Intellisys has an impressive track record working with Property Management and Accounting, for owners/operators of Multifamily, Single Family, Commercial/Retail, Affordable Housing, Public Housing, Student Housing and Property Management companies. Our teams fully understand the nuances of servicing the needs of real estate companies by focusing our expertise on real-time task management. We enable you to:
Build competitive advantage from superior processes
Reduce cost and increase revenue
Re-engineer processes and adopt leading technology solutions
Improve quality and control by reducing challenges related to regulatory compliance and risk management
Enhance scalability and flexibility
Reduce operational expenses and increase capital efficiency
Intellisys property management services offer the value that extends well beyond cost arbitrage, improving quality and productivity through efficient process enhancement.
Software development
outsourcing and augmentation can help you alleviate the work and pressure on
your in-house team. Also, you can save time and money as well as access greater
scalability. We at Intellisys Technology let you take advantage of these benefits
whatever your software development project is.
EBRM, a healthcare
wholesaler, had a major restructuring project that exceeded their budget. They
wanted to rebuild a system with us because of our expertise and we were
cost-effective.
Testing stalled the
project at first, but we were able to solve that when we automated the testing
process. The client also struggled with their old reporting system, so we also
automated reporting.
Another challenge we
faced was removing the clutter and the amount of paper that the transactions
produced. To solve this problem, we created a solution that routed paperwork to
the appropriate areas.
In the end, we were
able to fill the gaps in the client’s work — they didn’t have the in-house
expertise, so we came in and partnered them. The client has also been happy
with the affordability of our services.
“What stands out is their
cost. They’re affordable.” — Executive, EBRM
In this ongoing
partnership, we make sure the client receives the best of outsourced software
development services. They have access to great talent and the latest tech,
focus on business, and cost-effectiveness.
We’re proud of what
we’ve done for the client, but we’re also amazed by the confidence they have in
us. Check out our Clutch page to read their full 5-star review.
Another review is also
up on the page for the project we’ve done for a startup firm that needed design
enhancement and integration features.
More
Recognition for Intellisys Technology
Thanks to the feedback
of our satisfied clients, we’ve also made it to other ranking platforms.
We’re one of the top
70 software development companies in Chicago, as reported by The Manifest, Clutch’s sister
website.
Intellisys Technology
is a global provider of IT services and
solutions, and we offer high-quality and cost-effective solutions to companies
around the world. We’re ready to take on any projects you have.
Through any life crisis comes insight into what is
important to us, what we no longer need and what we want for the future; the
same applies to business and our careers. Cities are unaffordable for many, for
several reasons, such as exorbitant cost of living (Rent, food, transportation,
miscellaneous expenses), high local and state taxes. To add fuel to the
fire the COVID pandemic is forcing us to rethink and reprioritize our needs.
It is prudent to look for alternatives – for health
and economic safety by cutting living costs and taxes. Across USA city
migration patterns have changed since the new normal, namely ”Working Remote”
model is in effect. New data shows that net arrivals are down in large metro
areas such as New York, San Francisco, Seattle, Boston and Portland from April
through August of this year, versus a year earlier.
Migration from big cities is creating opportunities
for smaller cities such as Jacksonville, Salt Lake City, Sacramento, Milwaukee,
Kansas City, Missouri, have seen the biggest growth in net arrivals over the
same period. City migration patterns amid the pandemic found that smaller
metro areas are gaining; some famous big cities are slipping and hints of
de-urbanization seen across the country.
Net arrivals in two giant metro areas — New York City and San Francisco — have fallen more than 20% from April through August of this year, versus a year earlier. In both cases, departures significantly exceeded new arrivals. Net arrivals are down about 10% in Seattle, Boston and Portland, Ore., as well. Everyone leaving a metro area is creating opportunities for a number of smaller cities.
Working remote is the new
normal.
Remote working is here to stay and will more than
ever become an integral part of the way we work. Now is the time for companies
to prepare for this ‘back to the new normal’. As you prepare for the new normal
and realize that people can be as productive at home as they are at work, why
not consider a long-term remote working plan?
Intellisys works from a Remote
Center
Intellisys, an Illinois company, is a global provider of BPO services and solutions. Intellisys has a State-of-the-Art ISO 9001:2015 / 27001:2013 certified delivery center in Chennai, India. Over the past 23 years, Intellisys has been working with Real estate companies across asset class providing qualified and experienced Property/Fund/Asset Accountants who are Domain Experts.
