We’ve mentioned our new portfolio analysis software Propertyllama a few times, but today I want to formally introduce you to it. Going forward, you’ll be seeing a lot more content with Propertyllama, and we have big plans to expand its capabilities.
This software helps investors figure out how to analyze and optimize their portfolios. It reduces the confusion of how to go from one to two properties and beyond in order to reach your financial freedom goals. There are great metrics and indicators embedded in the software that allow you to understand what to look for when you’re investing in real estate.
Propertyllama is more than just software, it’s one of our Strategic Partners. Co-founders Richard McGirr, Ilona Kazimirko, and Chelsea Scott joined me to talk about why this software is great for analyzing portfolios, and their plans for the future.
- Listen to the podcast “#370: Say Goodbye to Spreadsheets with Propertyllama, Our New Real Estate Analysis Software” on the Denver Real Estate Investing Podcast
- Watch the YouTube video (at the bottom).
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
Why Is Online Software Better than a Spreadsheet?
The genesis of the Propertyllama software is the spreadsheets Chelsea and I use regularly with clients. Our audience and clients are familiar with these tools, especially the Rental Property and Return on Equity spreadsheets we use in deal and portfolio analyses.
The biggest problem with spreadsheets is that they’re not particularly convenient to use. It’s a pain to find old versions of spreadsheets and tedious to update them. With online software, your information is always in the same, easy to find place.
One of the drawbacks of the Rental Property Spreadsheet is it only allows you to put in one property at a time, making it difficult to compare properties. While Chelsea’s spreadsheet does have this ability, it’s very complex and too complicated for the average user to manipulate well.
Propertyllama provides a user-friendly process to input your portfolio’s information and compare different properties. It’s easy to run different scenarios to see what it would look like to raise rents, refinance, or sell. After inputting your data, you’ll quickly see everything you have now and what you could do with different options.
Why Propertyllama Is a Great Tool for Analyzing Your Portfolio
Most people don’t love looking at the blocks of data and numbers in a spreadsheet, so Propertyllama gives users a clean and simple way to view their portfolios. You don’t need to understand all of the underlying metrics in order to see how your portfolio is performing and where it can be optimized.
Embedded in the software are best practices and definitions that create a collaborative environment. It ensures that users and their advisors are using the same data and a common language to analyze their properties.
While underwriting for purchasing a property is fairly straightforward, optimizing a real estate portfolio isn’t so formulaic. Propertyllama removes the pain point of figuring out how to improve a portfolio’s performance. It shows users how different metrics are performing against users own standards. Users can take this information to their advisor to figure out a plan for achieving their ultimate goals.
Richard and Ilona used the software for their own portfolio and realized how far off they were from the metrics that are important to them, such as Loan to Value and Net Operating Income. Now, they know what moves they need to make to enhance their portfolio’s performance.
Coming Soon: Even More Features
Thanks to our Portfolio Analysis Mastermind, we got some great feedback that’s helping us improve Propertyllama for the future.
One of the biggest plans is to implement AI Advisor Tips. We’re using artificial intelligence to help users figure out problems and opportunities in their portfolios. The AI takes the investing philosophy we use for underwriting: Loan to Value, Return on Equity, and maximizing Net Operating Income to automate advice. This gives the user scenarios to map out and then take to a human advisor for a more in-depth conversation.
Another goal is to improve scenario planning. A lot of portfolio analysis is taking someone’s property set and figuring out how to optimize it. Propertyllama is planning to show these 1-, 5-, or 10-year projections in an easy to visualize way. It will allow users to experiment with different moves, such as shifting equity around or converting a property to a short term rental. This will give users more options with actual data points they can use to make an informed decision.
Finally, to ensure that users are working with the most up to date information, Propertyllama will soon have more integration of data feeds into the software. Often, investors only have the data that was current when they bought a property. With up-to-date public information, users will have more accurate, current data to use in their underwriting. It’s adjusted in real time so you don’t have to update it yourself.
Connect with Propertyllama
We’re excited to create a lot more content with Propertyllama, especially as we roll out new features. If you have any ideas or see opportunities, reach out to us. We created this software as a community, and rely on our community to improve and build on it.
We’re also planning to host another Portfolio Analysis Mastermind later this year, so stay tuned for more details. This is a great opportunity to participate in a collaborative group to better understand how your portfolio is operating and where it can be improved.
In the meantime, start analyzing your portfolio now by creating your free account at: https://portfolio.denverinvestmentrealestate.com/.