How I Went from 200+ Tenant Telephone Calls to 1 Per Yr

Henry:
That is the BiggerPockets Podcast present quantity 784. Look, I did it. I nailed the fingers on the primary attempt. Take that David Greene. So for reference, what you’re saying is within the final 12 months, you had 218 calls from tenants round points or potential points at a property. And of these 218 calls, you solely needed to speak to somebody one time.

Pasha:
Appropriate.

Henry:
I might say the system works.

Pasha:
Thanks. Or perhaps I’m simply tremendous fortunate. I don’t know.

Henry:
I’m taking up the BiggerPockets Podcast at this time and I’ve the pleasure of interviewing my good good friend, my accomplice, my pupil, Mr. Pasha Maleknia. Pasha’s received a sophisticated diploma in data methods. He’s right here to show you construct methods that prevent money and time. Pasha, we all know you’re keen on board video games. So what would you say is extra enjoyable, studying a brand new board sport or constructing a brand new system?

Pasha:
You’re making it so arduous. I might say constructing a brand new system. I identical to to problem and simply the problem of it. After all you’re a nerd.

Henry:
So why do you have to stick round for this episode? We’re going to be dispelling some myths round system. We’re going to speak about why you’re in all probability already spending time on methods with out even realizing it. Your methods in all probability simply aren’t that nice but. We’re going to speak in regards to the money and time methods can prevent, the money and time it saved me, the money and time it’s saved Pasha. And so if you’re a newbie, it is a excellent place to be as a result of you may set your corporation up for development within the long-term. And in the event you’re an skilled investor, you need to stick round and pay attention as a result of we’re going to speak about issues that might doubtlessly put more cash in your pocket and in addition make it easier to maintain your tenants with out you having to spend a lot time addressing these points your self. All proper, so Pasha’s right here with me. He needs to tackle the introduction of the fast tip for me. So at this time we’re going to maneuver into the-

Pasha:
Fast tip.

Henry:
At present’s fast tip is go to biggerpockets.com/sources. There you may obtain Pasha’s instance spreadsheet of how one can implement a system and jumpstart constructing methods on your personal enterprise. Thanks Pasha for sharing that with us. It’s a brilliant cool software. You’ll truly get to see a chunk of it in the event you’re watching this model of the podcast otherwise you’ll hear me clarify what that system spreadsheet is and the way he makes use of it in his enterprise. So thanks for sharing that with us.

Pasha:
Completely a pleasure.

Henry:
All proper, let’s get into the interview with Pasha. All proper everyone, let’s welcome Pasha Maleknia again to the present.

Pasha:
All proper, thanks. Thanks, Henry, for having me.

Henry:
Superior, man. So for just a little little bit of background, we just lately had Pasha on an episode, episode 773, the place he shared his unbelievable story about how he received into the world of actual property investing and the way he’s taken that begin and catapulted his enterprise. However we type of left with just a little little bit of a cliffhanger. Pasha is an professional on methods and save your self money and time with actual property investing and we wished to dive into it, however clearly didn’t have time in that episode. So we introduced him again, particularly on this episode, to dig into methods, what they’re and the way he implements them and the way try to be contemplating and doing the identical factor. As a result of the tremendous secret is everyone already has methods in place, they in all probability simply suck. So let’s speak to Pasha about methods.
So Pasha, clearly, he’s a good friend of mine, he’s a pupil of mine, and he’s a wonderful actual property investor. So I wished to begin off, Pasha, in the event you wouldn’t thoughts by let’s dispel some myths round methods. As a result of at any time when individuals hear the phrase system, I feel typically they suppose it’s lots both larger than it’s or dearer than it’s, or that they’re not prepared for methods of their enterprise but. And I don’t actually consider any of these issues are true. So let’s discuss a few of these myths after which you may inform us why they’re lacking or in the event that they’re lacking. Perhaps I’m simply fully flawed right here.

Pasha:
100%. Let’s do it.

Henry:
So the primary fable is that methods must be complicated. Is that this a fable or is that this info?

Pasha:
Completely a fable. As you already know, even in larger firms typically there’s a bent to construct complicated methods and it nearly at all times fireplace backed. I feel one of the best methods that I’ve encountered are of their easiest type. And also you at all times wish to begin with a quite simple one stage sort of system that works for you after which begin, you may at all times make it extra related to a enterprise or to the problem that you simply’re tackling. However I see this lots that individuals begin with an ideal system, a really complicated system as a result of they adore it, however whereas they’re constructing it, they need it to be completely excellent, however it finally ends up with a system that by no means implements.
The best type of methods are at all times higher as a result of you may at all times get a suggestions and you may at all times return and construct it once more and make it just a little bit extra related. There’s a saying that claims: “Your first 5 methods, at all times going to suck.” So it’s higher to only begin it easy, guarantee that it’s like, perceive why, what’s the drawback, return, repair it. After which as you go ahead it’s going to be extra related to your want. However undoubtedly don’t begin with a fancy system.

Henry:
Superior. Man, that’s nice perception as a result of I feel individuals do are inclined to overthink methods. I do know I did and truthfully in all probability nonetheless do in lots of areas of my enterprise. So the second fable is that you simply want some costly software program after which when you get this piece of software program, that software program system goes to repair all of your issues.

