Bobby Sharma brings his deep understanding of real estate investing to provide a next-generation solution for fellow real estate investors (bettercapital.us and bayflip.com). Well known in the real estate community as a networker, speaker and a caring investor, and technologist. Bobby has built one of the most comprehensive software platforms for tracking, training, and transactions for real estate investors and professionals. Bobby is renowned as a thought leader in the PropTech and real estate space. Bobby brings social good into smart investing. Bobby is generous with his time and knowledge to help aspiring and experienced investors to succeed and grow.

Bobby Sharma has worked for some very successful Silicon Valley real estate companies and also created the largest real estate networking and educational group in the Bay Area and now looking to expand this to many major markets. Bobby has developed an innovative platform that allows investors to invest fractionally in debt.

 

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The Best Way to Track Your Real Estate Portfolio with Bobby Sharma

 

Brett:

I’m excited about our next guest. He brings a deep understanding of real estate investing to provide a next-generation solution for fellow real estate investors. Better capital.us and Bay flip calm are two websites of his as well. He is known in the real estate community as a networker, speaker and caring investor, and technologist. He has built one of the most comprehensive software platform platforms for tracking training and transactions for real estate investors and professionals, and so much more, please welcome to show, Bobby Sharma. Bobby, how are you doing?

Bobby:

Brett, thrilled to be here with you. You’re one of my friends, you’re my DST go-to guy. It’s good to be on your show as well.

Brett:

Thank you for that, and likewise, it’s a pleasure to have you on the show, and, and for our listeners getting to know you for the first time, would you give us a little bit more about your background and your current focus?

Bobby:

Spent my last 34 years in California, mostly in Silicon Valley, worked for a bunch of real estate technology companies, but about 11 years ago, circumstances were such that I, got into real estate and more actively, I had a primary home, but then got, but in 2010 got involved more actively. But I kept my day job in technology. One foot in the W two and then one foot trying to build a passive income, fast forward, accumulated some real estate assets, and was trying to attract them in Excel, and it was just not working. For me, it was not giving me the full 360 views that I wanted, as a real estate investor to track the performance of my assets, how much what’s my cash on cash ROI? What’s my equity build-up? What’s my loan, pay down, what kind of occupancy rates, vacancy rates, nonperforming rates that I have across the portfolio, and then storing all the documents, they were all over the map, they were in my Gmail, they were in my local hard drive, they weren’t on a thumb drive. They were in somebody’s Dropbox and all that. What and reminders, I used to travel a lot. I would come back home and realize that I’d forgotten to pay certain property taxes or the Franchise Tax Board fees, and so on. I decided two years ago that I was going to build something for myself and for other real estate investors that needed something to track.

Brett:

We’re gonna dive into all of those intricacies here in a second, and this is really exciting because we believe it’s it is the best way to track your real estate portfolio, and before we go there one thing one other step back probably wants you to take us back maybe to the high school days of the university days when you’re a kid, I believe we’ve all been given certain gifts and strengths, and people call them superpowers, and I believe their God-given gifts that are given to us to be a blessing and help to others. I’m curious, what are those one or two gifts that you believe you were given? How does that help how you help and bless people today? 

Bobby:

I grew up in India, and then of all places, Africa. My high school, my formative years were in Africa and my history teacher was an American, and we did the Bicentennial, and I was Thomas Jefferson in that place. I got introduced to American history, American geography very early on in my teen years, and but we came from a middle class, humble family, but I always felt like, I wanted to be in the stateside, I’m talking this is the mid 80s.still relatively early as far as immigrants, the new immigrants are concerned. I wanted to study computer science. I always felt that being able to come here was really a gift, and I shouldn’t waste it, I shouldn’t waste the opportunity to be in this land where there’s so much, so much opportunity, so many wonderful people. I always felt like I had to maybe build something, but also help people along the way. About 10 years ago, I started to build a networking group to help other real estate investors connect with each other, and to this day, I’m a firm believer in networking and building connections and supporting each other. Luckily, in the San Francisco Bay Area, we built out the largest real estate networking group. We’ve got about 5000 members in there, and very active, we were we, we support each other like if they need a contract, or if they need a contract reviewed if they need a connection with an attorney if they need help with a DST if they need 1031 Exchange help, whatever it is, the group comes together, and we support and help each other out. To me, my, if there’s one gift that I have a god-given gift, it’s my ability, to network, and just quarterback, some, some deals, pull people together.

