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Discussion topics
Big Data Overview
Big Data Analytics
Real Estate Deal Analytics - Examples
Live Deal
About TheHomeSites
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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
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“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
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Volume
Velocity
Variety
Cost-effective
Information processing
BIG DATA ASSET
Big Data ComponentsBetter Decision
Making
Analytics
Decision
BODY OF THE CAR
ENGINE
DRIVE
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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
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Big Data Analytics Needs to Be Responsive
Responsive to Users’ Needs
Responsive to Users’ Skill and Interest Level
Responsive to Users’
Behavior
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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
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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
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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
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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
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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
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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
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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
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Big Data for making smarter decisions – Quick Analysis
We used TheHomeSites Investor Pricing Tool
Type in an address and search
Time taken: 2 seconds
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Big Data for making smarter decisions – Quick Analysis
For illustra
tive
purposes only
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Big Data for making smarter decisions – Moderate Analysis
We further Customized Estimates for a moderate analysis
Fill out limited information Time taken: 20 seconds
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The updated analysis now accounts for the new offer price, ARV, and rehab estimatesFor ill
ustrative
purposes only
Can’t use Fix and Flip Strategy Here
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Big Data for making smarter decisions – Detailed Analysis
Get deeper insights using HIT Application
Time taken: 1-5 minutes
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Detailed analysis – Further update investment details e.g. Exit Period – 3 years
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tive
purposes only
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R-cube – 3 years exit period – Net Profit
For illustra
tive
purposes only
Sample Analysis
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R-cube – 3 years exit period - Dashboard
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tive
purposes only
Sample Analysis
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