AI 101 for Real Estate Notes: Use ChatGPT Without Being a Tech Nerd | Real Estate Notes Show

Episode: AI 101 for Real Estate Notes: Use ChatGPT Without Being a Tech Nerd Dave's Goals and Plans: - Used AI to create panel discussion questions for the Mortgage AI conference, then refined them to be more conversational - Challenged people to use AI instead of Google to get immediate answers - Advocating for using even 1% of AI capabilities rather than 0% - Wants to help beginners understand what AI can do without being scary Nathan's Goals and Plans: - Started using AI in the last 4-5 months after attending the Mortgage AI conference - Initially struggled with knowing what to use AI for, similar to his experience with virtual assistants - Uses AI to explain concepts at different complexity levels (5-year-old vs graduate student) - Successfully used AI to generate recipe ideas based on available ingredients with different flavor profiles Key Recommendations: - Stop Googling and start using AI for immediate, synthesized answers instead of clicking through multiple links - Craft specific prompts by telling AI what role to play or who to emulate (e.g., 'explain like a 5-year-old' or 'tell a joke like Jerry Seinfeld') - Rephrase and iterate on AI responses - if the answer isn't right, the prompt is usually the problem, not the AI - Don't worry about perfect spelling or grammar in prompts; AI understands intent - Start exploring AI with simple use cases (recipes, explanations) to build confidence before advancing Topics Discussed: - AI as a transformative technology comparable to Google's arrival - Overcoming fear and skepticism about AI in real estate and mortgage industries - Practical prompt engineering techniques for better AI responses - Real-world use cases: recipe generation, panel question creation, explanations at various complexity levels - Winter as optimal time to develop new skills without summer distractions Welcome back to another Real Estate Note Show.

I'm your host Dave Futs from JKP Holdings. Alongside me, as always, Mr. Nathan Turner. >> Hey. >> Hey, man. Yeah, it's been a while. The weather's coming upon us. The cold weather and everything else. Um, and it's interesting how things are just progressing over the winter time. Um, time's changing, the the clock change back, all those kind of weird stuff happens. Um, one of the things we get into in in this this kind of time of season is fine-tuning our skills. Um, and really kind of honing on stuff that we're not distracted by the summertime excitement. Um, and just >> tidying up stuff is that wintertime squirrel mentality, right? >> Yeah.

I find wintertime often is like my most productive time is I don't really, you know, unless I'm going snowboarding, I don't really want to go outside. It's cold out. >> Yeah. >> So, it's a great time just to be inside. Like I say, we don't go on a lot of vacations and and different trips and things and so it's a good time to just really hunker down and and figure out, okay, that thing that I've been putting off all summer, now's the time to get into it and see how we can get into it, >> learn better. So, one of the things that we hear a lot about um and we've touched upon the show um has been in this idea of AI and a lot of people you speak to AI it's like while this weird crazy thing oddball thing that a I don't understand b really does it do what it says it does and I don't trust this instrument out there um but everyone tells me I have to learn it and yeah recently you went to a conference where it was all AI.

>> Yeah. Yeah. It's been an interesting journey for me. Yeah. And and we've had lots of conversations about this and you were more of an early adopter. I was a little bit later. I I didn't really get started using AI until this summer. So, just in the last four or five months. Uh and it's been really really interesting. This conference I went to just a couple weeks ago was it's an IMN conference called Mortgage AI. So it was it was specifically on AI and mortgages and how uh different mortgage companies are using AI and different things. Very interesting crowd. It was you know a lot of the IT people there.

So oftentimes you go to these IMN ones and they're a little more stuffy. You know they everyone's in a suit and all this and this one you had the guys in like the Hawaiian shirts and the you know they're the IT guys. They're not they're not like CEO types necessarily. And so that was really interesting to have kind of conversations with those people as well. So >> yeah, and you know, >> share what we can and what we've learned and what we're doing. >> Yeah. And believe me, we're not experts by any means. Um we're just people who do this and I know I do a little bit more than a lot of people out there and that's okay.

Um I think people kind of get overwhelmed with this space and that's totally understandable guys. Like this is not for everyone. This is not everyone's cup of tea. But we wanted to bring it up to you guys to maybe make it not so scary, right? Um, >> yeah, >> like Nathan said, I was a little bit more in front of it than he was, but he's come around and he's using it. >> So, we wanted to do this video. Um, and if someone wants advanced stuff, we can get into advanced stuff, but this is really for the beginners just want to get a handle on what is AI, why is so many people into it, um, and what can I do? anything we before we got on live, you know, you said, Dave, one of the hardest things is I don't know what to use it for.

>> Yeah. Yeah. That was early on that was really one of the things I really struggled with. And same kind of thing with a virtual assistant. I I didn't have one for a long time because I don't know what to do with them. I don't know what to tell them to do. And same thing with AI. I don't know what to tell it to do. I I'm not sure what it can do. And so I needed just some kind of, you know, ideas on on what's possible and and how do you actually use it and how can it be productive and useful in my day-to-day. And so that's part of what we're going to try to tackle today and and help people come up to speed with of what can it do for you.

