It seems you can’t go far right now without reading about how artificial intelligence (AI) is affecting day-to-day business.
It seems AI is in the news everywhere.
Whether it is potentially replacing employees, adding efficiency to a consumer help desk, or taking over the human race… AI is at the forefront of conversations.
Where does AI fit in with note investing? Where does any technology fit in?
To better understand, as a note investor, what tools might be at your disposal, we need to back up just a bit.
Like many industries, the note industry existed long before any technology boom. Sure, the financial calculator did make things a whole lot easier, but the note industry existed before then.
So, what does this mean?
Unlike some evolving businesses, the note industry has always been about helping people. One-on-one interaction. And when it comes to helping people…well…that takes people.
In addition to the financial calculator, there have been some great tools to help note investors. Tools such as TValue, Websites, CRM Systems, Chatbots, Excel Spreadsheets with advanced functions, and Online Portals (including Note Exchanges, Note Analyzer Tools, and Property Comp Tools).
These tools sped up tasks that we already did. Technology, and possibly AI, can speed up marketing times, efficiency, and even information distribution (Like a website working 24/7)
Will AI Ever Replace Note Buyers/ Investors in the Note Industry?
The short answer is, probably not.
Because note buying is about solving problems, one would think that a properly trained AI could solve problems faster than a human. Analyze the situation (or note), and make offers (Full, Partial, etc.).
Sure, AI could evaluate a note based on raw numbers; it could also look at the property, run comps, check area trends, tax records, and even the payers’ credit (with the proper authorization).
But AI will never be able to talk through the seller’s emotional needs.
Why 1950 was Important
In the early 1950s, Alan Turing proposed a test for a computer.
A test that would measure the computer’s development – its ability to ‘think and react’ if you will. The test was designed to measure the ability of the computer to engage in conversation with a human. Furthermore, could the humans detect they were talking to a computer?
The answer really depends on who you ask.
Some people believe that Google passed the test with Eugen Goostman in 2014. Some people believe that ChatGPT has already passed (2023).
The short answer is that AI is very close to ‘acting’ as a human. In fact, although GPT-4 was only judged to be human 54% of the time, actual humans only score 64%, so it is getting pretty close.
But ‘close’ is not going to cut it when it comes to something as important as selling what may be someone’s biggest asset.
So, What About Buying or Investing in Notes and AI?
AI is becoming an incredible tool that grows exponentially each year. There is no doubt it will continue to generate tools we can use. Tools and resources like…
- Do you need a PowerPoint presentation for a group of Realtors? ChatGPT or Google Bard can help you write an outline.
- Need a very specific photo for your website? Bing or DALL-E 2 can generate one for you in a manner of seconds.
- Want a second set of eyes to proof your document or marketing materials? Grammarly and GrammarlyGo can do that.
- Automation? Zapier.
- Scheduling? Reclaim, Clockwise, Calendly or Motion.
- Video Creation? Descript or Wondershare.
At the end of the day, you are far more likely to run into a robot flipping burgers than you are buying notes. Over the years, technology has been utilized for efficiency in our business — but not to replace human relationship building.
SIDENOTE: I originally thought of using AI to write this article but settled on it creating a photo for me instead. [Source: Bing Image Creator. Prompt “Create a retro photo of a robot talking on the phone while juggling small houses.”]
Note Investing Resources
Great post!
I’m already using AI (mainly ChatGPT) for my marketing needs and it works great and saves me a lto of time with much better quality I can produce.
But lately I discovered it can run like a financial calculator even for more complex analysis. It still require very clear details and prompts but it works great
I’m also in the process of developing some kind of bot based on ChatGPT for my website to act as initial screener and info collector but with a smart content relevant, conversational tool
That is great. There are a lot of time-saving tools coming online with AI. I look forward to seeing how creative everyone gets.