The Precision Budgeting mobile app is designed to serve as a detailed budgeting, maintenance, and repair scheduler for both real estate agents and homeowners alike. I worked with a real estate investment firm out of Duluth, Minnesota to create an application that would take the guesswork out of setting money aside for property renovations and repairs.
Jonathan Korb, Neal Jacobi
Jul 2020 — ongoing
The art of real estate investment property budgeting is wildly imprecise, if I’m being nice. In reality, from what I’m told, it’s a mess. Investors and property managers set aside 10% of their revenue from rentals – or determine some arbitrary fixed amount – and they cross their fingers and hope it covers whatever repairs rear their ugly heads during the course of that year. This just wasn’t cutting it for us. Jonathan’s idea for a more precise budgeting methodology was sound, but it needed help getting off the ground in a more practical, modern way than the pen and paper he’d been successful with in the past.
In order to understand the real estate market, as well as potential users of the application, we began discussing pain points and areas of opportunity with other investors around the Duluth and Northeast Wisconsin areas. We were able to come away with two major themes that confirmed our initial assumptions:
- Budgeting for maintenance on a property is too time consuming
- Budgeting for maintenance on a property is too imprecise
From here, the founders and I were able to regroup and discuss what we had learned along the way. Namely, we were able to confirm that our initial product idea is sound and fills a void in the industry.