5 Startups Changing the Real Estate Market
Real estate may often be a slow-to-change, conservative business, but real estate technology is growingly rapidly as one of the most influential and invest-worthy tech areas of today.
With that new technology we’re being introduced to advancements in the ability to showcase listings, crowdfunding opportunities to entice new investors, and even one company that is tackling crowded urban areas like Manhattan.
Here are five of the most auspicious and pioneering industry startups launched in the past four years:
Think Angie’s List, or better yet LinkedIn, created solely for developers, landlords, architects, engineers, and designers. Honest Buildings is an online network that was developed to combat the inefficiency that comes with having to find vendors for projects.
Launched in 2012, Honest Buildings utilizes a systematic way for commercial and residential developers to hire vendors. This makes getting work gets done better, faster, and more efficient. All it requires is for a developer or landlord to submit project details in the “HB match” platform with the right vendor for the job. Kind of like a dating service, but without the awkward first date. Once matched, the bidding process begins!
Honest Buildings does take a small commission (between 3-5 percent) when a vendor is hired through the network.
Read about Honest Buildings news here.
We’ve talked about the awesome things Floored has done before, but we’ll show you once more how they’re making a difference.
Using proprietary software along with a 360 digital scanner, Floored takes high-resolution, 3D scans of any space, creating a realistic virtual tour. This allows for builders, engineers, even prospective investors, to view what a space would look like based on depth and layout.
Along with engineers that are using this type of software with 3-D printers, we should see some amazing advancements in 2015.
Read about Floored news here.
CompStak is also throwing its hat into the crowdsourcing ring, but they’re using a different approach. As of now, the site is free for brokers to use, but there is one caveat; if they want access to a comp, the broker has to share information on their own deals. This makes CompStak data more complete than that of competitors.
The way CompStak makes its money is simple: it sells the information it gathers to investors, investment trusts, private equity firms, and hedge fund groups. And with a 160 percent user growth each month for the last six months, they show no signs of slowing down.
Read about Compstak news here.
It takes a village to raise a…community? That’s exactly the kind of thinking Fundrise is doing to shape the future of developing communities in the U.S.
By taking on the difficult and expensive task of registering development projects with the SEC, then taking them public, they’re allowing unaccredited investors to move into the real estate sphere. This idea came to the founders, Benjamin and Daniel Miller, when they took their own buildings public, raising capital with the communities help.
Using Fundrise’s platform, building owners create an outline outlining the project that needs funding. Potential investors can then search for various projects, communicate with developers, and, if they choose to invest, can do so directly through Fundrise.
Fundrise offers subscriptions fees and take about a 3 percent profit on each transaction made.
Read about Fundrise news here.
Valued at more than $150 million, Compass is working to make it easier for consumers to find New York City apartments. Utilizing a listing website and a team of in-house “neighborhood specialists,” users can search rentals, schedule appointments, and execute a lease—directly with a landlord—all online.
Clients pay only half—only 7.5 percent as opposed to 15—of what they would be charged by a standard New York City broker. They currently hold more than 7,000 rental listings across all five Burroughs, and expect for business to increase as clients spread the word.
Read about Compass news here.