Advancements in new technology and generative AI are offering professionals a wide range of tools for success. Access to information and the ability to analyze data are crucial for making informed decisions.
In the real estate industry, where buyers and sellers are looking for an edge to maximize value, those who excel in data aggregation and analysis are well-positioned to succeed, especially in uncertain and chaotic markets.
According to Jeremy Dawn, founder and CEO of SNFLWR Investment Corp., technology and apps have transformed the real estate investing landscape, allowing investors to find properties that generate cash flow even in challenging markets.
“One of the most significant changes has been the access to data. Previously, investors relied on traditional sources like real estate agents and property managers for information on potential investments,” he explains. “Today, a wealth of data is available online, including property listings, rental rates, and market trends, which can help identify properties with positive cash flow potential.”
The need for improved information access and analysis for smart investment decisions
When investor Liz Macey couldn’t find a suitable tool to identify profit-generating properties based on her criteria, she decided to create one.
Macey founded UnitIQ to help investors discover and invest in cash-flowing properties. “We gather data from various sources to simplify the search process. Our platform features active listings nationwide, along with vacancy rates and rental prices, using financial analysis tools to identify cash-flow properties,” she says.
Macey, who has an MBA and a pilot’s license, developed the platform to address the challenges of navigating the investment landscape and make informed decisions based on data and analysis.
“(This) is a pain point for investors and realtors, especially when you’re looking at multiple communities. It’s a lot of data when you’re trying to find good opportunities.” With UnitIQ, users can input their parameters like budget or downpayment.
The platform offers a free basic search model and a paid subscription tier for agents, featuring advanced analytical tools to create profiles, specific searches for clients, and data export with custom branding.
Utilizing analytical systems and generative AI to assist clients
Realtor Eva Landreth, from Century 21 Millennium Inc., advocates for the use of analytical systems like HouseSigma and AirDNA to connect clients with investment properties and vacation homes in Ontario, focusing on short-term rentals.
“It’s incredible,” she says of the possibilities. “Before purchasing a property, you can view revenue, trends, occupancy, and pricing strategies. You can compare similar properties, look at property management companies, and analyze historical data to identify underperforming properties,” she elaborates.
Generative AI is another valuable tool that Landreth utilizes. “I believe people are only scratching the surface of its potential. By providing smart input, you can extract valuable information. It will enhance our work, making mundane tasks more efficient,” she adds.
Dawn agrees, mentioning how tools and technologies have simplified the process of finding and analyzing investments, managing properties, and engaging with tenants. “These tools have leveled the playing field by offering access to the same data and tools as professional investors,” he notes.
Tools and technology complement, but do not replace human expertise
Dawn anticipates further innovation in technology to streamline property search and decision-making, ultimately helping investors achieve their financial goals effectively.
However, Landreth emphasizes the importance of personal experience, wisdom, and client relationships in providing valuable guidance. “While tools can help identify market trends and opportunities, human interaction and local market expertise are essential. Data alone cannot replace the human touch,” she emphasizes.
While a diverse set of tools can benefit investors, there are concerns about the impact on renters and first-time homebuyers. Macey mentions that some users of UnitIQ are prospective…
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