Hard money investing is an investment strategy where investors provide short-term loans to individuals or businesses in need of quick access to capital. These loans are typically secured by collateral, such as real estate, and carry higher interest rates than traditional loans. Hard money investors need to be able to assess the risk and profitability of each potential investment quickly and accurately, which is why data analytics is an essential tool for this type of investing. In this article, we will explore some of the best data analytic tools that hard money investors can use to evaluate potential investments.

Excel

Excel is a powerful tool for data analysis and is widely used in the financial industry. Hard money investors can use Excel to create financial models that help them evaluate the profitability of a potential investment. Excel can also be used to perform complex calculations, such as calculating loan-to-value ratios, debt service coverage ratios, and other key metrics used in hard money investing. Excel’s ability to create pivot tables and charts makes it easy to visualize and analyze data, which can be particularly helpful when dealing with large data sets.

Google Analytics

Google Analytics is a free web analytics tool that allows users to track website traffic and user behavior. For hard money investors, Google Analytics can be a valuable tool for evaluating the online presence of a potential borrower. By analyzing a borrower’s website traffic and user behavior, investors can gain insights into the borrower’s business model and customer base. Google Analytics can also help investors identify potential red flags, such as high bounce rates or low conversion rates, which may indicate that the borrower’s business is struggling.

Tableau

Tableau is a data visualization tool that allows users to create interactive dashboards and reports. For hard money investors, Tableau can be particularly useful for analyzing real estate data. Tableau allows users to create maps and heat maps that show the location of potential investments and the surrounding area. Investors can use this information to evaluate the potential value of a property based on its location, as well as identify any potential risks, such as nearby environmental hazards or crime rates.

Enodo

Enodo is a real estate analytics platform that uses machine learning to analyze real estate data. Enodo can be used to quickly evaluate the potential profitability of a real estate investment by analyzing factors such as rent trends, vacancy rates, and property characteristics. Enodo also provides investors with a comprehensive analysis of the competition in the local market, which can help investors make informed decisions about potential investments.

CoStar

CoStar is a commercial real estate data provider that offers a comprehensive database of properties for sale or lease across the United States. For hard money investors, CoStar can be a valuable tool for evaluating potential investments in commercial real estate. CoStar provides detailed property information, including location, size, and price, as well as market data such as vacancy rates, rental rates, and absorption rates. CoStar also offers an online platform that allows investors to search for properties based on specific criteria, such as property type, location, and price.

Yardi Matrix

Yardi Matrix is a real estate market intelligence platform that provides data on multifamily, office, industrial, and self-storage properties across the United States. For hard money investors, Yardi Matrix can be a valuable tool for evaluating potential investments in these property types. Yardi Matrix provides detailed property information, such as location, size, and amenities, as well as market data such as vacancy rates, rental rates, and absorption rates. Yardi Matrix also offers an online platform that allows investors to search for properties based on specific criteria, such as property type, location, and price.