The Most Important Document to a Real Estate Investor

0:00It helps Real Estate Investors and landlords better assess the performance of their deals okay so my primary competitor or or essentially the problem that we're trying to solve is that if you're listening to this right now and you own one or two doors or you know as much as a 100 Doors it doesn't necessarily matter I'm willing to bet my team is willing to bet that you're more than likely using a spreadsheet and further you more than likely don't like your spreadsheet that's our primary competitor actually statistically speaking it's Microsoft Excel spreadsheet for just tracking everything you're saying money in Money in money out like you know this much this much rent was received my mortgage is that here's much maintenance or repairs were conducted on it so my cash flow is approximately this so I've I've helped different clients in different spaces for years now

0:48Develop different spreadsheets to kind of show them at a at the bare minimum what they need to see and and it's on a super cheap if not free aspects to certain platforms it's it's good enough however what we found over the years is is people don't love their spreadsheets and we have the data to show that over 65% of Real Estate Investors are using or excuse me 70 over 70% of Real Estate Investors using spreadsheet 65% of these have a average to below average understanding of how their portfolio is performing because of said spreadsheet right so they don't love statistically speaking they don't love their spreadsheet right so my team put together a platform again it's tracti doio where Real Estate Investors can go log in get 60 to 90 days free access to create an account and all the

1:37While plugging in every single detail associated with the performance of a rental property can be any investment strategy it can be any type of property doesn't necessarily matter you add it into track it and then you can weigh it against not only its performance against other tra users right in in the network as part of the data integrated within the platform but you can also weigh it against your assumptions or forecast for that investment property so Kirby imagine imagine you selling those deals back a couple years ago to White Feather Investments and showing them hey as per cash flow analysis this thing is going to cash flow at a 11 12 13% cash on cash return for the first year someone using tractica information to include your expectation for maintenance your expectation for vacancy your expectation

2:25For cash flow and more update their traic profile and then over time month over month over month in input either they themselves manually input or you can have a a bookkeeping service conducted for you where my team will do it for you at a higher subscription tier but now you can create an average essentially of hey I purchased this deal thinking it was going to perform at X it's performing at why you understand why or why not and then over time you can make data- driven decisions as per is this investment strategy working for this property is this property performing in any way share perform that I thought I was going to perform should I should I wait a little bit longer should I draw a line in the sand it's up to you obviously as the owner said property but tractor just makes that picture much much much more clear got it that that makes sense and and it's sounds like a amazing tool to to implement I think

3:14The the thing the feedback that I get from a lot of people when I'm talking to Real Estate Investors is not that they don't necessarily want to track their their information but that it feels too daunting for them like they don't have good handle on like say they work with like a very unsophisticated contractor that you know won't accept electronic payments and they're paying them for multiple properties you know writing checks that cover multiple properties and so you know at the end of the day they've got just like a vague idea of what's going on how does tracx sort through that to help clarify that picture for them from in a tactical you know what are what's the Tactical steps around that

4:04Absolutely yes so you can manually control the transaction coordination within the platform in in itself or you can H ask my team to do it for you right there's a chat function in the platform so that when you add in a transaction to say hey this was a $5,000 expense but it was ESS essentially spread across four properties that I own well you can chat traic support distinct let just ask you know an AI feature hey you know what questions do I have and be filtered accordingly if you go to chat about a particular transaction that bubble pops up in our communication Channel via slack for a particular thread where we had two people waiting for you to chat saying hey this was a transaction that's put into this property property a but I want to spread load the ex the cost essentially divide 5,000 by four for properties b c and d right

4:53End of communication push send my team acknowledges it we put a thumbs up emoji or we like to put little pig emojis that's kind of the strategy which I'll I'll talk about later but the the idea is we say yes and then we'll conduct that transaction for you so over time Cur like what what you're talking about here is not just not just prompting you or having you upload maybe like a a voided picture of the check or maybe text message correspondence or anything like that because what what matters more importantly to our team is that that is tracked and manage within the platform over time because we're talking about this being conducted in let's say for example February 2024 if that transaction is separated across four properties and you gave $5,000 for the contractor to go work on x amount of properties over time what we would want to see is that show up properly in in accounting measures as well in

