Promoting Quantitative Real Estate Investing Through Enhanced Analyzation Accessibility
- Peter Johnson

- Dec 12, 2023
- 2 min read

This experiment is one of the newer ones performed after the blockchain era. Initially, I had considerable reservations about how unsexy such data-related experiments were, with frequent questions being raised as to why the limited investment for encouraging innovation had to be put into such regular projects. The aftermath is now a hazy recollection. Nevertheless, there is a clear improvement in my linguistic abilities between then and now, likely a result of enhanced control of the language, greater assurance, and a more casual attitude. As for the FinTech, it is no longer operational, likely due to a combination of the complexity of unifying the data and the lengthy sales procedure to provide this cloud-based platform to the target market.
The purpose of this experiment is to investigate whether information on real estate investment can be more effectively aggregated and used to generate investment insights..
Real estate investment professionals have a data problem of three dimensions.
Due to the intricacies involved, most real estate investors require multiple sources of real estate market data and have to create their own in-house data engineering team to combine the data. Not only is this laborious, but it also poses a challenge for performing quantitative analysis on real estate investments. Despite their best efforts, combining data sets in such a way that yields reliable results is often difficult. As a result, the majority of real estate investments are based on rules of thumb, experienced intuition, and qualitative judgements. Quantitative data is only used to back these findings up. This outlook makes it hard to objectively assess the performance of a real estate portfolio.
It is difficult to assess risk in the real estate portfolio as there is little quantitative data to figure out if it is excessively invested in one district/sector/income stream or inadequately diversified overall. This increases the exposure to risk of the portfolio.
In order to tackle these issues, the FinTech, with its founder owning more than 20 years of expertise in the handling of real estate investment and its associated market information, set out to do the following,
If the experiment is successful, then it can spawn yet another provider of real estate data founded in the same area, this time with an emphasis on collecting datasets specifically for quantitative analysis instead of simply as a way to back up qualitative judgment.



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