Brett:

That’s a beautiful gift. It’s an amazing gift. That’s a really cool story of India to Africa, then the history teacher, American history teacher, and then to San Francisco Bay Area, and building out buying real estate and helping other people do it is such a cool thing. Now let’s dive back to the topic at hand, the best way to track your real estate portfolio. With the service in the software, we already talked about a little bit of the pain, people losing track of certain things, Franchise Tax Board, property taxes, certain bills, tracking all of these things can be especially as you build the multiple assets. There’s got to be a better way. Bobby says there’s a better way, we’re going to build it out. I’m gonna help people do this, and by the way, you can find out more about Bobby Sharma at BetterCapital.us. What’s the number one secret to the software, and what it does? Can you kind of break it down step by step for our listeners.

Bobby:

Brett, you and many of your listeners and viewers, they’re probably familiar if they own real estate assets, maybe in their backyard, maybe out of state, maybe different property management companies, maybe different syndicators, what was happening was, let’s say you have, let’s say, you live in Sacramento, but you own properties in the Bay Area, and then in, let’s say, in Scottsdale, and then some in Dallas, the property manager in Dallas is on build him, the guy in Scottsdale is on AppFolio, your guy in the Bay Area is on the property where and when you’ve got, let’s see, we’re invested in syndication and they’re tracking it in, let’s say, Juniper square. Alright, now you have all these different logins, you’re getting these owners, the property managers only provide partial information. They don’t know your mortgage information, they often don’t know your tax or insurance information, but they’re just sending you what are called owner statements, or you have to log into their portal, which is not designed for real estate investors.

It’s designed for property managers. What happens is you end up logging in to all these different systems, these different URLs, and software. Let’s say on a monthly basis, it becomes tedious, and eventually. I’ll just try to plug it into my itself and see if I can track it that way. Well, what we did it What we did was make it super easy. We don’t care which Property Management application which syndication platform you’re using, it really doesn’t matter. We will integrate with all of them, some very automatically to what are called APIs, others through some automated machine learning tools that we have built with built some connectors. Regardless of what Property Management application you may be in. Plus, we securely integrate with your bank account. We can read the maybe the mortgage information, we could read the tax and insurance information, some of the transactions that are not taking place on the property management application side or the syndication management aside, but they’re on the bank account. We integrate all that data very effortlessly, and we give it to the user in a very nice classical.

Brett:

Got it. if I had, if I’m thinking here, it’s kind of like, perhaps a mint.com that it brings in your credit card over here brings your other credit card over there brings in your bank account can bring in some investments, and aggregates into one portal where you can all you can see, is that a fair summary so far?

Bobby:

We’ve nailed it. We are, we are the mint.com for real estate investors.

Brett:

Step number one is, first of all, understanding that you admit you have a problem tracking and organizing all this and or you’re really great at it, but it’s just taken a lot of time and your energy your eye, and you’re like, there’s got to be a better way to not have to, to go to all these different logins in these different places and the different passwords, now you can go to one place. The number two, you mentioned con briefly on the Excel piece of it right or connecting that perhaps for their accountant or, or the year-end planning. Let’s talk about once the information is there, the power of what the next step is.

Bobby:

I know you’re so bright, Brett. I’m so impressed, you got the main connection, and that’s beautiful. A lot of people don’t get it, but they have they haven’t used it in a while. I’m so glad you got it. At the end of the year, we’ve got all the transactions. You’re ready to go to your accountant, your CPA, your tax preparer, your enrolled agent, what we have done is we have built a Schedule II publisher. We know that we have all the transactions or most of the transactions have related to your acid in our system. With one click, we can publish a schedule, but in Excel that you can then send to your accountant, your tax preparer, your professional tax professional, but we want to make it so easy that you don’t have to now go in and pull out the receipts and see things figure out which bank ID is this came from which credit card, as long as it’s all integrated into our system. We can read the relevant transactions from any source, organize, categorize, and have them ready for you in real-time.