>> Yeah. And one of the things that I think people the biggest sense is changing. You know, Google came out and everyone was like, "Oh, what's this Google thing?" and you and then the phrase Google it became such a popular thing that we kind of got normalized to it and >> that's what the transition is right I challenge people to instead of googling it use AI and figure out the answer and most people who once do that when you Google something you see an AI response at the top they like that because they get an immediate response of what the answer should be versus having to click through link >> yeah going back in time I'm thinking back I was when I was uh just starting university and uh you know this whole Google and all these you could ask it anything and I'm like I have no idea what you're talking about.

So I I remember going to the computer lab at the university sitting down in front of the computer and going okay I know I got to use this I have no idea even what to ask it. So one of the first things that I Googled was song lyrics to songs I liked just because I was like I don't know got to start somewhere. That was one of the first things I Googled song lyrics. >> Yeah. >> And that so it's it's really a matter of figuring out what it can do for you. But you got to just start somewhere. >> Yep. And I think that's that's the key here is just figuring out what you can do. We were talking before we went live how to allow those who are interested learning this stuff.

And again, I know there's some people out there are more advanced and we can have a conversation. We may do a part two of this that we step it up a notch, but we wanted to make get everyone on the same page and help people who are along who are just not comfortable with using this kind of software. So, one of the first things that people we tell people or I tell people is >> we want to imagine a world where you're one phone call away from anyone living or dead where you can have a conversation with them if they had some kind of public preference, you know, some kind of public attention on them, right? or someone generally speaking who they a someone a bot or Google can find details out about like you can find out what a plumber is without knowing a plumber, >> right? >> And how would a plumber handle this? This is a similar kind of mindset you want to have.

>> Now, definitely >> people say, "Well, how do I do that? Do I ask it about plumbing problems?" Yes. >> Right. >> Absolutely. >> Who knows? Right. walk me through this process. >> Um, yeah, >> it's going to be really interesting how we go about this. >> Um, so I what we're going to do is we're going to walk you through some kind of scenarios here so you can kind of get an idea of what it's useful for, right? Um, >> yeah, we want to jump in and and talk about what we're doing, things that are working, uh, how we're making it better, all those different kinds of things. We've got kind of a list of things we're going to try.

>> Yes. So for us distracted here holidays we're just trying to get them through some stuff. So >> we want to use it to tell it what we want and we're the experts in telling you what I want, right? And not every time you get an answer you like. The cool thing is you rephrase and say this is not what I wanted. This is what I wanted and put into layman terms. You don't need to spell correctly. You don't need to grammar correctly. They're experts. Right now, one of the funny things I did this uh I think I did with you is is I want you to explain to us me like I'm a 5-year-old or I want you to explain to me like I'm a graduate level student.

It will talk >> it will explain things like it has toys in front of it and cookies or highle grammar and stuff that maybe I don't even understand but it can for sure it can take the same concept and explain both things in different facets. So, if you don't understand something, ask AI to explain it like a 5-year-old or a high school student. And that's typically what I do. I ask it explain to me like I'm a freshman in high school so that I can better better make sure that I understand what it's asking me or tell me to do, >> right? >> Yeah. So, [laughter] along those lines, going into this mortgage AI conference, I was asked to come and participate.

I'm like, I don't know because I'm not the expert on this. And so, they asked me to moderate a panel, which was great. So they had kind of an outline of uh the topics we were going to cover. So I put it into chat and said create some questions based on this criteria on these you know topics and it spit out all these questions and I was reading through that and I'm like that's really highlevel type stuff. I so I did that exactly I said bring it down make it more conversational u same questions but just make it more conversational. And then it came out with this other version that was perfect and that's exactly what I used.

So it was I use AI to let me know what to ask the AI experts at this conference. It's great. >> Yeah. And and for you guys out there who are saying I don't know what to do, we're going to go through some of the ideas you can ask it and hopefully it'll spark some kind of interest and just start exploring it because you don't want to get behind. Um >> yeah, >> some people are saying this is better than the internet coming out and I would agree with them. The power behind it. Um, and you're not going to use 100% of it, and that's fine, but I'd rather you use 1% than zero. And that's the key here, right? So, first thing is stop googling things.

I want a recipe that does this. Do you really want to thumb through recipes? Maybe you do. Ask for five recipes that and tell it what ingredients you have and it'll come up with five different recipes on whatever food you want. Right. K. Yeah, >> we literally did that where we said with here's here's five ingredients we have in the house, make me, you know, give me five uh recipe ideas and there were different spins, you know, like one was more Mediterranean, one was more, you know, different flavor profiles and whatever. It it totally works. It definitely works. Yep. So, one of the things is, you know, when we want to prompt something in in this chat, we're going to go into this in a second, is there are five or six things you really want to have in a prompt to make it really good, right? >> Is and we'll get into this in a second.

