Enodo Score’s Debut Allows Multifamily Professionals To 'Quantify Intuition'

Enodo Score, a new predictive analytics platform for the multifamily real estate industry, is changing the real estate investment game by allowing professionals to quantify the drivers of multifamily real estate value.

Enodo Score’s developers spent months developing a database of 800,000 multifamily properties throughout the United States and aggregating 30 years of demographic and economic data. To keep outputs up-to-date, the company integrated with a number of API data feeds to pull real-time rent and market data into the database.

The main goal of Enodo Score is to make predictive analytics readily available for real estate professionals. The company’s co-founders have applied their wealth of knowledge in multifamily brokerage and real estate development to develop an intuitive interface unmatched by other providers.

As outlined in the diagram above, the platform helps real estate professionals determine three main values: the expected investment performance of a new property, the potential for improvement of existing properties via the addition of new amenities, and the propensity for an existing property to succeed in other markets. Based on the demographics and economics of those markets, a property’s overall position in the market is represented by its “Enodo Score.” From there, the platform helps investors determine how certain changes to the property would impact its Enodo Score and its profitability. This objective composite score is then used to help investors compare investment opportunities.

Co-founder and CTO Marc Rutzen explains, “Users can specify certain characteristics and ask if adding them would allow their investment property to do better in a particular market and would tell them which markets each amenity would do best in." This what-if analysis also provides the ability to drag and drop a property from one location to another to show how that same property will perform in different markets as a result of varying demographics.

When considering whether to add additional parking, more common space, or other features, “this platform enables you to test these ideas before you move forward with a multimillion-dollar project,” Marc explains. Enodo Score measures the value of an additional commodity in real, quantifiable dollars and helps investors competitively position a property by determining the ideal characteristics.

By utilizing Enodo Score, users can calculate the incremental rent that they could charge by installing improved unit finishes, be it larger bedrooms or the addition of a dog run. New ideas can be tested on the spot and their impact on investment potential can be measured precisely and instantaneously. The effects of external factors such as the opening of a new transit station on occupancy and market rent can also be calculated.

Conversely, Enodo Score can be used to determine a potential decline in occupancy rates as a result of negating an amenity considered to be obligatory. For example, the exclusion of a pool in Texas, where pools are standard amenities, will almost certainly result in a decrease in occupancy. Until now, measuring the exact amount by which occupancy would decrease, has been difficult, if not impossible.

Enodo Score allows real estate professionals to make informed decisions regardless of how many years of experience they have. “For those who haven’t been in the industry for 30-plus years or are investing in a new market, the ability to finally quantify intuition, experience and market-specific knowledge will absolutely level the playing field,” co-founder Susan Tjarksen says.

Susan sees an additional user for Enodo Score in its future: the lending community. Because of its ability to quantify the risk-adjusted returns of any multifamily property in any market, the platform will be an essential tool for any lender looking to mitigate risk.

Enodo Score made its public debut at NMHC’s Emerging Leaders Speaker Series on May 18 and has an offer from the Elmspring Accelerator. The company will also be a Disruptor at DisruptCRE in Chicago on May 26, 2016.

According to Bob Gillespie, managing director of the Elmspring Real Estate Tech Accelerator in 1871, Enodo Score is just the type of product the real estate industry needs to make data-driven investment decisions.

“We see hundreds of applications from companies and we always have to ask: What distinguishes you from any other product out there?” says Bob Gillespie. “What we love about Enodo Score, and the reason we invited them to work with Elmspring, is that they are actually providing insight from real estate data—helping real estate professionals make sense of the increasingly overwhelming volume of data out there. And this platform is scalable.”

If you would like an opportunity to be the first to use this transformative and revolutionary platform, Enodo Score is looking for multifamily investors, developers, brokers, lenders and equity partners, acquisition analysts and managers to use and test the platform and provide feedback. Please click here or email Marc Rutzen at Marc@EnodoScore.com for more information.