Real estate investors use various tools and resources to choose which properties to invest in and to set prices. Technology can take some guesswork out of real estate investing while also helping you maximize your profits. We have compiled a few tips on how you can use technology to get the most out of your investments.
Be the First To Learn of New Properties or Investments
The real estate investment industry is highly competitive, meaning there are likely already many other investors in your area seeking the right property. Setting up automated filters that fit your required criteria can ensure you find out about new properties as quickly as possible. This gives you a competitive edge that allows you to check out available properties sooner and submit an offer.
You can also use online real estate search tools to locate pre-foreclosures and bank-owned properties. These investments typically require the most work but have the highest potential for building equity and earning a profit.
Find and Apply for the Right Loan
Technology also makes finding and applying for the right loan more convenient. Real estate investors have a few options when it comes to lending. The typical loan options, which include FHA and conventional, may not always be the best choice when financing an investment property.
Alternative loans, like the debt-service coverage ratio (DSCR) loan through Visio Lending, decide eligibility based on how much your project will earn rather than your current income. This unique method of underwriting may be better suited for investors with minimal income but who have a lucrative investment opportunity that is likely to earn profits.
Research Buying and Selling Trends
One easy way to use technology in your real estate investments is to research your state's buying and selling trends and the specific neighborhood in which you want to invest. You can even use this information to come up with a fair asking price. Many real estate sellers are open to negotiations, but your offer price should be based on research.
You can also use these same research tools to identify average rent prices in an area so you know you're pricing your investment properties right. Finding the right price point means choosing a competitive number based on the local market but high enough to be worth your investment.
Technology also allows you to better understand buyer and tenant wants. While some features in a home are a must, others are preferred and may create more tenant demand.
Nice-to-have amenities typically include design trends or specific flooring materials in a home.
By reviewing how recently sold or rented properties are designed or decorated, you can mimic the same design trends to reach a wider customer base.
Automate Showings
Another way that technology can help in your real estate investments is to automate the showing process. Whether you plan to sell a recently renovated project for a profit or rent one of your properties to tenants, you can set up automated showings. This makes it easier and faster for interested buyers or tenants to schedule something that fits with your schedule. The added convenience of online scheduling also speeds up the time it takes to close the deal.
Today, Virtual reality tools allow you to schedule virtual showings, which means you can get your investment property in front of more potential tenants. The ability to schedule back-to-back virtual appointments also speeds up the time it takes to find an interested buyer or renter. Many of today's real estate professionals are even using modern technology to educate buyers and help them become more confident with their purchases.
Provide Tenants With Convenient Payment and Messaging Tools
Real estate investors can also use technology to provide their tenants with convenient online tools that assist with property inquiries or on-time payments. An online portal that allows tenants to enter their payment information can offer a seamless process that makes monthly payments easier for everyone.
Some investors even use online tools to track maintenance or repair requests from their many tenants. Using an online database, you can learn about these needs as soon as they arise, increasing overall tenant satisfaction. You can also use the system to automatically pull up the contact information of the appropriate contractor and schedule an appointment with them.
Technology has changed how we do business, including in the real estate industry. Whether researching the best potential investments in your neighborhood or calculating the right price for your rental, technology has the power to maximize your profits. Modern technology allows today's real estate investors to conduct research, review previously sold properties, understand buying and selling trends, and automate payments and repair requests. Integrating technology into your real estate investment business allows you to take your profits to a new level.