We'll show you some examples, but >> you want it to know who it should act like or be so it knows what what hat to put on. >> Yeah. I want you to be or you could ask general questions. But if you ask too general of a question, it wants to make a that human quote unquote help happy and gives you a general answer. And you say, "Well, that's not the right answer." Most of the time, the prompt is the problem, not the actual machine. Right? If I say, "Tell me a joke. >> Do you want a kindergarten joke? Do you want an adult joke?" It doesn't know. And it just gives you a joke because it just wants to make sure it gives you what you want.

So you want to make sure you ask a particular thing. So you want to tell it I want you to be a you know a experienced you know joke maker right and play with this right it's about that prompt. So >> you can even give it like an like an actual person like tell me a joke in the voice of Jerry Seinfeld or in Rodney Danger whoever you know >> and their style. What an AI does is it goes and finds out who Jerry Seinfeld is. >> Finds out the tone of his jokes, finds out what he actually does and how he does things in a split second in his brain and says, "Okay, this is the kind of joke that he would tell and this is the Tony tells it in." So, it's really cool how he does it.

So, the next thing you want to do is now you have this bigger head of what you want to be. Now, you can have it be a specific person, live or dead. You can actually have it as a a general person, right? I want you to be a plumber expert. I want you to be a marketing expert. I want you to be a document creator. Whatever you want to be, it it it can be for you. >> And then you want to tell what you want to do. Give it some details. >> You don't just say, "I want you to create a note or I want you to analyze deals." It doesn't know what that means. You need to give it something. So treat it like you're picking up a phone call and you're talking to somebody.

Maybe say cream is something they don't know what you're talking about. So give us some details. [clears throat] >> Then give an example of if you can of what you're looking for. I would like it to do something like this. >> The [clears throat] last thing I always tell people and there's there's different ways you can do this is ask it to ask you questions to ensure it understands what you're asking it. So I say, "Give me some clarifying questions so that I can make sure." [clears throat] And Nathan and I have some special things coming out in a few weeks and months, which are really cool. And we use AI to kind of build these things.

And we did it is ask me some more questions so you understand what I need. And then it can be give a better answer. So it may come back as hey, what kind of joke, terrifying joke you want? Do you want this younger stuff or older stuff? Do you want to be uh a more adult? Do you want to be more of this? What do you want it to be? And then give it, you may not know. You may just say make up something, which is fine, but it'll ask you some questions. Now, you can ask it to ask you more questions or go right and see what it comes back with. >> The best way for me is I would say, "Okay, based on this information, now create me a brand new prompt with everything involved." And it'll create you the prompt that makes the most sense.

Does that make sense? Hopefully. Do it. >> Yes. Yeah. You you tell it to create whatever prompt is going to give the best results or something like that. And then it'll it'll spit out this whole brand new prompt. >> Uh basically saying, I want you to tell me about blah blah blah blah blah blah with these specific details da da da. And it'll it'll give you that prompt and then you say, great, thanks. And then you put that back in there and >> yeah, >> there you go. And one of the cool things is some of the things we possibly have been asking into groups and Facebook groups with that. You can ask it here, right? I looking for attorneys to do this.

I'm looking for, you know, this and this. And it can give you awesome responses. Some people have used it to say, "Hey, you are a financial calculator. I want you to figure out my payment on this." You can upload spreadsheets and it can export you spreadsheets, put all the information you want on it. It's really cool and powerful. Um, but don't be general, be very specific. Um, it can do things such as mess with your email. Most people use it for creating emails and writing stuff, which is fine. So, I we we're talking about chat, but I want to make sure to clarify, guys. If you're new to this stuff, you've probably heard of Claude and Grock and Gemini and um uh Deep Seek and things like this.

dozens more. Yeah, >> there's dozens out there. 95% of you guys out there, it doesn't matter what you use. Just get used to using it, right? And >> one of the things you were talking before going live is one of the greatest thing about Chat GBT is while you're in the car, there's a voice activation feature where you just have a conversation with this computer and it sounds like a living, breathing person on the other side. >> Mhm. weird but awesome. >> And then I'll say something like, "Ask me questions uh for more information that you need on this topic as I'm, you know, creating whatever I'm creating." And then it says, "That sounds great." And it's really polite and it's really and it boosts you up a lot.

And it's like, "That's a great idea. Let's explore this further." >> Makes it feel like >> powerhouse >> and it learns about you guys. So it it understands what you're looking for so that when you go back to it, it remembers previous conversations. You say, "Hey, do you remember the conversation about this, this, and this?" Yes, I do. Okay, I want you to do a similar situation for this situation. Right? And there's projects inside chatbt and we won't get into that stuff in this call and we can get I get deeper into that. I I use it for more, you know, I use for coding and creating things. One of the things I'm sure you guys all probably seen who are friends with our trade desk on social media is a happy birthday message that was created through AI.

That's a script that runs out and says happy birthday. I apologize for everyone who thought it was all personalized. It is personalized. It just looks like it. But it's a best example for you guys to learn. I run about 15 to 20 codes a day um automations and things like that. So, it's really cool. One of our invites ways to invite people to our events was created by a chachi BT, right? So, we do use technology in all different facets. So, let me jump into showing you some chash stuff. Um, but we wanted to kind of introduce you guys to this and see where it's at. So, before we do that, Nathan, a lot of people are afraid of AI taking over.