Brett:

I’m getting really excited here. I’m a personality type striver expressive. Analytical amiable with the opposite of those two, and let’s just say I can do numbers. I’m a commercial estate broker. I’ve done it for years, and I underwrite properties, and if I’m underwriting a property for like a listing opportunity or bias opportunity, like I’m inspired, like, I’m getting into the numbers, I’m geeking out, but I will have one, like the tax stuff or like all these little things, give me about 10 minutes of that and I’m like, drained, it’s my personnel hate drains as well. If you’re giving me something that’s going to help simplify my investments in tracking those things, and then reporting it to my tax preparer, to me, Bobby, that is gold again, you can learn more about Bobby Sharma BetterCapital.us, that’s number one. That’s number two. What’s the next secret? Before we kind of demo this, we’re gonna demo it, and if you’re watching on YouTube, right now you can see it, and if you’re not if you’re listening to this on iTunes, then go to my YouTube channel Capital Gains Tax Solutions, and you can watch and search the bob Bobby Sharma episode, you could watch this. But let’s talk about maybe the third or fourth feature that we haven’t touched on yet, and then let’s demo it.

Bobby:

I’ll go ahead and do a screen share. Let me see. There we go. This is what the dashboard would look like, I want to dive into maybe a rental that I have, let’s say we go to the one in your neck of the woods, and here we are. This shows how my properties performing the green is the good stuff, the red is the stuff that they’re behind on, but it tells me just by visually looking at it, I can tell the health of this property, I can look at, the ledger, I can look at the ledger here, I can look at all my financials, what’s my rent, I can look at my investment winded up bide, what a five, four, how big is it? What’s my market value, and so on, and then here are all the transactions that come into this to the system, and then here’s my reporting. Here’s my year-to-date report. Here’s my transaction Detail Report, and then this is the Schedule II report. It’s not ready yet. But by the end of this year, of course, way before that probably early q4, it’ll be ready, and then all my documents for this property are stored here. I can preview all the documents related to this property, all in one place, and here we go.

Brett:

By the way, for our listeners, who are listening, watching this, and by the way, there’s a little bit of a delay on the, on the streaming of this. If you’ve seen a little bit unclear, it’s because it’s having to catch up during real-time. But it’s a dashboard, right think pitcher mint.com, and then picture all the major things like net operating income, cash ROI, right cash on cash return, purchase cap rate, total ROI and it’s breaking down and it’s aggregating these different investments, and it’s bringing them all together, and then it’s giving you different ways to quickly understand what’s happening, and so that’s really, really cool. BetterCapital.us. Keep going, Bobby.

 

The Best Way to Track Your Real Estate Portfolio with Bobby Sharma

The Best Way to Track Your Real Estate Portfolio: “About 10 years ago, I started to build a networking group to help other real estate investors connect with each other, and to this day, I’m a firm believer in networking and building connections and supporting each other.” – Bobby Sharma

 

Bobby:

Thank you, Brett, and then you can categorize, you can say, Where is my insurance, I will find all the documents that have insert insurance tied to them. Where are all my 2021 documents, you’ll find all your 2021 documents? This is searchable. It’s it can be tagged, I can come in here, I can tag it. These are all my tags, I can say, Brett. If I save that. Now if I search for bread, it’s right there. So again, very, we tried to make it as user-friendly as possible. We’ve got some really cool bells and whistles built-in here, by the way, but one of the ones that I’m really proud of is, sometimes you get these PDFs, that maybe your insurance agent, maybe your accountant sent you, maybe you got an invoice for a repair. Let’s say it’s for 2123 Jackson Street, in Elk Grove, California, let’s say that’s your property 123 Jackson Street, our system will create a unique email address for that property, what you do is you can forward you can add that address that unique email address to your Gmail or outlook account, your Yahoo account doesn’t matter. As you get a PDF, or an Excel, or any file, you simply forward it to that email address 123 Jackson Street, our system will read it and store it in our database in our storage, just by you forwarding that email to that address. It’s very, we tried to think of all the ways we can cut down on keystrokes for people to get organized.

