How Technology-Driven Platforms Are Changing How We Invest in Real Estate

by Archie Sullivan on 21 Sep 2023

Real estate investment has long been considered a cornerstone of a well-diversified portfolio

However, in the last few years, the market has evolved, and the entry of technology-driven platforms are revolutionizing how we invest in real estate. Leveraging cutting-edge technology to simplify and streamline the investment process, these platforms are effectively democratizing access to quality real estate investment opportunities with greater accessibility and transparency.

Enter technology-driven platforms, which are revolutionizing how we invest in real estate. These platforms leverage cutting-edge technology to simplify the investment process, offering greater accessibility and transparency.

For years, the real estate investment sector has been somewhat exclusive, often requiring substantial financial resources and specialized knowledge to gain entry. This exclusivity has limited the pool of investors, generally favoring those with considerable assets or insider connections. Technology-driven platforms are dramatically altering this landscape by lowering the barriers to entry.

These platforms enable individual investors to participate in projects that offer various risk profiles, from conservative to aggressive. Moreover, the platforms provide educational resources and real-time data, allowing investors to make informed decisions while also building their knowledge base and investment skills. This shift is particularly significant because it opens the door for a more diverse group of investors to build wealth through real estate.

Scott Spence, the Head of Growth at Parvis Invest, a leading investment platform, provides a comprehensive view on this democratization of investment:

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"The technology we're seeing today is not just simplifying the investment process; it's democratizing it. This is a monumental shift in the industry. Now, individual investors have access to real-time data, educational resources, and a range of investment opportunities that were previously reserved for the elite or institutional investors.

This technology is changing the landscape, making real estate investment a viable option for a broader range of people. It's not just about accessibility; it's about empowering investors to diversify their portfolios with different types of real estate projects, from commercial to development, which were once the exclusive domain of institutional investors and high net worth individuals."

Exempt Market Dealer Services

Of course, investors are only one part of the equation when it comes to real estate. Exempt Market Dealer (EMD) services also play a pivotal role, especially for developers and real estate fund managers. These services act as a bridge between capital raisers and investors, facilitating the capital-raising process and ensuring compliance with regulatory requirements. EMD services are not just about connecting parties; they offer a comprehensive suite of services that include compliance, marketing, investor relations, and due diligence.

Developers and fund managers often find themselves juggling multiple responsibilities, from project planning to execution. EMD services alleviate some of this burden by taking over the headaches of compliance, marketing, and, investor relations. This allows real estate managers to focus on what they do best: creating high-quality real estate projects.

By offering EMD services for developers, REITs and MICs, technology-led real estate investment platforms are able to source and connect with high-quality projects and offer them to their investor base.

The Power of Next-Generation Technology

This integration of smart technology is supporting a significant advancement in the real estate investment industry. One particular technology driving this acceleration is blockchain technology, which offers unparalleled security and transparency by ensuring that all transactions are recorded in a tamper-proof manner. This is particularly beneficial for investors as it provides a transparent record of all investment activities and creates trust between the parties.

Moreover, blockchain enables a data-rich workflow that can be leveraged for better decision-making. Investors can access a wealth of information, from property valuations to historical data, all secured on a blockchain. This data-centric approach allows for more accurate risk assessment and investment strategy formulation.

Scott Spence elaborates on the transformative impact of technology:

"The advent of blockchain and other next-generation technologies is not just a trend; it's a paradigm shift. These technologies are enabling more transparent, secure, and data-driven investment processes. For investors, this means greater confidence in their investment choices. For the industry at large, it signifies a move towards more ethical and transparent practices. And it doesn't stop at blockchain; we're also seeing the integration of Artificial Intelligence and machine learning to analyze market trends, predict property values, and even automate customer service functions. All of these technological advancements are collectively enhancing the investor experience in unprecedented ways."

businessman using digital tablet analyzing business

Enhancing the Investor Experience

Investor experience is a critical factor in the success of any investment platform, and technology-driven platforms are setting new standards in this area. From user-friendly interfaces to robust security measures, these platforms are designed to offer a seamless and secure investment journey.

Spence emphasizes the importance of the investor experience:

"The technology we're seeing in modern investment platforms is truly revolutionary. It's not just about making the process easier; it's about making it better.

Investors now have a wealth of tools and resources at their fingertips, from advanced search filters to real-time analytics. This level of control and transparency was unheard of just a few years ago. It's a significant leap forward, and it's setting a new standard for what investors should expect from an investment platform."

Conclusion

The integration of technology into real estate investment platforms is a transformative development that is reshaping the industry in multiple ways. From democratizing access to high-quality investment opportunities to providing unprecedented levels of transparency and data-driven decision-making, these platforms are revolutionizing how we invest in real estate.

These advancements are not merely incremental improvements but represent a paradigm shift in real estate investment. They are making the sector more accessible, transparent, and investor-friendly, thereby attracting a broader range of participants. This inclusivity is likely to spur further innovation and competition, benefiting both investors and developers alike.

As we look to the future, it's clear that technology-driven platforms will continue to play a pivotal role in shaping the real estate investment landscape. They offer a compelling alternative to traditional investment methods, and their impact is likely to be felt for years to come.

 

For a revolutionary, technology-driven approach to real estate investment, contact Scott Spence and the team at Parvis Invest at [email protected] or call 1-844-487-4866.



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