Our services can offer
significant benefits
Reduce operational costs between 40% – 50%
Extensive use of RPA (Robotic Process Automation)
tools which allow cutting time and costs significantly
Flexibility (Accordion Model –
Increase and decrease team size at a very short notice)
Can assign large teams of real estate domain experts at
a very short notice
Fixed Fees – No hidden charges
Multilingual Staff (English, Spanish and French)
Ad-hoc projects (such as Audits, Seasonal demands)
Assist re-purpose existing staff
Motivate the existing staff and offer them upward
mobility
The rebound in the U.S. labor market accelerated in June as broader re-openings spurred more hiring last month, though filings for unemployment benefits remained elevated last week as coronavirus cases picked up
Payrolls rose by 4.8 million in June after an upwardly revised 2.7 million gain in the prior month, according to a Labor Department report Thursday. The unemployment rate fell for a second month to 11.1%, still far above the pre-pandemic half-century low of 3.5%.
Economists had forecast payrolls to rise by 3.23 million—the median in a range of 500,000 to 9 million—and an unemployment rate of 12.5%.
How can Intellisys Help?
Remote Work Is Here to Stay – The COVID-19 pandemic will set a “new normal” for the office workplace as companies adopt and integrate remote work practices deployed during the pandemic. Therefore, it will transform from a single location to an “ecosystem of different locations and experiences.”
Intellisys, an Illinois company, is a
global provider of BPO and Information Technology services and solutions.
Intellisys has a State-of-the-Art ISO 9001:2015 / 27001:2013 certified delivery
center in Chennai, India. Over the past 22 years, Intellisys has been
helping Real estate companies across asset class with qualified and experienced
Property Accountants and Fund Accountants who are Domain Experts.
Our
services can offer significant benefits
Reduce operational costs between 40% – 50%
Extensive use of RPA (Robotic Process Automation) tools which allow cutting time and costs significantly
Flexibility (Accordion Model – Increase and decrease team size at a very short notice)
Can assign large teams of real estate domain experts at a very short notice
Fixed Fees – No hidden charges
Multilingual Staff (English, Spanish and French)
Ad-hoc projects (such as Audits, Seasonal demands)
Assist re-purpose existing staff
Motivate the existing staff and offer them upward mobility
Underwriting is an extension of Property valuation. A Property is evaluated for multiple purposes and the valuation method varies depending on the purpose. A Seller would evaluate a Property to arrive at a Price, which is called as “Offer” or “Asking Price”. Based on the Price quoted by the Seller, the Buyer performs Underwriting to evaluate and forecast the performance of Subject Property to negotiate the Deal. Underwriting Analysis is done based on historical data and Assumptions. We explain some of the key terms, and jargons that are distinctive to this industry in this blog.
Assumptions / Past Analysis:
Reports:
Rent Roll Statement: List of all the rentals, Unit-wise, in a specific Property
T12 Income Statement: Trailing twelve months statement of Income pertaining to the Property
Price or Value of Property:
Offer / Asking Price: It’s the Price quoted by a Seller after performing Property Valuation
Whisper Price: It’s the price as per Broker at which if we bid, we can secure the Deal
Sale Price: It’s the price at which we, as a Buyer, shall quote to the Seller for negotiation
Appraisal Review Board (ARB) Value: It’s the aggregate Market value of Land and Building as per the County’s Central Appraisal District (CAD) on which Property Tax is calculated
Forms of Capital:
Sponsor Equity: Capital that is raised by the Promoters or General Partners (GP)
Investor Equity: Capital that is raised by the Investors or Limited Partners (LP)
Debt: Capital that is borrowed from a Financial Institution
Working Capital: Capital that is required for running the day to day operations in a business, it can either be raised or borrowed
Financial Obligations:
Cost of Equity: Dividend that is paid to the Equity holders
Cost of Debt: Interest that is paid to the Financial Institutions
Replacement Reserve: Portion of Profits that is set aside to provide for the periodic replacement of building components that wear out more rapidly than the building itself
Capital Improvements or Rehabilitation Cost: The average cost at which Units of the property are expected to be renovated during the holding period
Loan-To-Value or Debt-Equity ratio: The percentage or ratio at which Equity & Debt is preferred to be maintained for arriving at Sale Price
Growth Rates: These can be applied on any item of Income Statement in order to forecast, they can be arrived at either based on past trend or industry norms or market comps
Rent
Other Income
Opex
Vacancy Rate
Bad Debt
Tax Growth
Loss to Lease
Concessions
Capital Expense
Assets Under Management (AUM) Fee: A fee that is collected by the Sponsors for managing the Asset which in this case is a Property, generally its paid out as salary or fee to the employees of Sponsors or Vendors