Brett:

I’m going to make sure I capture that. You have a unique email address for each of your investment properties, you have 10 of them, and one of them is an Elk Grove, California, and then for each investment is going to create a unique email address, and you just put that into your email when you get something that’s related to it. Boom, you just forward it to that now it’s going to pop up in there, and it had an attachment Bobby would include the attachment to absolutely. It’s just it’s basically a simple way to see you don’t have to always go through searching your emails for those addresses. Those things are all the notifications you’re getting from the different syndicators. You’re just looking for the ones that are really important for tax purposes or whatever else that you want to have you for that and then you go to BetterCapital.us you log in, you see it there Is that a fair summary?

Bobby:

It’s already there.

Brett:

My stress is already lowering Bobby, it’s already getting lower here, as we talk about this. What’s the next feature you maybe want to talk about real quick.

Bobby:

I want to show a bank integration. We have live secure bank integration. For example, you may have several bank accounts for you may be for your LLC, maybe for your personal properties, and so on. We are fully integrated with a company we use a secure third-party integration company. They have audited us, then we are hosted on Amazon Web server, we’re from Silicon Valley. We care about privacy, we care about security. All the data is encrypted in our database, and we’re fully integrated using a service called plaid. Here’s, here’s all my transactions, all of this coming right in from, from my bank account. This is a Live account, and it’s all there, and so I can come in, I can type this I can say, this purchase is for a cert, it’s a nice this was water, water sewer for 2011. I can say that, and then I can say I can even split it or I can say this was 100%. If I click on a plus, I’m sorry if I click on Import that transaction is going to get attached to that property. Now, another beauty is you can say it’s a recurring transaction, I can say this is water, sewer, and it’s attached to this property, and if I click on Create, I no longer have to do anything. As long as the system sees this transaction, this type of a transaction with this type of a, a description, it will go ahead and attach that transaction to that property.

Brett:

It’s kind of like a QuickBooks in a sense, or it’s so we’re gonna it’s gonna be kind of sinking things up and lining him up. Is that what you’re saying? Do you think it can replace QuickBooks on some level? Are you still using QuickBooks or what’s Are you completely out of QuickBooks?

Bobby:

Our goal, our vision is that once you start to use the system, the way it’s designed, you will not need QuickBooks, and you will probably not need a bookkeeper. Because all the transactions are going to be organized, automated, you’ll have a full picture of where you stand on your, on your financials. There’s our vision is that you will eventually not need a quick, you won’t need QuickBooks, and you will not need a book.

Brett:

Fantastic. Now that there’s a lot there, and our heads are full now. Let’s talk about the cost and the next steps if someone wants to get going.

Bobby:

We have a freemium model, which means if you are just starting out, you’ve got less than five or six properties, no charge, be free to use, if you want to use the bank integration, because we happen to have to pay plan part is the company that allows us to do full bank secure bank integration, so we got to pay them. For that, and for advanced reporting, we charge between 19 to $29 a month. With that you get the help of a virtual assistant, who will onboard you get you set up, get all your data organized. Once that happens, once your data is organized, after that the maintenance is super easy, but we’ll help you get on board. That’s why it’s gonna be $49.

Brett:

If you got the five or six properties, you want to do the freemium, just try to start out with that’s, that’s free, but if you want to add the bank integration and or go, let’s say to unlimited properties, then it would be 19 to $29. That a fair summary?

Bobby:

Yes.

Brett:

Then if they’re getting started, here you go BetterCapital.us

Bobby:

Reach out to me BetterCapital.us, bobby@bettercapital.us. I’ll personally help give them a demo. I’ll personally onboard them.

