The information age of REAL ESTATE

The real estate industry is changing with technology. Persons are now viewing properties online in order to make a decision whether to rent, purchase or not. Videos and pictures of real estate posted online are even more relevant now in the year 2020 since the start of the covid-19 pandemic. There is a revolution in how every form of business is conducted since more persons are working from home now. Gav-Inns 2020 is the real estate company created for the information age. There have been major technology companies that have been created which do not own any real estate but have generated revenue from other people's properties. There are several business models which facilitate this type of revenue generation in real estate and allow technology companies to flourish without taking a mortgage or finding the money to purchase major properties.





Two companies which have flourished in the technology space of real estate include Wework and Airbnb. None of these two companies own any real estate but make money from office-sharing (wework) and home-sharing (airbnb). These are business models which have evolved with the sharing economy and Wework makes money by long-term leasing of office space, renovating and furnishing the space and subleasing divided workspaces to their members. Its members include freelancers, startups, entrepreneurs and small businesses. On the other hand, Airbnb operates as a broker by receiving commission for booking of lodging arrangements, primarily homestays or other tourism experiences. In the Airbnb era, homeowners and apartment landlords are the new hoteliers. Wework had a valuation of $47B in 2019 and Airbnb had a valuation of $38B in 2018. This is the beginning of the new age of real estate, where companies make money from properties without owning the property. Wework is built on rental arbitrage which means it is a tenant that sublets office space to its members. There is a venture of Wework called Welive which leases rental apartments and sublease these spaces on a short-term basis. Gav-Inn intends to use artificial intelligence, robotics, the internet and new media along with other aspects of technology to build a real estate company for the information age.





Tourism has taken a major hit due to the Coronavirus pandemic and hotels are closing worldwide. When this nightmare ends, a new era of accommodation and travel will emerge. People will have to find accommodation from homeowners who are willing to rent their rooms and facilitate home-sharing. This is the opportunity that airbnb has offered to every homeowner to make money by renting their houses on a short-term basis. The idea of rental arbitrage is also used by entrepreneurs that want to start a business using Airbnb. Simply, these entrepreneurs pitch landlords with the idea of airbnb, then sign long term leases for these living spaces, renovate and furnish these spaces then re-rent these spaces to other tenants. This is the new hotel model for the future after the coronavirus pandemic ends and will incorporate all aspects of technology.

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