How I Went from 200+ Tenant Telephone Calls to 1 Per 12 months

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 discuss to somebody one time.

Pasha:
Right.

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 in the present day and I’ve the pleasure of interviewing my good pal, my associate, my scholar, Mr. Pasha Maleknia. Pasha’s acquired a sophisticated diploma in data techniques. He’s right here to show you tips on how to construct techniques 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 onerous. I might say constructing a brand new system. I similar to to problem and simply the problem of it. After all you’re a nerd.

Henry:
So why must you stick round for this episode? We’re going to be dispelling some myths round system. We’re going to speak about why you’re most likely already spending time on techniques with out even understanding it. Your techniques most likely simply aren’t that nice but. We’re going to speak concerning the money and time techniques 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 great spot to be as a result of you’ll be able to set what you are promoting up for development within the long-term. And in case 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 would doubtlessly put extra money in your pocket and in addition enable you to handle 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 in the present day we’re going to maneuver into the-

Pasha:
Fast tip.

Henry:
At present’s fast tip is go to biggerpockets.com/assets. There you’ll be able to obtain Pasha’s instance spreadsheet of how one can implement a system and jumpstart constructing techniques to your personal enterprise. Thanks Pasha for sharing that with us. It’s an excellent cool device. You’ll really get to see a bit of it in case 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 a bit little bit of background, we just lately had Pasha on an episode, episode 773, the place he shared his unbelievable story about how he acquired 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 a bit little bit of a cliffhanger. Pasha is an skilled on techniques and tips on how to save your self money and time with actual property investing and we needed 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 techniques, what they’re and the way he implements them and the way you ought to be contemplating and doing the identical factor. As a result of the tremendous secret is everyone already has techniques in place, they most likely simply suck. So let’s discuss to Pasha about techniques.
So Pasha, clearly, he’s a pal of mine, he’s a scholar of mine, and he’s a superb actual property investor. So I needed to begin off, Pasha, in case you wouldn’t thoughts by let’s dispel some myths round techniques. As a result of every time individuals hear the phrase system, I believe generally they assume it’s quite a bit both larger than it’s or dearer than it’s, or that they’re not prepared for techniques of their enterprise but. And I don’t actually consider any of these issues are true. So let’s speak about a few of these myths after which you’ll be able to inform us why they’re lacking or in the event that they’re lacking. Possibly I’m simply fully fallacious right here.

Pasha:
100%. Let’s do it.

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

Pasha:
Completely a delusion. As you understand, even in larger companies generally there’s an inclination to construct complicated techniques and it nearly at all times hearth backed. I believe the most effective techniques that I’ve encountered are of their easiest kind. And also you at all times need to begin with a quite simple one degree kind of system that works for you after which begin, you’ll be able to at all times make it extra related to a enterprise or to the problem that you simply’re tackling. However I see this quite a bit that folks begin with an ideal system, a really complicated system as a result of they find it irresistible, however whereas they’re constructing it, they need it to be completely good, however it finally ends up with a system that by no means implements.
The only type of techniques are at all times higher as a result of you’ll be able to at all times get a suggestions and you’ll at all times return and construct it once more and make it a bit bit extra related. There’s a saying that claims: “Your first 5 techniques, at all times going to suck.” So it’s higher to simply begin it easy, guarantee that it’s like, perceive why, what’s the downside, return, repair it. After which as you go ahead it’s going to be extra related to your want. However positively don’t begin with a fancy system.

Henry:
Superior. Man, that’s nice perception as a result of I believe individuals do are likely to overthink techniques. I do know I did and actually most likely nonetheless do in numerous areas of my enterprise. So the second delusion 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 delusion, completely a delusion. I’ve stated this quite a bit nearly in all of the talks that I am going to, all of the workshops and all the things, 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 need to begin from the software program. They assume software program purposes or apps are the techniques, which is 100% fallacious.
Principally you at all times need to just be sure you begin together with your core problems with what you are promoting first, you then stroll that again and you then deal with what system can deal with that core concern that I’ve. And you then exit and store for the softwares or purposes 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 house and attempt to construct one thing with it. That’s not the way it works. You at all times need to just be sure you deal with a related device to your want. And I see this quite a bit, man. They assume they only want to write down a test for an enormous fancy software program they usually assume 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 an enormous shock as a result of that’s not going to occur.