Brett:

We’re gonna shift a little bit here. Now we’re going to talk about capital Gains Tax Deferral and some 1031 Exchanges and some of the things that we’re actually working on because you’re an investor, I’m an investor, we and we invest in and typically larger multifamily value add or different commercial real estate syndications and deals for our clients, and that’s part of our passions, and one of the ways we connected. But we also connecting on the Deferred Sales Trust, which you mentioned in the beginning, the DST, different than a Delaware Statutory Trust. But I want you to give our listeners a little bit about your understanding of the Deferred Sales Trust and us working together what’s kind of been your feedback for those who are maybe looking at it for the first time, and also talk about kind of your story of due diligence when you found out about it?

Bobby:

A couple of things. Look, Brett, you and I have known each other for a couple of years now, and I love what you’re doing the not the Delaware Statutory, the DST, the Deferred Sales Trust, relatively new concept. You’re one of the pioneers, you’re one of the biggest evangelizers of that option for many real estate investors, and by the way, I think it’s not limited to real estate investments, I think you’ve pointed that out, it’s open to anybody, like when I working on a deal, where, it may it’s not real estate sale, it’s another entity in another industry, but part of their proceeds are going to have to go into, real estate, but into other things as well. We don’t what I appreciate about what you’re doing is you can help just about anybody that is facing huge tax consequences, that needs a legal and organized way to maybe defer their attacks impact so so I think for that, I think we have to all be really grateful to you for educating the layman people like me on what are some of the benefits? We’ve brought some, people to get for you to work with, and I think they’re very satisfied. They’re very happy. But I would say, anybody that’s looking at a big tax bill caused by a, maybe gain in the stock market or sale of an asset, they should really talk to you.

Brett:

Thanks so much for that feedback, and then endorsement, Bobby is so appreciated that, and to kind of piggyback on that, the Deferred Sales Trust can work for cryptocurrency, instead of a $5 million deal for an Ethereum client out of the East Bay Area, actually, they worked in Silicon Valley for 20 years, and they bought a theory about 575 or so years ago, they put about $100,000 into it, and went up to 13 million, and they had about a $12.9 million gain, and so we’ve sold about 5 million of that and deferred some tax it also as part of that was Bitcoin as well. They don’t very well, and part of what they want to do is invest in some real estate at any time all tax-deferred, which we allow you to do. But they cannot tend 31 cryptos, they also cannot tend to run a business sale or a primary residence, we did a primary home in Palo Alto for 8.3 million. On the 1031 side, Bobby being that you’ve been investing for a while, what’s your personal biggest frustration when it comes to the 1031 Exchange that you found for yourself, your or your clients, or your partners?

Bobby:

The biggest frustration is that 45 day, window in which you got to find that new asset and then work that out. That’s been so what happens often is they hurry, or they are not aware of the deadlines and the timelines and so on. But so they kind of make a rash decision to buy something new, which may not have been the most ideal property, but they have to pull the trigger on it anyway. That’s been a big frustration, just and then the knowledge about the intermediary, sometimes they think that just because they went through a title company, they forget to engage an intermediary at the right time. That’s been a frustration. But it is, it is a very stressful moment. I think with DST, you can alleviate a lot of that stress, you give them a lot of time to figure out a solution, maybe they don’t want to buy real estate, or go buy something that they’re not familiar with. But just because they’re an asset, let’s say in California or in Arizona or in Seattle, went up a whole bunch. Now they got to be forced to buy something in Oklahoma that maybe they wanted.

Brett:

We call it the shotgun wedding. You got to get engaged in 45 days and married and 180, and oftentimes, you’re selling in a high market, and by default, you’re buying in a high market, not that you can’t find a needle in the haystack, and by all means, if you do we’ll give you a high five and say buy that deal. But we’d like to see our clients buy forced appreciation value to add opportunities, where it makes sense on the investment by itself regardless of the tax deferral. By the way, you can learn more about the Deferred Sales Trust at CapitalGainsTaxSolutions.com, and also as a reminder, we can say failed 1031 Exchanges, pasture 45-day identification and we do not take up any space inside of your 1031 but you got to get with this early and you got to work with those who know what they’re there to have done this qualified intermediaries who are cooperative. Make sure you get this early go to CapitalGainsTaxSolutions.com. That being said, Bobby, we’re running out of time you ready for the lightning round?

