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» VISIT US ONLINE @ DSNEWS.COM 67 Survival of the Tech-Fittest By Martin Morzynski, HouseCanary We are witnessing the birth of a multi–trillion-dollar asset class. Single- family real estate equity is connecting with institutional capital at scale for the first time in history. Operators in the SFR and fix-and-flip industries are buying homes at a rapid pace, enabled by recent innovations in data science. As recently as five years ago, the largest private equity-backed SFR operators drew gasps from investors when they proclaimed their portfolio goal was to reach 3,000-plus assets. Now, these same players have assembled portfolios of 50,000-plus homes and taken their firms public. In an industry where it takes the average consumer 30 to 60 days to select a home for purchase and then another 30 to 60 days to close the transaction, how can these institutions buy hundreds of homes per day without making costly mistakes? Investors need to identify assets that fit their acquisition strategy, submit bids, and manage their financial plumbing quickly and accurately. "As SFR consolidates, only the owner- operators and flippers who embrace best-of- breed technology will survive and thrive as more capital competes for fewer opportunities. As yields shrink at the MSA level, investors will need granular data to achieve their goals," says colleague Mike Greene, Head of Capital Markets. ousands of data elements influence the value of a home, interacting in ways beyond the power of spreadsheets. Now, the industry has the tools to analyze them all fully. e early cycle winners are already using big data to their advantage. e good news for the next group of investors—those with 50, 100, 500, or 2,000 homes who are trying to get to the next level—is that predictive forecasts, accurate rent estimates, and purpose-built lead generation solutions are increasingly ubiquitous and affordable. Arm yourselves and stay current—as markets get more choppy, the tools are here to help! Martin Morzynski is the Chief Marketing Officer for HouseCanary, which provides mobile, web and API products for real estate investors, lenders, appraisers, and realtors. With 15 years of experience in building global brands and advising tech start-ups, Morzynski leads the company's brand, digital acquisition, and demand generation efforts. Investing in Tech By Dennis Cisterna III, Investability Real Estate In today's rapidly evolving digital age, the business of real estate investing has largely been known as a more "traditional" industry. Despite not being at the forefront of the tech revolution, there are noteworthy new developments in the sector with important implications for real estate investors. From data to virtual reality to new building materials, technological advancements are shaping the future of the industry. Big Data. While the rise of "big data" has affected many industries, the benefit to real estate is a combination of two things: Real estate data sets have grown larger over time, and access to cloud storage and strengthening computing power have sped up the processing of information. Together, these factors mean that we're now able to analyze more data faster and improve insights, which helps support better-informed real estate investment decisions. With the ability to analyze larger data sets, it becomes important to differentiate the signals from the noise to figure out which variables are most likely to mitigate risk and help predict real estate investment outcomes. Automation. A significant landlord limitation has to do with the day-to-day management of investment properties. Between leasing, rent collection, and maintenance and repairs, one of the most onerous burdens of being a landlord is the time it takes to address these operations. In response, some new, automated solutions have come online in recent years to address these challenges, simplifying the property management process. Virtual Reality. Historically, one of the biggest hindrances to investors purchasing outside of their local markets was the inability to see the property or neighborhood in person. ere's a certain level of trust and comfort that comes from seeing something with our own eyes. ankfully, advancements in virtual reality are making it easier than ever before to transcend geographic boundaries. Tools like Google Street View and PlanOmatic now allow real estate investors to virtually wander neighborhoods and even see inside properties without ever leaving their computer screens. Drones. More than just a cool toy, drones are quickly becoming an essential tool across many industries, including real estate. Some companies are taking the technology to the next level to perform detailed property inspections and overcome height and space limitations to provide a safer, more-efficient solution. High-resolution, high-definition recordings can even include multispectral thermal imaging to detect leaks and mold issues and can often be completed faster and at a lower cost than traditional methods. Building Materials. While we don't often consider technology as it relates to building materials, scientists are making headway in the development of more efficient, longer-lasting materials that may reduce annual operating and maintenance costs. One such example is the development of self-healing concrete by Henk Jonkers, a microbiologist at Delft University of Technology in the Netherlands. Typically, all concrete eventually cracks, but by mixing standard concrete with a type of bacteria, Jonkers has devised a way to extend the life of the product. e bacteria, which serves as the healing agent and remains intact during mixing, only dissolves and activates if the concrete cracks and water gets in. erefore, when cracks eventually begin to form in the concrete, water enters and activates the bacteria capsules which feed on a compound to produce limestone and eventually fill the cracks. at means that once the product comes to market, it may be a long time before you'll need to patch up that driveway or patio again. ese advancements are just the tip of the iceberg as the real estate industry continues to evolve, making it easier than ever before to be a successful investor in the space. Dennis Cisterna III is the Chief Revenue Officer for Investability Real Estate, Inc., an online real estate marketplace for single-family residential properties. He hosts a weekly investment-focused podcast called "e Real Investor." The Marriage of Mobile and Mortgage By Dominic Iannitti, DocMagic Right now, many lenders look at mobile technology as a "bells-and-whistles" feature, when it is actually a key component of an efficient electronic mortgage. Electronic mortgages are the future of our industry; technology is only becoming more portable, and mobile technology is here to stay. Our COVER STORY INDUSTRY INSIGHT INDUSTRY INSIGHT INDUSTRY INSIGHT

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