Stefan Tsvetkov is the Founder of RealtyQuant (www.realtyquant.com), a company that brings data-driven and quantitative techniques to the real estate industry. On a mission to add massive industry value through education, investment, technology, and analytics.

Financial engineer turned multifamily investor, analytics speaker, and live webinar host. He holds a Master's degree in Financial Engineering from Columbia University. During his finance career, he managed a $90 billion derivatives portfolio jointly with colleagues.In this episode, Stefan talks about the importance of a data-driven approach and real estate investing. We will dig into his approach to data analysis, which data are important, and what states are considered overvalued or undervalued today.

[00:01 - 03:33] Opening Segment

Get to know Stefan Tsvetkov 

From a Financial Engineer to Entrepreneur and Real Estate Investor

[03:34 - 09:06] Find The Best Deals Through Data-Driven Methodologies 

Stefan’s  approach to understanding the marketAnalysis for finding the best deals and market

The importance of a data-driven approachIts data and intuition combined

[09:06 - 17:34] How to Analyze Real Estate Markets

Analyzing commercial versus residential real estate

What you can learn from the Zillow fiasco

Things to look for in a market-level analysis

The Affordability Pricing approach

[10:54 - 34:45] How to Analyze Real Estate Markets

The overvalued and undervalued market 

Ratios Can Tell If a Stock Is Overvalued or Undervalued

The effect of inflation on the market 

The states with the highest appreciation forecast in Stefan’s model

How to find the best deals by leveraging market valuations

[34:46 - 42:14] Closing Segment

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The best investment Stefan  has ever made other than his education

His worst investment

The most important lesson Stefan  has learned in business and investing

Connect with Stefan Tsvetkov on LinkedIn or visit RealtyQuant

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Tweetable Quote

“Market valuation in real estate is something you can approximately know, not in a perfect way, but 70, 80% correlation.” - Stefan Tsvetkov

“Real estate is like very fundamental. If you have markets that are actually undervalued, even if you have the biggest recorded crash in US real estate history, they're not going to drop.”- Stefan Tsvetkov