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Show Summary
In this episode of the Real Estate Pros podcast, host Michelle Kesil interviews Francisco Mago, owner of Reifax.com, a real estate information system that helps investors identify potential deals. Francisco discusses the unique features of RiaFacts, including its focus on providing actionable insights rather than just raw data, and how it serves a variety of clients, particularly wholesalers and real estate investors. He also addresses the challenges posed by emerging technologies and the integration of AI in real estate transactions. The conversation highlights the importance of education and mentorship in leveraging technology for real estate success, as well as the subscription model that RiaFacts employs to engage clients effectively.
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Investor Fuel Show Transcript:
Francisco Mago (00:00)
Well, I will tell you one of the challenges that arise right now is it will have to be with technology and the race of AI. Right now, things like evaluating a property by pictures and…I actually having a smart analysis of a property are in play. We were working from the last two years for the system that actually can buy and sell real estate by itself, negotiate the property.
actually interact with agents and homeowners and negotiate, send contracts, respond emails. This is the latest technology that we’re working on right now.
Michelle Kesil (02:20)
Hey everybody, welcome to the Real Estate Pros podcast. I’m your host, Michelle Kesil. Today I’m joined by someone I’m looking forward to chat with, Francisco Mago, who is the owner of reifax.com, helping provide real estate information. So, excited to have you here today, Francisco.Francisco Mago (02:43)
Hi Michelle, happy to be here with you.Michelle Kesil (02:46)
Great, so let’s dive in. First off, for those who are not familiar with you and your work yet, can you share what your main focus is?Francisco Mago (02:56)
Yes, basically we are a real estate information system. When I say information, most of the people when they me what is that that you do, you sell data like this or this other side. And Basically the simple answer is no. We were not justsell data, give you a foreclosure list, or give you a probate list. What we do is we tell you where the deals are. For example, you know, to define a deal, you need to have two main things. The first thing that you need to have when you’re finding a deal is where, what is the money? Is the property half or does it have equity? And the second one,
at which is equally important is the seller is the seller motivated. So when you have the intersection of these two things, motivation and equity is when is the moment when you can find a potential deal. And this is what we have been dedicating for the last 20 years actually.
Michelle Kesil (03:58)
Awesome. And which markets do you operate in?Francisco Mago (04:02)
Whereour main market is Florida, though we have operations in seven states, Texas, Georgia, Arizona, Massachusetts, and a few others. say Maryland and New Jersey. I hope none of them escape right now for me.
But I can tell you those are the ones that were open.
Michelle Kesil (05:14)
Awesome. And who are the primary people that you are serving?Francisco Mago (05:19)
My main clients are wholesalers because we are very good to identify where these are. That’s our bread and butter.Michelle Kesil (05:28)
Yeah, absolutely. And so how does your website work?Francisco Mago (05:35)
Basically, the system not only identifies the deal, we have capabilities to make offers directly between the system. The system ⁓ generates contracts. We have a full CRM that allows you to actually control your offers andNegotiate the properties that you’re trying to get the ones that are on market. You also work with off-market properties We We do have a very deep analysis of every single property that we actually Analyzing the system
We’re very out of the box in the information we provide when we say that. Or when I say that, we’re probably one of the very few.
systems out there that provide information about open violation just to give you a detail regarding to that. Additionally, we’re one of the very few that provide real comps for shorter rentals, not only regular comps and rental comps, but short-term rental comps as well. Providing information.
We are very, very detail oriented when it requires to property analysis and where the potential deal is coming from. Not only we can identify one challenge that the homeowner might have, let’s say that a homeowner is in probate, that’s one of the challenge we identified. We also…
tell you that the property, you know, owed taxes or he has an easy foreclosure. You have any mechanical links of any other situation that the system may.
found regarding to the property. We’re very detail oriented. We’ll give you a very deep analysis of every single deal. So the user can actually make a decision regarding to the property. So if he continues or not.
That’s on my side.
Michelle Kesil (07:33)
Awesome. And what do you feel are some of the things about your business and your website that are different from what other people are doing?Francisco Mago (07:43)
As I told you, most systems out there provide data. And data is facts regarding to the property. What we provide is information. We interpret the data and we tell you, know, this property might be a potential deal and this property might be not.and we will tell you the reasons why. So yes, in order to create information instead of data, you need to have ⁓ knowledge and apply that knowledge. And that’s what we do here and that’s what is set us apart.
Michelle Kesil (08:52)
Awesome. And what would you say are some of the main parts of your business that have allowed it to continue to grow and to run smoothly?Francisco Mago (09:04)
Well, the way I see it, the relationship that we have with the real estate investor clubs and the investor communities is very tight. Basically, a big part of successful real estate investors are mainly in Florida.They not only use the system day in, day out. Not only they have one account, they have 20, 30, 40 accounts, depending on how many people they have using the system because it’s scalable. basically that would say that.
Michelle Kesil (09:45)
Yeah, can you expand on the scalability aspect?Francisco Mago (09:50)
Yes, we have actually we have clients that have like 50 seats or more. They put offers all over the state. They control that offer with those accounts. I would say they’re very successful doing that.They use virtual assistants and that’s what we’ve been doing for have clients with me that do that the last 10 years. They’re to be very successful in that.
