Summary: We explore how technology is transforming real estate investing. From virtual tours and AI-powered analysis to crypto and social media marketing, the blog highlights various innovations impacting the real estate industry.
BNBCalc Description: BNBCalc provides investors with insights and projected short-term and long-term revenues, tax deductions, and cap rates for their chosen property. It also displays nearby Airbnb comparisons, local tax information, and estimated yearly financial summaries for your investment.
Modern real estate investing has been transformed by technology. Various innovations and integrations from AI, virtual reality, and smart home technology have greatly affected the space. Throughout the article, we discuss how technology is impacting the real estate industry for the better and how you can use it yourself.
Digital Listings and Virtual Tours Through AR or VR Technology
One major change is the way you can view houses and property in real time through AR or VR technology. Before, you’d have to rely on brochures and photos to judge properties if you weren’t able to perform an in-person inspection. Through AR and VR technology, you can make informed decisions without setting foot at the property.
These immersive platforms allow investors to realistically visualize and explore properties, leading to planning and deciding on the spot. You don’t even need to own a VR headset; it can even be done from a simple browser to some extent. It not only saves time but also money for both sellers and potential owners.
The Use of Artificial Intelligence in Real Estate Automation
Artificial Intelligence (AI) has affected the efficiency and speed of various industries, including real estate. AI simplifies property searches, recommending relevant results to your preferred investment metrics. AI also helps project accurate property valuations and predict market trends.
AI has also paved the way for the rise of accurate chatbots that can answer all of a buyer’s potential questions. It has also opened the door to unique algorithms that present location and property-based data to digestible statistics that can lead to easier decision-making when investing. AI will surely continue to grow and have deep integrations as the technology matures further.
Digital and Automated Payments
Checks and large cash sums are no longer the most common form of payment when it comes to investing in real estate properties. Most realtors and sellers nowadays prefer the safety and efficiency of digital bank transfers. Nobody wants to spend their time lining up at a bank to deposit money or cash in a check and wait for it to be credited to your account if you can instantly receive it digitally. It saves everybody valuable time and effort that could be redirected toward more important things.
Most transactions can be done on mobile phones nowadays. It removes the necessity for intermediaries and can be done with the push of a button. It also automatically reflects into a seller’s account and notifies both parties for a minimal amount.
The era of digital banking has also opened the way for remote closing. This allows buyers to purchase properties even if they are halfway around the world if they think it’s a sound investment. Combining this with AR or VR technology could lead to profitable investments and quick portfolio enhancements without needing to be physically present.
The Cryptocurrency Blockchain and Securing Transactions
The huge crypto explosion in 2017 and early 2018 was an industry that no one expected coming. Crypto’s entire draw is the secureness, anonymity, and speed at which large amounts of fiat can be transferred through the blockchain.
While it isn’t within the mainstream real estate space yet, it definitely has the potential to shake it up. The security of being within the blockchain and the speed at which you can send/transfer fiat removes the need for third parties within large transactions. It also minimizes risks and costs involved with large money exchanges, making the entire payment process more efficient. It wouldn’t be surprising to see it as a norm in the future and slowly replace digital banking transactions, especially since the crypto space is starting to make noise once again.
Online Platforms and Marketplaces
Along with digital banks and the rise of cryptocurrency comes the opportunity for online platforms and marketplaces to succeed. As mentioned, remote closing has become a legitimate way to expand your portfolio, and it’s only possible because of online marketplaces and digital financial transactions.
These online platforms play a huge role in a property’s visibility and reach. Traditionally, the market is usually limited to the surrounding areas. However, online marketplaces like Zillow and Realtor, among others, make it possible to reach investors and possibly close sales from a distance.
Aside from visibility, online marketplaces also provide essential information, features, price updates, and even loaning opportunities directly on their site. It makes the process incredibly easy and hassle-free for beginner and seasoned investors alike.
Leveraging Social Media in the Real Estate Market
The various social media sites provide a great avenue for both free and paid marketing and advertisements within the real estate market. Sellers can post photos and descriptions on their accounts to reach their community. Taking this a step further, they can join specialized groups, communities, and forums to market to a wider audience. They can also easily list properties on the marketplaces integrated into these sites as well.
Additionally, realtors or seasoned sellers can also create pages and accounts to market and grow their brands. It has become the norm to have some form of social media presence within the space since it also adds to your legitimacy and trustworthiness. Reviews left by your previous clients can become a huge factor for possible customers who are on the fence.
However, realtors and sellers aren’t the only ones who can leverage social media sites. Business owners can also gain the same benefits by using it to market their rental properties, regardless of the rental nature. Once again, it allows for a greater reach of potential customers and clients.
In today’s tech-filled world, social media has become a critical avenue for businesses to reach a wide audience and build brand awareness. Strategically using the power of social media platforms can make or break your business.
Property Calculators and Their Effect on an Investor’s Decision-Making Process
Tools and services like BNBCalc can help investors make informed decisions about their potential investments. You just need to input basic data, including the address, purchase/selling price, number of bedrooms and bathrooms, and how many people the property can accommodate. Alternatively, you can also use the aforementioned Zillow marketplace link to effortlessly fill up the data for you.
Once the requirements are complete, you’ll get analytics and realistic estimations for annual revenue, profit, and cap rate. However, these tools can also provide in-depth data like seasonal revenue estimations, long-term or short-term rentals, and return metrics. You can also customize the specifics of your expenses and cash investment for more accurate readings.
Almost everything you need is readily available and presented to you, leaving out the guesstimations and assumptions when making huge purchases.
Smart Homes and Smart Devices
Smart devices have become a standard part of an average home. They are essential pieces of technology for rental property owners and even realtors, unlocking the gates to remote access and controlling the house from your smartphone.
A fully set-up smart home allows rental owners to enable remote check-in options for their clients, eliminating the need for a middle-man or their presence whenever someone is renting the property. It also gives them control over specific areas of the home and monitoring in the allowed places. Of course, you’ll have to advise your guests of camera locations if you have them up as well.
Using smart locks and smart lights can also open the door to remote viewings for sellers and realtors. This removes the possibility of scheduling conflicts while keeping you at ease since you can easily turn off (or on) the devices within the home. Some buyers even prefer this method since they are free to roam around the property.
Wrapping Things Up
The world of real estate has been dramatically changed by technology, like most industries that remain today. Things like streamlined searches, immersive and virtual-based tours, and even digital financing and banking options. These innovations have made it easier and better to enter the world of real estate.
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