AI Analysis Tools? Which is best and why? Anyone using any of these and why?

[Benjamin J Thompson]

There is no question that investors not moving into Real Estate AI-Tools are going to be left behind in consideration of the availability of data, and how AI is using that data to analyze and prove value. I have 14 doors and one commercial space and am looking to choose an AI tool to take-away the apprehension of unknows and provide the data and answers that I need to make a data driven decision towards purchase. The manual entry of numbers has moved to an automated model with accurate ARV, Cap Rates, etc. Here are the current tools I have begun looking into.

1. Reonomy (Analyzing market conditions, and assessing property values) 

2. Zillow Offers (home owners, buyers and investors to estimate property values quickly) 

3. House Canary (Tailored for Real Estate professionals, investors and lenders needing property assessments and market forecasts) 

4. Rex (Real Estate agents and sellers to optimize listings, attract buyers and close deals efficiently) 

5. Enodo (Multi-Family investors, developers and asset managers) 

6. Mashvisor (Real estate investors looking for short term investments) 

7. Localize City (Homebuyers and investors who want a deeper understanding of neighborhood dynamics and potential risks) 

8. Skyline (Designed for institutional investors and asset managers focused on commercial portfolios). 

Is anyone currently using any of these? If so, what do you like about them and why? 

[Caleb Brown]

I use Reonomy for cold out reach and I like it overall. 

[Benjamin J Thompson]

Is that across the board, or target market specific? EG; Fix and flips, Turnkey, Multi, etc? 

[Bob Stevens]

Quote from @Benjamin J Thompson:

There is no question that investors not moving into Real Estate AI-Tools are going to be left behind in consideration of the availability of data, and how AI is using that data to analyze and prove value. I have 14 doors and one commercial space and am looking to choose an AI tool to take-away the apprehension of unknows and provide the data and answers that I need to make a data driven decision towards purchase. The manual entry of numbers has moved to an automated model with accurate ARV, Cap Rates, etc. Here are the current tools I have begun looking into.

1. Reonomy (Analyzing market conditions, and assessing property values)   IF YOU do not know then do not do it. It takes 10 min find prop values. IF you are doing deals in your market, YOU better know :) 

2. Zillow Offers (home owners, buyers and investors to estimate property values quickly)  DITTO FROM ABOVE YOU as an investor need to know this, Any prop, anywhere in the city to do biz you need to know, 

3. House Canary (Tailored for Real Estate professionals, investors and lenders needing property assessments and market forecasts)  BLA BLA LOL . I was told for 10 years ' I am crazy to buy in my market from all the " annalists" . IF I had listened to the " internet" well.... 

4. Rex (Real Estate agents and sellers to optimize listings, attract buyers and close deals efficiently)  LIST IT ON MLS, works every time! Or if selling to investor as is, post in the local forums .  " close deals efficiently " What does that even mean ? 

5. Enodo (Multi-Family investors, developers and asset managers) its just math 

6. Mashvisor (Real estate investors looking for short term investments) 

7. Localize City (Homebuyers and investors who want a deeper understanding of neighborhood dynamics and potential risks)  AGAIN, ALL BS, I can show you neighborhoods that you will run away from if you sit online and  " learn" 

8. Skyline (Designed for institutional investors and asset managers focused on commercial portfolios). 

Is anyone currently using any of these? If so, what do you like about them and why? 

For some they may need or use these, not me . 

[Benjamin J Thompson]

For those that rely on traditional methods and personal experience, I can understand this perspective. It's probably taken you quite some time to develop a level of aptitude through experience, and it's most likely, well deserved. There are however, compelling reasons why AI can be valuable in this field. 

1. Data Analysis: AI can process copious amounts of data, including market trends, property values, neighborhood demographics and economic indicators. This can help make more informed decisions by identifying patterns and opportunities that may not be immediately apparent to some. 

2. Predictive Analytics: Historical data can expose future trends in value, rental demand, and market conditions. I purchased my first two multi-unit properties using data and they've doubled in value in 5 years simply because my metric was population growth and movement. 

