Problem: Deal Workflows Suck
Real Estate deal processes are unprofitable, strung out, and necessary for the survival of development, architectural, general contracting, banking, engineering, investment, marketing, and brokerage firms.
Most deals are never killed, even fewer turn into actual projects, and most float around, wasting everyone’s time. Our own research points towards a 40:1 ratio of deals to projects.
- In order to process more deals, one can build a larger pipe (put more people on the job) or increase the speed of flow (process innovation). TestFit.io proposes increasing the speed of flow.
- In order to achieve more optimized deals, more deal iterations must be evaluated. TestFit.io proposes an exponentially quicker spatial analytics tool, an instantaneous quantity takeoff tool, and an instantaneous financial analysis tool.
- In order to eliminate time waste and communication lag: deliverables, definitions of metrics, and terminologies must be standardized into a single format. No manual emails, no version manual controls, just one information model.
Deal Information Modeling (DIM)
TestFit will release the first version of DIM. DIM, at its core, is a collaborative, generative creation tool. Each discipline provides input to the DIM, and the DIM, in turn, models the input and provides appropriate outputs in real time.
In this minimum viable example of DIM, the effect of an increased setback instantaneously affects all other outputs of the Deal Information Model. Since the pro-forma is in sync with the designed building, a yield on cost is immediately available.
Sample DIM workflow
- Developer: Provides the DIM a narrow range of Rents and Unit Mix
- Architect: Provides the DIM a narrow range of building design parameters
- GC: Provides the DIM a narrow range of costs
- The Team: Points the DIM to a goal
- The DIM: Iterates schemes, learning each scheme, to achieve the defined goal
All of the generated schemes are pushed to the Deal Information Model. Several different goals should be considered. Once the DIM achieves a critical mass the best schemes will be cross-bred with a non-linear optimization function to find the “Best” “Optimized” deal.
- All of the generated schemes will be searchable and sortable (image above)
- All data can push into other platforms (BIM / CAD / Excel) if the deal turns into project
Over the long term we hope to:
- Build a collaborative application where deals and their schemes are tracked, searchable, and version controlled. This could be a web interface, mobile application, a desktop application or all of these. The Deal Information Model should be immediately available for all parties involved.
- Strategically branch into other building types
- Connect with other useful tools that help with Deal Information Modeling