The app can help investors find and quickly secure single-family home investments in cities across the country – or around the world – and offers management, leasing and non-recourse, interest-free financing.
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Plotify is a web-based solution for investing in single family homes.
Platforms: Browser, companion app
Ideal for: Investors, agents working with investors
Top selling points:
- For experienced, accredited investors
- “5-click investment”
- Including property management
- Buy in multiple cities or countries
- Promotes portfolio building
Some agents may see apps like this as a threat to their worth to investor customers – and that can very well be.
What you should know
You don’t really need to know what a “plot” is to use or understand Plotify, but since the term is part of its user experience, you’re good to go. Content: A structure that brings real estate, taxes, insurance, mortgage, and property management together into one convenient, transferable asset.
As with some of the other alternative property purchase and investment services on the market today, you are purchasing a property from Plotify that backs it up with a large pool of credit. The company’s goal is to eliminate the difficulties encountered when investing in residential real estate (as opposed to apartment buildings) such as:
Plotify was built by a team of contractors who also have thousands of single family homes (SFRs). One of the founders, Anish Malhotra, said he “always had an affinity for products that break down barriers and democratize access to platforms that encourage wider participation”.
Plotify definitely reflects this mindset.
The software provides users with a city and zip code rating system and currently takes advantage of some American cities that are known to be undervalued. His algorithm uses 90 data points to create property risk assessments and narrows a list to, for example, 200 options per market. (This number would vary by market.)
Plotify secures a home to an investor and then transfers ownership to an LLC for its buyer that is specific to that home. While LLCs can invest in other LLCS, Plotify still puts each house in its own company.
Investors are approved in minutes with interest-free, no recourse 60 percent loan-to-value (LTV) financing with Plotify, at what I was told is “a good rate”.
The company then quickly puts together the operating plan of the investment and also sets up a reserve fund to cover inconsistent expenses that are more common and less predictable than multi-family investments. And this fund adapts dynamically as operations become more stable.
Plotify solves the challenges of first-time use by only investing in houses that have already been rented. It works with regionally audited property management partners and acts as an interface between investors and the manager.
While the mobile app wasn’t 100 percent ready for prime time on our demo, it was very close and was being used by beta testers. It definitely looks finished.
The app quickly guides investors through the accreditation process and enables them to top up their account within minutes. Properties or plots fill a user’s feed like Monopoly cards; All of the information displayed is neat and relevant enough for a decision to be made on a single screen.
Income statements are accessible, as are map views of how each property relates to another – a nice touch when a user starts putting together a portfolio of what Plotify is trying to accomplish.
Customers with existing properties will shortly be able to load their portfolio into Plotify and set it up for operation. They call it “Plotify as a Service”.
From saving time by saving cities across the country after solid SFR investments to having professional services built in, Plotify should easily niche itself into rental property investments, just as Robin Hood makes Wall Street as friendly as Main Street. Granted, you can’t buy in with $ 10.
Plotify offers investors control, a stable return, and low transaction costs.
Do you have a technology product you’d like to discuss? Email to Craig Rowe
Craig C. Rowe started at the start of the commercial real estate dot-com boom, helping a number of commercial real estate companies build their online presence and analyze internal software decisions. Now he helps agents with technology decisions and marketing by reviewing software and tech for Inman.