Real Estate Land Investment Estimation Platform

Project Background：

As far as real estate companies are concerned, they can complete 70% of the overall real estate business by obtaining good land and designing a good format. Real estate and land investment often involves billions of RMB in capital investment, and risks and profit space coexist. So how can we reduce risks and make investment work more efficient and safer? This depends on "land investment estimation".

For different stages of the project, different measurement templates are used. For example: the Quick Test Version is used in the early stage of the project, for quick evaluation and rough calculation, to judge whether the project can be accepted; the main evaluation index is the net profit margin. The Detailed Test Version is used for land bidding review and land acquisition decision-making, simulating the entire development process of the project, and calculating indicators such as input, payment collection, cash flow, profit, internal rate of return and other indicators at each node. The Post-investment Operation Version is used for post-investment project operation management to track whether the investment income is deviated from the plan achieved.

Customer pain points：

Most real estate calculations are based on offline Excel. In the Excel calculation template, enter project information, such as land price, area, selling price, cost, financial tax and other data, and calculate the total income, total cost, net profit margin and other indicators. The pain points brought to customers by this status quo are as follows:

● Difficult to make efficient decisions due to repeated manual calculations

In the early stage of the project, with unknown plans, it is necessary to constantly try to calculate thousands of possible profit situations caused by different selling prices, construction costs, land costs, land prices, etc. Manual calculations can only try one possibility at a time, the efficiency is extremely low, and the cycle is too long to make judgments.

● Relying on experience to speculate, few options and high investment risk

Excel manual calculation can only output one result at a time and cannot exhaust all possibilities. It can only rely on experience to infer and calculate some of the possibilities, and investment risk is high.

● Data is easy to leak, and there are hidden dangers in data security

The land calculation data is the core secret of the enterprise, and Excel cannot control the authority, so it is easy to cause the leakage of core data such as cost.

● Cannot calculate with multiple people

Excel cannot realize the coordinated calculation of multiple departments such as sales, cost, finance, investment, etc., and the formula template is easy to be changed, resulting in incorrect calculation

● Lack of data analysis

When a problem occurs, it is impossible to locate the specific cause, and each department shirks its own responsibilities.

● Difficult to operate and of poor performance

There are many formulas in Excel and its calculation efficiency is low. Each calculation requires hours. It is easy to get stuck, data loss and other problems, and the Excel formula template is easy to be changed.

Solution：

Batch quick test, precise screening. Build online calculation applications, including calculation information entry, batch calculation, accurate screening solutions and other functions. Enter a variety of possible selling prices, land costs and other parameters at one time. The system automatically transfers the parameters into the calculation template and calculates thousands of sets of data in batches. The user can select the desired result to obtain the input value. Performing all calculations on the server, more than 15,000 results can be quickly calculated in 30s.

Figure: Multi-factor calculation

Different query conditions can be combined to query the measurement results. Based on core indicators such as net profit rate, 5-10 more suitable plans for the land can be screened out.

Figure: Calculation Results Output

Detailed measurement version, performance improvement：The online measurement platform built on Smartbi supports multiple people to fill in, saves the filled version, sets the filling standard. The filling personnel only need to select the parameters to quickly calculate. The system can automatically generate 16 calculation reports, and automatically aggregate and generate core indicator output tables. At the same time, through sensitivity analysis, it can compare multiple versions and explore the impact of different factors on the results.

A single detailed test is compressed from 50 minutes to 30 seconds! Moreover, more than 100,000 formulas can be reused directly and updated dynamically! For detailed test, Smartbi has more obvious advantages in using Excel as a report designer.

Figure: Detailed Test Results

Large data screen, operation monitoring. The result data of the project investment calculation is made into a large data screen using the visualization tools provided by Smartbi, which can be used to report to the leaders and make intuitive decisions. It can also be used as a management yardstick in the subsequent stage of project operation and management to track whether there is a deviation between the investment income and the plan.

Picture: Dashboard of Calculation Report

Value of the solution：

● Grasp investment opportunities

The entire investment estimation process has been compressed from two weeks to one day, which can respond to government invitations in a timely manner to avoid the loss of opportunities.

● Quantify investment risk

Traverse various factor possibilities, select the best solution from thousands of sets of data, improve calculation accuracy through the platform, and avoid investment errors.

● Improve the competitiveness of first-line companies

Sort by profit, find the best plan, increase profit margins, force each department to explore cost boundaries around the selected plan, reduce invalid communication, and improve decision-making efficiency.

● Reuse Excel templates directly

100,000 Excel formulas can be reused directly and can be dynamically updated. The formula template will not be changed.

● Performance and efficiency are greatly improved

A single measurement is compressed from 50 minutes to 30s.

● Execute authority control and standardize measurement and calculation

To avoid cost and other data leakage, group experts set standards to improve the accuracy and efficiency of reporting.

Summarize the value in one sentence：

Real estate land investment calculation application platform: efficient calculation, traversing all possibilities, maximizing profit, and improving project investment success rate, refining monitoring and operation through self-screening, reasonably developing to ensure the safety of cash flow, which is a strong guarantee for the investment estimation of real estate enterprises.