Henry:
Superior. Yeah, that’s a good way to have a look at it. Right here’s a enjoyable truth about me. Even when I knew precisely what device I wanted to do a job and I walked into Dwelling Depot and purchased that device, I might suck at that job. I’m simply not useful. That’s simply not a skillset that I’ve. And so that you additionally don’t must be useful to be an actual property investor. Possibly 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 assume that techniques imply I must go purchase a bit 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 over and over and it’s supposed to save lots of you money and time. That may be something. We talked yesterday once we had been discussing this present and also you confirmed me one in every of your techniques 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 need to add is we’re on the age of data know-how that it’s the simplest time to construct a software program and you probably have 5 softwares proper now, we’re going to have 20 by the tip of subsequent yr, I promise you. And if you wish to simply chase the shiny software program software, the most recent development, man, you’re going to spend some huge cash and also you’re most likely not going to see nice return on that. That’s the place you need to just be sure you at all times begin from the enterprise, you at all times begin your techniques round it, and you then return and begin searching for one thing that’s related to yours.

Henry:
The following delusion that I need to speak about is, so I’m type of going to skip one right here as a result of I believe we presently already hit at it. Techniques are just for giant companies. Clearly we’ve touched on that. We all know that techniques are meant for any enterprise of any facet, it’s only a course of. However this one I believe is admittedly essential is that techniques are just for out-of-state traders.

Pasha:
Once we speak about techniques are just for out of the state, I believe that’s not related as a result of I believe I’m the dwelling instance of this. We’ve got about 20 items that the majority of them are inside 10 miles radius of the place I stay, however we type of urge ourselves to guarantee that we by no means step into any of them as a result of we need to have the liberty of geographical location. We wish to have the ability to be wherever we wish and be capable to renovate our houses and be capable to handle all of our houses. We have already got carried out the administration piece, now we’re targeted on constructing our techniques round rehabbing them remotely. If you wish to be extra passive in what you are promoting, I might advocate to begin simply fascinated by constructing the companies that you’ve on a platform that’s scalable and that’s solely doable you probably have an excellent system in place. And also you don’t must be out of the state. You will be as shut as it may get to you, however you simply don’t need to be the weather that’s the middle of what you are promoting.

Henry:
If I’m listening to you accurately, what you’re saying is that techniques are supposed to prevent money and time. And who doesn’t need to save time or cash regardless of the place you’re situated? However implementing techniques when you’re native as effectively I might assume 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 techniques while you’re native since you will be there to hone it. After which when you’ve acquired it dialed in, you actually open up nearly this world of growth. As a result of in case you’re not tied to the geographic location of the place your properties are, though you’re native, what’s stopping you from selecting a distinct market and increasing what you are promoting since you see a possibility in a brand new market and now you’re not held again by geographic location? So I believe that’s an outstanding method 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 believe techniques are really 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 study pretty shortly that it’s completely not a passive enterprise. However techniques will let you purchase again that passivity in what you are promoting. And so you’ll be able to nonetheless have a semi-passive enterprise of actual property investing and make it extra passive via the usage of techniques. And you then really do get time freedom. And that’s actually what that is about. It’s about having the time freedom as a result of that means that you can be the individual that you’re known as to be and never the individual that you must 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 essential, Pasha.

