Best way to organize real estate files

One of the best ways to organize real estate files I’ve found is to have a systematized storage and retrieval system so you can find your stuff in less than a minute.

It’s even MORE important today to have this (almost immediate) system in place because time is money.

This is one area that totally bums me out if I don’t have a system in place to find something I know I have.

We’ve all been there right?

“Damn – I KNOW I have this somewhere…”

Searching for hours through email, paperwork or computer files looking for information.

When you are investing in Real Estate, it is VERY crucial to have information at your fingertips, for the bank, your broker, accountant, property manager, & your joint venture partners as some examples.

You do not want to be digging through mounds of paperwork to find a mortgage statement or a tax roll number or something like that.

How To Organize Real Estate Files On Computer 

First things first – find and adopt a system that works and then adjust it to how you feel comfortable.

Because we both work differently and we need to make sure our filing and retrieval of information is easiest for US so we USE it.

I chose to follow the simple color coded folder system taught by REIN (the real estate investing network).

It’s very simple:  each property will use five color coded file folders for specific items related to the property tucked neatly away in a file cabinet.  (yellow – miscellaneous, red – tenant stuff, blue – legal, green – receipts, white – due diligence)

With this system, you are able to retrieve pertinent information about a property relatively quickly.

I’ve actually upgraded the individual file folders to a property binder instead.

And each property binder sits on my bookshelf – which I have to admit, looks pretty cool :).

Here’s what it looks like:

This does a few things for me:

1. The positive VISUAL impact of seeing all my properties neatly lined up on my bookshelf is always encouraging and a constant reminder of my success to help me press forward.
2. Everything is neat and convenient.  When I have to look over information from a property, it’s all in one binder instead of having separate folders.
3. They are easy to find and use.  Lastly, the binder system is easy for someone other than me to retrieve information.  This is extremely important for systematizing  your business so you can step away for a week or two and not worry about the ‘little things’.

And here’s a MINDSET  tip:

If you do not yet own a property, that’s ok;  go out and buy a few binders & put them on your shelf.

This daily reminder will seep into your subconscious encouraging you to ‘fill’ them.  It’s all about positive universal attraction isn’t it?

Add Digitizing To Your Best Way To Organize Real Estate Files

I can’t stress how important and convenient digitizing your information is.

Not only will you have instant access to attach in an email, but it is an extra layer of security backup for your paper files.

You’ll be able to store information off site as well in case of disaster such as fire.

On my computer, I have duplicated my property binders by creating a separate MAIN folder with the relevant category (colored) folders underneath.

The most challenging part of this digital system is to scan all the documents when you close on a property.

Because it takes a bit of time…

But once you have everything digitized, there is very little to scan in order to keep up your digital property binder up-to-date to ensure this IS the best way to organize real estate files!

For instance, when the year end mortgage statement comes in – that’s scanned and put in the proper folder on my computer and into the physical property binder at the same time.

Not a lot of time involved there…just discipline.

One thing is for sure, this system works for me –and all of the students and coaching clients I’ve shown this too LOVE IT.

For you, maybe it’s the folders, binders, a combination of the two or something completely different.

There are no shortage of organize and ‘retrieval’ systems out there…

You can find a complete section in your local bookstore specific to this subject alone.

The point is it’s never too soon to start building your own best way to organize real estate files so you can concentrate on other stuff in your investing business…am I right?

And think about this:

Imagine how professional your joint venture investors will see you when you can call up anything they want in a second or two.

Do you think that would install more confidence in them about referring you?

How To Organize Your Real Estate Files At Tax Time

I believe the reason you need a  best way to organize real estate files is when it comes to tax time.

My finance team is amazed at how quickly, up-to-date and information packed my banking binder is…and you’ll have the same reaction when you have the same system in place.

What do you think?  Let’s start a conversation about the best way to organize real estate files below…I’d love to learn how YOU do it.