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Zen and the Art of Real Estate Investing with Jonathan Greene

How to Use Data and Analytics to Get Bigger Pockets with Dave Meyer

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Data is key when it comes to making informed decisions in the real estate investing world. Whether you love spreadsheets or not, data allows you to develop some level of trust with the person doing the data analysis. While some people take comfort in having mentors, others only trust the numbers. And for a lot of people, especially beginners, data allows people to get over the early hump. But is it enough to solely rely on them? 

Dave Meyer, VP of Growth & Analytics at BiggerPockets, talks about how to use data and analytics to get bigger pockets. No matter how much data analytics you’re doing, you still have to get yourself out there and get a real sense of the day-to-day operations, what other people like and don’t like about the house, and what the market is like.

The Value of Having a Data Portal for Investors

  • Data offers predictable returns and outcomes. For instance, recent evidence suggests that over the long run, housing is a relatively stable and predictable asset class. 

What’s Coming for Real Estate Investing in 2023

  • It’s a rule of thumb that the hotter it was during the pandemic, the further it’s probably going to fall in 2023. Most of the housing market in 2023 is a function of affordability because it’s just too expensive that people can’t afford it. 

  • The insanely low mortgage rates of 2020, 2021, and half of 2022 masked the increasing prices. Through the end of 2021, houses were still affordable even though they were appreciating by 20% per year. Now, that has completely changed with a 40-year low for affordability. 

  • It’s a natural thing for overheated markets to come back down. But there are lots of markets that are going to stay relatively flat and might come down by 1% or 2%.

Syndication Tips for Beginners

  • The operator is important in any syndication. You can look at the data and the data may look good. But if you don’t know the operator, there’s zero trust value. 

  • Syndication is not an easy business so think of starting with small multifamilies. Learn before you start taking other people’s money. 

  • One syndication that goes wrong at the beginning of your career is also going to be the end of your career. 

Data helps people make wiser and more informed decisions. By having a firm understanding of what your options are and what’s happening, you can continue to build a strong portfolio over time. 

If you want to learn more about Zen and the Art of Real Estate Investing Podcast, check out http://www.trustgreene.com/podcast/zen/033 

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