Pasha:
The no BS why got here up when, in case you guys really listened to episode 773, it was like I used to be in a really dire scenario, if you’ll. And after that I believed 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 needed 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 needed to give up their job or how they needed to have the liberty of economic dependency on their job, which is nice, don’t get me fallacious.
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 actually it was a BS why for me as a result of I like my job. I actually do. It wasn’t an enormous 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 need to guarantee that no matter purpose you provide you with is one thing that 100% aligns with who you’re and what your core values are. And that is a kind of issues that’s type of onerous as a result of there are such a lot of shiny whys on the market as effectively that you simply would possibly really simply stumble throughout and also you’re like, “Oh, yeah, cool, I would like it.” That’s not sufficient. You could have that. It’s not like I need to have it. You could have that why.
I believe I talked to you, myself, nearly each different profitable entrepreneur I discuss 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 automobile to drive round. Everyone needs to have a enterprise that generates some huge cash. That’s the facet that you simply see on numerous social media. However the second that the rainbows and unicorn go away and there are some alligators on the way in which and there are some challenges on the way in which, they again out as a result of that doesn’t fulfill their need half.
And that’s the rationale that I at all times advocate to individuals that truly attain out to me is that just be sure you have your eyes on the why, why you’re doing this, and it must be so sturdy. It must strongly align with you in a method that everytime you get up within the morning, you’ll be able to give it some thought. It’s already in entrance of your eyes. It’s one thing that you simply simply can’t disconnect your self from it. It’s not like someday you’re not within the temper and someday you’re within the temper. It simply doesn’t work that method. And that’s why I known as it no BS why and it’s actually onerous to get there. I imply it’s nearly, it is advisable 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 known as that earlier than. However I’ve talked about it completely different with a number of of my different college students and the way in which 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 need to construct generational wealth.” That’s the buzzword, generational wealth. All of these issues sound good, however I don’t know that folks really perceive what they imply. For me, monetary freedom’s not a objective. 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 known as to be, not the particular person you must be for cash. And sometimes while you’re the individual that you’re known as to be, you get to affect 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 by your why, you’re proper, it’s acquired to be the factor that drives you past the nice days and the dangerous days. You stated it finest, you stated, you want it, you want it to occur. So in case you’re considering proper now, I need to be an actual property investor in order that I will be financially free, that’s nice. Take it a step deeper. For those who had been free in the present day, in case you wakened and magically had all of the rental property to supply all of the cashflow you wanted to stay 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 must 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’s nothing that basically can cease you as a result of you understand precisely the place you need 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, “Nicely, now I get to retire my dad and mom. Now I get to ship my dad and mom on a visit or transform my dad and mom’ home,” or, “now I get to pay the medical payments for my sick member of the family who couldn’t afford the right medical remedy.” These are the issues, these are the whys which might be going to drive you thru the troublesome 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 day by day.
You understand how many instances I stated 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 discuss to me briefly right here, Pasha, about how individuals discover that why, what drove you, what questions did you must ask your self to hit what that why was?

