This is episode number 2189. Jill and I are talking about how to use AI in your land business specifically now.

Understanding AI’s Role In The Land Business

Each day or this week, by the way, is called back to the basic week. Here’s what we’re talking about. On Monday, we’re talking about how to use AI in your land business now. On Tuesday, we’re going to talk about how to improve your land mailer responds. I have a few things already written down and I have a lot to say about that. On Wednesday, it’s going to be how to apply the laws of supply and demand to land business. On Thursday, will be the real reasons why your land won’t sell quickly. On Friday, is how long will it continue to be a land of buyers’ market. That’s going to be a good one.

Each day in the show, we answer our question from our Land Academy Member Discord forum. We take a deep dive into land related topics by your request.

I put a post in Discord and it says, “Jill wrote.” I’m like, “Is there an is there a new Jill that I don’t know?” It’s my post. This is very sweet. Jack put my post in discord in the closed part for the member.

It caused quite a stir in discord.

I’m excited. I said, “I had to turn down a deal. A deal funding submitter who was not a member as he submitted to deal to me in a very niche-y fly in Florida Community with a $568 a month HOA fee. If he was in our group, the ZIP code would have not passed our test. I’m just sharing as you all here are so sharp and would have spotted these things. I’m glad you’re here and I am watching your amazing deals to fund.” Tell me some. What did I miss?

Why HOA Properties Are Usually A No-Go

What this led to is a long discussion about How to not choose HOA property within the mailer.

Some HOAs are okay. Let me back up for just a moment. I’ve had HOAs that I’m totally fine with. For example, we all pay $150 per year and that all goes towards this guy making sure the gravel is even on our road or some plowing or something like that and that’s it. That is the extent of the HOA. It doesn’t tell me which direction my mailbox is going to face and what color it’s going to be. That stuff, I’m fine with but the other ones, when it’s this thing, that’s a whole lot of money for people to swallow.

This is just for the land.

I’m sure there’s going to be many regulations. It’s a niche-y fly in community, which is wonderful. My overall big picture is the buyer’s pool is smaller and not bigger. It’s only going to be people that have planes, want to live in Florida and are willing to accept all these rules and pay $568 a month. That was a lot of it, but when I went back and even looked a little bit deeper and went, “Would we even mail this area?” Even if you could, sometimes you can’t tell.

It’s always, you can’t take them out. It’s not foolproof but you know when it comes back with the ZIP code but the zip code wouldn’t. I went back and looked at some of the basics like how many properties are available? How many sold in the last 30, 60, 90, 6 months or year. I looked at all of those time frames at a glance. I’m like, “There’s no way it would have passed.”

Anyway, that’s what I shared to our group that there’s some things that you, Jack have set up ahead of time like how we fish for properties. The tests that we take them through past that before we spend any time downloading data and before we have any time on the energy of pricing and getting it out in the mail. This is what was not the only problem.

The HOA is not that is not the problem. The HOA to Jill is what confuses everybody.

It’s like the third red flag.

It’s a very strong indicator that property for that zip code would not pass the red, green, yellow test because it’s an indicator of the velocity. There’s no real velocity in HOA communities that changes hands. She skipped a few steps which is fine because I speak Jill. The fact is, when there’s high value HOA property, they almost never pass the red, green, yellow test. In fact, they never do.

It doesn’t have his own ZIP code. That was the whole thing, too. This was not the whole area.

You can’t tell that from the question or your response.

I’ll go back and clarify, too. With this HOA community and HOA fee. Again, imagine it’s an amazing property and the guy brought it for a dollar. Not going to happen, but let’s just say. Even then, you’re selling a property to someone who’s signing up for $568 a month. For every month it doesn’t sell, you are on the hook for that money. That’s $6,000 if you’re holding this thing for a year and which could happen a very niche-y community. That’s part of my thing. I didn’t know it was opening up before.

It was a big deal.

I’ll go back in.

Everybody said, “How do I take HOA property out of my mailer?”

You don’t, but it doesn’t get to me. You kick it to the curb right then when you’re doing your due diligence phase one.

You don’t take HOA properties out of your mailer—you filter them out during due diligence, phase one. Kick them to the curb early. Share on X

Importance Of Community & Experience-Based Learning

I understand you. Do you know what this makes me think before we get to the topic here? I just understand that. They’re more people that’s attempt to teach this and go in or not a business. The more easy they make it seem, it saddens me. This matters. This stuff matters. Having a community like these matters so that we can answer a question like this. Other people’s jumped and other people that have been with us for ten years have jumped in, specifically Dan Smart and said that’s not what she means. What she means is there’s no chance that there’s a velocity. You’re not going to sell a property with the HOA like that. You’re going to end up getting stuck with it.