>> Did the conference talk about that >> at all? >> For sure. And that's that's a a big fear for a lot of people are, you know, automatically we go to Skynet with Terminator and all those kinds of ideas where it's going to take over the world. I mean, maybe, but I don't think so. You know, I don't I don't think that's a real threat. I don't think that's a real issue. The consensus at the conference was no, it's not going to take over the world. No, it's not going to wipe out all these different jobs. Um, and we'll come back to that in a second. But generally what is being found today right now is as you're using AI, it'll get you 80% of the way to whatever to whatever you're trying to do, whatever you're trying to create, it'll get you about 80% of the way there.

Uh, and it's always going to take that human on that last 20% just to bring it the rest of the way. The other point that I thought that was really interesting about the jobs is they compared it back to um the guy that used to light lanterns in the street. >> Oh, >> and when electricity was created uh and everybody switched over to electricity, that lantern guy is now out of job. However, look at all the jobs that were created around electricity. And we're so brand new to AI, it's hard for us even to conceive all the jobs that are going to be created because of this new AI atmosphere. So, so it's I don't think it's anything to get worried about.

I don't think it's going to be something that is going to completely automate the rest of our lives and we sit back and don't do anything. There's always going to be some human component uh that's going to be needed to the rest of >> what some of the companies there using AI for. Were they using it to create like documents and underwriting things like that? >> Yeah, so a few different things. So underwriting was a big one. Um this a lot of the companies that were there are mortgage companies. So they're talking about note creation. So they would do it for example for um intake. So you've got a new customer, somebody who wants a loan.

And some of the companies had uh automated voice type softwares where it would walk somebody through the application form. Uh others would have it just so that when they hand in the application form, it would take that information and summarize it and give it to the human. Um different things like that. But it was it's basically taking all like that application form. If you've ever seen that the 10 what is it 1003? uh it's a fairly long form and it can be intimidating for anybody to just fill it out on their own. So whether you've got this chatbot that's taking you through it or you've filled it out and now you've got a human coming in and saying, "Okay, so these are the numbers.

Now what's the story?" >> That's the part that the robot's not going to get. So that's part of it. Coding was a big one. A lot of people are using it for coding. >> Um call centers type things that's starting to become more and more used. So things like that, repetitive tasks, things that um really a robot can do it. I >> I'm hearing the bigger people too are using it to read service notes and give me a summary of what it's rating or reviewed 150 pages of documents and tell me what it sees >> and says, "Okay, it's yes." >> Yeah. It's like I mean we came through non-performers we that was a major task all the time flipping through and say, "Okay, we're missing this assignment.

We're missing that launch." Uh >> now you can just upload the whole file and AI will go through it and say you're missing this alone, you're missing that assignment. And so you know right away >> another thing you guys can do out there is if you watch want to watch a long-winded YouTube video or speech, you can actually have chat summarize it and just tell me, hey, give me five bullet points or six bullet points or limited this whole down to one sentence, right? You can do any you want. I think that's something really interesting for people. So >> it's it's switching over. Or one last thing before we get into it is is you'll notice today if you go and Google anything, >> the first thing that comes up now is an AI summary.

>> Yeah. >> And I actually think that's fantastic. Again though, if I'm the one who's advertising on Google now, I'm below whatever that AI summary is. And so that again, how is that changing our world? And we'll see as time goes on. It's going to be interesting how that, you know, changes our approach to marketing and different things like that. >> Yeah, >> we'll just have to roll with it. >> Absolutely. So, let's jump into this thing um and show you what it looks like. >> So, we're on chatbt here. There's all different things out there. It's like claw. There's all different stuff here. And I apolog for the people who are listening via the podcast.

You may want to switch over. And I made this full screen so everyone can see what we're looking at. And we'll go back to our faces a little bit, but I wanted to show you guys what we look at. This is normal chatbt window. There's a bunch of stuff here that's available. Um, there's thinking mode. Most people here on automatic was fine. There are deep research. What that means is you're literally able to search, do a deep dive into everything you have to do with, you know, wherever you're exploring it and spend time on it. People use it to, you know, look at rental properties or deep dive into a market or deep dive into anything they want to look into.

There is create image. Uh there's agent mode which actually depends a small computer and it will do whatever you want to do. [clears throat] Log on to whatever you want to log on. It doesn't save your credentials. You have to actually log in manually. But I wanted to show you guys some people here will say like well [clears throat] how can I act like a financial calculator? Well I can say I'm creating a note with a term of you know 300 months at 10% interest and the beginning balance is 100,000. What is the payment? And you can type that in or you hit that little that little microphone thing and you just say it in that works too.