Acquisition or Disposition Fee: The cost incurred to sell the property mainly consisting of Sales Commission
Closing Costs: The Processing fee for closing a Deal
Hurdles: These can be set for any of the KPIs that are listed under Financial Analysis to perform Waterfall analysis
Analysis:
Financial Analysis:
Cap Rate: The property’s one-year rate of ROI
Going-in: Property’s projected first-year NOI divided by the purchase price of the property
Terminal / Exit / Reversionary: Property’s projected first-year NOI divided by the sale price of the property
Return on Equity: Percentage of Return (i.e., Capital Gains plus Net Cash Flow) on Equity portion of capital
Return on Investment (ROI): Percentage of Return (i.e., Capital Gains plus Net Cash Flow) on Initial Investment
Capital Gains Yield: Percentage of Return (i.e., Capital Gains) on Offer Price
Net Present Value (NPV): The difference between present (discounted) value of cash inflows and present (discounted) value of cash outflows
Internal Rate of Return (IRR): A discount rate that makes the NPV of cash flows equal to zero
Equity Multiple: The number of times Return (i.e., Capital Gains plus Net Cash Flow) over & above Equity portion of capital
Debt-Service Coverage Ratio: A measurement of NOI available to pay Debt obligations
Cash on Cash returns: Percentage of Return (Net Cash Flow or Net Income) on Opening Balance of Equity for a particular year
Preferred Return or Hurdle Rate: A minimum threshold return that LPs must receive before the GP can receive from the balance interest
Non-Financial Analysis:
Demographics
Flood Hazard Zone
Crime Stats
Market Comps (Amenities, Rent etc.)
Accessibility to Restaurants, Schools / Colleges, Hospitals, Entertainment, Retail, Transport (Bus / Train / Airport)
This week’s data matches the share of households that paid their rent through June 20, 2019.
Out of
11.4 million professionally managed apartment households across the country,
92.2% had made a full or partial rent payment by June 20, according to the
National Multifamily Housing Council’s latest Rent Payment Tracker data.
As per Bloomberg America’s labor market unexpectedly
rebounded in May, signaling the economy is picking up faster than thought from
the depths of the damage from the Covid-19 pandemic.
Nonfarm payrolls rose by 2.5 million after a 20.7 million
tumble the prior month that was the largest in records back to 1939, according
to Labor Department data. The jobless rate fell to 13.3% from 14.7%.
The data show a U.S. economy pulling back as states relax
restrictions and businesses bring back staff. Unemployment rates declined among
adult men and women, white Americans, and slightly for Hispanic and Latino
Americans.
The New Normal
All businesses post Covid-19 are set to change. What is
also for sure is life that we get back to will be significantly different from
the one we had before the outbreak. While we do not portend to know the future,
and our lens is limited by our own experiences and a reflection of the past, it
is in times of great disruption where great opportunity abounds. It is not
just across the spectrum of the industries but among others that we cannot even
imagine.
The current real estate market is much like a Rubik’s cube.
Once we think we have it figured out, we look at it from another angle and find
out we still do not have it right. There are many factors complicating the
current market.
One thing that we are seeing very clearly is a number of
clients who were insistent on work being done in house on site are now very
open to working from a remote location. After having worked for 22 years,
we can with great confidence say Intellisys is a Subject Matter Expert in this area.
Intellisys Capabilities
Intellisys Technology LLC is a global provider of BPO
and Information Technology services and solutions. Intellisys has a
State-of-the-Art ISO 9001:2015 / 27001:2013 certified delivery
center in Chennai, India. We provide high quality and cost-effective solutions
to Real Estate businesses on time and within budget. Over the past 22
years, Intellisys has been helping Real estate companies across asset class with
qualified & experienced Accountants without any wait time. All of them are
Domain Experts.
Our services can offer significant benefits
Reduce operational costs up to 40%
Extensive use of RPA (Robotic Process Automation) tools
which allow cutting time and costs significantly
Can assign large team of real estate domain experts at a very
short notice
Fixed Fees – No hidden charges
Multilingual Staff (English, Spanish and French)
Flexibility (Accordion Model – Increase and decrease team
size at a very short notice)
Ad-hoc projects (such as Audits, Seasonal demands)
Assist re-purpose existing staff
Motivate the existing staff and offer them upward mobility
High volumes of cash and credit
cards that pass through a billing counter each day makes POS system a
necessity, it can be in a Mall, Restaurant, Departmental stores or any other
place. Not all POS systems suit one’s needs especially if the needs are
peculiar. We had one such client with peculiar needs & it was a Golf
Sporting Club with 1 Canteen & 2 outlets on their field.