That was a thing. I gave him back a crazy number and they paid. The seller knew it and I pointed this out. This is the thing about with me when you submit a deal to me. I’m not going to say yes or no. It’s not a pass-fail. I’m going to help you out and I’m going to tell you why. Even though this person’s not even a member, I wrote back why and he wrote back, “What about this?” I said, “You’re missing it. These are the real big things. The seller already even knows that they’re having trouble. They’re selling it for $30,000 less than they paid for it a few years ago.”

Yes, because they’ve accumulated $30,000 in HOAs.

They don’t want to carry it anymore. They’re trying to dump it. They’re selling at $30,000.

I understand. Everybody understands. Here’s my point. As instructors, half the people who are reading this are saying to themselves in some way, “This is too complicated. I don’t want to deal with it.” The other half are saying, “This is complicated. It’s probably keeping a ton of people out of this business. I like complicated. I’m going to check this out.”

The sadness that I have is that there’s more people who are trying to make the super simple. The fact is, it’s not. It’s a real full-blown real estate investment. You decide who you are. You don’t have to read this episode. Taylor Swift is like two clicks down the dial. Our topic is, how to use AI in your land business now. It takes a few steps back from the whiteboard and just dream because it’s probably going to happen but let’s talk about now. Go ahead.

This is an extension of what we were talking about. To which on a meeting, I screenshot it. I used the paid version of ChatGPT to say this sentence, “Give me a list of industries that will not be affected by AI in the next three years.” It gave me a list. A lot of it is things that need your hands like medical that need your hands. That expertise. Welder to which some of that stuff could be. Look at what they make cars, how they used to make cars, and all the machine parts involved. I’m sure there’s further levels of that they’re going to be developed. Real estate was in there, but it was about a commercial real estate. I just took it to a new level. What do you want to add?

The Role Of AI In Real Estate Data & Trigger Events

Let’s start with the end. At some point, we don’t know how soon you will be able to ask AI, and this business of asking a question the way that you do in google is going to go away soon. You’ll set parameters in an application that says, “Please notify me. Please blow up my phone with big red flashing lights,” unlike what we have now. When a seller fits the profile that I just put in, they got divorced or just got a new job or file bankruptcy. They’re not very far away from tapping into a database.

That’s not so much about the real estate itself, but it’s about the people who own it which is what the trigger is to sell. The dirt or the houses or whatever you’re buying or their office building, is all about a personal circumstance for the most part. Those triggers. Those are not in any assessor database. They’re in databases are separate and probably not public. Some of them are and some of them aren’t. If somebody got their water shut off, that’s an indicator that they might be going through some stuff and might want to sell quickly in their house.

My point is, you will set parameters in some application to notify and then, if you’re Jill, you will skip trace them. Immediately call them on the phone and say, “I know you’re having this issue. We’re here to help you or you’ve defaulted on your mortgage or in your pre-foreclosure scenario.” Those databases exist. In AI, use this up. My question is, will they ever replace, Jill?

I want to add on that. I want to read the answer and then I want to tie them all together. The actual answer that I got in this section was a lists of things. It started with skill trades, humans centered services like mental health professionals, social workers, Elder Care and Child Care. Creative fields with a human voice. It was very specific about that. Small-scale local manufacturing or craftsmanship like woodworkers, certain segments of AG, farming and things.

I didn’t lead this question at all, too. It threw in construction and real estate development. What it said was, “Still very physical and regulatory heavy while some parts like designer or permitting might shift the core labor will remain human lead.” That’s talking about construction and designing a building but the big takeaway for me is in our day-to-day world and everything you just said it’s critical thinking.

It’s not there yet to take a step back with your 35-year experience in this and my experience too to say, “This is a trigger that I’ve experienced 10 years ago or 20 years ago or 30 years ago. It’s happening again because it’s the waves in real estate. I see what’s coming.” Being able to have that thought process and use that experience. Again, this is in the next three years. Could this change? Very likely.

AI is short for artificial intelligence meaning learning. That’s real difference between typing some stuff in. Google having a kick back, “Here’s a bunch of websites. Go out and figure it out yourself,” or ChatGPT, “Here’s a summarization of all those of those websites and click here if you want to go to the actual website.” That’s a notch above Google. Here’s an example of AI where we’re so close to that the applications probably built somewhere. There’s probably people building these applications. I want to give an example in a second.

