The Real Estate Deal Management System (The REDMS)

The REDMS is a proprietary system developed by Help Keep My Money LLC to identify appropriate properties, analyze the investment opportunity associated with the property, and then manage all aspects of the real estate deal (acquisition, rehabilitation, sale, and rental). The REDMS uses five (5) attributes associated with the property to provide a “DEAL” or “NO DEAL” indicator on the Data Entry Page:

  • Section 8 Monthly Rent
  • Rehab Costs
  • Rehab Time (months)
  • Purchase Price
  • Sale Price to Retail Investor

The REDMS uses a set of algorithms to calculate the maximum purchase price of the property based on a set of cost assumptions (inspection, appraisal, title insurance, escrow, deal management, insurance, property taxes, financing, reserves, and holding costs) that can be adjusted as the actual values are verified. As assumptions and attributes are changed and updated, The REDMS calculates and displays results on a Summary Page with two sections:

  • Acquisition and Redevelopment (purchase & flip)
  • Long Term Capital Invesment (buy, hold & rent)

Each section shows the Total Cost of the real estate project broken down into categories and then the Funding Sources to cover those costs. Each section ends with Cash on Cash Return on Investment (ROI), shown as both a dollar amount and a percentage of cash invested.

The REDMS has several Detail Pages where assumptions are updated once they are verified and the investment analysis results are displayed:

  • Purchase & Flip: shows the details associated with purchasing, rehabbing and “flipping” the property to a Retail Investor. This page is used by the Traditional Investor to determine the cost associated with the real estate deal and the potential profit from the sale.

  • Buy and Hold Rental: shows the details associated with not selling the property, but instead keeping and it and renting it to a Section 8 tenant using professional property management. This is used by the Traditional Investor to determine the cost associated with renting the property and annual Net Operating Income (NOI) the investor can expect to receive.

  • Sale to Retail Investor: shows the details associated with purchasing the fully turnkey property with a Section 8 tenant and professional property management. This is used by the Retail Investor to determine the cost associated with renting the property and annual NOI the investor can expect to receive.

In addition to the printouts listed above, The REDMS consists of management processes developed over the last three decades for managing the risks associated with real estate deals. These management processes include, but not are not limited to, the following:

  • On the ground real time verification of all input assumptions by real estate professionals in Detroit.

  • Negotiating property acquisitions from the perspective of a local real estate buyer.

  • Utilization of customized Purchase Agreements with terms developed to benefit and protect the buyer.

  • Development of a team of local real estate professionals who specialize in working with out of state investors.

  • Utilizing the minimum amount of a refundable Earnest Money Deposit (EMD) required to secure a property under contract while we perform a rigorous due diligence process of the property.

  • Utilizing joint ventures with experienced local rehabbers to shift the labor risk of the rehab project to the rehabber.

  • Utilizing a local on-the-ground experienced Construction Project Manager (CPM) to oversee rehab projects on our behalf.

  • Utilizing a “carrot and stick” approach when dealing with local rehabbers and General Contractors to align their objectives with that of the Traditional Investor: create a high-quality product at a low cost in a short timeframe to maximize profit.

  • The maintenance of a network of Retail Investors to purchase turnkey rental properties that have been created by our Traditional Investors.

  • Ongoing quality assurance process for reviewing the work performed on the ground by our team of real estate professionals.

The REDMS is a system that uses leverage while managing and shifting risk to generate at least a double-digit cash on cash return for our clients. Our motto:

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