Real estate can be a risky business. Many of the factors involved in the industry are fairly unpredictable. In a post-pandemic world, it’s more apparent than ever that we need to be ready for all types of contingencies–and prepare for the unpredictable. The best way to do so is to have risk management strategies in place. If your real estate business hasn’t already done so, the time is now. While it may seem like a daunting task, there are fortunately many ways to automate your risk management to save both time and manpower so that your team can focus on its priorities. Here are five tips for automating your real estate’s risk management.
1. Create an organized system for your documents.
Everyone in real estate knows that it’s a business of mounds and mounds of paperwork. Keeping diligent track of the many documents is crucial to risk management. It’s crucial to have the ability to retrieve pertinent information if case issues arise, and inevitably, they do. To keep records organized, use a shared cloud server or an application such as Dropbox to automatically save important signed contracts and allow access to the parties involved.
Make sure you clearly communicate (and reiterate often) to your team the process of saving and organizing documents. When everyone has the right tools and follows through with the correct processes, this risk management strategy will serve your business well.
2. Set up continuous data collection and monitoring.
Gone are the days when risk analysis was a yearly or quarterly occurrence. It should be a routine process. Continuously pulling data (and the “bigger” data, the better) is proven as an effective risk management strategy in real estate. The best way to do this is to implement an automation technology–a service that’s “always on.” With AI learning, this technology will become more accurate and reliable the more data it collects and analyzes. In addition to mitigating risk, a huge benefit to setting up automatic data collection that runs on the back-end is that it can save tons of time that it would normally take to collect it manually.
3. Find the right API.
Finding an API tool that works for your company is the ultimate pro-tip for automated risk management. There are lots of different API tools that are useful for real estate companies. Depending on what you do specifically within the industry, you can likely find an API to help automate it.
Here are some examples of what a real estate API can do:
- Streamline market data for investors
- Filter property features for consumers
- Organize client data for agents
The bottom line is that an API can help you automate your information technology. Being more knowledgeable about your data is a great way to stay on top of risk.
4. Implement predictive analysis.
Predictive analysis is something we love to talk about here at BlueSuit. Using big data, APIs, and algorithms to make fast, informed decisions can make you more successful in several areas of real estate, but especially in investments. A top-notch predictive analysis system will certainly elevate your risk management strategy.
5. Auto-extract data from your documents.
This tip is a cumulation of the previous four. When you have an organized document process in place, you can then easily use an API to extract key information from your documents. In turn, that information can be used to perform predictive analysis.
If you’re interested in seeing firsthand how this automated risk management strategy works for real estate, you can learn more at BlueSuit technology.