The Time to Embrace it is Now
by Andy Bates
In this day and age, technological advancements are rolling out faster than ever before. The same keen insight and business acumen that has set the successful apart still exists, now increasingly focused through digital solutions to business problems.
An industry ripe for tech modification, and one that has already begun to evolve through digital implementation, is real estate. For investors wanting to stay ahead of the curve with oncoming trends and upcoming practices, digitizing aspects of their business is a must. There are several advantages for those willing to embrace these technological advances and many ways in which investors can leverage tech in the age of digital real estate.
Automation and Process
Technology that enables investors to automate aspects of their business is proving invaluable, and these technologies are widely available. Automation is best applied to the most rudimentary, routine, and reproducible tasks in an investor’s business. An investor may be versed enough in software technologies to develop a pro forma to help determine when an investment may be worth their while. By entering property information into a programmed application, like Microsoft Excel, the pro forma can be designed to calculate returns and more easily compare them to the investor’s threshold for success.
The means of producing financial calculations and statements like these may be built or purchased in powerful software like Excel. That being said, all is not lost for those without the knowledge to operate such in-depth software. Investors with less tech experience can automate their projections with the help of AI. With prompt training protocols common to AI usage, investors can teach these software models what kinds of returns they are looking for.
Because AI tools are often more intuitive than other software, investors may find the process of working with AI to be more like a conversation than a coding project. In the same way that other software applications can be used for quick calculations, AI can receive new deal specs from the investor and provide a summary of returns. All of this can be leveraged to make assessing the feasibility and success of an investment easier and faster.
A New Analysis (A New Way to Analyze)
Real estate analytics tools have sprouted up in recent years to help investors source deals by identifying brokers, buyers, sellers, and property data. This is especially helpful in times when profitable deals are hard to identify and competition can make obtaining a property more difficult.
These software tools are commonly sold with a subscription fee, but the advantages can far outweigh the costs in the hands of someone who knows how to make the most of them. These tools can be leveraged for a variety of purposes. One of their most beneficial advantages is that they provide a single and simple means for investors to source deals from sellers even when they are off market.
Property data is often so comprehensive in these tools that everything necessary to craft comps is readily available and can be leveraged for reliable projections when determining viability and paths to profit. Compare that to the manual process of requesting records through title companies or town halls, each request often incurring a fee, to then take that data in whatever format is provided and attempt to make comp. It’s clear that tech saves time.
For those who are weary of adopting a new software, consider that, given the variety of providers and the environment these services compete in, demos and training will likely be available upon request.
Virtual Optimization
These days most everyone has experience with virtual tech, especially since the pandemic when remote work and virtual meetings became a necessity. For investors, leveraging virtual technology can go far beyond making video calls or attending live webinars. To truly optimize their business, investors will want to take advantage of the latest technology available to produce results faster than would otherwise be possible.
Take inspections and appraisals, for example. A standard appraisal requires an onsite appraiser to schedule time to come out to the property, record necessary data, go back to the office and produce the appraisal documentation to be verified and delivered. With virtual tech, appraisals are much more streamlined. In the age of the virtual appraisers, the investor or their broker can record necessary data by simply taking photos of the property on a smart phone.
Many appraisal management companies have software which uses recordings and images taken from phones and produces reliable metrics on the spot which can be accessed remotely by the appraiser to produce the final report. Taking advantage of remote, or virtual, appraisal options can reduce the turn times from days to just one, or even hours, depending upon submission.
Conclusion – Between Two Worlds
In the increasingly digital world of real estate, it’s imperative for those who don’t want to fall behind to get with the times and leverage new and available technology. By integrating technology into their investment strategies and workflows, investors can streamline operations, simplify decision making, and expand their business.
In this way features like automation, enhanced analytics, and virtual optimizations are not just conveniences, but essential tools for staying competitive. As the digital and physical aspects of real estate continue to merge, those who adapt will find themselves at the forefront of opportunity.
The future of real estate is undeniably digital, and the time to embrace it is now.
