Product Sense: Designing a Real Estate Investing Product, From Investor Segment to MVP

Design a new product that helps people invest in real estate. Explain who the product is for, which problems it solves for them, what the first version would include and why, and how you would judge whether it is succeeding. ```hint Find the real barrier Different people are held back from property investing by different obstacles: the capital required, money locked up for years, finding and judging a good deal, and the ongoing work of owning a property. Choose one kind of investor and the obstacle that matters most to them before listing features. ``` ### Clarifying Questions - Is this a product for a new company, or one launched by an existing business that already has users and distribution it can lean on? - Which kind of real estate investing is in scope: buying whole properties to rent out, owning fractions of properties alongside other investors, publicly traded real estate funds, or lending secured by property? - Which investors and which country should the first version serve? Rules on who may buy private investments, and on renting out property, differ a lot between markets. - What is the main business goal for the first version: the number of active investors, the money invested through the product, or revenue? ### What a Strong Answer Covers - A stated goal and one investor segment chosen deliberately, with the reason it is the right place to start. - Pain points specific to real estate investing (capital, illiquidity, deal sourcing and evaluation, financing, property management, trust), ranked for the chosen segment. - Several candidate solutions, a prioritized first version, and why the rest waits. - Success metrics tied to the goal, with guardrails on investor losses, conflicts of interest and compliance. - Risks particular to the category, such as regulation, market downturns, fraud and inaccurate projections, and how the design limits them. ### Follow-up Questions - Property prices in your launch market fall sharply soon after many users have invested. How should the product respond, and what would you design differently from the start because of that possibility? - How would you make money from the product without rewarding it for pushing users into deals that are bad for them? - If the first version works, which investor segment would you expand to next, and what would have to change in the product?