In the last year, much has been written about how artificial intelligence (AI) is poised to upend virtually every industry you can name. Some see it as the “silver bullet” they’ve been waiting for on their quest to work smarter, not harder. Others fear that it may be a technological innovation that we ultimately cannot control – one that will eventually replace human jobs with automation to the detriment of us all.
While it’s difficult to say how AI will play out in the long-term, in the near future, artificial intelligence should be seen for what it really is: a productivity adrenalin shot in the best possible way. This is particularly true in terms of real estate investing, which is a notoriously time-consuming affair.
Think about everything one must devote themselves to for a successful real estate career. They need a deep understanding of the market – including not just where it is but where it has been and where it might be going. They need to wade through countless property listings until they find the right ones that meet their unique investment strategies. The list goes on and on.
Artificial intelligence can help with all of this, freeing up valuable time for real estate entrepreneurs so that they can focus on more important matters. In fact, AI is already empowering those entrepreneurs right now in a wide range of different ways, all of which are worth a closer look.
Actionable Information at Your Fingertips
One of the major ways that AI in real estate empowers young entrepreneurs has to do with the wealth of information it gives them access to in real-time.
Think about the sheer amount of human error you could be exposed to when performing something as seemingly straightforward as market analysis. Not only do you have to make sure your data comes from high-quality sources, but you also have to interpret it correctly. You need to be in a position to act on it, and you need to make informed choices when doing so.
AI algorithms can analyze massive volumes of data – far more than a human ever could. Not only will they be able to quickly verify trends and patterns in terms of things like property values, but they’ll do so with greater accuracy than even a team of people likely could.
You’re left with instant insight, illuminating the path you need to take to accomplish your investment goals. Is it impossible to get to this point without AI in real estate? Absolutely not – but it’s far easier and more efficient to lean into what technology has to offer.
Incredible Time-Savings
Another major way that AI in real estate empowers entrepreneurs is due to the sheer amount of time it can help someone save.
Think about how inherently complicated a traditional real estate transaction can be. Now, double that amount of effort within the context of wholesale real estate. This is because you’re now working with a buyer and a seller, as opposed to just one or the other.
If you already have a seller and know about the property in question, AI in real estate can help you finely target your marketing to get it in front of the people who are most likely to be interested as quickly as possible. In a situation that already has razor-thin profit margins, artificial intelligence can save as much time – and thus money – as possible. This helps to not only create that perfect situation that is beneficial to all parties, but it does so in a more cost-effective manner than ever. This preserves as much money as possible to go directly into your own pocket as profit.
The Property Management Advantages
There are those investors out there who are in it for the long game. They’re not just trying to buy a property to flip. They want to own, rent, and manage it to create passive income for themselves or boost their portfolio. This is another area where AI in real estate can absolutely come in handy.
Using sophisticated artificial intelligence-driven systems, it’s never been easier to monitor the conditions of a property. You can even see things on a unit-by-unit basis if you’re talking about a multi-family home like an apartment. You can predict maintenance requirements to fix small problems now before they become larger, more expensive ones later. You can take steps to reduce energy use and related costs, creating more profit for yourself. You can even allow AI to help with customer service to create a better tenant experience – something that will keep people satisfied, vacancies low, and your return on investment ultimately as high as it can go.
AI: Another Tool in Your Toolbox
In the end, it’s important to remember that in real estate, in particular, the one thing you’ll never be able to automate is a relationship. If you’re a seller, you need to find the right buyer and get them to trust you. If you’re a buyer, you need a seller. Wholesale real estate professionals need to forge two relationships to create a single positive outcome for everyone. All the innovative real estate software in the world will never change that.
But by freeing up their valuable time, artificial intelligence is ultimately empowering seasoned real estate entrepreneurs to do precisely that. They don’t have to spend countless hours pouring over historical data to determine which trends are on the rise and which are about to fizzle out. They don’t have to sink hours into examining properties until they find the best match for what they’re trying to accomplish. AI can do this with a fraction of the time and effort it used to require, all while generating results that are more accurate than a human is likely capable of.
This doesn’t mean real estate investment gets easier or that you can run your career on autopilot. It simply means that you’ve been gifted with more hours in a day to focus on what matters most: creating those mutually beneficial relationships. That’s an exciting position to be in regardless of how long you’ve been investing, and it’s something that was only possible thanks to the advent of artificial intelligence as we know it.
Featured Image by Austin Distel on Unsplash
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