Pasha:
Oh, man, you’re preaching to the choir. Completely a fable, completely a fable. I’ve mentioned this lots nearly in all of the talks that I am going to, all of the workshops and every little thing, individuals attain out and are like, “Okay, what software program do you utilize? What do you utilize for this? What do you utilize for that?” And I at all times clearly inform them the reply, however it’s like lots of people wish to begin from the software program. They suppose software program functions or apps are the methods, which is 100% flawed.
Principally you at all times wish to just be sure you begin along with your core problems with your corporation first, you then stroll that again and you then give attention to what system can tackle that core concern that I’ve. And you then exit and store for the softwares or functions for it. An instance I may say goes to Dwelling Depot and purchase the primary 5 instruments that you simply see from the shelf after which return residence and attempt to construct one thing with it. That’s not the way it works. You at all times wish to just be sure you give attention to a related software on your want. And I see this lots, man. They suppose they simply want to put in writing a test for a giant fancy software program and so they suppose that every one of their issues are going to go away magically. And I at all times inform them that you simply’re in for a giant shock as a result of that’s not going to occur.

Henry:
Superior. Yeah, that’s an effective way to have a look at it. Right here’s a enjoyable reality about me. Even when I knew precisely what software I wanted to do a job and I walked into Dwelling Depot and purchased that software, I might suck at that job. I’m simply not helpful. That’s simply not a skillset that I’ve. And so that you additionally don’t must be helpful to be an actual property investor. Perhaps we’ll throw that on the finish of the present, professional tip for you new traders.
That’s a implausible level as a result of lots of people suppose that methods imply I have to go purchase a chunk of software program after which I inform the piece of software program, right here’s all of the issues that I do in my enterprise. After which that piece of software program says, superior, that is how you need to do these issues and it doesn’t work like that. A system is admittedly only a set of processes that you simply implement systematically again and again and it’s supposed to save lots of you money and time. That may be something. We talked yesterday after we had been discussing this present and also you confirmed me certainly one of your methods that was actually only a Google Sheet. Everyone has entry to Google Sheets. So it’s not software program you want, it’s processes.

Pasha:
100%. One other factor that I wish to add is we’re on the age of data expertise that it’s the best time to construct a software program and when you’ve got 5 softwares proper now, we’re going to have 20 by the tip of subsequent 12 months, I promise you. And if you wish to simply chase the shiny software program utility, the most recent development, man, you’re going to spend some huge cash and also you’re in all probability not going to see nice return on that. That’s the place you wish to just be sure you at all times begin from the enterprise, you at all times begin your methods round it, and you then return and begin searching for one thing that’s related to yours.

Henry:
The following fable that I wish to discuss is, so I’m type of going to skip one right here as a result of I feel we presently already hit at it. Programs are just for giant companies. Clearly we’ve touched on that. We all know that methods are meant for any enterprise of any facet, it’s only a course of. However this one I feel is admittedly vital is that methods are just for out-of-state traders.

Pasha:
Once we discuss methods are just for out of the state, I feel that’s not related as a result of I feel I’m the dwelling instance of this. We have now about 20 models that the majority of them are inside 10 miles radius of the place I reside, however we type of urge ourselves to guarantee that we by no means step into any of them as a result of we wish to have the liberty of geographical location. We would like to have the ability to be wherever we wish and be capable of renovate our properties and be capable of handle all of our properties. We have already got completed the administration piece, now we’re targeted on constructing our methods round rehabbing them remotely. If you wish to be extra passive in your corporation, I might suggest to begin simply fascinated about constructing the companies that you’ve got on a platform that’s scalable and that’s solely doable when you’ve got a great system in place. And also you don’t must be out of the state. You may be as shut as it could possibly get to you, however you simply don’t wish to be the weather that’s the heart of your corporation.

Henry:
If I’m listening to you appropriately, what you’re saying is that methods are supposed to prevent money and time. And who doesn’t wish to save time or cash irrespective of the place you’re positioned? However implementing methods when you’re native as properly I might suppose offers you an added benefit, proper? Since you’re there within the occasion one thing doesn’t go as deliberate. So it’s simpler to hone your methods while you’re native since you may be there to hone it. After which when you’ve received it dialed in, you actually open up nearly this world of growth. As a result of in the event you’re not tied to the geographic location of the place your properties are, regardless that you’re native, what’s stopping you from choosing a special market and increasing your corporation since you see a chance in a brand new market and now you’re not held again by geographic location? So I feel that’s an exceptional means to have a look at issues.

Pasha:
100%, 100% agree with that.

Henry:
Nice. So we’ve established it’s about getting again your time and that’s why I feel methods are actually for everyone as a result of most individuals get into actual property as a result of they really feel prefer it’s a passive enterprise after which all of us be taught pretty shortly that it’s completely not a passive enterprise. However methods help you purchase again that passivity in your corporation. And so you may nonetheless have a semi-passive enterprise of actual property investing and make it extra passive via the usage of methods. And you then actually do get time freedom. And that’s actually what that is about. It’s about having the time freedom as a result of that lets you be the individual that you’re referred to as to be and never the individual that you need to be for cash. I do know Pasha talks about having his crystal clear why and he calls it his “no BS why”. What does that imply and take us via why that’s vital, Pasha.

