Artificial intelligence has been around for decades, but it seemed much more intuitive when it was just playing checkers. chatgptAn AI language processing tool developed by OpenAI can pass the bar exam, We’ve all seen and read enough science fiction material to have a tinge of fear that robots may be coming for our jobs. But what is more likely to happen in the coming decade is that AI will enhance our capabilities, make our work processes more efficient And giving us back that precious free time is often the motivation for real estate professionals looking to create passive income streams.
of course, are valid reasons to be concerned about ethics, security, and human freedom and agency as a result of this new technology. But so far, ChatGPT is proving to be an invaluable resource for real estate professionals in many aspects of their business. Understand its limits and how to use it effectively, and you can build more wealth in less time or kick back and relax for a while.
How does Chat GPT work?
ChatGPT uses deep learning to provide real-time responses to questions and prompts in human-like language. It is pre-programmed with an unimaginable amount of data and has many language functions. It is one of the largest language models that exist.
When you type a request or question to ChatGPT, the individual words are analyzed and fed to the Transformer portion of the neural network, which is designed to process information like a human brain before ChatGPT generates a response. Has been done The tool is capable of a variety of language tasks, including:
- generate text
- lesson completion
- translation text
- Summary of Contents
- answer the questions
- Conversation
When using ChatGPT, it’s important to be specific with your prompt or question. If it’s important, let him know how long you want a response and the tone you’re looking for. If you don’t get the response you’re looking for, you can ask ChatGPT to convert it based on specific parameters. You may also want to edit and fact-check the results as ChatGPT is not 100% accurate.
ChatGPT limitations
ChatGPT tries to be accurate, but the results are not accurate. You must always review the content it provides for accuracy. For this reason it is not a good idea to use ChatGPT to draft legal documents, unless you have a lawyer who can verify the document is comprehensive and accurate. In addition, ChatGPT is not emotionally expressive and may use phrases that suggest it is not human. It is also pedantic and verbose. So if you don’t want to alienate your readers, you have to edit it to make it more engaging.
But perhaps the biggest limitation for real estate professionals is that ChatGPT is trained on data that exists in 2021. It can’t discuss current events with you, but more importantly, it can’t pull market data from 2023. The real estate market has its ups and downs, as we’ve seen over the years—markets that were booming during the pandemic watching now fall in price, Still, if you arm ChatGPT’s responses with that knowledge, the tool can give you a starting point for your research.
7 Ways Real Estate Investors Can Use ChatGPT
1. Do Market Analysis
Real estate investors often spend time gathering market information from various data sources, whether it’s rental price data from Zillow or Redfin, unemployment information from the Bureau of Labor Statistics, income and housing data from the Census Bureau, or property tax Information from local government websites. They compile and compare this data to make informed decisions about different housing markets.
Given that ChatGPT has only been trained on data from 2021 and earlier, using the tool will provide less accurate and timely results than analyzing current data yourself. But you can use it as a starting point to compare the markets. For example, if you give ChatGPT two cities and ask which one is less rent-to-price ratioIt will answer based on Zillow data from September 2021. If you ask which cities have the lowest property tax rates, it will also generate a list from then on.
But when you go ahead chatGPT and ask best city to invest in real estate, it won’t answer the question. It will provide a list of factors to consider, which may be useful information for some investors, but it leaves the actual task of selecting an investment market to the humans of the world.
2. Communicate with Tenants
While ChatGPT is suspiciously robot-like at times, with a little editing, it’s a step up from a form letter when you need to communicate with tenants or short-term guests living in your property. . If writing friendly and professional emails isn’t your forte, ChatGPT can take some of the pressure off.
For example, vacation property owners can use ChatGPT to write welcome letters and draft checkout instructions. You can also use it to create guides for visitors. For example, if you ask it to “write a guide to restaurants and attractions popular with locals in Portland,” it will spit out the top 10 restaurants on TripAdvisor, producing rather compelling results. Add a few personal touches, and you’re ready to go.
Landlords can use ChatGPT to compose communications with tenants, such as a new landlord introduction, property sale notice, vacation notice, rent increase notice, late rent reminder, excessive utility usage notice, and So many. You can also ask ChatGPT to draft a lease agreement, but you’ll want to check it for gaps and consider having a lawyer go over it.
3. Generate Marketing Ideas and Content
ChatGPT can help with everything from generating a name for your business to writing social media posts and blog content – but again, it won’t do all the work for you. For example, if you ask a property management company in a particular city to write five social media posts, it will deliver five generic versions of the same thing. But if you ask it for ideas for social media posts for a property management company, it comes up with ten solid suggestions to inspire you.
ChatGPT can also play a role in search engine optimization by creating and optimizing content for your website. For example, you might ask them to “write a 500-word blog post about declining occupancy rates for short-term rental properties.” You’ll have to fact-check the results and edit the copy for an angle that serves your business, but it’s definitely faster than writing a blog post from scratch. You can even ask it to adapt content you’ve already written for your site or rewrite something with a different tone or emphasis.
4. Prioritize property management tasks
If you manage multiple properties, you may have tremendous experience solving many urgent maintenance problems. Yours executive functioning skills are vulnerable in response to acute stress, so you may find it difficult to prioritize under pressure—that’s not a problem with ChatGPT. You can feed it a list of tasks you need to complete and ask it to prioritize them for you. It will explain its reasoning behind the choices.
5. Get Resource Recommendations
If you Google “best real estate CRM” or “best real estate market analysis software,” you’ll get a multitude of top 10 lists, with no consistent ranking winner. The best resource for you often depends on your business needs, and it takes time to compare products through that lens. But you can give ChatGPT a list of features you need and ask it to recommend the best, least expensive or most popular products.
Asking ChatGPT about any unmet needs you may even find resources you didn’t know existed. Not to toot your horn, but if you ask ChatGPT, “Are there any online communities where I can participate in real estate investing workshops?” It will recommend—you guessed it—Big Pocket.
6. Know about accommodation rules
You can use ChatGPT to research local laws instead of trying to research information on local government websites. For example, cities across the country are cracking down on short term rentalsBefore you invest in a vacation property, you will need to read the short-term rental ordinance for the city or county. It’s also wise to look into how municipalities in the surrounding area are dealing with short-term rentals as there can be a domino effect. But these ordinances are often long and full of legal jargon—ChatGPT can summarize housing laws in different places so that you can easily digest the information.
7. Write property listings and answer client questions
ChatGPT is saving real estate agents a lot of time. some are already saying can’t go back to work without it, Give it a few details about the home, and ChatGPT will generate a compelling listing in less than a minute. Real estate agents also use ChatGPT to quickly answer client questions. For example, it can be faster than finding the right mortgage payment calculator or searching for school districts for an address.
ground level
Improving efficiency often requires adopting new technology. A Zillow spokesperson told CNN The real estate industry hasn’t always been quick to innovate, but ChatGPT might be changing that. While not a perfect tool, it is likely to change the way real estate professionals work over time. And since it’s currently free, it’s worth playing around with some of the functions we’ve mentioned – you might be surprised how much time you can get back.
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Note by BigPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
