AI Edge: Transforming Real Estate for Investors and Managers

Hey there, my Passive Wealth investing friends! I have to say as we sail into 2024, one area that continues to blow my mind is that of Artificial Intelligence (AI). And how it's going to reshape the real estate landscape: Gone are the days when AI was just a sci-fi fantasy. Almost a year ago today ChatGPT burst onto the scene and it has advanced so much it seems like every week a new article could be written about it. So, buckle up as we explore a few new exciting things in the AI revolution in real estate!

Predictive Analytics in Property Investment:

Alright, let's break down this AI wizardry in real estate into bite-sized, easy-to-digest pieces. Predictive analytics? It's like having a crystal ball powered by AI. This tech dives into heaps of data to foresee where the next hot market will be or which property's value will skyrocket. Think of it as a secret weapon for savvy investors like you, guiding you where to put your money for the best returns. The cool part? This used to be a playground for the big guns – the REITs and hedge funds – but now, thanks to platforms like Offrs and Catalyze AI, it's in the hands of everyday investors. The better data you have the better the results will be and for of you in the brokerage or site acquisition space AI will soon be a huge benefit.

But wait, to sound like a late night informercial host. THERE'S MORE! Beyond just spotting trends, AI in real estate is like having a super-smart assistant who never sleeps. It can predict maintenance needs before things break down, helping you save a bundle on repairs. And when it comes to understanding market dynamics, AI is like having your own personal market whisperer, offering insights that even seasoned pros might miss. The result? You make smarter investment choices, minimize risks, and hey, maybe even impress a few folks with your savvy moves. So, as AI continues to evolve, it's not just changing the game – it's rewriting the rules in the real estate world. One of my friends has a software program using Ai for primarily property managers to help manage tenant turn times. It takes a repeated task and creates more alerts, standardizes orders and based on your rent roll starts preparing the team of turnover. It is nudging and reminding the contractor on a daily basis and helping become a project management team in itself. As a result they say they have cut turnover times by something like 25%. Which sometimes can mean an extra month of rent based on the timing. Combine that times 10-20-100 units. It becomes a massive number every year.

AI in Asset and Property Management:

Now, onto the nitty-gritty of managing properties. AI is stepping in as the new sheriff in town, bringing law and order to asset and property management. We're seeing AI systems that can predict maintenance needs before they become costly problems, optimize energy use to save on bills, and even handle tenant communications with chatbots. Think about it: AI could help manage your property portfolio more efficiently, reduce operational costs, and boost tenant satisfaction. I will bet that you will have an Ai property management system that you can plug into any property and pay for the cost of itself in less than a year. My thoughts and hopes are on those small 8-20-30 unit properties that are a real bear to manage will sudden be able to leverage more Ai to cut payroll and expenses. But also give a high quality experience for the resident. We are already seeing this in touchless check ins for hotels and Airbnb properties. It's coming folks and it will help the passive investor manager more with less.

The Future of AI-driven Real Estate Market Analysis:

Peering into the future, AI's role in real estate market analysis is making leaps forward. We're not just talking about crunching numbers here. AI is evolving to understand market and site nuances, predict consumer behavior, and even offer personalized investment advice. For instance TestFit is an architectural Ai software that can run thousands of site variations for development. Before you would need an engineer or designer to sketch up plan based on a survey. Now with GIS maps and an Ai software you can run real time thousands of variations with a few clicks of a button. This then inputs out to a cashflow model and in real time you can see the changes to the development cost and margins. Basically it will help solve on of the biggest issues I believe in the most experience developers make and that is over paying for the site. T

he future might seem like Ai taking over but it's not going to be Ai that crushes it. It will be the person that understands the problems and challenges of real estate and then uses Ai to solve those problems. Those that leverage Ai will be able to 10x maybe 100x their ability to leverage time and ultimately buy back the lion share of their time.

In wrapping up, it's clear that AI is not just knocking on real estate's door; it's already inside, making itself at home. If you are not using Ai I encourage you to start working with it everyday. It's like an upgrade to your abilities in a major way. Shoot me an email if you need some tips to get started with Ai in your passive investing journey.

Jake