Scope of the Project given to us
was a one-liner & that is to install a POS billing system in order to
replace their existing system which is decentralized / manual & to avoid
pilferage. Before submission of the Proposal, based on the learnings from our
experience, we conducted Due Diligence to evaluate the Project Scope &
identify hurdles that we may be facing during the course of Project. This is a
very important step & some may believe it to be unproductive by assuming
that things can be dealt when we reach that stage of the Project but our belief
is in providing exceptional service & commitment so we leave no stone
unturned.
Due Diligence proved to be an eye
opener as there were many findings of which we are going to share few in this
Blog. Our first finding was that, out of the 3 locations where POS system had
to be implemented, only the Canteen was connected with Internet while remaining
2 Outlets were in a remote location without any sort of network or signal.
After a lot of deliberation, we laid out couple of options to the Club’s
management. Options available were to lay the Network or continue to remain
offline & push the data from POS device whenever its brought within the
reach of Wi-Fi signal. Everyone opted to go with the latter option while considering
to lay Network at the time when they expand, which was in another year’s time.
Our next finding was that there
were 2 categories of Customers – Members & Guests. The problem was not
having 2 categories but identifying multiple workflows while developing the
Billing application. Client then started mentioning the various workflows that
were required like
Guests would stop using the current Token system & start paying
only using Cards.
Members shall not pay any money at the POS instead their
transactions should be clubbed in the Monthly statement so that they can pay
online along with their outstanding dues.
Members should have an option to Split bill and sign their copy of
acknowledgement receipts.
Validation for Members has to be thru Thumb impression.
During any given day, Members are not expected to place their
Thumb, more than once, for validation.
To finalize the above workflows, we had to deliberate with the
Management multiple times as they were very wary about it & we had to boost
confidence in them by explaining the pros & cons that were involved.
One other finding was that the Client wanted POS transactions to
be synced with their Accounting system (Tally). After deliberating, we
identified that the version of Tally which they were using is freezed due to
some other integration so it was not possible to sync the data. Instead, we
built a report to export the data from our application, so that User can manually
upload the file into Tally.
There were many other insignificant findings that we found, but
not included in this Blog, during the course of our Due Diligence but
everything was a learning.
Today, May 28, 2020 I read
an article written by Mary Salmonsen in Multifamily Executive Magazine
Quote
The National Multifamily
Housing Council’s Rent Payment Tracker, which draws from rent collection
activity in 11.4 million units of professionally managed market-rate housing,
has found that 90.8% of apartment households made a full or partial rent
payment by May 20.
This marks both a
2.2-percentage point drop in the share of Americans who had paid rent through
May 20, 2019, and a slight rise over the 89.2% of households who had paid rent
by April 20, 2020. Last week, 87.7% of American households had paid their rent
by May 13.
According to the Bureau’s
household pulse data survey, 80.3% of all renter households had made their rent
payments on time in April, while 17.2% had not and 2.5% had their rent
deferred. Of the respondents, one-third had no confidence, or only slight
confidence, that they could pay rent the next month.
Management companies are being
“flexible” with their renters, absorbing credit card fees and offering deferral
or repayment plans. However, this translates into a loss of revenue for the
operator. a “wave” of economic uncertainty and reduced cash flow for the
sector, could “come to shore” in the third quarter.
The highest-performing assets
are higher-end market-rate properties and Section 8 housing. The Section 8
residents, largely low-income seniors, are able to pay their subsidized rent on
time thanks to Social Security, which provides them with a steady income.
Low-income housing tax credit properties are “trailing” more, as they are
un-subsidized rental properties occupied by working families hit hardest by the
pandemic.
Unquote
How can Intellisys help?
Intellisys Technology LLC is a global
provider of BPO and Information Technology services and solutions. Intellisys
has a State-of-the-Art ISO
9001:2015/27001:2013certified
delivery center in Chennai, India. We provide high quality and cost-effective
solutions to Fortune 500, mid-sized, and small businesses on time and within
budget. Over the past 22 years,
Intellisys has been helping business with qualified & experienced
Accountants without any wait time. All of them are Domain Experts.