Pasha:
I believe for me it was a bit bit troublesome as a result of I used to be in a scenario that I discovered myself, I didn’t have numerous time after which instantly it was in entrance of me like, what are an important issues for me? However what I might advocate is, one, it is advisable be brutally trustworthy with your self. And there’s a phrase in there brutally, it means it’s not going to be snug, it’s going to be an uncomfortable dialogue. And generally you need to herald someone that is aware of you very effectively and ask them that can assist you to dig deeper. It’s extra like interrogation even. You need to just be sure you get to the core wants that you simply need to go after and it’s one thing that simply makes you a blazing why that then it turns into an engine that it is advisable harness that vitality to run what you are promoting in your day-to-day life.
However I might say be brutally trustworthy with your self. For those who’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 is perhaps addressing your particular family members or the scenario that they is perhaps left after. It must be tremendous tailor-made about you. So guarantee that it’s 100% custom-made primarily based in your life, primarily based in your values in life. It’s good to have a look at different individuals’s why and that’s nice, however generally it simply merely doesn’t align and also you don’t need to simply copy another person. You need to just be sure you tailor it for your self and it is advisable simply dig deeper and deeper and deeper till… Once you get there, you understand 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 trustworthy with your self. He additionally talks about if you wish to be wealthy or why you need to be wealthy, diving into what which means. We speak about this quite a bit 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 speak about while you outline your why, is there one thing that you simply didn’t clearly know earlier than? That’s a terrific level as a result of when you’re digging into your why and attempting to determine what’s really driving you, it’s uncomfortable. It’s going to boost some questions and now you may need some new data that it is advisable work via in an effort to determine what that why is.
After which this one, I consider, is massively essential. Is it one thing that excites you everytime you get up within the morning? That’s a truth. 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 understanding that I acquired to get on right here and share actual property investing with all of you guys and chat with my pal Pasha and have him share his information 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 day by day. And so in case you reply no to any of those questions, it signifies that it is advisable maintain digging. And I believe 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 all the things.
So whereas we’re on that subject, let’s go forward and let’s dive into techniques. Pasha sat down with me and reviewed all of his techniques for his enterprise. I used to be one who didn’t implement numerous techniques, and it’s not as a result of I don’t assume they’re beneficial, it’s simply, I’ve at all times been a prepared, hearth, 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 techniques that he’s utilizing. So I’ve began to implement a few of these techniques 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 persist with us for that.
However for me, after I sat down with Pasha, I instantly carried out a system for displaying my rental properties and a system for keeping track of renovations of my properties. And so at a extremely excessive degree, 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 need to see your property. So after our tenants apply, we are able to now give them a code the place they’ll go check out the property and we don’t must bodily go see the property. And what was large for us is true once 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 case 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 in a position to implement this on that property. We confirmed it nearly. Nobody ever complained, nobody had an issue with it in any respect. The cameras would activate when individuals would enter the room. So we might know when individuals confirmed up, we might know once they left. The codes, we might 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 truly 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 observe our rehab property. So I do know firsthand that a few of these techniques have been a lifesaver in my enterprise.
Pasha, let’s speak about, give us two of your favourite techniques 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 believe once we had been beginning this, we realized that once we need to present the property or once we need to have a greater monitoring system on the contractors coming out and in, it must be one thing that may be carried out nearly. 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 really are actually all in several bins. We’ve acquired seven of those bins that they’re all paired. So all they should do is to simply ship it to someone, simply plug them to {the electrical} plug after which it’s all going to be on-line. I believe that’s actually one in every of my favourite ones. So that you positively took one of many favourite ones for positive.
It saved us numerous time. It nonetheless is saving us numerous time as a result of it’s simply a kind of issues that you simply simply purchase them as soon as and you then maintain utilizing them. As you talked about, you don’t must be the individual that drives all the way in which there. And tenants find it irresistible too, as a result of they didn’t really feel stress. They might go into the unit they usually may have a look at it. My contractors additionally, it allowed us to know who is an effective contractor who is just not. If someone says, “Oh, I’ve been working right here for 5 days,” they’re like, “No, right here’s a log that truly reveals 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 have 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 unravel an issue for you, which for us it was not losing time and never losing vitality. And it’s additionally really type of humorous too. Generally we go as a result of these are like two-way communications. So generally we go in there with the contractor and we’re like, “Hey, don’t overlook to complete that wall. We have to get that carried out too.” First they’re all afraid like, who’s speaking to them, after which they discover. It’s really fairly humorous. That’s one in every 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 fallacious in our rental properties. For instance, it says you probably have a, let’s say, surge or you probably have 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 it is advisable contact this particular person for that concern. And that particular person goes to be the plumber, electrician, handyman. After which after all we’ve got 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 deal with all the considerations, 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 few of the downside fixing and generally our tenants are literally in a position to resolve the issue themselves, just like the small ones. Clearly if it’s severe or if it’s one thing that may create a legal responsibility, we ship a licensed particular person to repair it. However generally there’s some simpler stuff that they’ll do and, man, our tenants find it irresistible. They completely love this as a result of they get to unravel the issue actually quick. And it’s nice for us as a result of we don’t spend a whole bunch of {dollars} for each name. It’s one thing that may be addressed. I believe we deal with 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. You could go in there and see what are the issues which might be relevant to what you are promoting and you’ll construct one thing there. However that is additionally positively one in every of our entrance winners.

Henry:
That is actually cool, Pasha. And so what I need to do is add a bit context right here for individuals who are listening or driving and may’t see, after which I need to guarantee that I’m fascinated by it in the suitable method. So what Pasha’s acquired 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’ll be able to 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 resolve for that downside. And so then you’ll be able to 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 someone on the market to determine what the precise downside is and get it fastened.
That is like while you name the cable firm as a result of your web’s out they usually’re like, “All proper, effectively, 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 numerous these issues are simply solved by generally your modem isn’t on, proper? And so that you’re ready 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 resolve these issues, after which who to contact if this resolve doesn’t work. And what you’ve carried out is you’ve given this spreadsheet primarily 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 bathrooms and something. Your digital assistant, this actually is their coaching. They only 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 possibly can construct it your self or if you would like, once more, I’m going to verify that is accessible to you as effectively. 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 severe, you don’t need to do something, you need 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 folks say, “I don’t need to be a landlord as a result of I don’t need 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 huge of a deal, people. Are you able to give us an instance or breakdown in a roundabout way, how a lot time or cash is a system like this saving you and what you are promoting?

Pasha:
Oh, man, quite a bit, quite a bit.

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

Pasha:
We acquired about 218 tickets or calls within the final 12 months for our properties as a result of we really 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 should 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 believe, the one name that I needed to chip in. I used to be like, “Okay, if that’s the problem, it is advisable 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 discuss to somebody one time.

Pasha:
Right.

