AI tools are getting more and more popular these days. With its current capabilities, what is its true role in the business space?

 

Tune into this episode with Nelson Lynn, an expert in quantitative finance and machine learning. He discusses how machine learning is being applied to the real estate sector, from using data to build algorithms that can predict behaviors to leveraging transformers for more accurate predictions. Nelson shares his experiences in real estate investing and the importance of doing your research. He also talks about his best and worst investments, emphasizing the need for long-term horizons. 

 

Learn more about how AI and machine learning models revolutionize the real estate industry, and get advice on making smarter investments!

 

[00:01 - 08:11] Opening Segment

Introducing Nelson to the show

He runs a real estate fund and consults data science and machine learning for commercial real estate hedge funds

Machine learning can be applied in the real estate space and extrapolated into other industries

 

[08:12 - 15:54] Balancing Data with Human Experience in Real Estate

Machine learning is becoming more popular as computing gets cheaper and more data is available

Companies like Brookfield use data to reverse engineer algorithms to predict future problem sets on properties, not in the original data set

Quantitative finance looks at numbers, and big companies have a lot of data to sift through

Intuition should still be used over what the algorithm tells us

 

[15:55 - 24:31] Optimizing Rental Rates with Chat GPT and Transformers

Professionally managed companies can optimize rent more than mom-and-pop landlords

Large language models like Chat GPT are better at pattern recognition and understanding context

These models can help analyze what the value of a building should be or how much rent can be charged

These will not entirely replace people, but they may hire fewer people or scale up due to faster and more accurate results

 

[24:32 - 29:17] Closing Segment

Best investment: Nelson's first property,

worst investment: buying FOMO into crypto

The most important lesson learned: do your research and go against the crowd

Quotes:

 

"The purpose of machine learning is not to replace humans; it's to make them do things faster." - Nelson Lin

 

"The only way to build large machine learning models is to need a lot of data. And so it's just like a handful of large firms who have access that are willing to share it." - Nelson Lin

Connect with Nelson!

Website: www.subtlerealestate.com 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

 

Track your rental property's finances with Stessa. Go to www.escapingwallstreet.com.

 

Join our Passive Investor Club to access passive commercial real estate investment opportunities.

 

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