Testing the Hypothesis, Part 2

Who: those that may meet the need presented in the opportunity but actually do not include those who already have easy forms of communication with other parties involved in their real estate, those who live in public institutions, or even homeowners.

What: the boundaries of this need may extend to the idea of using PropertyConnect to contact and hire property maintenance and does not extend beyond assisting in investment other than real estate.

Why: a common reason why an outsider’s need may be different simply has to do with available income. Some who may be interested in pursuing real estate investment may not have the capital to do so.

Inside the Boundary

Who is in: potential investors w/ capital, property owners not always in the vicinity of their holdings and their tenants.

What the need is: a simpler way to invest in real estate and communicate with all parties involved in managing, living at and investing in properties.

Why the need exists: real estate investment is growing rapidly in the age of technological expansion.

Outside the Boundary:

Who is not: those interested in investing without the necessary income, property owners who live on the premises.

What the need is not: making investing more affordable.

Interview 1: my roommate

My roommate didn’t fall into the need because his parents own his apartment and there is no need for improved communication between them.

Interview 2: student living on campus

This student didn’t fall into the need because they live in a dorm publicly funded by the University of Florida.

Interview 3: homeowner

This homeowner owned their own property and does not have plans to venture further into real estate investment.

Interview 4: student studying real estate investment

This student has a keen interest in investing in real estate, as well as the knowledge, but does not yet have the income to do so.

Interview 5: property owner living on the premises

This property owner has no need for improved communication because they are already easily accessible to their tenants.

Elevator Pitch Part 1

Solving the Problem

The opportunity that I selected stems from the economic trend of increasing investments in real estate. In an economy that has become increasingly integrated with technology, I believe that an app that allows for effective and efficient communication between the parties involved in the real estate market (investors, property owners, residents, etc.) as well as management of investments could be very beneficial. In the interviews I previously conducted on this opportunity, many of the residents I spoke to lament the complications that arise in communicating to their landlord. And in speaking to my uncle and mother who are involved in the real estate business, they supported the idea of a service that made managing investments more streamlined so that investing in real estate can be a venture available to more individuals with less investment experience. The app would essentially exist in multiple domains. One for managing investments, and one for communication between all parties involved in the real estate infrastructure. While it is still a very unrefined concept, I believe that the combination of market growth and increasing technological integration make it broadly appealing.

Testing the Hypothesis, Part 1

The Opportunity

Who? Real estate investors, property managers and residents.

What? A need for better communication and management capabilities between all parties involved in the real estate market.

Why? There is an increasing trend in real estate investment.

The Hypothesis

Testing the who: real estate investment is a complicated undertaking and effective communication and management is needed between all parties involved.

Testing the what: While real estate investments can vary greatly in scope of size and complexity, some level of effective communication and management is needed in every scenario.

Testing the why: with real estate investments increasing dramatically, there will be a greater overall need for effective communication and management.

I interviewed some individuals that I believe are affected by this issue. First, I spoke with my uncle who is a real estate appraiser in Tampa. He believes there has always been some level of miscommunication between investors, property owners and residents because they are almost never in contact with one another. I also spoke with a University of Florida student who had consistent difficulties in communicating various issues with the owner of his residence. Additionally, I spoke with my mother, who is in the process of attaining her real estate license. She was very intrigued with the idea of a portal that allowed effective communication between parties and more streamlined ability to manage various aspects of the investor or owner’s property. These interviews further validated my hypothesis that a better mode of communication and management of investment properties is a great opportunity to exploit in this growing portion of the market.

Identifying Opportunities in Regulatory and Economic Trends

Regulatory Trends

1)      Vaping Regulations

Source: https://news.wfsu.org/post/after-federal-moves-e-cigarettes-some-florida-lawmakers-eye-enforcement

Congress recently increased the age of tobacco/nicotine product purchases to 21 and have also reduced the number of available flavors on the market to further deter purchases from minors. An opportunity may exist in this regulation to produce a nicotine-free or very low nicotine content device that helps people to wean off vaping. A prototypical customer would be a young adult who had developed a vaping habit and has a desire to quit based on the ever-increasing body of evidence showing its harmful effects. However, this opportunity would be somewhat hard to exploit due to the number of regulatory hoops to jump through in order to put a vaping-related product on the market.

2)      Plastic Straw Ban

Source: https://mycbs4.com/news/local/gainesville-plastic-straw-ban-goes-into-effect-on-january-1

Alachua County placed a ban on plastic straws on January 1^st of this year. Since paper straws are not necessarily as effective as plastic ones, an opportunity may exist to create a reusable form of straw such as a metal one in order to satisfy the customer that is used to plastic straws. The prototypical customer can vary greatly in this instance because nearly everyone uses straws frequently, which is why this opportunity may be much easier to exploit.

Economic Trends

1)      Increasing Real Estate Investment

Source: https://azbigmedia.com/lifestyle/home-and-design/top-8-housing-trends-thatll-dominate-2020/

Investment in real estate is expected to increase due to new technology that increases management capabilities and lower vacancy rates. An opportunity may exist in this trend to capitalize on the growing market in managerial technology, so something like an app that allows easy communication between property owners, managers and residents would be appealing. The prototypical customer could range from anyone who owns/manages real estate to tenants/residents, and would therefore make this opportunity relatively easy to exploit assuming little difficulty in app development.

2)      Decreasing Oil Prices

Source: https://www.forbes.com/sites/greatspeculations/2019/06/05/major-economic-trends-all-downbeat/#4f47da713fe6

Oil prices dramatically decreased beginning last April and are expected to decrease further into 2020. This may bring more attention to the issue of climate change and the urgency to increase renewable energy consumption, so an opportunity may exist in development of renewable energy. The prototypical customer is likely someone who is environmentally cautious, but exploiting this opportunity may be more difficult in that start-up renewable energy implies a huge initial investment.

I drew on a lot of personal experience in my own formulation of these potential opportunities. Vaping is a massive issue among young adults my age, and the plastic straw man took effect in Alachua County. Additionally, my uncle is a real estate appraiser in Tampa and I have had the chance to talk to him briefly about real estate investment trends.