Pasha:
The no BS why got here up when, in the event you guys truly listened to episode 773, it was like I used to be in a really dire state of affairs, if you’ll. And after that I assumed to myself why this by no means got here up. My life setting earlier than this factor was precisely the identical why I didn’t see that. And one of many issues that stood as much as me was I used to be type of following a why, that means why I’m doing all of this or why I wished to have a enterprise, that it was simply not unique to me. It wasn’t that I by no means heard about being an entrepreneur earlier than, I’d by no means heard about monetary independence earlier than. I used to be simply listening to different individuals speaking about how they wished to stop their job or how they wished to have the liberty of economic dependency on their job, which is nice, don’t get me flawed.
And I used to be listening to it and I used to be like, yeah, cool, that’s neat. I would like that too. However I by no means took any actions on that as a result of fairly truthfully it was a BS why for me as a result of I really like my job. I truthfully do. It wasn’t a giant motivation for me to be above and past and dig deeper into completely different enterprise fashions and attempt to be an entrepreneur. It’s simply a kind of issues that you simply wish to guarantee that no matter cause you provide you with is one thing that 100% aligns with who you might be and what your core values are. And that is a kind of issues that’s type of arduous as a result of there are such a lot of shiny whys on the market as properly that you simply would possibly truly simply stumble throughout and also you’re like, “Oh, yeah, cool, I would like it.” That’s not sufficient. It’s good to have that. It’s not like I wish to have it. It’s good to have that why.
I feel I talked to you, myself, nearly each different profitable entrepreneur I speak to, there’s a why of their life that comes from the necessity half. It doesn’t come from the need half. As a result of everyone needs to have a cool automotive to drive round. Everyone needs to have a enterprise that generates some huge cash. That’s the side that you simply see on lots of social media. However the second that the rainbows and unicorn go away and there are some alligators on the best way and there are some challenges on the best way, they again out as a result of that doesn’t fulfill their need half.
And that’s the rationale that I at all times suggest to individuals that truly attain out to me is that just be sure you have your eyes on the why, why you might be doing this, and it must be so sturdy. It must strongly align with you in a means that everytime you get up within the morning, you may give it some thought. It’s already in entrance of your eyes. It’s one thing that you simply simply can not disconnect your self from it. It’s not like in the future you’re not within the temper and in the future you might be within the temper. It simply doesn’t work that means. And that’s why I referred to as it no BS why and it’s actually arduous to get there. I imply it’s nearly, that you must simply dig deeper and deeper and deeper in your self to get there.

Henry:
Sure, I fully agree and I like that you simply name it the no BS why as a result of I’d by no means heard it referred to as that earlier than. However I’ve talked about it completely different with a number of of my different college students and the best way I’ve at all times pictured is individuals at all times are, they’re fast to say, “I would like monetary freedom, or, “I would like monetary independence,” or, “I wish to construct generational wealth.” That’s the buzzword, generational wealth. All of these issues sound good, however I don’t know that individuals actually perceive what they imply. For me, monetary freedom’s not a aim. It’s not your why. Your why is what you get to do since you’re financially free. Monetary freedom permits you the time freedom to be the individual that you’re referred to as to be, not the particular person you need to be for cash. And sometimes while you’re the individual that you’re referred to as to be, you get to influence different individuals.
So your why is usually rooted in who you get to be in service of different individuals. And so while you’re fascinated about your why, you’re proper, it’s received to be the factor that drives you past the great days and the dangerous days. You mentioned it greatest, you mentioned, you want it, you want it to occur. So in the event you’re considering proper now, I wish to be an actual property investor in order that I may be financially free, that’s nice. Take it a step deeper. When you had been free at this time, in the event you wakened and magically had all of the rental property to supply all of the cashflow you wanted to reside your way of life and to pay for all of your life’s bills, what would you be doing with that freedom? Whose life would you be impacting with that freedom? That’s the place your no BS why lives. Agree?

Pasha:
100%. Completely. It’s at all times like, you see that image and you then’re like, “Oh, man, wait. So now I’ve freedom however my household sucks,” or one thing like, “Now I have to put all of my undivided consideration to my household.” And you then’re like, “Okay, that is what I want, let’s go for it.” After which there may be nothing that actually can cease you as a result of you already know precisely the place you wish to head to.

Henry:
We do that train with a number of of my college students and the cool half about listening to individuals dig into that’s who you get to be since you’re free. Lots of people are like, “Effectively, now I get to retire my mother and father. Now I get to ship my mother and father on a visit or transform my mother and father’ home,” or, “now I get to pay the medical payments for my sick member of the family who couldn’t afford the correct medical remedy.” These are the issues, these are the whys which might be going to drive you thru the tough instances. As a result of in case your why is just rooted in you and what you need, people, we’re human and we let ourselves down daily.
You understand how many instances I mentioned I’m going to go to the health club tomorrow and didn’t go? We let ourselves down on a regular basis, however we don’t prefer to let down different individuals. And so take into consideration who you get to assist, what you get to do with that freedom, that’s what pushes you thru. So speak to me briefly right here, Pasha, about how individuals discover that why, what drove you, what questions did you need to ask your self to hit what that why was?

