Big data analyics - TheHomeSites

All Rights Reserved

Dallas REI Expo, January 2015TheHomeSites.com

All Rights Reserved

MAKE MONEY WITH BIG DATA ANALYTICS IN REAL ESTATE

BIG DATA IS A SELF-DRIVE CAR

All Rights Reserved

Discussion topics

Big Data Overview

Big Data Analytics

Real Estate Deal Analytics - Examples

Live Deal

About TheHomeSites

All Rights Reserved

Good Data Powerful Analytics Knowledge

Poor Data Weak Analytics Hope

+

OR

All Rights Reserved

What is Big Data?

Big data is high-volume, high-velocity and high-variety information assets that demand cost-effective, innovative forms of information processing for enhanced insight and decision making…………Gartner

All Rights Reserved

“Big Data is like a Self-drive car where the underlying data and technology is the body of the car, Big Data Analytics is the smart engine of the car, and the decision maker is the passenger who should be able to enjoy the drive the way she wants to”

Take as much control as you want “The self-drive cars would let the driver enjoy the automated self-drive or if desired, take complete control of the car. That is what you would like from your Big Data projects”

Big Data Definition – Non Technical

Image Source: http://usa.streetsblog.org

All Rights Reserved

Volume

Velocity

Variety

Cost-effective

Information processing

BIG DATA ASSET

Big Data ComponentsBetter Decision

Making

Analytics

Decision

BODY OF THE CAR

ENGINE

DRIVE

All Rights Reserved

Big Data Components- Real Estate

Volume Velocity Variety Cost-effective

Listing information

Photos/videos

Social media

Growth of data from 2011 to 2020 expected to be 50x

MLS/Zillow data

Social media

Internet of Things

Cheaper compute power

Cheaper storage

Information Processing – Big Data Analytics e.g. TheHomeSites

Decision Making – Homeowner, Home investors like YOU

Zillow

All Rights Reserved

Big Data Analytics

All Rights Reserved

Big Data Analytics Needs to Be Responsive

Responsive to Users’ Needs

Responsive to Users’ Skill and Interest Level

Responsive to Users’

Behavior

All Rights Reserved

Big Data Analytics in Real Estate – based on users’ needs

Analyzing Communities

Identifying Properties for Acquisitions

Analyzing and deciding on investment

- Hudson Yards project

- Sensors track air quality, traffic etc.

- Big data project to build future projects

- Smart analytics for shortlisting properties

- TheHomeSites Hot Properties list

- Smart decision analytics

- TheHomeSites - Find if a price is right

- Investor pricing tool

More on these in the next sectionSource: Mashable.com

All Rights Reserved

Big Data Analytics – Analytics driven by users’ skill and interest level

Decision Maker

Big Data

Basic processing

Intermediate processing

Extensive processing

Quick Analysis Moderate Analysis Advanced Analysis

Big Data Analytics Engine

All Rights Reserved

Big Data analytics based on user behavior: Automated analysis and Financial motivation

Level of automated analytics

High Automation/ Low Customization

Low Automation/ High Customization

Low Financial/Emotional

High Financial/ Low Emotional

Level of Financial Motivation

Stock

investors

Real estate

investors

Homeowners

Corporate

Financial

Planning

Moviegoers

All Rights Reserved

Real Estate Deal Analytics - Examples

All Rights Reserved

USING ANALYTICS TO IDENTIFY PROPERTIES

All Rights Reserved

Big Data Analytics for identifying properties

All Rights Reserved

USING ANALYTICS TO MAKE SMARTER DECISIONS

All Rights Reserved

Big Data for making smarter decisions

Property type

Purchase price

Return required

Investment

strategy

Rehab costs

Rental Rate

Vacancy Rate

Financing costs

Exit strategyTax

strategy

Neighborhood

Other operating

/ acquisitio

n costs

Let us take a look at a few decision elements to consider

All Rights Reserved

Big Data Analytics – Analytics driven by users’ skill and interest level

Decision Maker

Big Data

Basic processing

Intermediate processing

Extensive processing

Quick Analysis Moderate Analysis Advanced Analysis

Big Data Analytics Engine

First found out about the property

Getting ready to engage in a discussion

Getting ready to close the deal

All Rights Reserved

Address: APT 231G 7431 Holly Hill Dr Dallas TX • Need to find out the

following:

– The best investment strategy

– How much to pay for the property

Base facts:

List Price: $29,500

Monthly Rent: $793

Taxes: $600

Rehab though unknown – assuming $10k in rehab for this example

Big Data for making smarter decisions - Example

All Rights Reserved

Real Estate Investment Strategy Refresher

F-SQUARE: Fix and Flip

• Buy and Rehab the property• Potential profit based on the spread between

expected After Repair Value and Total Cost to acquire and rehab the property

R-SQUARE: Rehab and Rent

• Buy, Rehab the property, and Rent it out• Strategy for

• Steady income and • Capital appreciation

R-CUBE: Rehab, Refi, and Rent

• Buy, Rehab the property, Refinance at ARV, and then Rent it out

• Strategy for • Recover part/whole of initial cost upon Refi• Steady income, and• Capital appreciation

All Rights Reserved

Big Data for making smarter decisions – Quick Analysis

We used TheHomeSites Investor Pricing Tool

Type in an address and search

Time taken: 2 seconds

All Rights Reserved

Big Data for making smarter decisions – Quick Analysis

For illustra

tive

purposes only

All Rights Reserved

Big Data for making smarter decisions – Moderate Analysis

We further Customized Estimates for a moderate analysis

Fill out limited information Time taken: 20 seconds

All Rights Reserved

WE HELP YOU MAKE SMARTER HOME BUYING DECISIONS

Powerful Analytical Models Investor Pricing Tool

Hot Property ListingsMarket Your Own Property – Submit Reviews

Support Services: Analysts run Investment Analysis

Reports For You Hot Property Reports For

You Based On Zip Codes Special Offer Today

Marketplace Services Submit Your Funding

Requirement Signup as a Lender

Big data analyics - TheHomeSites

Technology

Transcript of Big data analyics - TheHomeSites