5:41Your p&l in your net income on your schedule a and tractica tomates that as well during tax time so you don't need a bookkeeper to go pull this information you can impress the hell out of your CPA when you just go over to the reporting function with inter Tractive because now it's it was communicated either you yourself updated the the profile or you can ask my team to do it for you with the with proper guidance and then when come tax time all you need to do is export the information create the reports and just rifle that thing right off to your CPA it's done for you got it okay that's what I was going to ask is if this replaces a bookkeeper because that's a big expense for a lot of people on a monthly basis so ironically myself included and I don't I don't I don't want to I'm paying way too much but I don't I don't want to disparage or completely replace

6:30A certain aspect of the real estate industry for example I I imagine a lot of people listening to this have some sort of bookkeeping aspect to their portfolio which is perfectly fine I do too I would offer absolutely in in including myself I would offer that starting later this year essentially where I'm going to downgrade some of the responsibilities for my bookkeeper because I very simply just don't need her to handle any of my real estate portfolio the platform does it for you so rather than say Kirby like Hey we're going to full out replace bookkeepers if you love your bookkeeper and they do good work for you good on you I I would offer from a real estate perspective you you probably don't need them to update anything in in Quickbooks on your rental portfolio behalf because we have a platform that can do it for you wow and could you log in and and pull your income statement and balance sheet or is it a different format

7:21It yes you can absolutely pull you can absolutely pull your your income statement you can pull rent roll these are these are four reports that we have right now for all tiers of subscription so we run it low medium high we call it rookie Pro and All-Star so if you're no matter your subscription tier right now the four reports are accessible to you on tract. Over time as we add again 50 60 100 different reporting functions in there that's going to be kind of tiered depending on U accessibility via your subscription selected right so rookies can only see x amount and and and Pros can only see x amount but hard-hitting items to your point of pnls net cash flow statements schedu those are some of the the foundational reports that we're just going to have all users have access for got it okay and how does this compare I

8:09Know stessa is a big name in the the industry how does this compare to like a stessa number one thing I I would I would offer as kind of simplistic as this sounds is we we have a more intuitive layout that's actually the number one thing that that people filling out surveys for us of hey should we put together a platform like this the number one thing people are looking for is that everything else out there to include their spreadsheets it's just overly complex and they it it doesn't give them a good idea of what their their portfolio is doing whether it's one one door or 60 doors it just you don't get a good grasp with that so first thing I would address is we have stesso sessa's layout compared to traic layout is you can tell that tractica caveman I am said c so it's as it's easy it's as easy as possible we

8:57Try to remove as many buttons right so on the left side toolbar you have five selections of of where you can go to include your dashboard which you're going to you're going to live on essentially and then we break down your dashboard overall kpis actuals versus assumptions give you a visual depiction of said data and then your property cards that you can look into the performance of each one of of your Investments or your doors depending on your strategy okay so that's the number one thing I I would offer and then and then secondarily is we are hyper hyper Niche into Asset Management we are not a property management software for now so we actually have a meeting next week with a a like kind company I don't I don't want to name any names but they also do essentially what stessa does from a property management aspect so practic will absolutely be hold the capabilities on our road map later this year for for a platform

9:46Road map hold the capabilities for property management so that's rent collection obviously reporting document creation for lease agreements eviction stuff like that it'll be tenant screening and listings and stuff like that so we'll have more property management functionalities for your mom and pop or your DIY landlords those will be added to traic but our hyper nich is asset management we very simply just want to clarify and clear the picture up of your portfolio and show you essentially what your spreadsheet is not showing you so there are again Kirby coming full circle it's it's it's good to compete with companies like that they're they're much bigger and they're and they're heavily financed it's another thing when I when I talk to tra users for example because I used to use platforms like that and there was a reason why I came off of using those platforms

10:34So when I meet with prospective trtic subscribers and they tell me the exact same thing that I ran into in 2018 2019 before we we started working on tractica oh