Here’s why private equity companies are purchasing so many properties.
Private equity firms are here in the Triad buying up properties left and right. Why is that? I’m answering this question today.
I just talked to one of these private equity groups. My operations manager finally got through to them after trying for a long time. She found out that the reason she couldn’t get through was because they have 400 closings this month. That’s an incredible number, and that’s what just one of these groups is doing.
In this case, I think they have the answers to the test. They know things that we don’t because they’ve acquired some of the most detailed analytics ever acquired in the history of the industry.
“Just one of these groups has over 400 closings this month.”
If you think about all of the different sources of information and data they have, it’s incredible. Every search is being recorded and coded. Every social platform like Facebook is doing the same thing. Why do you think they’re free? You’re paying in the data that you give them.
At the end of the day, these businesses are gathering all of our human behavior in data form and using it to their advantage. We do it as well but on a much smaller scale. I’ve seen things on social media and made inferences based on things, but these algorithms are doing that on a much more sophisticated level.
With several billion people across the globe online, behavior is becoming more predictable. Amazon is a perfect example of a company that has mastered this. Private equity groups are doing the same thing in real estate.
If you have any questions for me about this topic or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
