What is RedIQ used for in Commercial Real Estate?

What is RedIQ used for in Commercial Real Estate?

RedIQ is a specialized platform used in commercial real estate for analyzing and underwriting multifamily real estate transactions. It streamlines the underwriting process by converting raw deal documents into standardized, actionable data, significantly reducing the time from initial data input to full underwriting. This platform is widely used by real estate professionals, including investors, brokers, and lenders, for its efficiency in handling large-scale multifamily transactions.

RedIQ was acquired by Berkadia in 2017 for an undisclosed amount. This turned several major real estate lenders who compete with Berkadia off of the platform, and contributed to the rise of alternatives like Enodo and Clik.ai.

What Does RedIQ do?

Here's a summary of the functionality offered by RedIQ:

1. Data Standardization and Analysis: RedIQ's dataIQ system standardizes raw deal documents, converting them into actionable intelligence. This helps users quickly begin underwriting with standardized data, either using RedIQ's proprietary model, valuationIQ, or their own model through an Excel plugin called QuickSync.
2. Comprehensive Underwriting Service: RedIQ has been providing underwriting services for multifamily acquisition teams, brokers, and lenders for over ten years. It supports the entire underwriting process, from standardizing financial documents to producing a final valuation.
3. Efficient Process: The platform can take a deal from raw files to full underwriting in as little as 30 minutes. It automatically detects financial anomalies in rent rolls and operating statements, which helps in creating more reliable valuations and analyses.
4. Leveraging Data for Insights: RedIQ allows users to visualize deals, generate comps from reliable underwriting data sets, and produce powerful, Excel-based underwriting models. It integrates tightly with Excel, making it easier to export data from the platform.
5. Lifecycle Management Suite: RedIQ is developing a new suite of offerings to support clients throughout the entire lifecycle of a property, including the hold period. This includes features like Below NOI line items (BNOI) and Proforma vs. Actual (PvsA) analyses.
6. Market Presence: RedIQ is used by many leading institutions in the real estate sector. A significant portion of institutional-grade apartment complex transactions in the United States are processed through RedIQ.

RedIQ offers an efficient, and data-driven approach to analyzing multifamily real estate transactions, making it a valuable tool for investors, brokers, and lenders in this space.