Pasha:
I feel for me it was just a little bit tough as a result of I used to be in a state of affairs that I discovered myself, I didn’t have lots of time after which instantly it was in entrance of me like, what are an important issues for me? However what I might suggest is, one, that you must be brutally sincere with your self. And there’s a phrase in there brutally, it means it’s not going to be comfy, it’s going to be an uncomfortable dialogue. And typically you wish to herald any person that is aware of you very properly and ask them that will help you to dig deeper. It’s extra like interrogation even. You wish to just be sure you get to the core wants that you simply wish to go after and it’s one thing that simply makes you a blazing why that then it turns into an engine that that you must harness that vitality to run your corporation in your day-to-day life.
However I might say be brutally sincere with your self. When you’re speaking a few particular want that must be compensated for or must be addressed for, what are these wants? Write them down. As you talked about, it may be addressing your particular family members or the state of affairs that they may be left after. It must be tremendous tailor-made about you. So guarantee that it’s 100% personalized based mostly in your life, based mostly in your values in life. It’s good to have a look at different individuals’s why and that’s nice, however typically it simply merely doesn’t align and also you don’t wish to simply copy another person. You wish to just be sure you tailor it for your self and that you must simply dig deeper and deeper and deeper till… Once you get there, you already know it. It’s a kind of issues that, while you hit there, you’re like, “Oh, yeah, that’s it. That’s what 100% aligns with my core worth.”

Henry:
Discovering your why, Pasha’s the first step for locating your why is to be brutally sincere with your self. He additionally talks about if you wish to be wealthy or why you wish to be wealthy, diving into what which means. We discuss this lots with individuals. It’s like, what’s the wealth going to do for you? What’s the wealth going to do for the individuals round you? And you then discuss while you outline your why, is there one thing that you simply didn’t clearly know earlier than? That’s an amazing level as a result of when you’re digging into your why and making an attempt to determine what’s actually driving you, it’s uncomfortable. It’s going to lift some questions and now you may need some new data that that you must work via to be able to work out what that why is.
After which this one, I consider, is massively vital. Is it one thing that excites you everytime you get up within the morning? That’s a reality. This enterprise excites me to no finish. And what I like about this enterprise particularly is attending to share with different individuals and assist different individuals. I actually had a bummer name with a tenant proper earlier than this. However realizing that I received to get on right here and share actual property investing with all of you guys and chat with my good friend Pasha and have him share his data and knowledge with you has actually lifted me up as a result of my why is rooted in ensuring that I share this information with individuals. So it will get me excited daily. And so in the event you reply no to any of those questions, it signifies that that you must hold digging. And I feel that’s nice. And all these are coming from Pasha. And so what’s superior about that is that is Pashas system for having a why. This dude has a system for every little thing.
So whereas we’re on that subject, let’s go forward and let’s dive into methods. Pasha sat down with me and reviewed all of his methods for his enterprise. I used to be one who didn’t implement lots of methods, and it’s not as a result of I don’t suppose they’re precious, it’s simply, I’ve at all times been a prepared, fireplace, purpose type of operator after which make tweaks as I am going. And after I sat down and went over to Pasha’s system, I used to be completely impressed, a lot in order that we began to implement a number of of the methods that he’s utilizing. So I’ve began to implement a few of these methods in my enterprise and I’m going to speak to you about these. However in a while within the present we’re going to interrupt down 5 steps of how one can construct any passive system with Pasha. So stick to us for that.
However for me, after I sat down with Pasha, I instantly carried out a system for exhibiting my rental properties and a system for keeping track of renovations of my properties. And so at a extremely excessive stage, Pasha had this nice system for putting in… Basically you’re putting in web-enabled cameras, hooking them as much as a cell hotspot, after which putting in a web-enabled keypad door lock after which permitting your tenants who wish to see your property. So after our tenants apply, we will now give them a code the place they will go check out the property and we don’t must bodily go see the property. And what was enormous for us is correct after we sat down with Pasha about this, we had been about to place a property in the marketplace that was a few 45-minute drive away from the place the remainder of our properties are. And so I used to be like, man, that is going to save lots of actually simply two hours of driving time per appointment already off the highest. Plus, in the event you calculate that, and I try this for if I do 10 showings, that’s, what, 20 hours that you simply saved in simply drive time.
And so we had been capable of implement this on that property. We confirmed it just about. Nobody ever complained, nobody had an issue with it in any respect. The cameras would activate when individuals would enter the room. So we’d know when individuals confirmed up, we’d know once they left. The codes, we’d give all of them cycles, so everyone had their very own code. And it was actually a lot much less time-consuming and fewer painful that we’ve now carried out it for properties which might be even near us as a result of not solely is it saving drive time, however it’s saving the time that it takes to really open up the property. And everyone knows as landlords, you set appointments for showings and about half of the individuals present up, a few of them don’t even present up. So that you’ve wasted your time even going to a property and other people simply no present on you. So what an enormous time saver for me. We’re additionally utilizing it to watch our rehab property. So I do know firsthand that a few of these methods have been a lifesaver in my enterprise.
Pasha, let’s discuss, give us two of your favourite methods after which how they’re saving you time or cash.