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 need to spotlight right here is he solely needed to get on the telephone one time, however he stated his tenants love this, they’re comfortable, they’re not feeling a disconnect from customer support via this.

Pasha:
Precisely.

Henry:
That’s superior.

Pasha:
And that helps us quite a bit as a result of when your prospects are comfortable, when your renters are comfortable, the possibilities of them staying with you is extra. So your emptiness really begins going decrease as a result of they know that every time 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 backwards and forwards. So that is simply a kind of issues that it helps when you have got all the things on this format. And once more, I believe you talked about one factor that I actually need to emphasize. That is constructed on Google Spreadsheet, which is free, accessible, accessible to everyone and it’s saving us numerous time. So one other factor is simply go along with what you assume you need to do, construct a easy, tangible, simple 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 believe that was a terrific instance for individuals to see that techniques don’t must be loopy costly and that they’ll profit everyone and prevent money and time.
All proper, so let’s transfer on to the meat and potatoes of the present. The data individuals actually need to know is what are the 5 most essential steps for constructing any passive system? The 5 steps we’ve got listed below are inputs, processes, outputs, suggestions, and the atmosphere. 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 techniques have these enter course of, output piece. So enter will be something actually, no matter you need to get into so that you simply’d be capable to convert it into one thing else. So the enter might be any information level that yow will discover. For instance, within the instance that I confirmed, the enter goes to be the issue, the problem that the tenants are going through, 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 believe an important factor about enter is the enter is an important factor that must be aligned together with your core enterprise concern. You don’t need to have further data coming in, you need it to be proper, crisp, addressing the precise downside that you simply’re attempting to unravel 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 speak about 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 movement 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 need to mainly get it fastened. So that you stroll them via how one can get the enter data and mainly add to it or have a look at it from a distinct angle or mainly change that information enter. So, for instance, on this case, let’s say, if rubbish disposal is clogged and I believe, “Oh, the landlords are actually aware of this concern,” is that you really want the tenant to go in there, have 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’d need to have your information extracted from the individual that is an skilled, often it’s going to be you, and also you need to put it right into a step-by-step information that with that enter can observe these step-by-step so that it’ll movement via that to the subsequent step.

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

Pasha:
It may be.

Henry:
Okay, now discuss to us about output.

Pasha:
All techniques must have a degree which mainly needs to offer you what you want. Now generally the output of a system will be enter for the subsequent system and this occurs on a regular basis, particularly if you wish to have a series of system and you probably have a fancy enterprise mannequin that you simply need to put all the things 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 information repository. Information repository is mainly the place you place all your data which might be actually tangible and beneficial 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 have 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 prone to be prepared to promote their house. Now you have 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 similar system as a result of with the instance we went via, one output is perhaps that the outcomes guidelines resulted in the issue being fastened and one output is perhaps that you simply needed to name an expert 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 have got a brand new subcategory so as to add to the spreadsheet so that you simply don’t have to unravel that downside once more.

Pasha:
That’s 100% proper. In order that output can feed to completely different techniques. Certainly one of them is the fee system. It’s a feed to a distinct one, which is like, now the job is finished, it must go to the payroll system. So that you pay them. Once more, you don’t need 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’ve got, which mainly is the subsequent system which is the suggestions.

Henry:
Yeah, let’s speak about that.

Pasha:
So suggestions… Okay, so the enter course of output is kind of frequent. I might say that even in huge corporates when it’s constructed, when the enter is given and when the output is taken, everyone’s like, “Hallelujah, we acquired there. That’s the system we wish.” And, man, I see this over and over, which they only depart it like that. They’re like, “Okay, cool, the system is working.” After which they only go on to the subsequent one. The issue is you construct a system however it’s not a sustainable system as a result of because the context modifications, because the enter modifications, because the enterprise world modifications, your system must be alert, it wants to know what’s taking place so it may regulate itself.
So an excellent instance of it will be figuring out KPIs for a way your system is working in order that you understand 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 comfortable 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 assume 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 finally 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 yr it would work completely, however the second yr it would really not work very well and it’s going to boost a purple flag that permits us to return in there, dig into our system and see what was the problem, what prompted that particular person to not be comfortable about it. After which we stroll it again after which we regulate our processes, we regulate our enter to guarantee that subsequent time we are able to deal with 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 modifications to a dynamic system that’s altering or evolving as what you are promoting 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 carried out. If you’re nice, you state the system retains doing what it’s doing. For those who’re getting numerous suggestions that tenants aren’t comfortable, then you’ll be able to dig deeper into that suggestions after which regulate your system to deal with these suggestions points after which proceed to judge and make modifications 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 a system that does the suggestions for you.

