I have seen a lot of our partners using RedIQ but I haven't actually used it.
Does the program eliminate the need for an analyst? My understanding is it automatically goes through rent roll / T12 data, and basically creates a model for you... is the tool actually of high quality to where you dont really need an analyst to create and run models, organize and research comps, etc?
Think it only applies to multifamily, no?
Regardless, I wouldn't think it eliminates the need for an analyst, at least at this point in the progression of technology. Too much variance between income statement formats, non-cash items to exclude, etc. to completely trust the AI to deconstruct and project everything correctly. Might be able to cut down on number of analysts with something like this but you'd certainly still want someone who is in the weeds vetting the work the application puts out.
I would think so too, but the sale pitch is basically that it creates a model for you... an analyst with 1-2 yrs exp likely wont provide any meaningful data analysis you can make a decision with, so as a senior associate, or VP, would this tool essentially eliminate the need for 2 - 3 analysts and maybe just keep 1?
Not having used it I can't say for sure, but assuming you're a 100% multifamily acquisitions shop and the software is relatively reliable, I would think yes.
My team uses it. It’s a great tool but still need analysts to vet the outputs. Theoretically if you have the same format T-12s the tool will learn your coding and you’ll be set. Unfortunately we see all types of formats so it doesn’t do us a lot of good. Still extremely helpful on the rent rolls though.
That was always my concern.. how could you accurately automate the T12 analysis given they are super different for each operator... their pitch is that they can do this though.
We used this at one of my shops that did a ton of multi. It's a great tool and really helps you speed up the uw process. But it just made the analysts more productive, did not eliminate them.
This was my experience.
To sort through a rent roll and T12 takes maybe 2 hours for a Jr analyst. So without any other value add than organizing a rent roll and T12, while still requiring an analyst to maintain and adjust the model, it would be hard to justify the cost...
I mean Berkadia was not only a customer but also acquired Red IQ. Did Berkadia eliminate analysts? They not only have analysts in the US but also have a team in India to help them out in loading rent rolls and operating statements, etc. The analysts in the US check their work. Several other GSE lenders also operate a similar model. The analysts use Red IQ as a tool and it makes their life a little easier.
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