Pasha:
Oh, yeah, completely. As you talked about, the instance that you simply introduced up was an excellent one. I feel after we had been beginning this, we realized that after we wish to present the property or after we wish to have a greater monitoring system on the contractors coming out and in, it must be one thing that may be completed just about. So precisely what you talked about, that’s what we carried out. All of the cameras, all the online connections, and all of the keypads all collectively. They usually truly are actually all in several bins. We’ve received seven of those bins that they’re all paired. So all they should do is to only ship it to any person, simply plug them to {the electrical} plug after which it’s all going to be on-line. I feel that’s actually certainly one of my favourite ones. So that you undoubtedly took one of many favourite ones for certain.
It saved us lots of time. It nonetheless is saving us lots of time as a result of it’s simply a kind of issues that you simply simply purchase them as soon as and you then hold utilizing them. As you talked about, you don’t must be the individual that drives all the best way there. And tenants adore it too, as a result of they didn’t really feel strain. They might go into the unit and so they may take a look at it. My contractors additionally, it allowed us to know who is an efficient contractor who isn’t. If any person says, “Oh, I’ve been working right here for 5 days,” they’re like, “No, right here’s a log that truly exhibits you’ve been working right here for 2 days. So let’s wrap it up. After which there are another folks that they really really feel higher when you’ve got safety within the space for all the supplies.
I imply all of this comes collectively into, what you talked about, the ache for enterprise, which is mainly the way it’s all linked collectively to resolve an issue for you, which for us it was not losing time and never losing vitality. And it’s additionally truly type of humorous too. Typically we go as a result of these are like two-way communications. So typically we go in there with the contractor and we’re like, “Hey, don’t neglect to complete that wall. We have to get that completed too.” First they’re all afraid like, who’s speaking to them, after which they discover. It’s truly fairly humorous. That’s certainly one of them.
The opposite one which I actually like is the system that I put collectively, which is mainly the class of the problems that may go flawed in our rental properties. For instance, it says when you’ve got a, let’s say, surge or when you’ve got overloading like electrical after which we categorize it into plumbing space, landscaping space, mainly handyman stuff, HVAC, issues like that. And the issues are mainly in right here and the answer to them or the treatment can also be in entrance of them. After which on the finish it says, if none of those treatments work, then that you must contact this particular person for that concern. And that particular person goes to be the plumber, electrician, handyman. After which after all we have now one other web page that has, these are our contacts for electrician, these are our contacts for a plumber, these are our contacts for so-and-so.
Now with one thing like this, I can simply step again and now my digital assistant that’s working remotely can tackle all the issues, not all of them, however I might say 99% of the issues that our tenants have. They obtain these, they mainly come right here, they match them with the issues right here, they stroll tenants via a number of the drawback fixing and typically our tenants are literally capable of remedy the issue themselves, just like the small ones. Clearly if it’s critical or if it’s one thing that may create a legal responsibility, we ship a licensed particular person to repair it. However typically there’s some simpler stuff that they will do and, man, our tenants adore it. They completely love this as a result of they get to resolve the issue actually quick. And it’s nice for us as a result of we don’t spend a whole lot of {dollars} for each name. It’s one thing that may be addressed. I feel we tackle 15% of our upkeep calls with doing one thing like this.
And if it helps, I’m going to guarantee that I ship a template in an effort to put it into the facet notes. However once more, this is rather like a template. It’s good to go in there and see what are the issues which might be relevant to your corporation and you may construct one thing there. However that is additionally undoubtedly certainly one of our entrance winners.

Henry:
That is actually cool, Pasha. And so what I wish to do is add just a little context right here for individuals who are listening or driving and may’t see, after which I wish to guarantee that I’m fascinated about it in the fitting means. So what Pasha’s received up here’s a spreadsheet, and in that spreadsheet he’s damaged down a class and I consider the classes are the trades. And we are saying classes, what we’re speaking about is points. So if a tenant has a problem, one thing’s not working, you break it down into classes. So there’s that class, plumbing, electrical, is it handyman?
So you determine the class. If the class is a kind of, then on this spreadsheet you may observe alongside and say, okay, it’s electrical. So what’s the subcategory? The subcategory, if it’s a electrical, it might be the breakers are tripping or it might be flickering lights. And so you discover the subcategory of the problem. After which as soon as you discover the subcategory of that concern, proper subsequent to that subcategory is the treatment or the remedy for that drawback. And so then you may see what that answer is, attempt to implement that answer and if that works, the issue is solved. And if that doesn’t work, then your subsequent part is who to contact to get any person on the market to determine what the precise drawback is and get it fastened.
That is like while you name the cable firm as a result of your web’s out and so they’re like, “All proper, properly, is the sunshine lighting up?” And also you’re like, “Yeah, the sunshine’s lighting up.” They’re like, “Okay, nice. What’s your add pace, obtain pace? And also you inform them, they are saying, “Okay, nice.” So lots of these issues are simply solved by typically your modem isn’t on, proper? And so that you’re in a position to make use of this and it’s only a spreadsheet, it’s only a Google Sheet that you simply took the time to fill out on the entrance facet with what points you usually see, after which the way you usually remedy these issues, after which who to contact if this remedy doesn’t work. And what you’ve completed is you’ve given this spreadsheet basically to a digital assistant.

Pasha:
That’s right, sure.

Henry:
And your digital assistant takes the calls out of your tenants, so that you’re not taking calls for bogs and something. Your digital assistant, this actually is their coaching. They simply observe the spreadsheet, inform them what to do. If it doesn’t work, then this spreadsheet tells your digital assistant precisely which contractors to name. Is that right?

