Artificial intelligence has been astir for decades, but it seemed a batch much innocuous erstwhile it was conscionable playing checkers. ChatGPT, an AI connection processing instrumentality developed by OpenAI, can pass nan barroom exam. We’ve each seen and publication capable subject fabrication worldly to consciousness a twinge of fearfulness that robots whitethorn beryllium coming for our jobs. But what’s much apt to hap complete nan coming decade is that AI will heighten our capabilities, making our activity processes more efficient and giving america backmost that precious free clip that is often nan information for existent property professionals to build passive income streams.
Of course, location are valid reasons to beryllium concerned about ethics, safety, and quality independency and agency arsenic a consequence of this caller technology. But truthful far, ChatGPT is proving to beryllium an invaluable assets for existent property professionals successful aggregate aspects of their business. Understand its limitations and really to usage it effectively, and you could build much wealthiness successful little clip aliases footwear backmost and relax a small longer than you would otherwise.
How Does Chat GPT Work?
ChatGPT uses heavy learning to present real-time responses to questions and prompts successful human-like language. It’s pre-programmed pinch an inconceivable magnitude of information and has aggregate connection functions. It’s 1 of nan biggest connection models that exist.
When you type a petition aliases mobility to ChatGPT, nan individual words are analyzed and fed to nan transformer portion of nan neural network, which is designed to process accusation overmuch for illustration nan quality brain, earlier ChatGPT generates a response. The instrumentality is tin of a wide assortment of connection tasks, including:
- Generating text
- Completing text
- Translating text
- Summarizing content
- Answering questions
When utilizing ChatGPT, it’s important to beryllium circumstantial pinch your punctual aliases question. Tell it nan magnitude of nan consequence you want and nan reside you’re looking for if that’s important. If you don’t get nan consequence you’re looking for, you tin inquire ChatGPT to alteration it based connected circumstantial parameters. You’ll besides want to edit and fact-check nan consequence since ChatGPT is not 100% accurate.
Limitations of ChatGPT
ChatGPT tries to beryllium accurate, but nan results aren’t perfect. You’ll ever request to reappraisal nan contented it delivers for accuracy. It’s not a bully thought to usage ChatGPT to draught ineligible documents for this reason, unless you person a lawyer who tin corroborate nan archive is broad and accurate. Furthermore, ChatGPT is not emotionally expressive and whitethorn usage phrasing that reveals it’s not human. It besides tends to beryllium pedantic and wordy. So if you don’t want to alienate your readers, you’ll request to edit it to make it much personable.
But astir apt nan biggest limitation for existent property professionals is that ChatGPT is trained connected information that existed successful 2021. It can’t talk existent events pinch you, but much importantly, it can’t propulsion marketplace information from 2023. The existent property marketplace fluctuates, arsenic we’ve seen complete nan past respective years—markets that were booming during nan pandemic are now seeing price declines. Still, if you return ChatGPT’s responses pinch that knowledge successful hand, nan instrumentality tin springiness you a starting constituent for your research.
7 Ways Real Estate Investors Can Use ChatGPT
1. Perform a marketplace analysis
Real property investors often walk clip collecting marketplace accusation from different information sources, whether that’s rental value information from Zillow aliases Redfin, unemployment accusation from nan Bureau of Labor Statistics, income and lodging information from nan Census Bureau, or property tax information from section authorities websites. They compile and comparison this information to make informed decisions astir different lodging markets.
Given that ChatGPT is only trained connected information from 2021 and earlier, utilizing nan instrumentality will present little meticulous and timely results than analyzing existent information yourself. But you mightiness usage it arsenic a starting constituent to comparison markets. For example, if you springiness ChatGPT 2 cities and inquire which 1 has a lower rent-to-price ratio, it will reply based connected Zillow information from September 2021. If you inquire which cities person nan lowest spot taxation rates, it will besides make a database from then.
But erstwhile you push ChatGPT further and inquire nan champion metropolis to put successful existent estate, it won’t reply nan question. It will present a database of factors to consider, which could beryllium adjuvant accusation for immoderate investors, but it leaves nan existent activity of selecting an finance marketplace for nan humans of nan world.
2. Communicate pinch tenants
While ChatGPT is sometimes suspiciously robot-like successful its phrasing, pinch a small editing, it’s a measurement supra a shape missive erstwhile you request to pass pinch tenants aliases short-term guests staying successful your property. If penning friends and master emails isn’t your beardown suit, ChatGPT tin return immoderate of nan unit off.