>> Month payment 877 right >> there you go. >> Now if I upload a whole spreadsheet it can literally do an entire spreadsheet for you and give you an answer and everything like that which is really awesome. >> So um so when we go through here it it it show you all the math and all stuff. We can ask it to not show math next time which is fine. But then what we can do here is say okay starting date is you know 11 121 2025 create me an amortization schedule I can ask to download it I can make you a file whatever I want to hit this >> so now it'll create you an amorization schedule that you can literally do anything you want with it boom >> and they give you the option It might say, "Do you want this as a CVS file or do you want that as a PDF?" And >> Yep.

I could download table. >> Yeah. >> Right. And it'll show you the whole thing. Now, a lot of people talk about like sell partials and stuff like that. We can say, "How do I get 12% note from a 10%?" You know, how can I get how can I buy this node at a 12%. Right? There's a 10% interest rate. Well, if I say what would be the price to buy this note if I wanted I'm misspelling some stuff so you guys don't panic about spelling, grammar, anything. >> Uh a 12% return. I am buying it in January 2026. Any other questions you have for me? As we said, we want to make sure it understands exactly what I'm looking for.

If it does, great. [clears throat] As you can see, it's asking, do you want pricing, right? So, I can clarify. If I just told you to do it, it would just guess what you want. >> Yeah. >> Yes. So, we want to say, assume one payment has been made. Print interest or present value. I don't have to answer that question. Or I can ask for what do you mean by that? I don't understand it. just have a conversation like you're asking someone else that you don't understand. So, I'm just gonna say that and see what it says. Right. >> And it's not going to think you're dumb. >> No. Right. >> It's not a person.

It's okay. >> So, is this what we wanted correctly? Yes. They figured out what the monthly what the PNI of the the UPB would be after one month payment. >> Yeah. >> Right. So now it's saying it needs a 23,000 discount to get to 12%. Do we want 10 11 12 13 right? Sure. It's created me a chart here. I can figure us all out. >> And you can say what am I missing [clears throat] here? What happens if servicing fees are included? What all these kind of things you just have a conversation with >> this can be done >> right? Boom boom boom. >> You can see what it is. 10 11 10% obviously is R 11 12 13 this is the purchase price for 14%.

No, no. Creators who curious what a you know would sell for? Here we go. Right. >> Yeah. >> You know what would happen or or add to chart if it's a 30-year or 25 year? What's it look like? Right? This is things you can do when you're buying a note or if you're trying to create a note. Tell me more about what I should do with the borrower. Act like this. Act like that. But this is some of the similar things. Now, we all talk about partials, selling, you know, you know, selling partials like that. You can figure that out, too, and it's going through some stuff here. So, we can we can close that up.

>> I find that kind of fun where it's it's ask it's like telling itself what to look for and stuff. It's kind of cool just to follow the the you know, the logic of >> what it's looking for. >> Yeah. So, I can ask it anything I want to ask it. Like Nathan said, there is no dumb question to ask it here. >> Yeah, >> you're going to go down rabbit holes. I promise you once you get comfortable with this stuff. We just want to show you some stuff you can do with this, right? And then I can ask you questions like what states require a debt license for debt. It may figure it out, may not. It's not a crystal clear thing, so it shouldn't.

But you make sure that you say, "Listen, you're a note expert, note, you know, debt uh license expert. what states do I and ask me clarifying questions and it will ask you clar what size are you are you a fund are you a private investor what are my risk levels here just have a conversation like you're spending it with anyone you respect out there and that you trust as you can see it's spending time doing this kind of stuff right it's really interesting here's 10 11 12 13 14 25 and the same thing with this >> I can download this whole thing and boom and download the file right so these are the kind of things you can ask it >> so you don't have to be an expert now you've got this that can tell you all these things so question we get from a note creator all the time is >> uh you know what would you pay for what kind of discount do you want that's the usually how they phrase that what kind of discount do you want >> you can do this homework first and say Okay, so I want, you know, pick your number and say, I want $80,000 for this note.

>> Uh, is there buyer for that note or something, you know, whatever, anything you want and and just >> play with it. >> One of the biggest most common questions I get is, hey, do you guys buy in percent of UB? >> We know our answer. Let's see what chat says. Right now, I could ask you for clarifying questions. I didn't, >> right? But I didn't. So no buyers quote value percentage percent UB. They quote it right how it calculates the return right and then determines what the price is and then they express it by UPB. >> Yeah. >> So hey I'm going to buy targeting a 12% return that gives me a 70 $86,000 thing here.

Oh that then equivalence 86 divided by 99. That's what this does. >> Yeah. >> Right. >> That's not how I would phrase that. That's not how I would approach it, but it's not wrong. >> Yeah. Yep. Absolutely. So, this is the kind of conversation you can have with it. Now, you can say the same thing about properties and stuff like that, right? Um Nathan and I started using it for marketing. I want you to be a social media marketing expert >> and that's great. That's wonderful. >> Right. So, it's it's interesting. I'm going to put our little face up here so we can see us, right? But you can see what this looks like and and you get a good feeling of what it you like about it.