Pasha:
I like that. I like that. I do. No, yeah, completely. Now you need to guarantee that, once more, that system, that suggestions loop can also be working the way in which that you really want. This is sort of a loop, it’s like a spiral, you’ll be able to 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 remaining vacation spot. Simply put some KPI, make sure that this KPI is sweet. If you need, you’ll be able to at all times, as Henry talked about, construct one other system to your KPI. However on the finish of the day you need to guarantee that this isn’t a one linear line. It really goes again and it feeds itself so it stays related. As a result of in case you try this, you’re going to must spend much less time coming again to the issues that aren’t being addressed by your techniques.

Henry:
Implausible. So to recap, we acquired the 5 major parts of a system is the enter. That’s the downside that you simply feed into the system. You’ve acquired the method, that’s primarily the way you’re fixing the issue or the way you’re addressing that concern. You’ve acquired your output, which will be the outcomes of that course of and that may be a constructive or a adverse end result. After which you can also make changes to your course of via suggestions and measuring the outcomes. After which atmosphere, we didn’t contact on atmosphere, did we?

Pasha:
The atmosphere is mainly the context that your system is working 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 technique is working in houses, I’m simply saying like in Arkansas and now you need to handle the identical properties in, let’s say, California, you’re in a distinct context, you’re in a distinct context for enter, you’re in a distinct 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 regulate your techniques to the context that they’re working 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 believe it actually helps not solely to demystify techniques however make it look like one thing everyone needs to be implementing inside their enterprise at some degree. 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 techniques in what you are promoting that perhaps you didn’t count on.

Pasha:
I believe one in every of them is we had been really in Hawaii and my house acquired 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 need to know what’s occurring. And it was simply addressed routinely. The issue raised, they known as, there’s an emergency degree on that system, it was a excessive emergency. They dispatched someone like a plumber that’s actually good in mould 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 believe, 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 positive my journey would’ve been ruined and it wouldn’t be a really pleasing expertise for my tenant both. However it was addressed within the first couple of hours and it was fully working nice, which, to me, it was a terrific win as a result of it confirmed me that it may work particularly after I wanted it to.

Henry:
Yeah, man, that’s a terrific instance since you’re proper, nobody needs the decision once they’re on trip that one in every of their items flooded. And it at all times looks like that’s while you get these calls is while you’re out having an excellent time. In order that’s cool that your system simply type of dealt with it for you and saved you every kind of cash and did precisely what it was alleged to do. That’s superb. Thanks for sharing that.
All proper, thanks, Pasha, for giving us this breakdown of techniques. There are some nice data that you simply gave us as a result of, once more, techniques, I like to think about it and also you type of put this in my head, it’s that we’re all already utilizing techniques, proper? A system is only a course of you have got in what you are promoting and numerous the instances our processes simply aren’t nice. And so considering of techniques isn’t considering of how can I am going purchase an costly piece of software program or how do I spend numerous effort and time to unravel big-level issues? It’s only a matter of systematizing the issues which might be essential to you or the issues which might be taking probably the most of your time that you simply don’t need to be taking your time and giving it some inputs, some processes and a few outputs, after which offering some suggestions to maintain your techniques dynamic and you’ll 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 needed so as to add actual fast is usually it’s such as you won’t be the individual that is the skilled in that space and that’s nonetheless nice. An excellent instance is like, you and I’ve been mates for years and I personally discovered quite a bit from you, particularly relating 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 by 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 method, however proper now it’s like, hey, I simply despatched this zip code that I need to go after. After which there’s really, I known as it LA, so native assistant, that picks it up, processes all of the mails. The direct mails are out, all of the codecs, all the things 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. A good 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 would like to try that spreadsheet template, you’ll be able to go to biggerpockets.com/assets the place Pasha has been gracious sufficient to share that with us. And so let the individuals know the place they’ll discover you, Mr. Pasha.

Pasha:
You could find 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 yow will discover me.

Henry:
Nice. And yow will discover me on Instagram as effectively. 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 the most effective.

Pasha:
Thanks, sir. Have an excellent one.