How Technology is Impacting The Real Estate Industry

Understanding the impact that technology is having on the real estate industry is crucial in determining your real estate strategy.

Technology has become a huge, if not completely necessary, part of our daily lives. Technology is taking over jobs that once relied on human beings, providing substantial advancements and benefits to those industries impacted, real estate being affected more recently.

Traditionally, real estate could only be shown, bought, and sold with the help of a physical meeting between agents, brokers, buyers, investors, etc. However, today it is apparent that whether or not a buyer or an investor leans more traditionally, most of them begin the process by searching for properties online.

There are many technological tools that are changing the world of real estate. Understanding the impact that technology is having on the real estate industry as a whole is crucial in determining your real estate strategy and considering what it means for your role as a buyer, investor, agent, broker, developer, or lender.

Virtual Reality

Videos and images may not always give an accurate representation of a property, especially if they’re poor quality. Virtual reality provides a highly realistic and detailed experience, almost as if you were seeing it in person. This can be very beneficial for investors wanting to expand their portfolios into different markets around the world. It allows for buyers to make a more informed, confident decision without the hassle of traveling to see the property in person. Virtual reality tours can be conveniently viewed through a smartphone, putting properties literally in the hands of multiple potential buyers at once. This is a huge time saver for not only the buyer, but for the owners, agents, and brokers.

Smart Home Technology

Technology is changing the way people live and interact in their homes. With smart home technology people are able to control their home's features through mobile applications and digital devices. Smart home technology is simplifying real estate for not only the homeowner, but also for the agent and tenants. Homes are able to be locked and unlocked without the owner ever having to step foot onto the property. Alarms and security cameras can be turned on and off by a click of a button on a mobile device.

In today’s market, smart homes are selling for more than tech-deficient homes. In a study by Coldwell Banker Real Estate that surveyed 1250 people, 54% of participants said that if given the choice between two identical homes, they would purchase the smart home over the tech-deficient home. This is an important advancement and benefit for investors involved in fix and flips, as adding in smart home features does not come at a very high cost.

Data and Analytics

Big data, search engine analytics, artificial intelligence and machine learning are transformational technologies for real estate professionals. Each of these tools provide highly detailed insights for developers, brokers and investors. Industry professionals can now access immense amounts of market data in order to make smarter business decisions. Less risk often means a greater chance for expected returns. Big data is able to provide more accurate predictions on future trends so that investors can determine their real estate strategies well in advance.

While the technological advancements within real estate are widely seen as beneficial, some people find it to be highly a personal experience and feel that removal of human beings from the equation is risky and concerning. Although technology is constantly advancing and ultimately essential in real estate transactions today, it is very unlikely that technology will completely erase the human element from the real estate industry. The customization and personal aspects of real estate are something that only humans can offer. The most beneficial thing you can do as a real estate professional today is embrace the developing technology and utilize all of its tools to your advantage.

Looking to partner with a resourceful and experienced lender who is up to speed on the housing market's latest trends? The experts at CALCAP Lending are here to help finance your next investment!

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About CALCAP Lending

A division of CALCAP Advisors, CALCAP Lending benefits from the expertise of a seasoned team of professionals with extensive, successful track-records covering a variety of disciplines and leading large, nationally-recognized institutions. A private money direct lender, CALCAP Lending provides short to mid-term financing for property investors and businesses looking to purchase, refinance, renovate, and construct residential or commercial properties.

Lending FAQs

You've got questions, we've got answers.

What is private money lending?

Private money lending is a collateral-based lending strategy that is often associated with shorter terms and more attractive features. A private money loan offers more flexibility than a conventional mortgage or bank loan.

How does a private money loan work?

Private money lenders provide financing using money from private entities. Private money loans often work as bridges to help investors gather funds to achieve their short term real estate goals, but long term, permanent options may also provide.

Why would I choose a private money lender?

There are many advantages to using a private money lender for your real estate investments! Private money lenders can be more lenient when it comes to borrower credit issues, often there are no prepayment penalties, you can leverage your cash to buy multiple properties, and private money loans are quicker when compared with institutional loans.

Can I get prequalified for a loan?

CALCAP has a responsive loan team who are able to prequalify you. Contact a loan specialist at 833.816.5580 to get started.

How long does the lending process take?

Private money lending can be a quick and painless process. From start to finish, 30 days is common, however, turn around times can be as short as 10 business days.

Can I still be approved for a loan if I have bad credit?

Generally yes, we understand that people have temporary financial issues that come up, and we want to work with you to help you rise up financially to a better place. Offsets to credit concerns may include experience as a real estate investor, good cash reserves, and/or larger down payments.

I am a broker or investor, how can I work with CALCAP?

Business is built on relationships. Ours is no different. CALCAP Value and Preferred Partners receive exclusive rates and services. For more details and to submit your application, visit our partners page.

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