Pasha:
That’s right. And, once more, that is an instance, guys. You may construct it your self or if you’d like, once more, I’m going to ensure that is accessible to you as properly. However the contact right here tells the digital assistant who they should contact, as a result of I don’t need them to make use of their judgment for it. I would like them to observe this written down system. So, for instance, on this case it says, if, let’s say, there’s a surge that it simply makes their fusebox flipping, then that is critical, you don’t wish to do something, you wish to contact an electrician. After which there’s one other web page that has the job title and other people which might be doing that and it ranks them from the primary to the final. So, begin calling them.

Henry:
And that is nice as a result of lots of people, one of many myths of landlording is that individuals say, “I don’t wish to be a landlord as a result of I don’t wish to cope with tenants and bogs.” And also you simply actually confirmed me a spreadsheet that offers with the tenants and bogs for you. So it’s not that massive of a deal, people. Are you able to give us an instance or breakdown not directly, how a lot time or cash is a system like this saving you and your corporation?

Pasha:
Oh, man, lots, lots.

Henry:
What number of calls is your VA taking and what’s the amount you’re seeing?

Pasha:
We acquired about 218 tickets or calls within the final 12 months for our properties as a result of we truly type of expanded and all of them are addressed with my tenants. Now there are some examples which might be one-offs which might be actually bizarre and it means, for instance, we had a thunderstorm. You and I are each dwelling in Northwest Arkansas, so we all know that thunderstorms are usually not that alien right here. After which there was a tree that coming like 45 angle about to hit the home, however it didn’t. So clearly this was a kind of issues that we didn’t have it in our system after which we added it. So if there’s a tree hanging round, name a tree particular person or tree elimination particular person and now, from then they do it. However that was, I feel, the one name that I needed to chip in. I used to be like, “Okay, if that’s the problem, that you must name this particular person.” However then I constructed it into my system so if it occurs once more, then I don’t must be pulled again into it.

Henry:
So for reference, what you’re saying is within the final 12 months you had 218 calls from tenants round points or potential points at a property. And of these 218 calls, you solely needed to speak to somebody one time.

Pasha:
Appropriate.

Henry:
I might say the system works.

Pasha:
Thanks. Or perhaps I’m simply tremendous fortunate, I don’t know.

Henry:
And it’s not simply that too, it’s not simply that. However what I wish to spotlight right here is he solely needed to get on the telephone one time, however he mentioned his tenants love this, they’re blissful, they’re not feeling a disconnect from customer support via this.

Pasha:
Precisely.

Henry:
That’s superior.

Pasha:
And that helps us lots as a result of when your prospects are blissful, when your renters are blissful, the probabilities of them staying with you is extra. So your emptiness truly begins going decrease as a result of they know that at any time when they’ve a problem, it’s going to be addressed instantly. They don’t must name the tenant, name the owner, sorry, after which landlord calls the seller and going forwards and backwards. So that is simply a kind of issues that it helps when you’ve got every little thing on this format. And once more, I feel you talked about one factor that I actually wish to emphasize. That is constructed on Google Spreadsheet, which is free, out there, accessible to everyone and it’s saving us lots of time. So one other factor is simply go together with what you suppose you wish to do, construct a easy, tangible, straightforward to make use of system on no matter, even back-up a serviette, and simply to begin getting it to work.

Henry:
Thanks a lot, Pasha. I feel that was an amazing instance for individuals to see that methods don’t must be loopy costly and that they will profit everyone and prevent money and time.
All proper, so let’s transfer on to the meat and potatoes of the present. The knowledge individuals actually wish to know is what are the 5 most vital steps for constructing any passive system? The 5 steps we have now listed below are inputs, processes, outputs, suggestions, and the setting. What the heck does that imply? Pasha, give us an instance. So what are the inputs for a system?

Pasha:
So if you consider this, all of the methods have these enter course of, output piece. So enter may be something truthfully, no matter you wish to get into so that you simply’d be capable of convert it into one thing else. So the enter might be any information level that you could find. For instance, within the instance that I confirmed, the enter goes to be the issue, the problem that the tenants are dealing with, proper? It’s simply the information level on the problem. It might be your P&L if you wish to have a system that checks your P&L and tells you if you’re doing okay or not. The enter must be actually aligned and I feel an important factor about enter is the enter is an important factor that must be aligned along with your core enterprise concern. You don’t wish to have additional data coming in, you need it to be proper, crisp, addressing the precise drawback that you simply’re making an attempt to resolve and construct the system round it.

Henry:
Thanks. So enter is what you feed into the system after which course of. What’s the method? And I like the way you associated the inputs to the instance we simply noticed. So let’s proceed that. Let’s discuss what the method is after which what’s the method from the instance you simply confirmed us.

Pasha:
So course of is mainly the engine of the system. That’s what it’s. It might be the step-by-step procedures in order that it follows a sure circulate chart to get to a sure output. And this instance, for instance, it’s going to be the treatment part, which is while you stroll your tenant via the problems that they’ve and now you wish to mainly get it fastened. So that you stroll them via how one can get the enter data and mainly add to it or take a look at it from a special angle or mainly change that information enter. So, for instance, on this case, let’s say, if rubbish disposal is clogged and I feel, “Oh, the landlords are actually accustomed to this concern,” is that you really want the tenant to go in there, take a look at the underside of it if there’s like a fuse button or one thing or if there’s a Allen wrench that they should use. All of those walkthroughs and procedures and step-by-step guides, that’s the place the method is available in.
And it’s simpler to do that. It’s mainly the primary half that’s going to switch you if you wish to construct a system to switch you. Does that make sense? That is the place you’ll wish to have your data extracted from the individual that is an professional, normally it’s going to be you, and also you wish to put it right into a step-by-step information that with that enter can observe these step-by-step so that it’s going to circulate via that to the following step.

