Real Estate Analysis Real Estate Predictive Analytics: Your Tool for Success in Property Investments by Hamza Abdul-Samad December 27, 2018February 5, 2019 by Hamza Abdul-Samad December 27, 2018February 5, 2019 Tools are meant to make tasks easier and more efficient. It should make sense, then, that real estate market analysis tools make buying an investment property and investing in real estate much simpler and more organized. Likewise, property analysis tools provide the same benefits. There are many property and market research tools out there, such as the heatmap tool and rental property calculator. But how do these analysis tools work? What allows them to accurately compute data and predict trends? The answer to both questions is real estate predictive analytics. Related: The Power of Predictive Analytics in Real Estate Investing What Is Real Estate Predictive Analytics? So, what is real estate predictive analytics? The term might sound confusing, but the concept generally isn’t. Predictive analytics refers to data that predicts future trends and aspects of a real estate investment by analyzing past data. The past data is commonly referred to as traditional real estate data analytics because such analytics were used before their predictive counterpart. Real estate predictive analytics is a massive improvement over traditional analytics. While traditional analytics are merely retrospective, predictive data projects future trends and statistics using traditional data and current trends. This leads to the most up-to-date forecast possible. Predictive analytics also have an edge over traditional data in that obtaining and using the data takes much less time. Predictive real estate data analytics has revolutionized real estate analysis. The best real estate analytics software and market research tools utilize predictive data analytics. How Can Real Estate Predictive Analytics Help Investors? Real estate predictive analytics is part of every successful investment analytics software and market analysis tool. It is the golden standard. As a result, predictive data is used for the most important parts of finding and buying an investment property. These functions include: Find the Best Locations for Buying an Investment Property Location is the essence of real estate. Therefore, it is very important for real estate investors to focus much of their time and research analyzing their desired location. As you’d expect, predictive analytics serves as a way to understand different locations. This is possible by using a heatmap tool. A heatmap tool sorts neighborhoods based on the input of an investor. If an investor is interested in the most profitable areas for Airbnb properties, for instance, the heatmap would display such areas. The heatmap can be utilized for different functions, too, as we’ll see later. The best way to understand tools is to use them. So why not give Mashvisor’s Heatmap Tool a try? To do so, click here! Pinpoint the Perfect Investment Property Once a real estate investor has decided on a location to invest in, he/she will begin searching for an investment property. If the area is local, it never hurts to use word-of-mouth or advertisements to scour properties. However, a more accurate and efficient method is to use market research tools, such as a property finder. A property finder can find an investment property with a high return on investment in the location of your choice based on a few key filters. Such market research tools are backed by real estate predictive analytics. Learn More: How to Find Investment Properties Using a Property Finder Tool Conduct an Investment Property Analysis After the beginner real estate investor has found an investment property, it must be further analyzed. Real estate analytics software does this through comparative market analysis and investment property analysis. An investment property analysis computes the property’s own data, while a comparative market analysis compares it to similar and nearby properties. In the end, these analyses will be conducted to obtain the property’s data and trends. The data can then be broken down using a rental property calculator. The rental property calculator can be used to analyze a property’s expected returns and expenses. Real estate predictive analytics will project a property’s expenses. With Mashvisor’s calculator, the investor can adjust the expenses to what suits his/her needs. Some adjustments include mortgage payments and estimated operating expenses. As it pertains to returns, the calculator will estimate the property’s rental income and return on investment. What About Mashvisor’s Real Estate Predictive Analytics? All real estate software should provide the basic functions previously mentioned. Mashvisor’s, however, offers much more. Here are two examples of Mashvisor’s additional functions as it relates to real estate predictive analytics. Determine Optimal Rental Strategy It is often difficult to find out the optimal rental strategy of a property. This is especially true for beginner real estate investors. Typically, the investor would experiment with different strategies to find out which is the most profitable. Those days are long gone, however, with Mashvisor’s investment property calculator. Mashvisor’s calculator immediately informs the investor of the optimal rental strategy of a given property. The real estate predictive analytics will compare and contrast traditional and Airbnb data and trends to find out which is more suitable for a given property. The investors can then base their decisions on this. Related: Mashvisor’s Rental Property Calculator: A Guide for Beginner Real Estate Investors Put You Ahead of the Competition Overall, Mashvisor’s software gives its users an edge over the competition. For Airbnb investors, Airbnb analytics are used to calculate Airbnb rental income, return on investment, and occupancy rates for different neighborhoods and properties. As previously mentioned, the calculator will also tell the investor if Airbnb investing is the optimal rental strategy for the property in question. The calculator also computes multiple forms of data for traditional investing. These include returns, expenses, property price, and more. The analysis also presents a grade out of 100, called a Mashmeter, which ranks the neighborhood’s overall investment capability. All of this information puts the power in the hands of the real estate investor. Knowing where to invest and in what property in a fast and accurate way will put you above the competition for sure. Real estate predictive analytics has revolutionized the way real estate data is collected and used. With applications in everything related to searching for and buying an investment property, predictive data is a must-have. To get your hands on Mashvisor’s tools, which all utilize predictive data, click here to start your 14-day free trial! Start Your Investment Property Search! START FREE TRIAL HeatmapInvestment CalculatorPredictive AnalyticsProperty FinderReal Estate DataTechnology 0 FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-Samad Hamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. 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