Ah… the world of real estate investing. No other type of investment offers the possibility of passive income, long-term appreciation, generational wealth, and a hedge against inflation in underperforming markets.
Even billionaire business magnate Andrew Carnegie famously remarked that over 90 percent of millionaires in the world made their money through real estate. While there is some debate over attributing the quote directly to Carnegie, the point still holds strong.
However, real estate investors today need different tools than they did during Carnegie’s heyday in the late 19th century.
That’s where real estate software comes in. These tools help investors manage all aspects of their business, from identifying potential deals and sending documents electronically to collecting rental income and managing maintenance requests.
This article will highlight three of the best software for real estate investors and give you some tips on why you need real estate software for your investing business.
The Benefits of Real Estate Software
As a real estate investor, you know that software should be an integral part of your business, but you may not have considered all the reasons why. Here are some underrated benefits of using software for your real estate business:
Efficient Property Management
Real estate software offers investors a platform to manage their properties more efficiently than ever before.
The best real estate software centralizes property-related data like tenant details, lease agreements, maintenance schedules, and historical property information. This means investors can dedicate more time and resources to strategic decision-making and property improvements that enhance the overall performance of their investments.
Market Analysis and Research
Real estate software comes with valuable tools for conducting in-depth market analysis and research. Some of the platforms we will discuss give investors access to a wealth of property data, market trends, and demographic information used for important investment decisions.
Investors can leverage this data to make informed investments and identify potentially profitable opportunities. For example, they can use the software to assess the growth potential of specific neighborhoods or analyze property appreciation rates in certain markets.
Financial Analysis
Real estate investment software may also come with powerful financial analysis capabilities. These tools can perform complex calculations like cash flow projections, return on investment (ROI) assessments, and price sensitivity analyses.
Investors can also play around with various financial filters with the software. Information like property purchase price, rental income potential, operating expenses, and financing details will allow them to evaluate the profitability of potential investments before pulling the trigger.
Drawbacks of Real Estate Software
Using real estate software can help to streamline your operations and grow your business exponentially over time. However, there are some drawbacks to consider before making a substantial investment in software:
- Cost: Real estate software can be expensive, especially if you opt for premium or specialized solutions. The initial investment, as well as ongoing subscription fees, can add up over time and eat into your bottom line.
- Learning Curve: Many real estate software tools have a learning curve, and it may take time to become an expert when using them. This can be challenging for investors who are not tech-savvy or have limited time for training.
- Data Accuracy: Real estate data can change frequently, and software tools may not always provide the most up-to-date information. Relying on outdated or inaccurate data can lead to poor investment decisions.
The Best Software for Real Estate Investors
Now that you understand the benefits and drawbacks of using software as a real estate investor, it’s time to take a look at the software programs that will benefit you the most.
Here’s our list of the top three software for real estate investors this year:
#1 – REsimpli
What is REsimpli?
REsimpli is one of the most powerful real estate investor CRMs on the market and is our top choice for investors. The platform boldly claims that their key strength is helping real estate investors close more deals while managing property data, marketing, sales, and operations.
The platform has a comprehensive set of features designed for real estate wholesalers and house flippers specifically. The CRM’s standout feature is its automated drip campaign that enables users to create personalized SMS messages, email templates, and campaigns for automating follow-ups.
Additionally, REsimpli integrates with direct mailing so users can create custom mailers and choose between using existing lists or uploading new ones. The platform also features “list stacking” to track leads across multiple lists for profitable direct mail campaigns.
Those not involved in wholesaling or flipping will still find value with REsimpli. Their CRM is useful for a wide range of real estate needs like financial management, vendors and contractors, inventory tracking, and rental property management.
Best For
There’s no doubt that REsimpli is best for real estate wholesalers and house flippers who rely on marketing and follow-up to generate leads and close deals. The CRM’s automated drip campaigns and direct mail integration make it a great choice for managing an active pipeline and collecting consistent monthly assignment fees.
For investors looking for a CRM that offers a broad range of real estate-related features, REsimpli stands out as a viable solution. While its primary focus is on wholesalers and flippers, REsimpli’s versatility allows it to serve as an all-in-one CRM for real estate investors involved in different aspects of the industry.
Downsides of REsimpli
However, there are a few downsides to consider with REsimpli. The automatic creation of follow-up tasks when changing lead status doesn’t have advanced customization options that some investors require. Some users report that it’s time-consuming to continually delete unwanted tasks generated by the system.
