5 Ways ChatGPT Can Help Real Estate Investors
In this video, we explore the common challenge of choosing the right real estate market to invest in. Whether you're a newbie or an experienced investor, we share tips and strategies for analyzing market trends, evaluating demographic data, and maximizing cash flow returns. We also discuss how artificial intelligence tools like ChatGPT can assist in narrowing down your options. Don't miss out on this informative video for real estate investing success!
Ariel Herrera 0:00
One of the biggest questions newbie investors as well as experienced investors looking for a new market have is how do they actually decide on which market to invest in? Yes, you can invest in your backyard. But what if your city is too expensive, and you're looking for greater cash flow returns? While we could use chat GPT to ask particular questions to help narrow down on what market we want to invest in. My name is Ariel Herrera, the analytics area channel where we bridge the gap between real estate and technology. I love delivering data driven results. And if you do to them, please like this video as well subscribe to this content. So you'll get the latest and real estate and technology solutions. Alright, let's get started.
Right now I'm on chat GPT's homepage, and we're going to do is as chat GPT particular questions that can help us narrow down on what neighborhood we should be investing in. So to start, let's ask chat GPT about what economic factors we should consider when investing in real estate. Right away chat GPT is giving us a response. We can see here there are some key factors that we should consider when deciding on an economic market to invest in. So first is local supply and demand. We want to make sure there's population growth, meaning that there's more people coming into the state than leaving or to the particular market, job creation and new construction. as well. We could look at GDP unemployment rate, interest rate market trends, such as which up and coming neighborhoods are arriving as well as tax policies, local regulations, and of course, your investment goals. Not everyone's investment goals are the same. Some are long term buy and hold like myself. Some are short term. So it really depends on what your goals are, which will decide which markets look at. But say if we looked at this answer as is. So here we have local supply and demand, which includes factors like population growth. So the second question we can ask is which US cities have had the most population growth. This can help us to narrow down which cities to focus on within the United States chat GPT is now looking at information from the US Census Bureau, which is a government site. And it's looking at population estimates from 2021. It is stating the cities I've had the most population growth between 2010 and 2020.
Chat GPT Answer response in that, we should be aware that population growth rates can fluctuate over time due to changes such as migration patterns. As we know, during COVID period, we had a large population shift towards the south. So say if we want to look at one of these southern cities, because in our heads were thinking, okay, that increases in 2010 to 2020, they likely had even more growth between 2020 and 2023. So I'm actually going to select the last city here, which Jacksonville, Florida, because I've actually visited it before, and it's in my home state, Florida. So let's now ask what the average price for a home looks like because we would need to know if we can actually afford purchasing in the city. So let's ask what is the average price for a home in Jacksonville, Florida, which Jacksonville is a city on the east coast of Florida, and it's really growing, it has its own football team as well. So it says here at chat GPT that the median home value in Jacksonville, Florida as of 2021 is $214,000. According to Zillow, however, these values can change based on factors such as location, age and condition of the home. In addition, the median home value may not necessarily represent the average price of the home. So now that we have an idea, alright, $214,000, maybe I can afford this. It may not be the market that I live in. But I don't mind investing out of state. As we know cities have neighborhoods within them. And it's important for us to know which neighborhoods to invest in as some could be more a class or others more C class. So this will be the next question. I'm going to ask chat GPT what are the top neighborhoods, let's say for families, we could do young professionals, families, elderly, I'm going to put families here because I'm looking for a tenant that's going to stay for a relatively longer period of time. And usually people that are focused on On a school system do so. So I actually put Houston Texas but I want to change that to Jacksonville and it's really easy to stop a response here, you can copy and I'm going to put here, Jacksonville, Florida. So are the top neighborhoods in Jacksonville, Florida. Chat GPT is now gathering this information we could see Mandarin is in the southern part of Jacksonville. It's known for excellent schools, parks and a family friendly community. Chad GPT also lists for other neighborhoods have in Jacksonville. Number three Riverside, I've actually ventured to one going to a Jacksonville football game against the Giants, which they won, by the way. So Riverside is a trendy, walkable neighborhood that's popular among young families. And from what I saw when I was there, it was very beautiful, lots of greenery, some older, historic homes, and there's a bunch of shops and restaurants. Let's just say we wanted to learn more about Riverside. So let's ask chat GPT. Find properties for sale in Riverside, and this is in Jacksonville, Florida. So the first time we're coming to potential blocker that chat GPT can't answer immediately. It says as an AI model, it does not have real time property listings. But it knows of websites that can help us to find what's currently for sale in Riverside, Jacksonville, Florida, such as Zillow and realtor.com, which is really awesome that it provides us the links directly to be able to view properties not just in Jacksonville, the city, but particularly for this neighborhood. I'm going to stop generating here. And let's imagine that Okay, great, we're able to see these but the next step we typically want to know as an investor is do these properties actually cashflow within this neighborhood. This is where we could use coffee closers. Coffee closers is a tool made for buy and hold real estate investors seeking cashflow. It takes all properties that are currently for sale for a given market. And then you could rank these properties based on cash flow. Say if you wanted to view a particular property, you could see property details such as price per square foot, as well as information on cash on cash return. You can also toggle on some of these fields. If you want to adjust those metrics live, as well. If you wanted to have say higher cash on cash return, you could adjust what the lowball offer would be, and what percentage you would ask below asking price to meet your desired cash on cash return. Great. I hope this tutorial has been useful for you to see how you could utilize chat GPT to narrow down on what factors to look out for a market what cities are the top within the United States and then drill down all the way to the neighborhood of where you may like to invest as well using tools like coffee closers that can help you to analyze at scale. I'd love to hear about the use cases a year using chat GPT for to help automate your business. Comment below and if you haven't already, like and subscribe. Thanks
Transcribed by https://otter.ai