How To Use ChatGPT For Real Estate Investing

January 15, 2024

Produced by:
Carmel Woodman

With over 8 years of expertise, Carmel brings a wealth of knowledge as the former Content Manager at a prominent online real estate platform. As a seasoned ghostwriter, she has crafted multiple in-depth Property Guides, exploring topics such as real estate acquisition and financing. Her portfolio boasts 200+ articles covering diverse real estate subjects, ranging from blockchain to market trends and investment strategies.

The Short Answer

In just a few months, ChatGPT has created quite a buzz. People from a variety of industries are using it to make their lives easier and perform tasks quicker. The AI platform is even changing the way real estate investors work. Here’s how:

  • It can write property descriptions
  • Investors can use it to do basic calculations
  • Cover letters, emails and other communications can be done in seconds
  • Investors can find basic housing law information and regulations
  • New investors can learn about real estate investing easily

Jump To

Artificial Intelligence was once a futuristic concept that sounded more like something out of a science fiction movie and less like it was ever going to be a reality. Since then, technology has come a long way and artificial intelligence is creating a stir. Recently, the AI revolution began to take shape and has since spilled over into the real estate industry. The trends that are emerging indicate that AI could slowly transform the way real estate investors do things.

One of the most talked about AI platforms, ChatGPT, was released towards the end of 2022. This advanced platform has left people intrigued, nervous and amazed. We dipped our toes into the ChatGPT AI platform in a real estate investing context, to see what all the fuss is about, and put together our findings for real estate investors below.

What is ChatGPT?

ChatGPT is an artificial intelligence chat bot, which was created by Open AI and launched in November 2022. The platform generates responses to questions in a human-like way. These responses are delivered in a conversational tone and can be extremely useful for people looking for quick access to information, or to get something written for them.

ChatGPT can write articles, stories and poems, write a code, debug and even translate. The chatbot has a language-based model which was initially designed for customer service but has now become useful in various contexts. The chat bot sources its data and information from websites, textbooks and articles.

The platform is said to be particularly advanced, based on its deep-learning capabilities and Natural Language Processing. So far, people have been using it for fitness, essay writing, poems, writing emails and much more.

How to Use ChatGPT for Real Estate Investing

Writing property descriptions

While this may not be the most difficult task, it can be time consuming for those who need to write property descriptions for multiple investment property listings. Particularly for those who are frequent house flippers or have multiple rental properties. ChatGPT can be a huge help by creating property descriptions in a matter of seconds. You can edit these as you need to, but ultimately this can save real estate investors a lot of time and effort.

Here’s an example…

We entered the following description into ChatGPT:
I am trying to sell a property with 4 bedrooms and 2 bathrooms, a garage and swimming pool, situated on 1 acre of land in West Hartford, Connecticut. It is near the freeway and there are 2 schools within walking distance. Please can you write a property description that will interest potential buyers?

Here is ChatGPT’s response:

Charming 4BR/2BA home on 1-acre lot in West Hartford, CT offers the best of both worlds: a tranquil, suburban setting with convenient access to major highways. Highlights include a garage, swimming pool, and walking distance to two top-rated schools. Ideal for families, this property is a must-see for those seeking a spacious, comfortable home in a great location.

Estimating calculations

When real estate investors are considering purchasing a property, one of the most important steps is to work out roughly what the monthly mortgage repayments for the property will be and see if this fits into the budget. This can be time consuming and difficult to do while you’re on-the-go or viewing the property you may be interested in. While ChatGPT cannot be relied on to do complicated calculations, it can give you a good idea of what the end result would be, to help with your decision making.

Here’s an example:

We entered the following information into ChatGPT:
What would the monthly mortgage payment be on a $380,000 property at a 5% interest rate, amortized over 20 years?

ChatGPT responded with:

The monthly mortgage payment would be around $1,993.54. 

Writing cover letters, emails and other communications

One of the most time-consuming aspects of real estate investing is the administration and communication involved. This includes writing emails, cover letters, and so on, to various parties that are involved in the deal. These communications could be for lenders, contractors, tenants or a variety of purposes. With ChatGPT, investors can simply input a few sentences and the program will provide the rest of the text, which can be edited and tweaked.

Here’s an example…  

We asked ChatGPT the following question:
Please write an email to a general contractor outlining the job I need done on an investment property, in order to get a quote for it. The job is to do a major renovation on the kitchen and one of the bathrooms, replace all the old fixtures and fittings in the house, and rip up the carpets in 3 bedrooms to replace them with tiles.

