Will New AI Tools Make You A Fantastic Investor?

Today, I want to give you my perspective on how artificial intelligence (AI) is transforming our approach to real estate investing and why now might be the perfect moment for you to harness these tools to stay ahead of the game.

Imagine for a moment that you’re a real estate investor named Alexander who is interested in investing.

You are one of those people who like to explore and discover on your own what might be next in your investing journey.

All the media reports about real estate investing intrigued you.

You have always relied on traditional methods—spending hours poring over market reports and trying to decipher trends from outdated data.

One day, you decide to try out Terry AI.

Instantly, your world changes.

Terry AI helps you identify a neighborhood that's beginning to see a surge in interest from investors and potential homeowners.

With precise data on current market conditions and predictive analytics, Terry AI highlights an emerging area where property values are set to rise.

You, acting on these insights, invest in several properties in this neighborhood before it becomes widely popular.

Months later, you see substantial returns as the area becomes a hot market.

Who wouldn’t want to be Alexander?

Does Terry AI exist?

Yes, it does, although it is currently only available for coaching clients of Sean Terry

What does Terry AI offer?

• Market Trends Analysis: It processes vast amounts of historical and current data to identify trends. Imagine spotting an up-and-coming neighborhood before it becomes mainstream.

• Property Valuation: Accurate valuations integrate factors like neighborhood trends. For Alex, this meant buying properties at a fair price based on future market shifts.

• Risk Assessment: Evaluating potential risks helps avoid pitfalls. Alex could make informed decisions, knowing potential downsides were accounted for.

Similarly, think of another investor, Jessica, who uses Altos Research.

Jessica had always struggled with getting timely data. I call her condition “Analysis Paralysis.

Yes, we all want to have a solid set of data, but at least so far, we have not been able to get all the data for any deal - even with the new AI tools.

Jessica felt she would often miss out on deals because, by the time she got the information, the property was already sold.

I made her aware of some of the new tools we use, and she would have access to.

With Altos Research, Jessica accesses real-time data on property listings and price changes.

One day, she spotted a promising property that had just had its price reduced.

Thanks to the platform’s forecasting models, Jessica anticipates a rise in market value and quickly makes an offer.

She had previously run numbers on a similar property at higher interest rates that applied at the time.

With lower interest rates and anticipation of further lowering the numbers, it now works out.

Her timely decision proves profitable as the market value of the property increases, just as predicted.

Obviously, during several mentoring sessions, we discussed all the other factors, using calculators and other tools to determine the true positive cash flow of the property, but the data from Altos gave the trigger.

Altos Research provides:

• Current Market Data: Real-time updates on listings and price changes. Jessica’s quick action was made possible by having up-to-date information.

• Forecasting Models: Predict future market movements, allowing investors to plan ahead.

• Competitive Analysis: Understanding how properties stack up against each other helps in making competitive offers.

In addition to these tools, you have probably heard about Zillow’s Zestimate.

While visiting properties, you might use Zestimate to get an initial valuation and compare it with the asking price.

Then, there’s Reonomy, which analyzes extensive property data, helping you understand ownership history and market trends.

And don’t forget HouseCanary, which combines market data and predictive analytics to forecast property values.

Is it already all-inclusive and far enough advanced to eliminate the human factor?

Do you no longer need an agent, a mentor, or a turnkey provider?

No, we are not that far yet, but it is amazing how quickly these tools are advancing and offering a much deeper insight before deciding to proceed with the purchase of a deal.

Looking at the current situation in the market, is now a good time to Invest?

Now, let’s talk about why this is such an exciting time.

Picture this: Mortgage interest rates are expected to drop in the next few years. I predict that we will reach levels around 4% for owner-occupants and 5.x % for investors in the next 36 months.

This anticipated decrease is likely to unleash a wave of pent-up demand from current property owners who have been waiting for the right moment to enter the market.

As more buyers and sellers rush to make their moves, competition will intensify, driving up property prices.

Right now, an owner who is basically interested in seeing and pays mortgage interest of 3.1% would have to pay about 7% for a new property. That’s why everybody is waiting for rates to come down.

Barbara Corcoran recently said in an interview:

“I think people totally underestimate how crazy things will get when all this demand is unleashed - and prices could skyrocket.”

Imagine you were working with a team or a mentor like me and investing today with the advantage of AI tools.

We identify undervalued properties and emerging markets before the anticipated surge in demand.

By acting now, you gain a strategic edge—buying properties at lower prices before they become highly sought after, whether they live in or rent out.

The Future of Real Estate Investing

Envision the future with lower mortgage rates, similar to what it used to be before the pandemic.

Housing demand will rise, and competition will increase.

AI tools will be indispensable in this evolving landscape, helping you navigate the market, optimize your strategies, and manage your portfolio effectively.

Let’s say you’ve leveraged AI to make informed decisions, worked all angles with your mentor, and adapted to market changes. You’re not just reacting to shifts but anticipating them.

You can balance risks and returns, identify the best opportunities, and position yourself for success in a competitive environment.

Conclusion

To sum it up, the integration of AI tools like Terry AI, Altos Research, and others represents a transformative shift in residential real estate investing.

These technologies offer unparalleled accuracy, efficiency, and insights, empowering you to make smarter investment decisions.

The one thing we need to hope to get as an integrated data set is the indication of when data was generated.

You can never assume an AI tool only uses the latest data, but if the source data age is indicated, the future will be right for all of us.

Given the potential increase in competition and property prices due to lower mortgage rates, now is an opportune moment to start using and getting familiar with these tools.

By acting today, you’ll be well-positioned to seize the best opportunities and navigate the future of residential real estate investing with confidence.

I’m excited to see how we can collaborate and leverage these innovations to achieve our investment goals and make a meaningful impact in the real estate market.

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Resources and Citations used for this post:

1. Terry AI - Information derived from Terry AI’s official website and product descriptions.

2. Altos Research - Data and features referenced from Altos Research’s official resources and market analysis tools.

3. Zillow's Zestimate - Insights based on Zillow’s information on Zestimate and its machine learning enhancements.

4. Reonomy - Details obtained from Reonomy’s platform and its AI-driven property data analysis capabilities.

5. HouseCanary - Features and functionalities as described on HouseCanary’s official site and its AI-driven valuation tools.