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July 6, 2020
Many people use the buzzword “Proptech” (property technology) and REI tech (Real Estate Investing Technology) however, many of us still don’t know exactly what that means. And why would a real estate investor care about technology in their field? Does this affect the average home buyer?
What Is Proptech/REI tech?
In simple terms, Prop tech or REI tech, is a small part of the digitalization of the real estate industry. Real Estate is one of the last industry sectors to begrudgingly move from its analog past and embrace digital solutions. These newer solutions assist in solving two major issues. Initially, not just productivity, but also the safety and security of the data are of considerable concern. But if the application of technology doesn’t make the user’s life easier, better, or happier there’s no benefit derived. REI technologies both increase the safety and security of processes and reduces the friction of many transactional experiences.
Safety and Security
Why is safety and security so important to REI tech companies? Many such companies are in the business of data collection. By data collection I mean your data, personal habits, shopping preferences, and sometimes large-scale data collection, such as city traffic patterns or building energy or heat usage. Technologies need to be secure from hackers stealing our credit or prevent hackers from creating anarchy with the city stoplights!
To this same issue of security, the user needs to be ensured that the technology we choose to use is scalable. A good tech solution that is ill prepared for growth based on the technology platform, bandwidth, or inadequate customer service personnel sooner or later will be abandoned. Apps, websites, and programs all have a point at which its user base overruns its capabilities (known as “leakage”). So, as new REI tech companies are born, it will be the ones who best plan for growth that keep our assets best protected from the risk of “leakage”.
End User Experience
The end user experience is of equal importance because what good is tech that people refuse use? Therefore, companies need to make tech usable by the widest population of users, including and especially for those that are not tech savvy. The end goal of REI tech applications is to make the user experience easier, more fun, and more intuitive. Technology should do all the jobs for the user EXCEPT the unique decisions required of a human.
So, the next time you think about hiring someone to fix or handle a problem in your real estate investing business, first take a look to see if there is already a technology available that can solve your problem. Many times, you can try before you buy – as there are trial periods to determine if the solutions really work for you. The utilization of REI tech will be the difference between successful and unsuccessful companies as we move forward. You can’t afford to not buy in.
Written by Meghan McCallum
Want to learn more from Meghan? Catch her podcast, REI Tech (www.tttrei.com), reach out by email [email protected], on LinkedIN https://www.linkedin.com/in/meghan-mccallum-42558b17/, or join her interactive community on FB https://www.facebook.com/groups/reitech/.
*This site contains educational content provided by third parties. NuView Trust does not endorse, recommend or approve any of the companies or individuals or investment vehicles or strategies that may be discussed. NuView Trust encourages clients to seek legal or tax advice as necessary and to perform their own due diligence before engaging in any investment vehicle or strategy.