All Forum Posts by: Max Yuan

The most sophisticated professionals always go through a transition from buying generic property lists to creating their own playbooks from raw data sources. Creating lists that no one else has.

I've been helping professionals monitoring probate and pre-foreclosure leads in real time streaming the leads to their CRM to pulling parcel data directly from county appraiser database at scale.

At some point you will realize that these "national coverage" companies just won't have the fine-grained information you need to help you succeed in your counties. Happy to jump on a call if you'd like!

Doesn't sound like they are truly generating value for you then. For context, I spent a decent amount of time building AI tools in real estate and shared this article AI in real estate what is hype what is real in BP a a bit ago.

If you are paying $250, and it is not making that money back, then it is wasted money. The base plan for the tool that my team has created is $999/mo designed for real estate wholesalers and they love it. No one has ever complained because it helps them close one or two extra deals every month which ends up being a more than10x return on their investment.

Tools are these funny things, try them, if they are not adding value just cancel.

What is your order of operations like?

Are you reaching out to home owners that matches your criteria, or are you reaching out to individuals that are going through life events like Probate and Foreclosures?

Both of these platforms are great for providing property information, but a lot of times you won't be the first to reach out on them. You have to figure out your own playbooks for unique data source to get an advantage on the market,

This is going to be a long journey - so make sure not to get discouraged. Some get their first deal in a week, others in a month or two. But unless you are making calls, you are not moving forward. Once you have closed a couple of deals, start thinking about developing your own playbook. Propstream is a great way to start, but the list is shared among hundreds of people, it will unlikely that you will be the first to reach out. Find your own advantage.

Always here as a resource - welcome to BP

If you offer is high enough, anyone will be willing to sell. It really is about finding deals that make sense for investors in a repeatable and scalable way. Whether you are processing inferred signals such as pre-foreclosure and tax delinquencies or optimizing for explicit leads using SEO.

There are definitely good deals to be found on MLS, but I am sure we all agree the bigger the information gap, the more opportunities there are for a lucrative deal.

We have actually seen great success partnering with some of the most tech-forward wholesalers; They are fully capitalizing on the "first mover advantage" aspect of this information gap; streaming real-time leads directly into their CRMs to automatically start their sequences.

@Roi Azoulay I think you are absolutely correct in this. End of the day real estate is a relationship game and nothing can beat the human connection.

The only thing AI and large data pipelines can really do is streamline an existing process that is working for you. If you are using VAs to put together a list, you can now do it faster and easier. But the tool is not going to help you close if you are not closing already.

@Jerryll Noorden we are fundamentally addressing different types of the sales motion with different supporting infrastructure/technology. We can absolutely agree to disagree on certain aspects of the business because end of the day, there are many ways to create value and help others achieve there goals.

I actually create a post in the technology section called AI in Real Estate - What's Hype? What's Real. Definitely take a look. But the TLDR is that AI is a tool, not a miracle worker. If a task can't be done manually, AI likely won't solve it either. AI's strength lies in automating defined, albeit tedious, processes.

If you don't believe in lead generation, no amount of AI will help make it better. But if you have a existing process involving VAs and scrapers that works for you, the process can suddenly become a lot easier and cheaper. Just like for building page ranking, instead of writing articles from scratch, all of a sudden you can create content a lot faster.

Innovations in AI is not just happening in RE, it is in every other vertical marketing, sales and I'm glad you also recognize the value. Definitely open to hearing your thoughts on how you think AI tools can be used to super charge your process.

@Jerryll Noorden I've came across your very strong opinion multiples times. Realistically people have built successful businesses around lead generation just like people have built successful businesses around SEO, bill boards or driving for dollars.

Your focus is on inbound, probably fewer leads but clearly motivated. Others focus on outbound, a lot more (albeit) weaker leads with inferred motivation. That is how correlation works. There is nothing wrong with closing 1 deal every 3000 leads, there are tools meant to speed up that process. I know guy that go through 800 a day, and honestly closing a deal every 4 days doesn't sound bad to me.

I've been delving into Real Estate focused AI tools, drawing from my experience in Machine Learning research at UC Berkeley, UCSF, and Apple, and I thought it'd be helpful to share some insights.

Understanding AI-Generated Text - Technologies like Chat GPT generate human-like text by predicting the next word in a sequence. However, this process can create convincing yet factually incorrect information due to its probabilistic nature. This unpredictability, while fostering diverse ideas, demands careful management.

Some applications in Real Estate - 1) Lead Qualification: AI can manage initial text-based interactions with potential leads, streamlining the qualification process. 2) Data Processing and Analysis: AI enhances data-heavy tasks like lead generation. 3) Deal Evaluation and Underwriting: AI aids in analyzing financial statements for preliminary assessments.

AI: A Tool, Not a Cure-all - It's crucial to understand that AI is a tool, not a miracle worker. If a task can't be done manually, AI likely won't solve it either. AI's strength lies in automating defined, albeit tedious, processes. For instance, when processing owner names in tax delinquencies, I use AI to automatically segregate names into distinct fields, such as in "HERBERT W. & ESTHER F. GORDEN", identifying first, middle, and last names for each owner.

AI in Daily Life - The auto-suggest on smartphones, a basic form of AI, is so integrated into our routine that its AI nature often goes unnoticed. The term 'AI-powered' has become a buzzword, signifying enhanced performance or additional features. Understanding AI's true capabilities allows for informed decisions, leveraging its benefits while staying realistic about its applications.

Ultimately, AI tools are emerging across all industries, not just real estate. Those who effectively utilize AI will undoubtedly gain a significant edge. It all boils down to discerning the genuine value amidst the hype. Are you using any AI tools today? If so, how do they enhance your workflow, or if not, what's holding you back?

Although wholesaling is always a numbers game, there are things you can do to improve your chances. Sharing the same data source as everyone else means the lead is more likely to be saturated already.

Finding unique data sources or just being on top of publicly available information could do wonders.