.

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But it's also you know, so important that the platform is intuitive that people actually understand it.

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'cause if they don't know how to use a platform, they're not going to be successful.

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And that's why I really like.

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We don't really look at ourselves as just a CRM, just a software and Velo.

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We really look at as a platform.

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And the technology piece the software piece is just one of the three pieces of the puzzle.

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The other two elements for us is education.

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So, anybody that jumps onto in Velo.

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There's two types of education.

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There is no education that we teach you everything on real estate investing from beginning of like how to identify your farm area to pulling lists, to marketing, to talking to sellers.

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To contracts all of that, we have a whole series on that and then we have master classes, and those master classes are taught by other.

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Experts within the industry or outside of the industry to really deep dive into a focused topic to ensure that people are successful and not just successful in business but just in life itself.

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So, we don't just cover investing topics and strategies, but we're also looking at.

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How to be you know great parent while running a business.

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How to stay healthy while you're running a business?

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So, we want to make sure we cover all of those pieces in there, and and then the last piece is community.

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Community is a really important piece.

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We know as investors and entrepreneurs that it can be pretty lonely, and there's probably many times that all entrepreneurs say, man.

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Am I the only one going through this?

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And so, we want to make sure that we have community and support there so people can provide and share information and just create a, you know, good community.

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So, when you do, the community aspect are you just?

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Is it like a Facebook page or is do you have any compute community built into the CRM?

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So right now, as we go live, it's going to be Facebook.

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But we are trending they we will be transitioning that over to an in-app community where you can have, you know direct messaging capabilities and still like a Facebook style.

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But it's all going to be in within the app.

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Sure, so you know, based on your experience, you know you're building this app and your experience with previous CRM's.

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To maintain this usability, how are you going to maintain?

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To keep things simple and usable as you continue to add features?

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Because you can, you can see it's it can get pretty unwieldly pretty quick.

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Yeah, and where it gets unwieldly is when you're building a platform, especially like and I'm sure you've seen it a platform somebody starts to build a platform on one piece 'cause they're trying to create.

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Maybe MVP, a minimal viable product to see if it works.

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And it's successful.

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And then they start to build on build on build on.

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But the underlying foundation wasn't built to have all of this expansion.

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So now like the workflows are kind of quirky and it's doesn't become as intuitive.

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So, when we started this platform, we really looked at the grand scheme and said, what is the big piece?

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That we want to tackle and it's the whole sales pipe.

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Line, so we already have a vision, and we already have a path of where we want to take this as we start to build it out.

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But again, the piece of it.

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As also, I've been able to be lucky enough to, you know, join forces and bring on people that are very experienced on the SAS the technology.

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Decide so one of my you know my product manager that's on board.

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He's done 5 SAS companies sold one of them for you know 10 digits and and he's gone through that process.

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So, he understands the life cycle, how to keep it intuitive?

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We're using UI designers and developers that have done this already.

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So, we wanted to make sure that we're working with people that already understand and have done the whole lifecycle and know the path for us.

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So, it's not just dependent on me, sure.

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So, as you've been developing this and you suppose you got some investors using it now in early access, what is a like a surprising piece of feedback you've gotten so far?

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I don't know if we've received anything all that outside of what we weren't expecting, but we have received a lot of great feedback on things that we didn't even think about like little pieces here and there.

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Nothing, nothing large.

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Everybody that has brought something up is either going to be implemented for launch or.

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On our road map this year so nothing really out of the ordinary that we've actually been seeing to be honest.

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No, well, that's good.

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Good news.

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Then, right?

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Yeah, so we built an MVP about it two years ago, so we've kind of been working and we had a lot of investors on a good number of investors on that, so we already know knew what to expect and how to work with people.

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And we had a lot of a big pipeline and communication with them.

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But while we were building this one, so we were kind of starting from our.

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One and then basically just started over scrapped.

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We still have that product, but we started from the ground up with this product with that information in mind.

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So, I'm going to tackle something that's going to be kind of the elephant in the room.

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You know, regarding the pricing, you know every time every time somebody goes to a real estate, investing CR.

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Yeah, they're a little shocked by the price and this this is going to be the case as well.

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But how do you?

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How do you help people understand the value that they're receiving?

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Because in regard to missed opportunities, I suppose that's part of that education again.

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Yeah, so we there's two things.

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One, it's not a big ask.

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Our plan starts at free, so we have a free plan so anybody can get on this and it's free so they can play around with it and work through it.

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But we've spent a lot of time and focus on onboarding, how to get somebody from day one to success.

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In the shortest amount of time.

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Time, so what we are trying to do is streamline that for everyone and again make it as active as possible and taking out any of the ancillary things that aren't needed to make sure that people are successful and can identify that value sooner than later.

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Sure, well this has been a great conversation.

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You know it.

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It seems like you and I could probably continue to chat even more regarding some of this stuff.

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I, I think the best thing for people to do is at least take, take advantage of the free access.

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And you know you.

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More times than not, I find that you're going to likely upgrade, but.

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At least you can get.

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Your feet wet and check this.

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Check it out.

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Outside of the features that you had on the home page, is there anything in particular that you were like?

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Was there an a-ha moment or something?

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Particularly that you were pleased with that?

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That came to fruition here, that that people should maybe check out.

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Yeah, I mean I think the whole, you know, capturing the whole sales pipeline was amazing for us and not just because we can do it at all-in-one platform, but the information, the analytics, the kepis that we can provide back to the user so.

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That right there in itself is absolutely huge because no other platform can do that.

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Because and in the future, in the near future, what we're looking to do is be able to identify and show people here your KPIs.

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But we're adding gamification into it, so you can have other people in your market, and you can see look at your KPIs versus their KPIs and then we can provide suggestions on how you can improve them.

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So those are things that are happening down the line on our road map that we're really excited about.

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Uh, and there's so many other features I could, I feel like I could talk about that are going to be implemented either now or Q2Q3

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Won't be on any other platform.

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Well, you know that that's something that I find really interesting.

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Actually, that when you do release these features, how transparent are you as to your road map and when it's coming out?

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And how do you?

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How do you keep people engaged in that?

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In that regard, I'm a bit of a nerd like that.

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Yeah, good question so.

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I recently moved to a new podcasting host.

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Called captivate.

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No, and they do a phenomenal job where they leave and we're going to have an announcement around these.

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OK.

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The next feature release and then they do the YouTube video and and a few and it really gets people engaged. They do a really good job of keeping people engaged.

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Yeah, so good question.

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Yeah, we're very transparent with our road map.

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Yeah, so everyone can get access to provide feedback, but not only provide feedback, they can actually look at our road map and see what's planned.

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What's in queue?

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What's being launched, and what has been launched, and then also pop-up notifications to show you what new features and functionality that there are in the system.

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So that is yeah, we want to make sure that people understand what's coming up and what has just been.

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Sure, well I really appreciate your time, Justin again, it's envelope ENVELOINVELO app.com.

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I'll make sure to have that link in the show notes, but before I let you go, Justin, is there a question you wished I would have asked you here today and I?

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I don't think so.

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Should have warned you ahead of time, right?

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I don't think so.

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You had all really good questions.

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Well, this is this is really intriguing.

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I'm going to have to check this out myself.

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I appreciate your time.

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You and you're welcome back anytime.

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I hope you'll take me up on that because I really would love to spend a whole episode talking about your entrepreneurial spirit.

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I mean, there's obviously something there regarding your open letter marketing, now envelope and and everything else, and how you've how you've kept this.

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These businesses going, and I mean there's a mindset there that I'm sure we could explore.

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I'd love to.

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I love talking about mindset in the path like my path and and sharing.

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So, I'm happy to.

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Well thanks again Justin.

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We'll talk to you next time.

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Thanks, Jack, thank you so much.

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

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