The technologization of real estate
Everyone has their path that brought them to real estate investing. Maybe their parents were investors. Or, their friends got them hooked. They could have arrived at it by chance, and I know many who came into real estate investing completely under their own inclination and personal guidance.
For me, it was my parents – they both worked full time jobs and at one point owned three properties. They preached the benefits of real estate to me from a young age, and they told me it was always in their plan to buy more, but raising me and my sister got in the way.
Sorry Mom and Dad
The point is, for as many reasons there are that make real estate investing attractive, there are still plenty of obstacles that may stand in your way. My parents, being the busy working professionals they were, simply didn’t have the capacity to go through the processes of sourcing, buying, and renovating a home, finding and vetting a resident, and then managing the home for the long term - while raising a family.
This is not made easier by the fact that real estate, while being the largest asset class in the world, is the slowest to adopt technology.
That’s right. Real estate’s total value is larger than stocks and bonds put together, yet it is the least tech-enabled asset class by far.
Here’s a scenario to illustrate some of the pain points: I live in an area with high rent and I want an out of state investment home that will cash-flow better than what I can find in my region. It would not be wise for me to purchase an out of state home without seeing it in person at least once - due to misaligned incentives, it is possible the agent may overlook unfavorable aspects of the home. I would need either myself or someone who is similarly incentivized to inspect the home. Then I would need to hire contractors to renovate, and a property manager to manage, neither of which are incentivized to keep costs low, or repairs infrequent, or ensure stable occupation. This does not even touch on the mortgage and closing process, which includes mountains of paperwork.
It’s time for an upgrade
A new wave of PropTech companies have emerged, and their goal is to seize the opportunity to drag real estate into the 21st century where it belongs.
These companies have been blazing the trail, and they are intent on making an impact with innovations that make the real estate industry more efficient, less fragmented, and more user friendly. And so far, it’s working. These companies will be the market leaders in the next decade, and they will be responsible for getting a great number of people into real estate investing who otherwise wouldn’t have bothered.
And our goal at Doorvest is to lead the trend. We are a next generation investment platform and real estate professional, and Doorvest was created to be the tech resolution to modernize real estate and erase the frictions that have previously kept real estate from being accessible or friendly.
This is the ethos we make all our operating decisions from. We don’t charge maintenance markups, we don’t charge resident placement fees, and we don’t receive kickbacks or commission from mortgage lenders or contractors.
We want our incentives to align with your best interests, we want complete transparency so better decisions can be made for a fraction of the cost, and we want to empower people to invest in real estate who otherwise would not have been able to.