Michelle Kesil (10:19)
Yeah. And your clients, are there any other types of clients besides wholesalers that use your services?Francisco Mago (10:28)
Realtors that work with investors to find deals. Mortgage brokers to find because one of the things is we determine how much equity the property has so we have information of the mortgage.So they know they can market to people that have disadvantages, mortgages. So they use the system to find what potential clients that way.
Michelle Kesil (10:53)
Awesome. And what have been some of the challenges that you have experienced in this field?Francisco Mago (11:03)
Well, I will tell you one of the challenges that arise right now is it will have to be with technology and the race of AI. Right now, things like evaluating a property by pictures and…I actually having a smart analysis of a property are in play. We were working from the last two years for the system that actually can buy and sell real estate by itself, negotiate the property.
actually interact with agents and homeowners and negotiate, send contracts, respond emails. This is the latest technology that we’re working on right now.
Michelle Kesil (12:32)
Awesome. And so how are you using different sources of technology to expand the type of data that you get?Francisco Mago (12:43)
What we’re doing right now is we actually are, we finished the testing part of that technology and we’re actually into production at this moment and the results are really incredible. We are able to actually put someacquisition system in automatic and we are acquiring right now between 25 and 40 deals a month with this new technology. The difference is this in these cases are in-house technology. It’s nothing that we’re selling to our clients at the moment though it’s something that was
very new, we are working on that, but the results has been staggering. The amount of contests that we’re having to close is
Michelle Kesil (13:36)
Awesome. And what are you most focusing on solving or scaling to next?Francisco Mago (13:41)
Well, what I’m doing right now, it has to be a lot with this new technology. And the way that we do it is we can’t at this moment buy all these properties. So we are in the process of actually finding the right capital to…actually buy these properties and many of these properties have not only 50 cents or 65 cents in a dollar, have a lot of equity, but they also have cash flow opportunities and we’re living a healthy amount of money on the table right now. So we’re in the process of raising this capital in order to
put all this technology to work. And that’s what we’re focusing right now. We have a healthy system on the SaaS side of the business, which is the clients that we currently have. But with all this new technology, we’re able to put the things in automatic. We used to say to our clients that we do everything but collecting the check. With the AI, the system is actually be able to do everything.
up to collecting the check. So that’s where we’re dedicating most of our, that’s the direction that is companies taking at the moment.
Michelle Kesil (14:55)
Awesome. And so how are like real estate professionals leveraging your services? Like, are they just browsing for things through you guys or yeah, are they able to sort through information better? Like what is like kind of the leverage that they’re getting?Francisco Mago (15:18)
Well, I’m going to tell you this. We have a few, when I say a few, I will say a few dozen millionaires on our belt, people that use and abuse our system. They have become very wealthy. OK, and the reason being that they’re theThe only thing that they need is actually identifying the deal, which is what Pre-Effect does. And after that, they take over and do what they know, what they need to do. That’s why we work very closely with mentors. We work very closely with mentors because we consider our tool to be an advanced tool. But if you don’t have a…
It’s the same thing. can travel by plane, but you are the one, you need to be a pilot. If you don’t know how to use not only the system, but information that you’re just gonna be placing your hands, then you’re wasting your time and money. So we partner very well with coach. And the reason being is because they not only have the…
information, the data, but they also have the education. You need to know how to drive this thing. That’s very important.
Michelle Kesil (16:29)
Yeah, definitely. That’s an important component. And how does it work? Is it like a subscription service? How does that work?Francisco Mago (16:37)
Yeah, whatwe call the regular system that is one that is not AI updated is it works as a SaaS system. It’s a subscription base that is month to If you need to check it out, you go to REIFAX.com.
Go there, check it out, analyze the information, and basically you will check out the features of the system there, whether that the success stories that we have. basically, you check it there.
Michelle Kesil (17:15)
Okay, amazing. Well, before we wrap up, if someone wants to reach out, connect, learn more about what you’re doing, where can people find you and connect with you?Francisco Mago (17:26)
Okay, again, reifax.com, reifax.com, and you can reach our old social media is there. And ⁓ our phone numbers are in there. We have a chat room. What we usually do is we give you a demo of the system. We show you what the system can do for you. And after that, ⁓ every single…session that you might want, might need to learn the system is totally free. We don’t charge for additional training. So that it has been very good to our clients because you once you had the need to learn something, we understand that systems are very important in order to.
understand what you need to get. You need a little bit of time so we don’t charge for training or you can have unlimited training if you need to.
Michelle Kesil (18:15)
Perfect. Well, appreciate your time, your story, and your perspective. Thank you so much for being here.Francisco Mago (18:21)
Michelle, thank you very much for your time and for this interview. It’s been very nice being here with you.Michelle Kesil (18:28)
Great. And for those listening to the show, if you got value, make sure you have subscribed. We have more conversations with operators like Francisco who are building real businesses. We’ll see you on our next episode.
