JF1237: How To Use Augmented Reality To Lease Or Sell Your Property Faster #SkillSetSunday with Kevin Hart
Kevin and his company can place CAD models anywhere on their platforms. In the example of the Sacramento Kings, they provided the CAD models to Aireal, who then placed the models in the exact spot the new stadium and retail centers were going to be. They were able to start leasing the spaces before the ever broke ground. To hear how technology like this can help you as an investor listen to this episode today! If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!
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Kevin Hart Background:
– Founder and CEO of Aireal
– Created the Patented Intellectual Property, and lead business operations
– Aireal is an Augmented Reality platform that supports the placement of custom content (2D graphics, 3D graphics,
Video & Interactive applications) based on predefined longitude, latitude and altitude coordinates
– Based in Dallas, Texas
– Say hi to him at: http://aireal.io/
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Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any fluff.
First off, I hope you’re having a wonderful best ever weekend. Because today is Sunday, we’ve got a special segment for you called Skillset Sunday. The skill today is how to use augmented reality to lease or sell your property faster. With us today, Kevin Hart. How are you doing, Kevin?
Kevin Hart: Pretty good, and yourself?
Joe Fairless: I’m doing well. Kevin is the founder and CEO of Aireal. He’s based in Dallas, Texas. They’ve created a patented intellectual property which helps do exactly what I’ve just said. Actually, we have a case study that he’s gonna talk about that he used with the Sacramento Kings, and helped lease out space before the space was even built. Certainly a way to shorten the period of time where we’re not making money on deals.
With that being said, Kevin, how about you talk us through what your company does, and then how it benefits real estate investors?
Kevin Hart: Absolutely. I appreciate the opportunity, and thank you for having me today. When it comes to augmented reality, it’s critical to understand where augmented reality has come from. In the past, a lot of it was based off of what’s called image or marker based recognition, so your phone could only scan a QR code or a picture of small 3D model on top of it. We wanted to remove those limitations at Aireal, so what we did is we patented and created the ability to place 2D, 3D video and interactive content at longitude, latitude and altitude coordinates. This means we could place content anywhere in the world instantly. You don’t have a limitation on the dimensions of the experience, and it could all be viewed and interacted with through a mobile device, much like your phone, or even a tablet.
What makes our technology really unique and how it could be applied to real estate specifically is how we can anchor CAD models at the actual location where something’s going to be built. Now, you mentioned the example of the Sacramento Kings, and what we did for them is when they were building out their new arena and the retail space surrounding it, before they ever actually began construction on that retail space, they provided us with the CAD models of what was going to be built, and we anchored it exactly where it was said to be built, so people can hold up the mobile device, they can actually walk around the structure as if it actually coexisted with reality, they could see it to its full scale, they could even walk into the first floor of it and see some of the details of what that building would be. That then allowed them to start getting commitments or leases for that space, and they didn’t have any of the upfront costs, and it validated it for their investors as well.
Joe Fairless: Beautiful. So is this a technology that is only for a company or organization that has big-time spending power like the Kings?
Kevin Hart: No, not necessarily. We would like to work with a lot of various builders, whether it’s large architecture for businesses or residential. We think there’s an endless amount of opportunities, especially with residential. If you’re a potential homebuyer, you can go to the lot that you would like to purchase with that builder’s library of CAD models for the particular houses they have in that neighborhood. You can place various houses there, walk through them as if they’re already built, and even customize features along the way and save that to a profile that will go back to the builders.
The benefit of our technology is that we are a toolset, so we’re a white label solution, meaning that we can either create a standalone application for the builders, or we can integrate into an existing application for realtors that they can receive all this information themselves. Either way, it will be a custom-built solution that gives them endless opportunities.
Joe Fairless: For example, if a builder is building a development and they have their model that’s already built, then you can go in and do your thing with your technology, and create a model of that so that others can walk around where their house would be built, and you can show them what it would look like through augmented reality?
Kevin Hart: Absolutely. And even for some neighborhoods where they only have like maybe one or two model homes built, but it’s not the full amount of houses that they’re gonna be building in that neighborhood, it would allow you to also visualize and experience those other houses that aren’t physically built yet.