Henry:
So if I’m following you appropriately, the enter is the issue, the method is the the way you’re fixing the issue.

Pasha:
It may be.

Henry:
Okay, now speak to us about output.

Pasha:
All methods have to have some extent which mainly needs to offer you what you want. Now typically the output of a system may be enter for the following system and this occurs on a regular basis, particularly if you wish to have a series of system and when you’ve got a fancy enterprise mannequin that you simply wish to put every little thing collectively. On this instance, the output goes to be a walkthrough that’s already offered and ensuring that the issue is addressed. So it may be in several codecs, it may be within the format of a data repository. Information repository is mainly the place you set your entire data which might be actually tangible and precious to you.
Within the instance of lead technology, it’s going to be the checklist of folks that… So, let’s say, you begin with 1000 individuals, you’ve got a course of that breaks it all the way down to, let’s say, a listing of 20. And now that 20 goes to be the output of your first system. That’s going to be individuals which might be extra more likely to be keen to promote their residence. Now you’ve got one other system that use that after which course of it after which sends a mailer to them, for instance. However that output is mainly what you’re going after and what the results of your system ought to seem like. And it may be in several codecs and it may be repeatable.

Henry:
It appears like your outputs can doubtlessly be in several codecs even throughout the identical system as a result of with the instance we went via, one output may be that the outcomes guidelines resulted in the issue being fastened and one output may be that you simply needed to name knowledgeable in and out one of many sub examples you gave, that skilled got here out and did the work and the output was now you’ve got a brand new subcategory so as to add to the spreadsheet so that you simply don’t have to resolve that drawback once more.

Pasha:
That’s 100% proper. In order that output can feed to completely different methods. Considered one of them is the fee system. It’s a feed to a special one, which is like, now the job is completed, it must go to the payroll system. So that you pay them. Once more, you don’t wish to be the one that writes the test each time. One other one goes to be, the issue is solved, however it was a brand new one, so let’s return and add it to the system that we have now, which mainly is the following system which is the suggestions.

Henry:
Yeah, let’s discuss that.

Pasha:
So suggestions… Okay, so the enter course of output is sort of frequent. I might say that even in massive corporates when it’s constructed, when the enter is given and when the output is taken, everyone’s like, “Hallelujah, we received there. That’s the system we wish.” And, man, I see this again and again, which they simply go away it like that. They’re like, “Okay, cool, the system is working.” After which they simply go on to the following one. The issue is you construct a system however it’s not a sustainable system as a result of because the context adjustments, because the enter adjustments, because the enterprise world adjustments, your system must be alert, it wants to know what’s taking place so it could possibly modify itself.
So a great instance of it’ll be figuring out KPIs for a way your system is working in order that you already know in case your system is definitely in fine condition or not. So, for instance, on this case, once more going again to the upkeep system, the KPI for us is, are our tenants blissful about addressing their points or not? So we ship out two surveys each six months, mainly, yearly. So each six months we ship one survey and we ask our tenants how do they really feel they’re being handled, how do they suppose their upkeep points are being addressed? And that could be a nice KPI as a result of it tells us whether or not it’s one thing that ultimately our tenants are feeling nice about it or not. And in the event that they don’t, we have to come again. In order that’s our KPI, proper?
The primary 12 months it would work completely, however the second 12 months it would truly not work very well and it’s going to lift a pink flag that enables us to return in there, dig into our system and see what was the problem, what brought about that particular person to not be blissful about it. After which we stroll it again after which we modify our processes, we modify our enter to guarantee that subsequent time we will tackle this. So the suggestions is mainly a loop that goes out of your output to the method and to the enter to guarantee that we replace it and keep related.

Henry:
Okay, nice. So, if I’m understanding, the suggestions or suggestions loop is what takes your system from being a static system that by no means adjustments to a dynamic system that’s altering or evolving as your corporation evolves. So with the instance you gave, you measure your tenants, mainly you measure in the event that they’re glad with the work that’s being completed. In case you are nice, you state the system retains doing what it’s doing. When you’re getting lots of suggestions that tenants aren’t blissful, then you may dig deeper into that suggestions after which modify your system to handle these suggestions points after which proceed to judge and make adjustments so your system is dynamic. And I’m going to exit on a limb right here and I’m going to guess that you’ve got a system that does the suggestions for you.

Pasha:
I really like that. I really like that. You already know I do. No, yeah, completely. Now you wish to guarantee that, once more, that system, that suggestions loop can also be working the best way that you really want. This is sort of a loop, it’s like a spiral, you may simply go all the way down to it. However 100%. And once more, begin with one thing easy, simply enter course of output is ideal, however it shouldn’t be like your ultimate vacation spot. Simply put some KPI, ensure that this KPI is nice. If you need, you may at all times, as Henry talked about, construct one other system on your KPI. However on the finish of the day you wish to guarantee that this isn’t a one linear line. It truly goes again and it feeds itself so it stays related. As a result of in the event you try this, you’re going to must spend much less time coming again to the issues that aren’t being addressed by your methods.