The email that ChatGPT crafted was as follows:

Subject: Request for a Quote for Major Renovation at Investment Property

Dear [Contractor Name],

I hope this email finds you well. I am writing to inquire about your services as a general contractor and to request a quote for a major renovation project I have at my investment property.

The scope of work involves the following:

Kitchen renovation – including installation of new cabinets, countertops, sink, and appliances.

Bathroom renovation – including replacement of all fixtures, tiles, and installation of a new bathtub/shower.

Replacement of all old fixtures and fittings in the house.

Removal of carpets in 3 bedrooms and replacement with tiles.

I am interested in your expertise and would like to receive a quote for the above-mentioned work. Could you please provide me with an estimate for the cost and timeline for completion?

Additionally, could you also share some references or previous project examples that you have completed, to help me assess your work quality and experience.

Thank you for your time and I look forward to hearing back from you.

Best regards,

[Your Name]

Find basic housing law information

While ChatGPT may not be the best source for legal advice, if the information is freely available you can essentially find it through ChatGPT quickly and easily. This can be particularly useful for investors who are looking for basic housing laws or other information that may take a while to research. ChatGPT can save investors having to look up the information from various sources and it will instead do the legwork and collate it into something digestible in a matter of seconds. This shouldn’t be used a solid legal reference, but rather a rough idea.

Here’s an example:

We asked ChatGPT this:
Please give me the housing laws around rental properties in California.

Here’s what ChatGPT gave us:

In California, there are several state and local laws that govern rental properties. Here are some of the key housing laws:

Fair Housing Act: prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status.

Security Deposits: California law sets the maximum security deposit amount at two months’ rent for unfurnished rentals and three months’ rent for furnished rentals. The deposit must be returned within 21 days after the tenant moves out.

Habitability: California law requires that rental properties be fit for human habitation and meet basic standards of health and safety.

Evictions: California law requires landlords to follow specific procedures for eviction, including giving proper notice to the tenant and obtaining a court order if necessary.

Rent Control: Some cities in California, such as San Francisco, have local rent control laws that limit the amount that landlords can increase rent each year.

Disclosures: California law requires landlords to provide tenants with a written disclosure of information related to lead paint, mold, natural hazards, and pest infestations.

These are some of the key housing laws in California, but there may be others that apply in specific circumstances. It is recommended to consult a qualified attorney or housing agency for further information.

Learning about real estate investing

For new investors, having access to ChatGPT is like being able to ask a person any questions you may have. While they may not receive quite the same input they would from a mentor who has had 20 years of experience as an investor, it is a quick way to find out important investing advice and get answers to questions in a matter of seconds.

Here’s an example:

We asked ChatGPT:
How do I negotiate a real estate investment property deal?

ChatGPT responded with:

Negotiating a real estate investment property deal involves the following steps:

  • Research the market: Know the current market conditions, property values, and rental rates in the area where you’re considering investing.
  • Determine your target purchase price: Based on your research, decide on a fair and reasonable price for the property.
  • Make an offer: Present your offer in writing and be prepared to negotiate on price, terms, and other conditions.
  • Consider contingencies: Make your offer subject to financing, inspection, and appraisal contingencies to protect your interests
  • Communicate effectively: Be clear, concise and professional in your communications with the seller or their agent. Listen to their concerns and address them in your negotiations.
  • Be flexible: Be willing to compromise on some terms in order to reach a mutually beneficial agreement.
  • Get it in writing: Once you have reached an agreement, make sure it’s documented in a written contract.
  • Close the deal: Work with your real estate agent, attorney, and lender to complete the transaction and take ownership of the property.

It’s important to remember that negotiation is a process and requires patience, persistence, and the ability to compromise.

The Future of ChatGPT and Real Estate

According to Bloomberg, Microsoft recently announced a $10billion investment in AI, which involves developing ChatGPT through the generous investment into OpenAI. The platform already uses Microsoft’s cloud computing network Azure for the ChatGPT engine and has received over $1billion over the last few years from Microsoft, to develop the intriguing AI platform.

If this takes place, ChatGPT’s uses could expand even further, and potentially lead to a transformation in the real estate industry, particularly for investors and real estate agents. With the integration of AI such as ChatGPT into the Microsoft cloud, this could open the door for direct integrations with a host of other websites such as real estate listing sites or other platforms, according to Bloomberg.

This would result in some major changes for real estate investors, particularly for speeding up processes and providing information in a matter of minutes. The future certainly looks intriguing for real estate, with AI at the forefront of technology developments.   

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