16 Smart Ways to Use AI for Real Estate Investors

Real estate is an ever-evolving field with one foot in the traditional past, with in-person connections paramount, and one foot stepping toward the future, where digital tools are par for the course. 

Artificial intelligence is smarter than ever, and innovative real estate investors can use this powerful tool to expand their portfolios. If you’re looking for smart ways to use AI in your real estate investments, here are 16 things to consider.

1. AI is Perfecting Predictive Analytics

As with any type of investing, nothing is guaranteed. It’s critical to look at market trends and current events to predict whether an investment is sound. Nothing does that faster and more comprehensively than AI. In an instant, digital tools like those in Crexi Intelligence scan millions of pages of data, making it easier to predict everything from trends in rental properties to where potential buyers are moving.

2. AI Easily Creates Automated Valuation Models

Automated valuation models comb data from multiple sources to estimate a potential investment’s value. They look for anything in the public record that might affect a property, including recent sales, tax data, and specific property characteristics that might toggle a value. These work in real-time and can even include data from social media. Whether you are a new investor looking to flip a house or a veteran who wants a quick, real-time snapshot of an investment, AVMs can help.

3. AI Chatbots are Better han Ever

Gone are the days of canned responses and frustrating chatbots that spit out responses that don’t match the question. AI-powered chatbots on your website can answer more specific questions and engage potential buyers or sellers in a way that makes investing easier.

4.  AI Property Management Tools Enable Hands-free Investing

While it’s always important to know the people renting your properties, managing a property on a day-to-day basis may not be quite attractive. AI property management tools mean that maintenance scheduling, rent collection, and tenant screening are faster and more efficient for everyone. These landlord tools make tenants happier and allow you to manage your investments wherever you are.

5. AI Keeps You Safe

The rise of digital transactions in real estate has also increased the risk of fraudulent activity. AI fraud detection tools help identify suspicious patterns to secure your investments. Secure transactions build confidence among potential buyers and protect you and your investments.

6. AI Makes Marketing Magical

One of the most challenging aspects of real estate investing is identifying your potential clients and shaping your marketing strategies to them. AI marketing tools can analyze consumer behavior in the area you’d like to invest and work to tailor campaigns based on that data. This increases your advertising effectiveness and makes the most of your marketing budget.

7. AI Makes Contracts Smarter

Most real estate agents and investors use digital tools for signing contracts and transmitting sensitive information. As with anything that stretches across the internet, these may be susceptible to fraud or tampering. However, new blockchain technology makes these contracts and sensitive financial documents nearly impervious to fraud. 

8. AI Acts as an Investment Counselor

It is imperative that a real estate investor complete due diligence when it comes to taking the leap and investing. However, before you sign a contract to buy or sell a property, AI can provide personalized investment recommendations by analyzing your financial goals and risk tolerance. It can also analyze market conditions to advise when the time is right to invest or divest.

9. AI Tailors Property Tours

Videos are standard on many real estate apps these days, but AI can help your listings stand out even more. AI-driven virtual reality and augmented reality allow clients to move through the space, change the layout, and experience what it might be like to actually live in their potential purchase.

10. AI can be an Energy-saving Tool

AI has been in the news lately for its staggering consumption of energy. Goldman Sachs estimates a 160% increase in power demand from data centers by 2030. On the local level, AI is driving a reduction in energy consumption for smart real estate investors. Investors can analyze usage patterns to suggest and implement power-saving strategies that reduce costs.

11. AI can Mitigate Risk

It’s always important to perform research with all sorts of tools, but as you start researching a potential purchase or sale, AI can give you an overview of potential risks. Analyzing natural disasters, local economics, and market stability or volatility provides a snapshot of your risk and helps you make a safer investment decision. 

12. AI Delivers Better Tenants

Not only can AI make finding good tenants easier by optimizing tenant screening tools, it can also analyze tenant behavior. This helps reduce the risk of default or late payments and can refine the process of selecting tenants who plan to stay longer.

13. AI Optimizes Your Listings

With so many potential properties available to tenants, yours must stand out. AI tools can help you optimize your listings with better photos, keywords, and illustrative descriptions that cut through the noise to help you attract more tenants.

14. AI can Monitor and Manage Your Portfolio

As you add investments, it’s critical to stay sharp and focused on all of your investments. AI manages and monitors your portfolio, providing just-in-time analysis of their performance, the market, and other property-specific data.

15. AI Works to Manage Construction Planning

When you have an investment that needs significant renovation, AI can help manage your construction planning and timeline. These tools can help the project manager keep one eye on the budget and another on the timeline, as well as the resources used. This keeps big projects on time and on budget.

16. AI Provides a Long-term Picture

Real estate investing is a marathon, not a sprint. Although some investments are meant to be in and out of your portfolio quickly, the smartest investors know that holding long-term, stable investments in key locations can help support them in times of uncertainty. 

To get a better idea of how to structure a portfolio for success, AI modeling determines how different scenarios impact an investment, cash flow, and potential returns. It’s a type of modeling that can help investors make better decisions that fit their long-term goals.

Ready to unlock the full potential of AI in your real estate investments? Explore how Crexi Intelligence leverages advanced AI tools to deliver actionable market insights, optimize property evaluations, and streamline your investment strategy. 

Ben Mizes is the Co-Founder and CEO at Clever Real Estate, the nation’s leading real estate education platform for home buyers, sellers, and investors.