>> Yeah. >> Start exploring it. Start having fun with it. Start seeing what you like about it, what you don't like about it. And you're going to find yourself getting more and more comfortable with it. The more you use it, the more comfortable you get. What else do we use it for? >> Well, and like you said, it it remembers you. So, if I'm having constant conversations about notes, uh, and you know, maybe I start out when I'm very first starting using, I say, I here's who I am. I'm a note mortgage note investor and you know, use kind of the more technical terms and then as you go, you can just use, you know, tell me the UPB.

Yep. >> And it'll just tell you because it knows what you're talking about because you've had these conversations already. >> Absolutely. So, Nathan, you've had some troubles recently with Chicago. >> Yeah. Right. >> This nightmare situation, >> right? So, >> absolutely, I've used it for that. >> This is my chat, right? So, it knows nothing about Chicago because I haven't talked about it. >> However, >> yeah, >> we want to see Nathan had a question regarding Squattic. So, I'm going to say this is how I would prompt it, guys. Feel free to do your own thing, right? Um I'm going to speak it out loud for podcast, right? Um, I have a squatter in Chicago who has already been evicted.

>> Mhm. >> But has moved back in. What are some strategies? What? So, what are some um methods I may not have thought about on getting them out? Um that are legal and is this possible be specific to Chicago, Illinois? Right. >> Yeah. What other questions or clarifying question do you have? That's pretty close to what I I did in the summertime, >> right? >> And I got some really great stuff, by the way, but I'm just curious what this is going to say. >> Now, when we do this stuff, you probably see a lot of time we have our our description of our our show and in in our time stamps. You probably see over here I have it down here.

This is what I use, >> right? >> Yeah. >> Pretty easy stuff. >> Now, you see it's going to different websites. It's searching websites. >> Now, I can change it to instant make it quicker, faster, think longer, which in this case, we may want right here's and I can say I don't want this. I I'm the boss here and I want to call the police. Nathan's done it. Right. >> I can tell what I've done. I can turn Nathan's done is have a conversation with it and say this is what I want to do this what and then we can say what are some unique strategies that may be questionable that I really want to get done right as you go through it over and over again.

>> Yeah, >> it's giving you some practical steps. Now I could say you're giving me way too much stuff. One of the common things I find with AI is it gives you 16 things and I'll say whoa whoa whoa whoa slow down. Give me one by one by one so that I can answer different things. Yeah. Or give me free ideas or something like that. >> You know, you recorded property. This is some clarifying questions I ask. We can answer these questions and then >> it'll give us better ideas, >> right? >> Um it can draft affidavit or that. >> Yeah, >> I would be careful doing that kind of stuff. But it can do that and bring to attorney to review it, right? Or even better, guys.

You see legal terms on contracts attorneys put together. Throw it in here and say, "Explain what the hell they wrote." Right? Just explain to me so I have a better understanding of what they wrote so I know what to use it for, what not to use it for, what it means. That was kind of stuff >> and and so I did exactly this and it came up with a whole bunch of ideas. A lot of the things I've already done. Uh but it did come up with some different thoughts and ideas that I hadn't thought of yet. And and same kind of thing here. Give me a a no trespassing notice so that I can say to the police, look really and truly we have posted this.

They are actually trespassing after we've posted the signs and everything else. So I it's fantastic and it it's been very very helpful in so many different ways. >> But you can see where the actual sources are coming from and everything else. Y right. And I'm using chat right now. Um just so you guys idea >> um if you ever heard this is called this is Canva. This is the canvas section of it. That's what this does. So, we're going to keep going here. So, again, I can ask it to, as Nathan has before, >> Yeah. >> create me some Whoops. Create I'll keep going. Me some great 10 out of 10 social media posts that others would click on and read.

You are an expert at social media marketing, so kill it with the post. Make it sure it fits on Twitter, you know, LinkedIn and Facebook. or make different outputs for each based on their um content type and it'll go through this process. It'll create these posts. It can create an image for you too, which is really cool. >> Um that kind of stuff. So, [clears throat] we want to make sure that you're you're you're doing these kind of things. So I'm sure you guys while it's thinking this have probably seen some of our some my um after LinkedIn I'll send a thank you and it sends you a message out of the link for our YouTube and podcast.

That's again automation services I do that claw or chach created for me that I could run through my computer which is awesome. Um >> there's a lot of more stuff goes here and I don't want to get too the weeds for those people but I wanted to show you some base stuff. This is a great example. It got stuck. You're like, it's not doing anything. Give it a minute. If not, you can hit the stop button, retake this, and repost it back, right? >> Yeah. Yeah. >> Who knows? >> And I have had to restart before where I I was printing something out and it just came out all wrong and and I so I asked it, how come it's just coming out all blank? What's going on? And then it would come back and say, well, here's the issue.

So, I eventually I actually had to start a new uh a new chat for that topic, which is fine. And then it worked just no problem the very next thing and it was great. >> As you see, I hit stop. I just repasted this in here. >> Boom. >> Yeah. >> So, there are different ways to use this. [clears throat] You can use this to to I know one of the big things is kids using it for homework. >> Yes. They can use it to take a picture of their homework and do it. Now, I could take an image and say, "What's in the image?" One of the things I talk about a lot is I said, "I videotaped my golf swing and said, "What's wrong with my golf swing?" Right? Amazing.