Bobby:

Let’s do it.

Brett:

All right, if you could give us the one piece of wisdom if you could go back to your 25-year-old self and tell yourself one thing to do what would that thing be?

Bobby:

The one thing would be earned to invest it whether it’s in real estate or in other meaningful assets. Make sure you earn and invest early.

 

The Best Way to Track Your Real Estate Portfolio with Bobby SharmaBrett:

Second question what’s the number one book you’ve recommended or given the most in the past year?

Bobby:

It’s the answer is always been Rich Dad Poor Dad, but I would say Traction is close number two, but I’m a big believer in things like Stephen Covey’s books, and the old classics, but Rich Dad, Poor Dad still works. I just closed a Transaction with a realtor. He had never read Rich Dad, Poor Dad. I gave it to him as a gift. I said Listen, you helped me out on this. I want to read transactions, I want you to become an investor. Those are the kinds of things Yes, education and although.

 

Brett:

I can agree with you more, those are all great books. After all your success helping all the people you’ve helped, building better capital about us being an investor actually succeeding moving out of California getting to Miami, Florida, which I am I envy that you’re the tax-friendly state there. How do you stay centered in your values? How do you stay encouraged to charge to continue to help more people?

Bobby:

Look, at the end of the day, it’s all relative. I look at other people that are starting out, I look at other people that are very successful, I’m kind of in the middle of the road, nothing special, I did have some goals that I set for myself, they were not meant to be. I don’t compete with others, I just compete with myself, and my goal was to retire when before I turned 50 which I was able to do, and well not retire but be financially independent. To me, it’s about there are other people that are struggling, and I want to be able to help maybe help them avoid a couple of mistakes along the way. But, or maybe smooth out the zig-zag that they have in their lives or in their investment decisions. You may be, and I know your story as well. You and I went through some zigzags. If I can just help out smooth out some of those zigzags those peaks and valleys. I think I’ve done my job but again, I’m I think I have I still have to serve my friends my my my real estate community I call it I think that that goes on forever.

Brett:

Bobby  Sharma, I want to thank you for being on the show. I want to thank you for our sharing your insights on helping people to attract their real estate portfolios better I want to thank you for your thoughts on the Deferred Sales Trust and interesting to bring partners or friends or family or clients my way to help them with that, and I want to encourage you to keep using the gift of gratitude and the love for freedom and the love for building something to help other people which you’re certainly doing with BetterCapital.us and so thanks for being on the show and also want to thank our listeners for listening to the episode Capital Gains Tax Solutions Podcast also streaming on eXpertCRESecrets.com or we believe most high net worth individuals and those who help them they struggled clarifying their Capital Gains Tax Deferral Options not having a clear plan is the enemy and using a proven tax deferral show such as the Deferred Sales Trust is the best way for you to exit your how they appreciate it business cryptocurrency real estate save a failed 1031 Exchange. Also, you can create and preserve more wealth or help your clients do the same. You can learn more about CapitalGainsTaxSolutions.com that’s CapitalGainsTaxSolutions.com and for the top 5% of all the industry with business professionals, commercial real estate syndicators, brokers. You can also go to eXpertTaxSecrets.com. To learn more about our coaching program, please rate review, subscribe, and we’ll talk again.

 

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About Bobby Sharma

 

The Best Way to Track Your Real Estate Portfolio with Bobby SharmaBobby Sharma brings his deep understanding of real estate investing to provide a next-generation solution for fellow real estate investors (bettercapital.us and bayflip.com). Well known in the real estate community as a networker, speaker and a caring investor, and technologist, Bobby has built one of the most comprehensive software platforms for tracking, training, and transactions for real estate investors and professionals. Bobby is renowned as a thought leader in the PropTech and real estate space. Bobby brings social good into smart investing. Bobby is generous with his time and knowledge to help aspiring and experienced investors to succeed and grow.

Bobby Sharma has worked for some very successful Silicon Valley real estate companies and also created the largest real estate networking and educational group in the Bay Area and now looking to expand this to many major markets. Bobby has developed an innovative platform that allows investors to invest fractionally in debt.

 

 

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