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Saturday, May 25, 2024

From Data to Dollars: 4 Tech Solutions for Investors 

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AI in real estate (among other advancements) has created over 328 million terabytes of new information every day, according to one recent study. In an era like this one, it’s safe to say that the world is becoming increasingly data-driven. This is especially true of the modern investment landscape, which has long been known for harnessing technology to help professionals transform raw information into the profitable opportunities they seek.

But as impressive as this type of technology already is, it will only expand in terms of its capabilities. Today, we will explore four cutting-edge tech solutions that empower investors to turn data into dollars.

Artificial Intelligence

In a relatively short time, AI in real estate has already proven itself to be one of the most important tech-driven trends investors should use.

When you think about the sheer volume of data being created at all times, things can quickly get overwhelming. To fully understand a market, you need to know everything you can about supply and demand, the types of houses on the market, upcoming plans for a local community, etc. Staying up-to-date can be an uphill battle, to say nothing of how difficult it is to anticipate future trends before they happen.

Thankfully, all this is significantly easier with the right AI-driven tools by your side. Not only can it be a great way to ingest and analyze large datasets to help identify investment trends, but it can also predict market movements. This can allow you to get into an enviable position far before any of your competitors can. All this is in service of optimizing your portfolio, which in and of itself is always a top priority for investors.

Investors can use these algorithms to make better and more informed decisions while maximizing their returns.

Robo-Advisors

Another tech solution that investors are encouraged to check out takes the form of automated investment platforms, otherwise known as “Robo-Advisors” for short.

These platforms offer a personalized investment strategy based not on a mythical “one size fits all” approach to real estate but on an investor’s unique goals and risk tolerance. Never fall into the trap of believing there is “one right way” to invest in real estate. There isn’t. You need to start with your goals and work backward toward a strategy that helps you achieve them, not vice versa.

That, in essence, is what Robo-Advisors do quite well. They provide cost-effective and hands-free investment management so that you can know that your bases are covered at a bare minimum. This also helps to free up as much of your valuable time as possible so that you can focus on more important matters.

Crowdsourcing Platforms

One trend that has grown in popularity in many industries (not just real estate) over the last decade is crowdsourcing. Here, you’re getting information not from a single source but by enlisting the help of numerous people. An example of this idea in action has to do with open-source software. Rather than having a piece of software be designed and developed by a small, tightly controlled group of people, the source code is available to anyone and everyone. The theory is that the more people you have working on a problem, the easier it is to find a solution.

Crowdsourcing platforms for real estate professionals are no different. They allow investors to get ideas and insights from a community of experts and fellow investors. This collective intelligence is a perfect opportunity to uncover lucrative opportunities that may have otherwise gone undiscovered. It’s also a chance to get a valuable, objective perspective that you may not have otherwise been able to access. 

Of course, crowdsourcing is not necessarily a “silver bullet” in the most literal sense. The quality of the insight you’ll get is directly proportional to the quality of the community. Having said that, so long as you are careful about which platforms you select, it can be a helpful resource to accomplish your larger goals.

Blockchain for Security

Finally, another tech solution that can help real estate investors turn data into dollars comes by way of the blockchain. This term has risen to prominence thanks to its relationship with cryptocurrency, but it has other applications as well – particularly regarding security.

Think of the blockchain as a permanent public record. Every time something like a real estate transaction occurs, it is added to the existing blockchain as another “block.” That information is publicly available, decentralized, and cannot be deleted or altered.

Taking this idea one step further, the blockchain can be used to create smart contracts and distributed ledgers to help reduce the risk of fraud. It can also help significantly streamline processes associated with even modest real estate transactions thanks to other advancements like asset tokenization. From that perspective, it isn’t just increasing the short-term visibility of a real estate transaction; it is also going a long way toward preserving the overall security of the parties involved.

Like AI in real estate, the use of the blockchain in this context will only get more prominent over the next few years.

 Embracing Technology is Key in Today’s Investment Landscape

In the end, we’ve officially entered into an age where for real estate investors in particular, embracing these types of technology solutions is no longer a recommendation. It is a requirement. Investors must be prepared to harness the raw power of data, using it to make smarter investment choices all the time.

Ultimately, with care and patience, they can turn those insights into the types of tangible financial gains that would have been difficult, if not impossible, to achieve even as recently as a decade ago. Those who understand this will do well in the fast-paced digital world that we’re now a part of. Those that don’t will find themselves left behind by their savvier competitors.

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