“The best way to predict the future is to invent it.”
– Alan Kay
AI has become a hot topic.
This is true not only in the general sense, but also in real estate investing.
But what you might not know is there are specific ways to use AI in your investing.
I have a lot of investors ask me how they can invest in AI or AI companies.
They also ask how they use AI in their investing.
Today, I want to answer those questions.
We’re gonna talk about three ways that can help you use AI in your investments.
Let’s jump into it!
1. AI Can Streamline Your Investing
AI can absolutely streamline your investing.
I use ChatGPT as an alternative to Google.
If you’re not familiar, ChatGPT is a chatbot that can congregate information.
Some people are afraid to use it.
I encourage you to try!
It’s really revolutionized how I gather information.
Make sure to still check your work, though, because there are still some bugs.
In some areas like medicine, Chat GPT has been shown to have only a 55.8% accuracy rate.1
You can also take a PPM, or a private placement memorandum.
If you’re a passive investor, you put a PPM or a deal profile into Chat GPT.
When you add the document as an attachment, AI will analyze the whole thing for you!
You can ask questions like:
What are the risks of this deal?
What happens if there’s a capital call?
ChatGPT will spit out all the answers in seconds.
It’s almost as if someone who’s really familiar with the document is walking you through it.
As you can imagine, this saves a lot of time.
Especially if you know how to prompt the technology, which just means asking the right questions.
There are a few different engines that run on ChatGPT.
I’ve used Anthropic, but there are plenty of others out there.
Make sure that if you put stuff in there, you’re not under an NDA.
Even if they say ChatGPT is private, it’s best to be safe.
2. Using AI for Ideation
The second thing you can use ChatGPT for is ideation.
I use AI all the time when I’m coming up with blog posts and video ideas.
I tell Chat GPT who my demographic is and what I want to do and ask what they might want to learn about.
As a passive investor, you can do something similar!
You can feed Chat GPT information on the type of deal or the PPM.
Then you can ask it things like:
What questions should I ask this operator?
What’s their track record?
It’ll tell you!
It may even show you concepts that aren’t in the materials.
You can also ask Chat GPT about specific deals:
What are the trends?
Is this a growth market?
What are the specific areas of real estate?
It will give you data that will help you.
AI is great for ideating questions and also getting a feel for current market trends.
Having it as a tool is awesome.
3. What Are the Ethical Considerations of AI?
We’ve talked about all the positives of AI, but we should also talk about the ethical considerations.
Before you freak out, the future probably won’t be like The Terminator.
I don’t think we’ll be at war with the machines any time soon.
A more likely scenario is you versus other investors.
Wall Street is already using AI – so are other investors.
If you’re not using AI, you’re already a step behind.
In any type of investing, you should use every advantage you can as long as it matches your ethics.
The ethics of Chat GPT is an issue still being discussed today.
According to this study by the Journal of Medical Internet Research, Chat GPT poses legal, humanistic, algorithmic, and informational concerns.2
Make sure to do your research and make the best decision for your investments.
Athletes will spend millions of dollars, go through all kinds of treatments and training, just to gain an edge.
That small edge can be the difference between coming out on top or getting left behind.
In conclusion, if you’re not using AI, you should give it a shot!
Put PPMs in there.
Ask questions.
Start experimenting.
Now I want to hear from you!
How are you using AI as an investing tool?
Let us know in the comments.
Before you leave, make sure to check out our special report about inflation investing. It shares the best choices to invest during an inflationary environment.
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Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.
Works Cited
1. F. Antaki, Samir Touma, Daniel Milad, J. El-Khoury and R. Duval. “Evaluating the Performance of ChatGPT in Ophthalmology.” Ophthalmology Science, 3 (2023). https://doi.org/10.1101/2023.01.22.23284882.
2. Chang-Jhan Wang, Siru Liu, Han Yang, Jiulin Guo, Yuxuan Wu and Jialin Liu. “Ethical Considerations of Using ChatGPT in Health Care.” Journal of Medical Internet Research, 25 (2023). https://doi.org/10.2196/48009.