Applications like this, I just looked up a property that came in $6,490. The first thing I did like I always do is look at the immediate market and I implement the eight days. What’s going on in the immediate market? The house right next door to it is sold for a $1 million or $3 weeks ago. There’s several houses down the block that sold for about the same price that were completely and totally unrenovated. You can tell all of this. I’m manually doing this on Zillow and Redfin.

Very quickly, within about 30 seconds of just horsing around, I can realize that smoking deal. AI can do that now. It can say, “Give me the address. I’ll tell you what the price is supposed to be, or give me the address the address and I can set parameters, theoretically, that says when a property is listed for sale anywhere in the MLS or anywhere in the country.” I want to set my parameters to everything around it or the actual estimate or the other statistics that are out there and other different algorithms when it’s 40% less than the actual publicized published price.

AI can now analyze an address and instantly estimate its value—or alert you when a property hits the market at 40% below the expected price. That level of automation will dramatically narrow the field of people who can keep up in this business. Share on X

I want my phone to go off red. That’s where AI is going. That one narrow dramatically narrow. The amount of people that end up being in this business, the people who don’t have access to those tools and then like Jill, know what to do about it after it happens. Buying a house that’s listed from a real estate agent, I can tell you from personal experience in months is way harder than it seems. You have to fight with real estate agents. Why? I don’t know. They have some type of egotistical thing. Getting listings, don’t get me started. Getting listings is going to be no more real estate agents.

Here’s what I’m waiting for. I’m holding up my Phone. I’m waiting for this to happen and I’m sure it will happen at some point and probably soon. I’m waiting for like you just said, property comes in. I tell AI to do my search, “AI, please go to these fourth things and tell me what you come back with.” I want AI to say what next and I’m going to go, “AI, I want you to look at this also.” I want AI to not only come back with the answer and I want a I just say, “Why did you do that,” because then it’s going to learn me.

You don’t need a man.

Well get to that later.

Why did you do that? Let me tell you all about it. Two hours later, even the AI machines in tears.

We’ll get to that just a second. I’m going to hold that thought. AI will be able to, for my first real example, say, “I got it. Now I know where you’re going with this and I have three more things to add. Jill, your phone’s going to be ringing with just the right people.” AI or team now. That would be cool. Now, back to your example. I should be using this, which is this, “AI, why the heck is my man wreaking havoc on me by doing X, Y, and Z?” That would be helpful.

I think that exist. I bet there’s a relationship AI somewhere and here’s the thing. Two married people couldn’t install microphones and cameras and stuff. Believe me, it’s learning your behavior. There’s huge health care implications to all this. Every Saturday night, there’s an 80% chance that the same pattern behavior that these two are going to go through. They loved each other on Wednesday and Saturday night not so much or whatever. They’re measuring our heart rates and our perspiration rate. They have our whole medical history and all of that. That’s learning behavior. It’s learning about us, specifically, and predicting outcomes. The same things going to happen with real estate.

Here’s what going to happen. We’re going to come home and there will a glass of water in your night stand and Gatorade on mine. It’s going to know like, “I know what’s going on. It’s Saturday night. Let’s not have a bad Sunday morning.”

AI’s Future Impact On The Real Estate Industry & Its Challenges

We’re over on time, but the point I’m trying to drive home is usually imagination. Think about a formal weight loss standpoint.

Put down the banana.

You can’t open the refrigerator. The refrigerator saying, “You want me to do this. It’s is not me.”

Could you imagine, drawers will be locked in refrigerator. How about all the produce you want. The cheese drawer is locked.

Drinking and driving. Forget it. It’s never going to happen again. There’s so there’s some real positive things.

I appreciate that.

It’s the outcome prediction that gets my wheels turning. I’m sure that’s happening in the stock market already. Think about the farmers almanac. That’s been around since 1800. All that is a collection of data and in a prediction about what’s going to happen that summer. I don’t know what the accuracy is. I’d like to look at that.

Real estate will be dramatically affected. All these issues has been this way since there’s been businesses. It all just depends on how fast it’s going to happen, whether or not who’s stirring the bus because there shouldn’t be real estate agents now. The National Association of Realtors has such a strong lobbyist group that they’re not letting this go away and they’ll fight a tooth and nail all the way down. The same thing with the blockchain and the escrow industry. Join us on the next episode where we discuss how to improve your land mailer response. You are not alone in your real estate ambition. We are Jack and Jill. Information and inspiration to buy undervalued property.