3. Efficiency: AI tools can automate time-consuming tasks such as property searches, fiscal modeling and even property management. That's what I'm after. Time to focus on higher-level decision-making and strategy. 

4. Risk assessment and mitigation: Quick analysis of crime rates, school quality, economic stability and environmental risks. 

5. Personalization: Buy box customization and tailored investment strategies based on my individual goals, preferences, and risk tolerance. I'm a conservative investor. A bird in hand is worth two in the bush style. :-) 

In summary, AI is not a replacement for traditional methods, but rather a powerful tool to complement and enhance them. 

[Obed Calixte]

Did you use AI to generate your posts, you slick dog...

Haha, but in all reality AI is useful as a complementary piece for day to day activities. For analytical activities I still leverage trusty Excel and other data crunching tools. 

[Benjamin J Thompson]

Gotcha. I'm doing a Vendor Audit on the above to hash out the differences and value's. I'll post the results here. 

[Nicolas Munoz]

Hey Benjamin, I had just created a post today in regard to automating deal analysis. The process seems so manual and time consuming. It seems you have some experience using several different tools and are clearly pro AI. Do you know of any tools that can do a full end to end deal analysis, as well as looking at title, calculating cash flows, and giving a full picture of the investment potential of a property? What manual processes do you think AI could help to eliminate?

[Account Closed]

I've been trying to figure out which AI tools to use myself. I'm not a realtor, just am trying to invest in properties (mostly furnished rentals) here and there, with a background heavily in IT. Don't want to work a W2 forever.

I haven't tried all of the platforms by any means but Gemini vs ChatGPT for example, I will ask them questions in regards to evaluating markets and if they don't like the idea (don't know where to look?) for certain data like price per square foot I've found you can tell them to reference websites holding the data.

So far ChatGPT seems pretty good for this purpose but I'm curious to see how Elon's superAI pans out.

[Stevie Kim]

I keep thinking about tools that can help me reduce risk by catching errors or red flags in seller disclosures and inspection docs, but that's likely because I've had a bad experiences with both.

A simple and obvious example is a seller checking "No" for pests section, such as Scorpions and Snakes in Arizona when the property is in the desert, so obviously, there will be snakes and scorpions. 

A costly example could be remodeling information claiming a permit was issued when there wasn't any in the county's records. Or that the remodel wasn't performed by a licensed professional. 

While this is regular due diligence, mistakes can be made when the market is hot and you have to move fast. I recently watched a BiggerPockets podcast on YouTube where both folks made flood insurance mistakes from not noticing something in the disclosure. These I think are considered rookie mistakes, but I'm all about finding ways to reduce risks from human error.

Has anyone else considered technological solutions to help the due diligence process? Maybe agents don't care about these issues, but it can be painful when it impacts ROI as a buyer.

[Steven S.]

Have you chosen a tool yet? I'd say forget the AI buzzword hype and go back to programming something useful based on real transaction-level data like below (that can help you with any deal you find, from whatever source you have).

Sales Comps & ARV estimate:

Market Stats:

AI won't be able to provide you anything close to this, nor does the RedFin/Zillow market data drill down into the market as deep as I do here.

Additionally, if you understand how the leading LLM's work based on a black-box floating point matrix, you just can't trust their conclusions like you can with your own program. Go ask ChatGPT or Claude or Perplexity what the current and historic quarterly $/sf in a City or Zip code is. Then compare it to my data-fed program. You'll quickly see why AI is not the solution here... not only will it give you a random number from a site that posted it, but it will hallucinate and draw quirky assumptions into the mix like oh based on this % appreciation and applying it forward/backward, etc. Totally useless for making go/no-go decisions, just like the average-only market stats from RedFin & Zillow.

Stay away from AI, demographic data, and average-only market data/stats if you want to "make a data driven decision towards purchase", they are all too broad/meaningless to actually help make that go/no-go decision. You will have to do something unique to make it effective & useful to you... because it's always no pain, no gain!

Would be happy to hear your thoughts/feedback, especially if you've been trying out different tools.

[Steven S.]

And that ARV estimate above isn't a one-off either, varying the radius shows different values for this just-sold renovated home: