Using real estate analytics for any real estate investing decision is no longer just an option in 2018. Continue reading to find out why real estate investors swear by big data analytics. 

Over the past couple of years, technological innovation has truly taken the real estate industry into a different era. Real estate investors, like everyone else, must utilize the new tools being made available to them. Wondering how to invest in real estate in 2018? Just ask the most successful real estate investors out there. They’ll tell you just how important of a role real estate analytics take on in today’s world. Knowing how to effectively utilize big data analytics in the real estate investing industry can lead to more informed decisions. Knowledge is everything in real estate investing, and having real estate analytics by your side can lead to the best real estate investments which can truly grow your investment portfolio.

Real Estate Analytics

What Is It?

Data analytics have the changed the way companies in every industry work, and real estate investing is no exception. Before real estate analytics, real estate investors had to spend months and even years to come down to a final decision. Going on instinct, networking, and first impressions, that’s how real estate investing decisions used to be made. However, in the real estate market 2018, that method doesn’t cut it anymore.

Making money in real estate investing today requires accurate numbers and valuable insight. While most professionals in real estate investing have already realized this, some are still doing it the old-fashioned way. But if you truly want to build your real estate investing career and make the best real estate investments, you’re going to have to start taking advantage of real estate analytics.

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To explain what real estate analytics are, we’re going to need to break it down into two parts. Because there are two types of real estate analytics, traditional analytics and predictive analytics, we’re going to define the differences between each first.

Traditional Analytics

Traditional analytics is data that is used to explain or represent something that has already happened. In real estate investing, it helps real estate investors analyze big data to explain why and how something is the way that it is. Real estate investors can use traditional real estate analytics to fix prior mistakes or to continue with past successful actions.

Predictive Analytics

Predictive real estate analytics is all about the future. So you made a great real estate investment, but now you want to make another one. How can you do that with the confidence that it will be just as successful as the last one? Why with predictive analytics of course! Predictive real estate analytics uses past and present big data to make predictions about future market trends. It can also analyze a specific investment property and predict how it will most likely perform in the future. It’s a great tool to have when making real estate investments because it can help you make a much more informed decision than by only using traditional analytics alone.

Related: The Use of Predictive Analytics in Real Estate Investing

Where You Can Find Predictive Real Estate Analytics

There should be nothing holding you back from using real estate analytics for your future investments. You’re in luck because a great source for predictive analytics is only a click away. Mashvisor offers real estate professionals and beginners the gateway to faster and smarter real estate investments. A key way we do that is through using predictive analytics; after all, it is the best way to do things in real estate.

With Mashvisor, real estate investors can get property valuation metrics through our quick and accurate return on investment analysis. Mashvisor’s use of predictive analytics in our many tools, such as our investment property calculator, will help us help you in making the best investment decisions. From finding investment property in the top-performing neighborhoods to choosing which types of property investment are actually best in your local real estate market, and more. Experienced real estate investors don’t need to be the only ones making the best real estate investments anymore. With predictive analytics and reliable resources, anyone can do it. To start out your 14-day free trial with Mashvisor, click here.

How to Use Real Estate Analytics in 2018

Now that we’ve covered exactly what real estate analytics are, and where you can find them, it’s time to get into the details of what they can actually do for us.

Choosing Your Investment Property & Strategy

Real estate analytics can basically help in every aspect of finding your investment property. It can help in choosing the best location as well as choosing the best strategy for that investment property. Real estate analytics takes complex and large amounts of data and then presents it in a simple and understandable way. This really has a strong impact on your investment decisions. With this data, you can easily understand which strategy is best for your investments and where you should be investing.

Related: How To Find An Investment Property Using Analytics

Property Valuation

Both buyers and sellers need to be able to find the approximate value of a real estate investment. With the use of real estate analysis software, websites like Mashvisor, Zillow, and others are able to digitally provide return on investment metrics such as the cap rate, or cash on cash return. Real estate investors can now analyze a specific investment property or get neighborhood trends in a matter of minutes from the comfort of their own home.

Related: What Are the Advantages of Real Estate Investment Analysis?

Identifying Trends

Having real-time market forecasts can really impact your investing decisions. This is where predictive real estate analytics really have their effect. You need to be informed on current and future market trends before you can even choose a type of investment property or begin your search in a specific location. After all, when buying an investment property, investors typically plan on holding this property for a couple of years. This is why it’s crucial for investors to have a reliable source informing them on future market trends. Based on that data, you can confidently buy an investment property expected to perform well for years to come.

Related: What Real Estate Market Trends to Look for Before Making an Investment

If you still haven’t begun using real estate analytics, now’s the time. Get on the road of faster and smarter real estate investments with Mashvisor. To learn about your options for signing up for our services, click here.

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