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AI In Real Estate Investing: Yay or Nay?


A human hand touching an AI hand


The real estate world is changing fast, and Artificial Intelligence (AI) is leading the charge, especially for those of us looking into passive investing. Gone are the days when investing in real estate was all about manual work and meeting people face-to-face. Now, AI is here to make things easier, smarter, and more profitable for investors. It's a big deal because it's making the complex world of real estate much simpler to navigate.


 

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The Rise of AI in Real Estate Investing


AI is shaking things up in real estate investing by doing what was once thought impossible. It crunches numbers, predicts market trends, and even tailors investment strategies to fit each investor's needs. This isn't just about making things faster; it's about making smarter decisions and potentially getting better returns on your investments.



graphs showing the impact of AI in real estate investing

Source: Maximize Market Research


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Revolutionizing Deal Underwriting with AI


Deal underwriting has always been a headache for investors, involving tons of data and a high chance of human error. But AI is changing the game. It can quickly go through heaps of data to spot risks and opportunities, making the whole process faster and more accurate. This means investors can make decisions with confidence, knowing they've got a clear picture of what they're getting into.


Real-Time Property Valuation and Market Analysis


One of the coolest things AI does is give real-time valuations and market analyses. Traditional methods often rely on outdated data, but AI keeps up with the current market, giving investors a much clearer view of a property's worth. For passive investors, this is gold, as it means staying informed without having to dig through data all day.


Personalized Investment Strategies


AI doesn't just throw generic advice your way. It looks at your financial situation, your past investment choices, and what you're looking to achieve, then gives personalized recommendations. This means your investment strategy is customized, aiming to maximize your returns without needing you to micromanage everything.

 

While having the advantage of making data-based decisions, it is still important to use common sense when evaluating these customized strategies. Even though we implement AI across our operations, we will often tone down some of the projections in the interest of being conservative. If the deal still works with these further tightened projections, we then feel confident in moving forward.


Streamlined Property Searches


Searching for the right property can be like looking for a needle in a haystack. AI makes this easier by filtering through listings based on your specific criteria, saving you significant time and bringing you closer to the ideal investment opportunity.

 

If you’re really into this, you might enjoy watching one of our podcasts where we dive into exactly this matter:



Automated Property Management


AI even helps with managing properties. Through smart home tech, it can keep an eye on your investment, alerting you to maintenance needs or unusual tenant behavior without you needing to be there. This not only saves time but also helps keep your property in top shape, adding to its value.


The Advantages of AI for Passive Real Estate Investing


The integration of AI into real estate investing brings a host of advantages for those pursuing passive investment strategies:

 

  • Better Decisions: With AI, you're making choices based on solid data, not just gut feelings.

  • More Time: AI handles the tedious tasks, freeing you up to focus on the bigger picture.

  • Higher Returns: By finding the best opportunities and managing properties efficiently, AI can help boost your investment returns.


Final Thoughts


AI in real estate is not just a passing trend; it's the future, especially for passive investors. It offers a chance to get ahead with less risk and more efficiency. Embracing AI means making the most of your investments and staying ahead in a competitive market.


As always, Be Bold, Be great, and Keep Pushing Forward!


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P.S. If one of your priorities, like mine, is building and preserving your wealth through multifamily real estate investments, click here to download my new eBook: The Ultimate Guide to Creating & Preserving Your Wealth.

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If you are an accredited investor interested in learning more about passively investing in multifamily properties, click here to complete our investor form and schedule a call with our Investor Relations team.


About Ellie Perlman


photo of ellie perlman

Ellie Perlman is the founder of Blue Lake Capital, a commercial real estate investment firm specializing in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.


A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificial intelligence throughout the course of all acquisitions and asset management. This advanced technology enables the company to produce accurate and data-driven forecasting for all assets on a market, property, and even tenant basis. In doing so, Blue Lake is able to lead commercial investments with the full capabilities of today’s technology.


Ellie is the founding host of REady2Scale, a podcast that highlights the assets, processes, and strategies for the multiple approaches to successful real estate investing.


She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.


Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.


You can read more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.


*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.

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