It can look at photos and figure out what the photos are and what's in them and how to do them. I can take a picture of a note and say, "Look at this note." And pull data into out of it. So, it's just a matter of playing with it and everything you typically would Google or ask anyone else, ask it. It has the answers for you. >> Yeah, it's really great. So, another one that I did was I was doing a presentation this summer. So, I I had already created the presentation. I thought it was pretty good and I was like, ah, just just to see. I was for a specific group of investors. So, I uploaded it into chat and said, here's my presentation.

here's the name of the group that I'm going to be presenting to based on their investment uh ideology, tailor this presentation for them. And it sure enough it came up with some really great ideas and some good points that I was able to incorporate in my presentation and just take it just a notch higher. It was great. >> Yeah. So, the last thing I want to leave you guys with this is uh some prompts you can play with. One of the things I talked about before was uh having a debate. Um we kind of prepped it up um for we want to have a debate and we can bring it any way you want. You know my famous one is the Bill Gates, Jeff Bezos, Walt Disney and I want them to be a new note creator and I want them to debate and I want to I want to make the final decision who wins.

So, I would put this prompt and I'll put this in the the show notes and all stuff for us and then see what happens here and let them debate it in real time. Have a conversation with this and it's amazing what you'll come back before we go there. Another one was some basic prompts, right? We're looking at a property. We want to just pull information in. Now we could uh upload a spreadsheet and say give me all the information and send me a spreadsheet or just for beg we can create I asked for it to create a prompt right now. Do we want a CSV version? I'm not gonna bother, but I'll just put that prompt in here and then it will should ask me give me the address, right? And we can give it an address of what it is, right? Uh well, I'm just going to just get the exact address here so you guys can figure it out.

Um if you don't know the address, that's fine. Um if you do, wonderful. So, I'm going to give it an address. If you don't know the address, you'll probably know in about 30 seconds. It shouldn't come back with much. Let's see what it comes back with. For those who are on podcast, I put in the the address for the White House. Let's see. And the prompt says uh property basics. I will give you an address using public I want you to use public real estate sources. Um, and I want you to pull back bedrooms, bathroom, square footage, last square footage, year bill, property type, stories, parking, HOA, monthly, property taxes, yearly, last sale date, last sale price, estimated value, the rental, which should be interesting for the White House, and sources.

If you don't know, come back with blank. Let's see what happens there. Right. So, and as you can see here, we're back to the original the other one where the debates happening. We have, you know, moderator coming on. We have Bill Gates talking about his he wants to build an enforcable machine first. He wants to build and get ready for stuff to find everything and really be particular in how he wants to build and only scale uh after the file sellable day one, right? He wants to make sure everything is set in place. Well, Jeff Basos shows here. He wants to start with the borrower first and get a flywheel and he wants to be faster and clear and push forward, right? They're taking on the persona of these people, which is amazing.

They'll partner with agents and small builders, you know, test terms and onboard scripts and reminders where Walt Disney trust trust reduce friction later to reduce mistakes, right? Here's your payment. Here's your escrow. very clear and it goes on and on. Fast check fact check number one, you know, the moderate goes through and then it goes back and forth. They're having a conversation just to see what happens here. At the end, we can then look and see what they say, >> right? And this is come from their perspective, >> right? And finally, you can read it. Then you could say this is I want to go with whoever Walt Disney now I want Bill Gates to implement this.

Let them be your CEOs. Let them be their CFOs. Let them be your COOs and play with it, right? Whatever you want to do. Um as [clears throat] you more and more do this stuff, you can actually ask a question about websites and strategies and whatnot. There are tools now out that can look at your website and say, "How do I do X, Y, and Z?" first and foremost get started. If you guys like what we're presenting here, we'll do uh a second level to stuff in a future show. Um but David came back very excited um yeah with what we were learning on stuff and it was really cool for him to share the information.

So wanted to make sure we did a presentation for those [clears throat] who are you know maybe out of 10 zero not sure about the stuff up to you know a two or three. So you guys can start playing with it. Um I'm nowhere close to where everyone, you know, there's people are amazing at stuff. There's all different tools out there. I play with make and n >> and they like that. You don't need to do that stuff. >> Just start, right? >> Yeah. We're we're both absolutely still learning and like we say like I think Dave's ahead of me on this one, but >> but even just having scratched the surface, it has just been outstanding that the different kind of things you can have it do and the different just what a great tool it is >> if nothing else.

>> So, back to the White House for a second here. It's a 16bedroom house supposedly has 35 bathrooms. Square footage is 55,000. Lot size is 787,000 square ft. It was built in 1800. property type government executive residence six stories parking is blank means you couldn't find anything permit there's no HOA thank god um and a property tax exempt they don't even pay taxes this house pretty cool >> last sale date surprisingly is blank and then the value the rental value is blank shock right and has some sources which is interesting here uh right it gives you your link right to the way which is Hey, >> but that's just to give you an idea.