Another minor inconvenience is related to the direct mail timeline, as it can take 4-5 days for proof approval and an additional 4-5 days for campaign delivery. While this may not be a big issue for most users, investors who need faster direct mail turnaround times might want to explore alternative options.
DealMachine
What is DealMachine?
DealMachine is another powerful real estate software and mobile app for real estate investors, agents, and other professionals. DealMachine’s vast user base praises it as a tool for identifying, evaluating, and contacting potential investment properties and owners.
With DealMachine, users can easily gather essential property information and execute direct mail marketing campaigns to reach out to property owners. Additionally, the platform offers a suite of features to make property analysis and lead management easier than ever before.
DealMachine is gaining popularity in the real estate community and specifically among investors pursuing off-market or distressed properties.
Best For
DealMachine is best for a wide range of real estate professionals, including:
- Real Estate Investors: DealMachine is a powerful tool for investors looking to expand their portfolio. Investors of all kinds will find that DealMachine’s features will help to close more deals and engage with other investors.
- Real Estate Agents: Agents can use DealMachine to identify potential listings and connect with property owners who may be considering selling.
- Wholesalers: Wholesalers can streamline their lead generation process by quickly identifying properties and initiating direct mail campaigns to property owners.
- Property Flippers: Those looking to renovate and flip properties can use DealMachine to find potential projects and estimate the return on investment.
Downsides of DealMachine
While DealMachine offers numerous benefits for real estate professionals, you should know the downsides before investing in the software.
First, the cost of using DealMachine can be more than some new investors can afford. DealMachine starts at $79 per month and may go up to $499 per month for large teams.
Additionally, the accuracy of property data gathered through DealMachine may vary, which means users should verify all property information independently outside of the platform. Since DealMachine has tons of features, new investors must take the time to get up-to-speed on how to use the platform to its fullest potential.
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Zillow
What is Zillow?
Zillow has become a go-to resource for real estate investors who need detailed property information and market insights without paying a hefty subscription fee. Many of the features of Zillow are available to investors for free, however, paying for a Zillow subscription unlocks more advanced features investors may find useful.
This popular real estate listings and property database website provides investors with the tools for property research, investment decision-making, market analysis, and financial projections for future investments.
Zillow’s database includes millions of property listings across the United States, which makes it a good starting point for investors in search of single-family homes or multifamily properties.
Additionally, Zillow’s Zestimate tool provides a quick estimate of a property’s market value so investors can easily filter through potential opportunities. Beyond this, Zillow also gives investors information about market insights like price trends and projected growth to make informed investment decisions.
The mortgage calculator feature can also help investors estimate monthly payments to better manage their cash flow on investments.
Best For
Plenty of people not involved in real estate investing use Zillow on a regular basis. However, the platform specifically appeals to investors who fall into one or more of these categories:
- New Investors: Zillow’s user-friendly interface and volume of property data make it a great starting point for new real estate investors. Newbies will be able to research properties and become comfortable analyzing data before spending their cold hard cash on a property.
- Market Research: Experienced investors looking to gather comprehensive market data and trend analysis will find Zillow’s platform beneficial for researching properties in the local area.
- Property Discovery: Investors focused on discovering new properties for a more passive investment will find Zillow to be a reliable tool for identifying potential investment opportunities and “Coming Soon” listings.
- Rent Estimations: If your investment strategy revolves around income-producing properties, Zillow’s Zestimate tool can assist in evaluating potential cash flow for more informed investment decisions.
Downsides of Zillow
While Zillow offers a wide range of features beneficial for real estate investors, it’s important to consider its shortcomings.
First and foremost, the Zestimate tool is known for being inaccurate at times. Zillow users report that Zestimate sometimes provides estimates that can mislead and cause misunderstandings between investors and property owners.
Additionally, Zillow doesn’t come with the features of a comprehensive real estate CRM. Important real estate tasks like managing leads, sending contracts, and communicating with potential sellers will not be possible with Zillow. This means that real estate investors will likely need to use additional software programs to manage other parts of their business.
Zillow’s popularity also may lead to high competition among investors competing for the same properties. The high competition can result in inflated prices and create challenges in finding hidden investment opportunities.
Overall, Zillow can be a valuable tool for researching properties and gathering information about potential investments. However, it should not be relied upon for managing your real estate investing business.
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