Joe Fairless: Have you worked with developers in that situation?
Kevin Hart: We haven’t yet. We’ve only been working with large business structures and architecture, but that’s definitely a market that we’re excited to be in.
Joe Fairless: What do you charge?
Kevin Hart: It actually varies. Right now, for some of these larger clients, we have a 50k annual license just to have our technology, and then depending on the complexity of the actual experience on top of it, that’s where the variable cost comes in. So it’s on a per-use-case basis, so the price varies, but generally the experiences engineered are definitely between 10k and 50k on top of that 50k annual license. Then once that experience is created, you don’t have to make that investment again, it’s just keeping up with the license.
Joe Fairless: What else can you tell us about the technology that brings in the relevancy for real estate investors, or the application of it?
Kevin Hart: One of the main things it the fact that we have a backend metric system that measures over 70 different metrics in real-time related to human behavior, engagement and geo-intelligence. What that means is that if you are a builder and you have a potential buyer that wants to download the application that uses our augmented reality technology, and you say “Hey, you can come back to this lot, check out the augmented house, walk through it, customize the features and get back to us”, we’re measuring a ton of data. We know how often they’re coming back, how often they’re interacting with it, how many pictures or videos are taken, how many are shared to social media maybe for opinions of friends and family. We even know which speed they’re moving at. Are they walking? Are they jogging through the neighborhood and looking at it? Are they a passenger in the car? All this information so that the builder can contact that buyer based off of their behaviors and how they’re interacting with that experience.
Joe Fairless: You probably can also tell what features of the house are getting more attention than other features, right?
Kevin Hart: That’s right, and how often somebody’s changing it. Then you’re building out essentially a profile and understanding what people’s favorite points are, what areas they’re looking at the most often… So as a salesperson, you understand the points of emphasis that are important to that buyer.
Joe Fairless: Yeah, that could help influence future development decisions, once the developer sees how quantifiably people are looking at the house and areas of interest that they’re seeing, versus areas that they thought would be of interest, but aren’t as much.
Kevin Hart: That’s correct.
Joe Fairless: Yeah, because it’s one thing to hear what people talk about, it’s another to see how their body moves… And how does it track it? Is it based on movement, or is it based on some other way?
Kevin Hart: No, it is all based off of movement and where the angle of the device is. It’s called pose tracking, so we understand where a device is moving throughout a given space, and then what angle it’s actually looking at as well, so we can target what content it is they’re looking at. That’s one of the major innovations around our technology – we’re able to bring the GPS accuracy on a mobile device down to millimeter-level precision, when usually it’s between 5 and 25 meters of what’s ultimately inaccuracy. Having that level of accuracy gives us that absolute precision.
Joe Fairless: What has been the main challenge for you as an entrepreneur with building this company?
Kevin Hart: It always comes back to education. In the past, augmented reality had a negative stigma to it, because it was considered a novelty, and the main reasons were because of the limitations of what an experience could be with that previous technology I’ve mentioned with image or marker based recognition. So the matter of getting people to change their behaviors, understanding the value proposition of how we’ve removed the negative stigma of a novelty, and are now rewarding people with experiences and even memories on how they’re interacting with this content… So overcoming the educational hurdles, getting people more familiar with the technology has definitely been the ultimate barrier, but thank goodness the augmented reality market is now emerging, and we’ve been in business for 4,5 years, so we’ve always been ahead of the curve of this new and emerging market.
Joe Fairless: How can the Best Ever listeners get in touch with you?
Kevin Hart: The best way to get in touch with me is by e-mailing me at firstname.lastname@example.org.
Joe Fairless: Kevin, thank you for being on the show. Thanks for talking about your company and its applications for real estate investors and especially real estate developers. I appreciate you talking through the applications for how it could influence the development of not only the lease-up and sale of a property, but then future development decisions prior to actually going into development that are influenced based on the research that’s being done.
I appreciate that, I hope you have a best ever weekend, and we’ll talk to you soon.
Kevin Hart: Thank you very much for the time, I appreciate it.