Our Process - Step by Step

We are two engineers who approached real estate investing as an engineering problem. We do not believe in luck, secrets, gurus or other such art forms. We believe that consistently doing anything right is the result of following well defined proven processes. Below is a table showing the process we follow for every property.

StepDescription
We start with thousands of properties from the MLS.
We feed our proprietary software with the MLS data and data from additional sources including historical data we've accumulated over time. The outcome is typically about 0.5% of the available properties on the MLS. These properties are what we call candidates.
We manually review the candidate properties and eliminate further based on factors that software cannot detect. For example, close proximity to a nuisance like a busy road or a commercial business.
We send this small set of properties to our active investors through our Investor Tool.
When a client expresses interest in a property, we manually reevaluate the property including running comps and estimating returns.
If the property passes manual evaluation, we go on site. If the property makes sense we take a video, which we send to the client. Here is a sample video.
We review the video with the client and if we all agree that it makes sense to investigate further, we proceed to the next step.
We send only the video to the property manager for her independent opinion of the probable rent and time to rent. If the property manager does not endorse the property, we eliminate it from consideration. Here is a case study which includes the property manager's opinion of a property: Case Study - 500 Feliz Contado.
If a concern, we estimate the rehab cost based on recommended work and our standard rehab item costs.Here is a sample property rehab estimate.
If all agree on the property we make offers based on acceptable return and market value, not necessarily the asking price.
Once the offer is accepted a number of events start including on-site inspections by the property inspector and the property manager.
The property inspector we use has performed over 300 inspections for us and knows the level of detail and accuracy we require.Here is a sample inspection report.
The property manager goes on site and provides her recommendations on maximizing rent vs. rehab cost. Here is a sample video showing a typical walk through by the property manager.
We combine the inputs from the property manager (mostly cosmetic) and the property inspector (mostly remedial) and get quotes on all major items. Here is a sample rehab quote.
With the estimated rehab cost understood, we re-evaluate the property and make the final go/no-go decision.
At close of escrow, the property manager turns on utilities in their name and rehab starts.
During rehab, we typically go on-site every day to over-watch work and take progress videos, which we send to the client.Here is a series of progress videos.
Before the property manager accepts the property into her inventory, the property manager completes another walk through and any defects found are corrected.
Once the work is cosmetically complete, we will schedule a professional real estate photographer to take the photos. Good marketing photos are critical to minimize the time to rent and maximize rent. Typical cost is about $100. Here is an example.
Once property is ready to rent and the marketing materials complete, we hand-off the property to the property manager for leasing.
Long term support - We do not abandon you after the sale. Now or 10 years from now we will be here. Whether it is a concern with the property manager or a tenant turn, call upon us. We will own getting it resolved.

Summary

Consistently doing anything right is the result of following well defined proven processes. Over the years we've developed the proven processes which we use today. And, we will continue to make adjustments whenever unexpected problems arise.


Contact us today to talk about your situation and goals. We promise to listen and not try to sell you anything. You will be glad you did.

Eric Fernwood
702-358-8884
EricFernwood@gmail.com.

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