Dax Stanley says AI and ChatGPT can increase productivity and effectively analyse data – as long as investors mitigate the risks involved.
Dax, the founder of Hera Property Group, has an extensive property and professional pedigree, with experiences across science, engineering, business and technology.
He joined KnowHow’s Bushy Martin on the Property Hub’s Get Invested podcast to discuss the benefits and risks of using ChatGPT for decision-making and market analysis in the ‘new age of property investing’.
ChatGPT advantages for property investors:
1: Establish goals
Dax recommended giving prompts for the AI technology to provide ideas about property investing for your specific situation.
“You type in some really key factors and you can get some analysis. So what I found really valuable for clients is to say, put your bio in, who you are, what you know, and what your goals are,” he said.
“For example, you can put in, ‘I’m 35, I’ve got a wife and child, I’m in a corporate job, this my salary, when I retire I wan’t this amount of money’ etc. Then you prompt it to give you a strategy and show you how much you should be getting out of your property portfolio.”
2: Portfolio improvement
AI technology can provide data-based suggestions and strategies to maximise wealth growth.
“If you’ve got a portfolio, you can actually plug the portfolio into ChatGPT and say, ‘how can I improve this? What can I do differently?’ You know, we’re looking at even doing feasibility studies on renovations and developments to go, here’s all the stats, now try and get really clear results on it,” Dax said.
“When you pay for the ChatGPT subscription, you get access to plug-ins. So just a simple hack would be to start a chat window and say, ok we’re researching this suburb. Then, you go to the Internet, take a whole load of data of that suburb from sources like Realestate.com.au and Domain, and plug it in. Then you say, here’s all the median prices from the last five to ten years, this is the sort of houses I’m looking for, and these are some of the renovation costs, please come up with some ideas and strategies around investing in that.”
3: Increased productivity
ChatGPT can allow for greater efficiency and productivity across the investing process.
“When I implemented ChatGPT into my team, it literally doubled our productivity overnight. Without a doubt, it may have even tripled our productivity. So the speed of being able to pull its data into one for our clients has been fantastic,” Dax said.
“And we’ve got this model called the Keystone Property Investor Accelerator Program, or KPI Accelerator Program, and that works on the five P’s. So firstly, we work our their position. So we’ve gather all their data and we come up with a strategy and we plug it into ChatGPT and we start brainstorming around that. Once we have that, we help them with their purpose, because sometimes people don’t know why they want to get that. So we go through their purpose and map that all out. Then we prepare them for the next purchase – that’s the third P.
“Then they go to the purchase, which is all about negotiation tactics. So here you could put a prompt and say, hey let’s do a role play. I’m the buyer, you’re the real estate agent, let’s do a role play on buying a property, go. And then after that the final one is prosper. So how do we leverage that equity.
“So I’ve built chatGPT prompts and processes throughout those five P’s of the Keystone Property Investment program to really help them accelerate not only our systems, but how they can get to that position, that purpose, preparing really well, purchasing and then prospering from there.”
ChatGPT risks for property investors:
1: Currency
Dax said investors need to ensure the data presented by AI technology is up to date.
“With any new, high tech, you don’t want to take it for truth, because they can make things up. You can say create a quote, and it’ll create a quote with the least amount of data. So it just tries to guess to give you the right answer,” he said.
“So firstly, the data is two years old. So you got to be very careful about that. When you try and find out the median price of a suburb, you can’t get it. But if you can say what’s the median price in September 2021, it’ll give it to you. So you need to prompt it with a whole lot of data. And in my book, I show how you can set up a different chat windows with the different data and different suburbs and plug it all in so that you’re teaching the AI what the latest data is”
2: Reliability
Investors shouldn’t act upon ChatGPT results without validating them first.
“It’s not your go-to thing, it is not a professional, it is not a mentor, it is not an expert. It has to be driven by a human. If you put stuff in, you may get the wrong things out. So you always need to validate it and always need to check with your intention and your intuition. You need to check facts as well. Don’t take it on face value at all,” Dax said.
“You need to actually really make sure the output suits and is correct before you take any action. So I just put a big warning across everything like that. You may say, here’s my portfolio, give me some ideas, but it doesn’t know the Melbourne market, or it didn’t indicate that the Brisbane market’s going off, or other things like that. And I go, well the Melbourne market didn’t indicate the Brisbane market’s going off or things like that. So you’d then prompt it again and say here’s some data about Melbourne, here’s some data about Brisbane, please review. And then it gets better and better and better.”
Listen to the full interview here.
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