How AI is Impacting Real Estate Investors

[Julio Gonzalez]

Artificial Intelligence (AI) has been changing the world as we know it and the real estate industry is no exception. As a real estate investor, I’m sure you are wondering how you can utilize AI in your portfolio and on your properties. AI can be beneficial both for operations as well as your taxes. Let’s dive into it further.

How is AI utilized in the operations of a real estate portfolio?

• Automation of Property Management: Say goodbye to the days of tenants texting and calling you at all hours of the day to report a maintenance issue. Say goodbye to having to collect cash or checks for rent from your tenants. AI-powered platforms can be a useful tool to manage the routine tasks of a landlord such as collecting rent, tenant screening, maintenance requests and tenant communications. This helps reduce operational costs and increase efficiencies, hopefully giving the landlord back time to spend on other areas of the business.
• Market Trend Predictive Analytics: There are AI algorithms that can analyze large amounts of data in order to predict property values and future market trends. This will assist investors in making informed decisions and to potentially identify lucrative investment opportunities.
• More Accurate Property Valuations: Property values are assessed more accurately when utilizing AI tools as they are able to take into account multiple factors including market conditions, location and the features of a property. This can help investors ensure they are making a sound investment and not overpaying for the property.

How is AI utilized in the tax strategy of a real estate portfolio?

• A streamlined process for cost segregation studies: AI is able to help streamline the cost segregation reclassifications by analyzing and identifying property components into their appropriate useful life more efficiently than traditional methods.
• The ability to identify eligible tax credits: AI is able to sort through and analyze a vast amount of tax laws and regulations in order to attempt to identify potential tax credits available to the real estate investor. This may include tax credits such as 45L for energy efficiency.
• Optimization of Energy Efficient Tax Credits: AI tools can help real estate investors identify which specific energy upgrades are the most cost-effective upgrades for their properties resulting in a higher return on the improvements.

AI can help investors be more efficient and effective with their time and money. How are you utilizing AI in your real estate portfolio?

[Sharon Barnes]

Great points Julio and thanks for sharing. 

For me AI is helping me sift the news and distil the most important points to take note. One recent platform I am using is NotebookLM which allows me to put all the day's or week's news about real estate and recent developments into one place and then question the sources and get just the information I need to make informed decisions. 

As investors and brokers, getting the right information is key to making decisions and getting sifting through the stack of news daily is something I used to deal with until I started using this new tool.

[Julio Gonzalez]

Wow, what a great tool! I will have to look into that one as it sounds very useful to our industry. Thanks for sharing.

[Chris Seveney]

far to many are using it to post here on BP unfortunately.

[Sharon Barnes]

Quote from @Chris Seveney:

far to many are using it to post here on BP unfortunately.

I am not surprised Chris and this only goes to show the rate at which technology especially AI is going to reinvent everything. If BP is not already thinking about it, I think there will come another platform that will pull in all the information from platforms like BP and other credible sources to build an intelligent conversational AI that gives real time and historical real estate related data for investors and stakeholders and at some point home buyers might not even need some of us anymore. 

Do you think we adapt or die or we just brace ourselves for the long-haul? Your thoughts?

[Julio Gonzalez]

Quote from @Chris Seveney:

far to many are using it to post here on BP unfortunately.

 Completely agree. It's unfortunate. Hopefully there will soon be a way to deter that.

[Chris Seveney]

Quote from @Sharon Barnes:

Quote from @Chris Seveney:

far to many are using it to post here on BP unfortunately.

I am not surprised Chris and this only goes to show the rate at which technology especially AI is going to reinvent everything. If BP is not already thinking about it, I think there will come another platform that will pull in all the information from platforms like BP and other credible sources to build an intelligent conversational AI that gives real time and historical real estate related data for investors and stakeholders and at some point home buyers might not even need some of us anymore. 

Do you think we adapt or die or we just brace ourselves for the long-haul? Your thoughts?

I do not see that really being beneficial with BP and other forums, for example here on bp I would say atleast 50% of the responses we see on things like IRA's, LLC's etc are really bad advice. Its one thing to have an opinion, but I would not want biggerpockets to have a chatbot to answer those questions (nor would I assume they want the liability).

[Sharon Barnes]

Quote from @Chris Seveney:

Quote from @Sharon Barnes:

Quote from @Chris Seveney:

far to many are using it to post here on BP unfortunately.

I am not surprised Chris and this only goes to show the rate at which technology especially AI is going to reinvent everything. If BP is not already thinking about it, I think there will come another platform that will pull in all the information from platforms like BP and other credible sources to build an intelligent conversational AI that gives real time and historical real estate related data for investors and stakeholders and at some point home buyers might not even need some of us anymore. 

Do you think we adapt or die or we just brace ourselves for the long-haul? Your thoughts?

I do not see that really being beneficial with BP and other forums, for example here on bp I would say atleast 50% of the responses we see on things like IRA's, LLC's etc are really bad advice. Its one thing to have an opinion, but I would not want biggerpockets to have a chatbot to answer those questions (nor would I assume they want the liability).

Within your comment lies the more reason for AI powered fact-checkers and flagging system that can flag bad and good advice. Financial powerhouses like Bloomberg and Blackrock both have and are implementing AI in their Terminal and Aladdin suites.

The story of IBM and Apple/Microsoft and the evolution of technology teaches us that some things are inevitable. The many bad advice on this platform are mostly in part attributed to "AI" making everyone look smart but the few true ones like you would greatly benefit from a natural conversational interface tool that refers people to you for your quality advice.

I remain a cautious, optimistic skeptic but open to embracing what the future holds.