04-01-22 | Tech in Real Estate News | Blockchain

This week’s Tech in Real Estate News Wrap Up includes blockchain’s impact to real estate, market summary dashboards, and investor analysis bots.

Transcription

Ariel Herrera 0:00

Hey everyone, happy Friday, we made it through the week. And today is going to be the first session of tech in real estate news by the analytics Ariel Community. So if you haven't already, we have a new Facebook group called Tech in real estate, which is the podcast name. And every week I'm going to be posting on a daily basis, some tech related news, whether that's data trends in the market, or maybe just a project that I'm working on, where the community can all comment on it, share ideas, and if you have questions, in particular, feel free to also post them there. So each week I plan to go over some of the topics that were filtered through the Facebook group. The first one I want to start with is a article that I was reading called blockchain technology is changing the real estate industry, which a lot of us have heard about blockchain, we have some understanding that it is having a disruption to the real estate market. There are some leading companies there. But overall, it's still at our more early phase. But this in particular, I thought was really interesting, was just a list of advantages that blockchain and NF T's have, right? So say if you know nothing about blockchain, that's fine. What can it actually do for the real estate market and real estate professionals. So we see here that it can offer tokenization of real estate ownership, automating real estate transactions, reducing transaction costs, smart contracts, and automate property development terms and leasing agreements, which I would love to know more about that piece. fractionalize NF T's can represent partial ownership and physical property that I've heard time and time again, several articles where a single family home, say in Tampa, I may be the full owner of it 100% Or maybe going on a deal with someone, and it's a partnership, and it's 5050. Well, what if it's actually one of 30. So you have a set of people who all are able to use fractional factionalized NF T's in order to have part ownership in a property, like a single family home, which is typically done on an EFT scale. So it's really interesting that this could be for smaller properties. And another point they have here is that blockchain may enable automatic and indisputable lease and payment transactions. This is huge. Could you imagine being able to actually trust a ledger, if a tenant paid on time what the actual rent payment was, because some of these rent rolls that you may receive, could be inaccurate, could be fudged in some way. Or there may not even be one president, if the previous landlord was just taking cash and didn't record everything. So to actually have a history log of this would be really interesting. And I'm going to continue to dive more into the NFT space for real estate. Next, I did come across a dashboard in Tableau. This is just public dashboards available as I was trying to get ideas of a dashboard to create in the future. And this one in particular was developed by someone named omit, and as Toronto real estate trends. Now regardless if your market is Toronto or not, that doesn't matter. It's more so the visuals and the dashboard itself that was able to be created by this individual. So they basically are able to summarize from some sort of dataset, real estate trends, growth analysis, being able to filter on timeframes, where we could see in that filter that I just did, how many total sales within January 2017, to February 2022. So it's only backdated by one month, which is great, we could see how many sales were condos versus detached dwellings, like single family homes, semi detached, and so on. We could also look at how inventory has either risen or gone down, we can look at days on market. So say if property is going faster on the market, we'll be able to quickly detect that from this graph. There's also some other tabs like market data dashboard, which we can quickly see month over month what the median price was for that month for a property. And we could see what that change was,

I believe from the most recent month. Overall, I think this is a super, super useful dashboard and I myself am looking at how I can actually replicate it with us data. Redfin has downloadable housing market data, they have similar type of dashboard. Also in Tableau, it's just not all synced together. So it's maybe just one or two charts and one filter per tap. But it would be nice to have everything in one spot. This is downloadable. If you want to work with this data, you would just have to go right here. You can download the full dataset right here. It is in a gz file type which could be a little bit difficult to decompress. But aside from that, the data goes all the way down to the zip code, which is super useful, especially if you're looking to build metrics like price to rent ratio, and more. Then the last thing that I did contribute to the Facebook group was a really great article that was created by someone named Josh Rob. And he created an automatic real estate investment analysis tool, which is a Python web scraping bot. Now, if you're someone like me who loves to dive deep into code, this is a great article to read from beginning to end. If not, it is useful just to understand at a high level, what are some tools that can be created using programming, so not going to go through this entirely. But overall, his goal was to have a specific link for a property, and I believe it was on remap site. And this tool basically analyzes the return rate for the property. So if we go down a bit more, he uses metrics like cash flow cap rate, cash on cash return, looks like requests in order to get information for that URL. And shows here what his mock up was when thinking about how to create the web application he used streamlet which I am highly engaged when gauge with right now as a great Python tool. So overall was tool does is you enter in the REMAX URL, whatever property that is, then you enter in a monthly rent price and throw in a tax rate and then it outputs those three metrics which will help an investor to analyze whether it's a good deal or not great. So that was this week's wrap up of some tech news that was highlighted in the Facebook group. Make sure you join if you haven't already, and please subscribe. Thanks