EG CEO, Adam Geha, recently spoke with Smart Property Investment magazine on the importance of big data in property investing. He explained how the COVID-19 pandemic has exemplified this need and demonstrated the value of EG’s proprietary software, PRISMS®.
Mr Geha emphasised the need for informed risk-management throughout the decision making progress. Moreover, he explained, “we generally like to flirt with data, but EG’s view is if you like the data, you should marry the data.”
The property industry has a history of depending on gut-decisions and untrustworthy spreadsheets. This dangerous pattern can lead to an ill-advised reading of key risk indicators. Above all is the threat it poses to an educated macro view. Asking big questions about the future of property with these limitations is unwise.
“It’s a little bit like asking a chess player what is the best move you can make in chess? I think the answer is ‘it depends on where the other pieces are,’” added EG’s CEO.
PRISMS® draws on 20,000 data series to identify and measure 50 risks in real estate. Subsequently, the program uses AI algorithms to generate an informed and current “risk-return” ratio for every transaction.
“Every quarter, we effectively shut the shop for an hour and a half, we invite all the staff from the CEO to the receptionist into the room and we go through approximately 30 data sets. We have chosen these data sets over the last 15 years, as the sets we believe as a collective tell us interesting and important things about our job property investment,” he continued.
Read more in the full article on Smart Money Investor.
Read further reflections by Adam Geha on the advent of big data.