Henry:
Implausible. So to recap, we received the 5 important elements of a system is the enter. That’s the drawback that you simply feed into the system. You’ve received the method, that’s basically the way you’re fixing the issue or the way you’re addressing that concern. You’ve received your output, which may be the outcomes of that course of and that may be a optimistic or a destructive consequence. After which you may make changes to your course of via suggestions and measuring the outcomes. After which setting, we didn’t contact on setting, did we?

Pasha:
The setting is mainly the context that your system is operating in and that’s just like the final part that you really want to pay attention to. Principally on this instance, once more, if this method is working in properties, I’m simply saying like in Arkansas and now you wish to handle the identical properties in, let’s say, California, you’re in a special context, you might be in a special context for enter, you’re in a special context for processes, some litigations apply to it, some litigations to the output and that’s the place you need to pay attention to that, return in there and modify your methods to the context that they’re operating in to guarantee that your system stays related.

Henry:
Thanks for breaking down that 5 step course of, Pasha, that’s nice data and I feel it actually helps not solely to demystify methods however make it appear to be one thing everyone needs to be implementing inside their enterprise at some stage. Earlier than we go, give us some examples of some wins or some successes or some positivity that’s come from you implementing a number of methods in your corporation that perhaps you didn’t anticipate.

Pasha:
I feel certainly one of them is we had been truly in Hawaii and my condominium received flooded, one of many ones that truly we had a tenant in. I’m not speaking a few leak or one thing. It was about to get flooded actually dangerous. I didn’t even discover. It was simply on my weekly report that I get from the digital assistant of what’s occurring as a result of I at all times wish to know what’s occurring. And it was simply addressed routinely. The issue raised, they referred to as, there’s an emergency stage on that system, it was a excessive emergency. They dispatched any person like a plumber that’s actually good in mildew remediation and all of that. Thank God it didn’t get to any of this as a result of we had this in like the primary hour.
And I feel, all in all, we spent about $800 and it included a brand new piece to the water heater, which, if I didn’t have the system in there, I’m fairly certain my journey would’ve been ruined and it wouldn’t be a really pleasing expertise for my tenant both. Nevertheless it was addressed within the first couple of hours and it was fully working nice, which, to me, it was an amazing win as a result of it confirmed me that it could possibly work particularly after I wanted it to.

Henry:
Yeah, man, that’s an amazing instance since you’re proper, nobody needs the decision once they’re on trip that certainly one of their models flooded. And it at all times looks like that’s while you get these calls is while you’re out having a great time. In order that’s cool that your system simply type of dealt with it for you and saved you all types of cash and did precisely what it was presupposed to do. That’s superb. Thanks for sharing that.
All proper, thanks, Pasha, for giving us this breakdown of methods. There are some nice data that you simply gave us as a result of, once more, methods, I like to consider it and also you type of put this in my head, it’s that we’re all already utilizing methods, proper? A system is only a course of you’ve got in your corporation and lots of the instances our processes simply aren’t nice. And so considering of methods isn’t considering of how can I am going purchase an costly piece of software program or how do I spend lots of effort and time to resolve big-level issues? It’s only a matter of systematizing the issues which might be vital to you or the issues which might be taking probably the most of your time that you simply don’t wish to be taking your time and giving it some inputs, some processes and a few outputs, after which offering some suggestions to maintain your methods dynamic and you may actually save your self, not simply time however cash. Did I summarize that in a great way there for you?

Pasha:
And one other factor that I simply wished so as to add actual fast is usually it’s such as you won’t be the individual that is the professional in that space and that’s nonetheless nice. An excellent instance is like, you and I’ve been pals for years and I personally realized lots from you, particularly with regards to discovering good off-market offers. And I used to be like, man, this man is aware of his stuff. As I confirmed it to you, we began fascinated about all of those procedures and processes, how can we flip that right into a system in order that even that may be automated.
So, for instance, I do know that we didn’t get time to get there, however even lead technology proper now for me is one thing that I put collectively. Once more, we tried it, it began with probably the most easiest way, however proper now it’s like, hey, I simply despatched this zip code that I wish to go after. After which there’s truly, I referred to as it LA, so native assistant, that picks it up, processes all of the mails. The direct mails are out, all of the codecs, every little thing is predefined. However all of them comes from, not from me, however from a educated particular person within the space, such as you, that may assist me get understanding how this needs to be. And all I do is simply take the idea from the thinner and convert it right into a system and simply let the system work.

Henry:
That’s nice data. An effective way to consider fixing issues. Pasha, thanks a lot for being gracious sufficient to share a template or a clean template instance of your, what do you name that?

Pasha:
I name it Residential Upkeep System XLX.

Henry:
Your RMS Spreadsheet. And so if you’d like to check out that spreadsheet template, you may go to biggerpockets.com/sources the place Pasha has been gracious sufficient to share that with us. And so let the individuals know the place they will discover you, Mr. Pasha.

Pasha:
You will discover me on Instagram, @techierealestate, T-E-C-H-I-E, actual property, all one phrase. And likewise the web site is 5dayscourse.com. These are the 2 locations that you could find me.

Henry:
Nice. And you could find me on Instagram as properly. I’m @thehenrywashington on Instagram. Thanks a lot for becoming a member of us. A lot of nice data there, Pasha. It’s been a pleasure speaking to you and we want you nothing however one of the best.

Pasha:
Thanks, sir. Have a great one.