The future requires us all to adapt. In the early 20th century, those who did not adapt to “horseless carriages,” or cars as we know them, were left behind. Similarly today, businesses that do not adapt to the digital world and follow digital transformation trends will be left behind.
But those who do adapt, they will be the kings of the digital market. They will have the innovative digital tools to continuously improve their processes. Whereas others will stagnate.
Many factors affect our digital future. We are looking at a generation of employees who never knew life without a computer or smartphone.
This generation will thrive in a telecommuting workforce. Millenials are now the largest generation in the workforce. And they will drive innovation as we move forward.
And the pace of technological change hasn’t slowed a bit in the last few years.
While this is all great to keep in mind for any sector of the market, real estate has always been at the forefront of some technological change. And at the same time, this sector was slow to adapt in other areas.
Today, the real estate market is making strides in technological change. And in the next few paragraphs, I’m going to share with you how you can apply digital outsourcing and digital transformation trends to your real estate business.
1. Digital Transformation Trends In Cloud Computing
Did you know it’s possible to move your entire real estate investing firm online?
Imagine that instead of buying software for your local computers, you just log-in from anywhere and on any device.
You no longer have to pay for expensive in-house networks or IT professionals to run the tech side of your business.
This is essentially the height of digital outsourcing.
By operating remotely, you can reduce or eliminate office space. You no longer have the need for office staff as cloud services can do most of the work for you.
And you may even already be using cloud technologies and not know it.
If you’ve heard of the NetSuite accounting tool, you’re probably already using cloud technology.
But if you haven’t, you could reduce IT costs by 93% if you used a similar cloud software solution for your Real Estate investing firm.
But what are the benefits of adopting cloud technology and software for your firm?
Like I said at the beginning of this section, what if you could move your whole firm online?
If your management software is accessible from anywhere, you can be mobile with your business.
And you can use any tech platform you’re comfortable with. If that’s a laptop, then you can connect to the cloud from there. If it’s a smartphone or a tablet, you have instant connectivity.
Data Driven Real Estate Investment
No longer will you say, “I don’t know.” You can have your data when you need it.
Having to wait until you could reach the office slowed you down. And in the real estate business, time is of the essence.
With instant access to data, metrics, construction reports, inventory statistics, rent data, payment data, and marketing information, you will be more efficient.
You can manage multiple transactions and deals at once from anywhere you want.
That’s the power of cloud computing. And that’s why it’s one of the top digital transformation trends on the horizon right now.
2. The Remote Workforce As Digital Outsourcing
As I mentioned earlier, one of the biggest digital transformation trends in real estate is the remote workforce.
When the financial crisis occurred in 2008, many sectors went belly up. But the center of the crisis, the real estate market, eventually took a turn fo the better.
But this means that investors are now looking for ways to regain a work-life balance and improve efficiency amidst the chaos.
Enter the remote workforce.
Investors now have the ability to outsource a large chunk of their business. This allows time to focus on deals, data, and whatever else matters.
3. Remote Investment As Digital Outsourcing
And working remotely also means being able to invest remotely.
Your reach as a real estate investor doesn’t need to be tied to your current location.
For years, the mantra has been location, location, location. But there are incredible investment opportunities all over the world.
Many investors shy away from remote investment.
Investing remotely means having to hire property managers. And this can be risky.
But if you end up with the right team, you’ve made a wise investment. You’ll grow your investment portfolio and increase your returns in that area. Doing this will open up new investment opportunities.
Digital transformation trends such as remote investment could mean the ability to take advantage of better investments.
While the cost of living might be high where you live and operate, other parts of the world might have lower costs of living.
In essence, your money could go much farther if you invest it in a remote location.
For example, if you’re from Sydney you could invest in Florida and possibly earn more than if you invested locally.
And if you’re worried about risk, you can rest assured that all the information you need is available through digital technology. If you have the right sources, you can invest securely without fear of a Ponzi scheme ripping you off.
Another benefit of remote investing lies in the hands off approach. When you invest locally, especially as a landlord, you are obligated to perform certain day to day tasks.
Of course, some investors use property management locally for their properties. And this is a wise thing if you have investments in many properties.
But some investors like the hands on experience. And that’s absolutely fine.
If you’re looking for a simpler way of investing, however, outsourcing your investments to another location will benefit you in the long run.
Don’t put all your eggs in the same basket. We’ve heard the phrase a million times, but as investors, we need to take it to heart more often.
Investing remotely means your whole ship won’t go down if the local market tanks.
Is your local market is rock solid through all ups and downs? If not, you might want to consider remote investing in several other markets to tie up your investments more securely.
4. Digital Transformation Through The Internet Of Things
The internet of things (IoT) is one of the top digital transformation trends on the horizon.
As an investor, the internet of things will help you keep track of your properties.
The internet of things is encouraging a reimagining of the tenant experience.
But wait, what is the internet of things?
It’s essentially a network of smart devices and sensors. It’s a way of gathering data remotely about anything. From foot traffic in a building to lighting patterns and a building’s energy efficiency.
IBM, of course, is at the forefront of this emerging trend.
With their Watson IoT platform is at the forefront of the real estate IoT revolution.
In the future, an investor and landlord will be able to charge a tenant for exactly how much a building is used.
If you are afraid of the laissez-faire nature of remote investing, you can regain control of your property through the magic of IoT. Gain access to a “constellation of data.” It will you about every aspect of a building’s operation.
One of the future digital transformation trends through IoT is in energy efficiency. Imagine a world where the HVAC system you install tells you about problems before they occur.
You’ll save money on major HVAC overhauls by getting a technician out to your property to fix something before it causes a problem.
Or the ability to monitor the condition of your property without relying on a management company’s honesty.
Perhaps one day we’ll be able to install wear and tear sensors in a property’s floor. Imagine the cost saving measures you could take when you sit down with a tenant to draw up a contract.
If a property is already equipped with smart technology on the IoT, imagine how much easier negotiating a purchase price will be.
While most countries have passed laws protecting real estate buyers, you never know what a property owner might be hiding from you.
And an inspector might not catch everything on one pass through.
With digital transformation trends like IoT, as an investor, you’ll be able to know the integrity of a building before you make an offer.
From the energy efficiency of the building to the condition of its floors, IoT is set to revolutionize the way we invest in properties.
Safety is the last aspect of these digital transformation trends we know as the Internet of Things.
When lenders invest in a property, they require mountains of information about a property to keep their investment safe.
But when you invest directly in a property, a lot of uncertainty about the safety of your investment could be mitigated by the IoT.
Fire alarms are useless if there’s nobody to hear them.
An early version of the IoT has existed for a while. Fire alert systems packaged into security systems are a type of IoT system.
But the entrance of other technologies strengthens the safety factor through IoT.
Conclusion: Get An Edge With Digital Transformation Trends
Staying up to date with digital transformation trends will give you an edge over the competition.
Are you looking to make a digital transformation of your real estate investments? Consider building digital equity with me.