March 10, 2023
Read Time: 5 minutes
If you haven’t heard yet, there’s a new tool out there changing the world as we know it.
And that’s no exaggeration. The way we do things today, will most likely be obsolete in the near future. How?
Artificial intelligence.
The software, ChatGPT, has recently made many headlines, and its impact on many different industries have people concerned.
Change can be scary… and this breakthrough is going to bring about A LOT of change.
To break it down simply, ChatGPT is an artificial intelligence model that essentially draws its information from the entirety of the internet to provide you with… whatever you need.
Again… not exaggerating here. You can ask it to write code for your website, you can ask it to write an essay, or you can ask it to tell you a joke…
It takes all of the information available to it, and creates something new. And that’s the important part here… it is perceiving information and synthesizing something new from it.
The possibilities are endless.
So, with that in mind… what role does AI play in real estate investing?
Why don’t I have the AI answer this one… without further adieu, here is ChatGPT’s response when asked to explain the uses of artificial intelligence in real estate investing.
Property Valuation
One of the most significant applications of AI in real estate investing is property valuation. Traditionally, real estate investors relied on appraisals and market trends to determine the value of a property. However, AI-powered valuation tools provide more accurate, data-driven insights that help investors make informed decisions. AI algorithms can analyze various data points such as property characteristics, comparable sales, and neighborhood trends to provide a more accurate valuation of a property.
Predictive Analytics
AI can help real estate investors predict market trends, identify investment opportunities, and reduce risks. By analyzing data from various sources such as rental yields, vacancy rates, and sales trends, AI algorithms can identify investment opportunities and potential risks. This can help investors make better investment decisions and maximize their returns.
Property Management
AI can also transform the way real estate investors manage their properties. AI-powered property management tools can automate routine tasks such as rent collection, maintenance requests, and tenant screening, thereby saving investors time and reducing costs. These tools can also provide real-time insights into property performance, which can help investors identify areas for improvement and optimize their returns.
Customer Service
AI-powered chatbots can improve customer service in real estate investing by providing 24/7 support to tenants and investors. These chatbots can answer common questions, provide property information, and help tenants and investors troubleshoot issues. This can improve customer satisfaction and reduce the workload of property managers.
Smart Homes
The rise of smart home technology has created new opportunities for real estate investors to leverage AI. Smart home devices can provide data on tenant behavior, energy consumption, and security, which can help investors optimize their properties and reduce costs. AI algorithms can also automate routine tasks such as adjusting thermostat settings and turning off lights when tenants are not home, which can save energy and reduce costs.
In conclusion, AI is set to transform the real estate industry, and real estate investors who embrace this technology will have a significant advantage over their competitors. By leveraging AI-powered tools, real estate investors can make more informed decisions, reduce costs, and optimize their returns. The future of AI in real estate investing is bright, and we can expect to see more innovative applications of this technology in the years to come.
Alright… we’re back to a human writing this now.
ChatGPT’s abilities are impressive, and it will continue to hone and sharpen those abilities as more and more people use it.
There is a common theme in the answers that ChatGPT gave us… and it’s one of the univeral truths for the usage of AI in any industry… you will save time and money.
Sure, the tasks listed above can be done by a human, but that means either YOU have to do it yourself, costing you time. Or you have to pay someone else to do it, costing you money.
An artificial intelligence would be able to perform these tasks in a fraction of the time and… at a fraction of the cost.
AI is sure to bring massive change to the real estate investing industry.
If you haven’t had the chance yet, make sure you check out our episode of Multifamily Investing Made Simple, where Dan and Anthony dive even further into this topic, and cover the practical applications that AI has for the real estate industry.
From YouTube This Week:
AUM – The Biggest Lie Operators Will Tell You
Want To Dive Deeper:
1) The Biggest Obstacles For New Investors
→ There are many obstacles that new investors face when they begin their real estate investing journey. Anything from finances, education, to simply not knowing the right people. It can be very daunting for people to start investing. Real estate investing is misunderstood, and people tend to overcomplicate the process. So we made it simple!
2) AUM – The Biggest Lie Operators Will Tell You
→ We always hear operators stretch, twist, expand, and contort this number in every single way possible. It’s an important metric for us. It’s the total market value of our assets that we manage. But here’s the tricky part… the definition, the very formula to get your AUM, changes person by person. So one operator’s AUM may look very different than another’s, based on how they’re valuing their assets.
3) Stay Up To Date
The Multifamily Investing Made Simple Podcast is a weekly podcast where Dan and Anthony cover a wide range of topics revolving around the commercial real estate industry.