Our services can offer significant benefits
Reduce operational costs up to 40%
Extensive
use of RPA (Robotic Process Automation) tools which allow cutting
time and costs significantly
Fixed Fees – No hidden charges
Multilingual
Staff (English, Spanish and French)
Flexibility
(Accordion Model – Increase and decrease team size at a very short notice)
Ad-hoc
projects (such as Audits, Seasonal demands)
Assist
re-purpose existing staff
Motivate
the existing staff and offer them upward mobility
E-Commerce revenues are projected to
grow to 4.88
trillion US dollars in 2021 worldwide. With such a rapid growth, eCommerce
marketplaces are good channel of choice for sellers.Introduction of new technology and availability of multiple
eCommerce software solutions in the market, it has become very easy for the
sellers to onboard marketplaces and start selling.
In today’s competitive
e-commerce market, it is essential to be quick, responsive, and accurate when a
customer makes the transaction. But receiving
and tracking online payments is a major challenge that many of the sellers
still face today. Maintaining records regularly becomes almost
impossible to manage with growing sales.
This is when, effective payment reconciliation system can help track
your payments for the orders received. In this blog, we explain the
characteristics of an effective payment reconciliation system with couple of
case studies.
Case Study
1: Often, waiting
period to receive supporting documents for missing transactions cause delay in
reconciliation process.
Generally, we
download statements from bank portal and upload them in client’s Accounting
system (Quick Books). QB then auto matches the Deposits with AR invoices and
Payments with AP Bills. Once it is completed, we check for unreconciled
transactions. Most of them remain unreconciled because invoices are missing in QB
& we had to wait until missing documents are received.
We overcame
this challenge by suggesting Client to implement Bill tracking system for
uploading Sale Invoices and Vendor Bills based on which AP Bills and AR
Invoices get automatically created. Payments are then processed after 3-step
approval process. Then, entries in Bill tracking system get synchronized with
Accounting system. This process reduced the missing entry cases and improved
the Bank Rec TAT.
Case Study
2: Bank Recs relating
to past period which were already closed / completed are changed to
unreconciled status without intimation. This used to result in re-doing the
entire reconciliation from beginning to identify the difference.
As a general
practice most of our clients like any other, close their books on periodical
basis – Daily, Weekly, Monthly etc. based on the volume but this client of ours
practices yearly-closure of books. Coming back to the issue, primarily, this
used to happen due to lack of reporting. We suggested Client to list all such approved
JEs / Bills which have been edited. To do this effectively, we have set cut off
dates & maintained a log report to identify the items that were frequently
being edited & investigated them to make sure they do not get repeated.
Over a period, activity got streamlined and it became seamless.
Wide
range of small businesses as defined under Small Business Administration (SBA) Act
Any
business with 500 or less employees working in the US
Non-Profit
Organizations with 500 or less employees working in the US
Veterans
Organization with 500 or less employees working in the US
Tribal
business with 500 or less employees working in the US
Sole
proprietors or self-employed individuals and few others as defined in the Act
Affiliation
rule states that 500 count is Company-specific but not Branch-specific.
Qualification
Rules:
If
your business has been suspended or 50% drop in Revenue.
Borrower
must have been in operation as of 15th Feb 2020.
If one does
not qualify for this program, then they may consider applying for Tax Deferral or
other programs.
Terms:
Lesser
of $10 Million or 2.5 times of average total monthly payroll costs incurred
during the past 1-year
Interest
rate is 1% (as per SBA) from the date of disbursement of loan
Maturity
is of 2 years (as per SBA) period with no prepayment / penalties
Repayment
begins after 6 months from the disbursement of loan
Certification
must be provided by the Borrower that they shall not reapply for another PPP
loan in future
Proceeds
can be used only for,
Payroll
expenses
Mortgage
/ Debt Interest payments in existence as of 15th Feb 2020
Rent
/ Lease payments in existence as of 15th Feb 2020
Utility
payments in existence as of 15th Feb 2020
Proceeds
cannot be used for,
Cash
compensation in excess of $100,000 during the year per employee
Taxes
Non-US
employee payroll
Qualified
Medical / sick leave for Covid-19
Few
others as specified under the Act
Guidance on Waver
of the loan is expected to come soon but primarily, at least 75% of the
loan proceeds must be spent towards Payroll costs. This must be separately
applied by the Borrower by providing documentation justifying the usage of loan
proceeds for allowable purposes.
