## AI is transforming real estate: How one entrepreneur is automating deal flow with conversational AI
**Key Takeaways**
– Deal flow, a platform that leverages AI to automate real estate deal sourcing, has added a new conversational AI feature that allows its bot to engage directly with other realtors and homeowners, even negotiating deals autonomously.
– This conversational AI can significantly reduce the time spent on repetitive tasks like data analysis and initial outreach, allowing investors to focus on their core skillset, deal negotiation.
– By incorporating AI into their workflow, investors can save time and energy, allowing them to analyze more deals and make faster decisions than their competitors.
**Leveraging AI to increase deal flow and efficiency**
In the competitive real estate market, investors are constantly seeking ways to streamline their deal flow and gain an edge. One entrepreneur, Christina Reynolds, founder of Deal Flow, is taking advantage of the latest advancements in artificial intelligence to do just that.
Reynolds argues that AI is no longer a futuristic concept, it’s a powerful tool available to everyone.
“AI has been around for a long time as an algorithm or machine learning… but it just became available right to the public like you guys have seen with chat GPT, everybody started talking about it,” she said.
Deal Flow uses AI for tasks as diverse as scoring potential deals, generating listings from both on-market and off-market sources, and engaging in initial conversations with potential sellers — potentially shortening the entire deal process from months to days.
**Using AI-powered analytics to pinpoint the best deals**
“A lot of people are… using AI for copy, for descriptions, right? A lot of people using AI to like, write descriptions, or like handle conversations [but] what do we really do with it?” said Reynolds.
Deal Flow’s AI analyzes hundreds of data points to score all potential deals, including property location, value, job market conditions, and even the likelihood of a property owner selling within a certain timeframe – factors that previously required extensive manual research.
“We’re using 200 to 250 data points,” said Reynolds about the scoring system for off-market deals. “We are looking at property address, property values… something that people don’t think about is the job market, what is the job market doing… so all of these tiny things.”
This allows investors to focus their efforts on the most promising deals.
**Conversational AI: Building relationships, even automating negotiations**
Deal Flow’s most unique feature is its conversational AI, which leverages the power of ChatGPT to conduct initial outreach and conversations on behalf of investors.
“We trained it with all these scripts… all these conversations. We say, ‘Hey, read this transcript of a real call that happened,'” said Reynolds, explaining how they train their AI to mimic the language and style of a real estate professional.
The AI can identify and react to different types of responses, adjusting its approach to ensure the best possible outcome.
“We’ve been able to implement some of the machine learning algorithms that we’ve had to create this new thing, which is conversational AI. I’m really excited to kind of get into that because I think that’s the newest form of most useful… AI that we can use in our industry,” said Reynolds.
The conversational AI can handle initial contact, set up appointments, and even negotiate some basic terms.
“We had a conversation the other day that… basically said, ‘Is there anything additional outside description notes that I should know about this property?’” said Reynolds. “And then the realtor says it, and then the AI, because she’s already had a million conversations, is like, ‘Oh, the foundation, can you tell me more about that?’ Because it was already trained. Yeah, and then she says, ‘Oh, due to all these factors, would you consider taking it no matter what price?’”
Reynolds further explained that the AI can even remember what was said in previous conversations, allowing for ongoing negotiations.
“They came back and said, ‘Okay, the owner’s interested, when’s a good time to talk?’ Great, and it almost finishes it. So, she actually, she actually went on in one of the conversations to negotiate a deal that was 25% less and the realtor straight up said, ‘We’ll take you, we’ll take the lowest we’ll take is 185, and did numbers and everything.”
**A tool for introverts and extroverts alike**
Reynolds notes that this new feature is a boon for both introverts and extroverts in the real estate industry. While extroverts still enjoy face-to-face interactions, the AI-powered outreach eliminates the need for repetitive cold calls and the emotional burden of early rejection.
“It’s not a like it’s an and not an or,” said Reynolds. “Depending on the conversation… if I’m correct me if I’m wrong, that the outreach you can do in bulk, and much more efficiently in a timeframe that you can schedule. You don’t need to do it manually, you can do it.”
**Getting started with AI in real estate**
Reynolds encourages investors to look at their existing processes and identify the repetitive tasks that can be automated.
“What do I currently do? What’s my first step? What’s my last step? What’s everything in between?” said Reynolds, explaining steps to take to optimize your real estate workflow.
She also notes that using ChatGPT itself is a great way to start experimenting with AI, as it’s free and can be used to analyze lists and identify potential deals.
“If you’re spending a lot of time, you already have your database, you can input your list into chatGPT and ask it to narrow down properties that fit X, Y, Z…” said Reynolds.
For those wanting to go beyond the basics, Deal Flow offers a comprehensive platform that integrates analytics and conversational AI.
“If you want to take the next step, you can talk to us,” Reynolds said.
**Deal Flow offers a unique opportunity for investors to leverage the power of AI to increase efficiency, expand their reach, and ultimately, close more deals.**
“It’s been a game changer for me… especially now with on-market… we realized that with the ability to scrape the MLS and pull all these things, we could narrow down all of the MLS also and say, ‘Okay, not only are we going to shoot in the dark… how can we make this deal and get our 25%?’,” said Reynolds. “Sometimes it’s just a buy and flip, you don’t need all the crazy stuff.”