For example, picnic spot owners tin usage ChatGPT to constitute invited letters and draught checkout instructions. You tin moreover usage it to create guides for visitors. For example, if you show it to “write a guideline for restaurants and attractions that are celebrated pinch locals successful Portland,” it will present compelling results alternatively than conscionable spitting retired nan apical 10 restaurants connected TripAdvisor. Add successful a fewer individual touches, and you’re bully to go.
Landlords tin usage ChatGPT to constitute communications pinch tenants, specified arsenic a caller landlord introduction, waste of spot notice, announcement to vacate, announcement of rent increase, precocious rent reminder, excessive inferior usage notice, and more. You tin moreover inquire ChatGPT to draught a lease agreement, but you’ll want to cheque it for gaps and see having an lawyer look complete it.
3. Generate trading ideas and content
ChatGPT tin thief pinch everything from generating a sanction for your business to penning societal media posts and blog content—but again, it won’t do each nan activity for you. For example, if you inquire it to constitute 5 societal media posts for a spot guidance institution successful a peculiar city, it will present 5 generic versions of nan aforesaid thing. But if you inquire it for ideas for societal media posts for a spot guidance company, it comes up pinch 10 coagulated suggestions to animate you.
ChatGPT tin besides play a domiciled successful hunt motor optimization by creating and optimizing contented for your website. For example, you tin show it to “write a 500-word blog station astir declining occupancy rates for short-term rental properties.” You’ll request to fact-check nan results and edit nan transcript to person an perspective that serves your business, but that’s surely faster than penning a blog station from scratch. You tin besides inquire it to optimize nan contented you’ve already written for your tract aliases rewrite thing pinch a different reside aliases emphasis.
4. Prioritize spot guidance tasks
If you negociate aggregate properties, you whitethorn person had nan overwhelming acquisition of juggling respective urgent attraction problems. Your executive functioning skills weaken successful consequence to acute stress, truthful you whitethorn find it difficult to prioritize nether pressure—ChatGPT doesn’t person that problem. You tin provender it a database of tasks you request to complete and inquire it to prioritize them for you. It will explicate its reasoning down nan choices.
5. Get assets recommendations
If you Google “best existent property CRM” aliases “best existent property marketplace study software,” you’ll get a multitude of apical 10 lists, pinch nary consistently-ranking winner. The champion assets for you often depends connected your business needs, and comparing products done that lens takes time. But you tin springiness ChatGPT a database of features you request and inquire it to urge nan best, slightest expensive, aliases astir celebrated products.
You mightiness moreover find resources you didn’t cognize existed by asking ChatGPT astir an unfulfilled request you have. Not to toot our ain horn, but if you inquire ChatGPT, “Is location an online organization wherever I tin be existent property finance workshops?” it will recommend—you guessed it—BiggerPockets.
6. Learn astir lodging regulations
You tin besides usage ChatGPT to investigation section laws alternatively of trying to sift done nan accusation connected section authorities websites. For example, cities crossed nan state are cracking down connected short-term rentals, truthful earlier you put successful a picnic property, you’ll request to publication nan short-term rental ordinance for nan metropolis aliases county. It’s besides wise to look astatine really municipalities successful nan surrounding area are dealing pinch short-term rentals since location tin beryllium a domino effect. But these ordinances are often lengthy and packed pinch ineligible jargon—ChatGPT tin summarize lodging laws successful different locations truthful you tin easy digest nan information.
7. Write spot listings and reply customer questions
ChatGPT is redeeming existent property agents truthful overmuch time. Some are already saying they couldn’t spell backmost to activity without it. Give it a fewer specifications astir nan home, and ChatGPT will make a compelling listing successful little than a minute. Real property agents besides usage ChatGPT to reply customer questions on-the-fly. It whitethorn beryllium quicker than uncovering nan correct owe costs calculator aliases researching schoolhouse districts for an address, for example.
Improving ratio often requires embracing caller technology. A spokesperson for Zillow told CNN that nan existent property manufacture hasn’t ever been speedy to innovate, but ChatGPT whitethorn beryllium changing that. While not a cleanable tool, it’s apt to alteration nan measurement existent property professionals activity complete time. And since it’s presently free, it’s worthy playing astir pinch immoderate of nan tasks we mentioned—you mightiness beryllium amazed really overmuch clip you tin get back.
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Note By BiggerPockets: These are opinions written by nan writer and do not needfully correspond nan opinions of BiggerPockets.