You can create a prompt like that, put in the address of the property you're looking at, and it'll spit all this back out for you. >> Yeah. >> Uh and and yes, you can go and research on Zillow and Red Fin and do all those things. You can or you can just stick it in here and see what it comes out with. >> Yeah. >> And especially like if you say, "Dave, we're doing it at scale." If you've got 10 properties to look at, uh this is going to be far more efficient. Yes. And it's just going to be much much faster and just save you a whole bunch of time. >> Yep. The biggest thing here is playing with the prompt.

Getting in the prompt. Ask it to clarify. Maybe you may have to create two or three prompts and say, "Make it clear. This is not the response I wanted. I wanted X, Y, and Z. How do I change my prompt, which is the word you put in the beginning to get that back, right?" So, I I encourage those who listen to on the podcast to switch over to YouTube and watch that as well. Um, and I apologize for that. I know some people are driving listening to us. Um, but this is some of the stuff Nathan's, uh, I'm sure DME is gonna have some of the stuff as we come along here for those who are interested in learning more.

>> Absolutely. Yeah, we're definitely going to be diving into this in in DME and talking about like what you can use them for and how you can use it and um, yeah, different things. Well, I won't I won't give you too much information there yet, but but yes, we're definitely going to be incorporating. It won't be all about AI, uh, but we're definitely going to have that as part of the conversation. >> Yeah. And let's go back to the beginning here. Imagine a world where you can pick a phone call up and talk to anyone or any expert in any field that can give you information you need. That's what AI is.

It's a conversation with this blank person. And I get that probably sounds very very nervous and freaky and scary and all that stuff. Um, and that's okay. It it's seriously okay for you to do that. Um, let me >> recording in progress. >> So, like, think about this. Go back in time a little bit and remember remember watching Star Trek and they would ask the computer anything. It's that or if you've ever read um, uh, the sequels for Enders Game. Enders Game was a popular book. The sequels to that Speaker for the Dead where he's got this little earpiece as Jane and it's born of basically the internet.

That's that. it. You can ask it anything, literally anything, and you can get all kinds of information and different quality of information than you could ever get from a Google search. So, it's it's really that much better. >> Yeah. Yeah. Guys, the key here is that it's here. It's going to be here for a long time. Don't get bogged down or scared. You're not going to break it, >> right? >> Yeah. >> You're going to learn from it. It's going to get better. And I get if you're if you're in a idea that listen, I'm never going to use it. It's I'm too old to care about this stuff, fine. But I would encourage you to just start playing with it.

Can you ask questions about Medicare? Absolutely. Can you ask a question about, you know, where what's going on Florida right now or any news? Yes, it can do reminder stuff. It can actually ask the same prompt every week and give you the newest information. It could do this task. So, I encourage you guys to just play with that. For me, I think AI is that tool that you privately can use at any moment, any day and night that can give [clears throat] you the answers that you need to know >> as you move forward. Any mistakes or problems you have, upload information and say, "What's my solutions? What are my options?" >> We've never had that option ever.

And it's at our fingertips. >> Yeah. and and it's the tool that you know talk talking about people that are going to lose their jobs or or things like that the people who are using AI are going to excel. Yeah. The people who are not using AI those are the ones that are probably more in at risk of >> being left behind whether that's losing your job or just not being able to keep up with what's going on. So, it really is important to and I hope that doesn't scare anybody, but it really is that powerful of a tool that it can really help you get ahead by leaps and bounds. >> Yeah. And I think people are very scared, nervous about AI.

And I get it. >> Some people say, "Listen, the audio is off. I've seen chat bots fail." >> Just understand this is one of the key things and I watch a lot of YouTubes [clears throat] and podcasts about this stuff. It is the worst it will ever be, which means it's gonna get better, >> right? It's always going to get better. What we did two years ago in AI is nowhere near where it is today. The videos, the images, right? Probably saw some Sora videos out there, which if you see little icons across Sora, >> you probably saw the talking parrots, the cops videos, those things are all AI generated. >> They're just gonna get better and better.

AI is gonna is the worst it ever will be today than ever in the future. So just get used to playing with it. Ask questions. Create games for your kids, your grandkids, give you ideas, put in things there, right? Get ideas for chore lists and anything you want. >> Creating homework for your kids. Uh ideas of what to do on vacation. I mean endless. There's anything you can think of. >> You can also say where chat we should do it for the ending show, but we close it out. What do you see for 2026 for the real estate market? It'll give you a fortune thing, right? It'd be really cool. So, >> so we decided to give us a shot.

We're going to ask AI our famous last question of what does a crystal ball say? So, I asked the question in chat and then we >> got chat. >> Yeah. And then we asked him for a prompt as though he created a prompt from it. I want to find out what it thinks about the market in next 61 12 mark months regarding performing and non-performing notes given the fact that interest rates are what they are that the inflations and the unemployment and the household income debts are I presuming going up right as we're here um and all that stuff so we >> they then gave us offer a couple minutes and gave us a huge long thing that mean it says okay that's a lot of stuff and >> that's too much to read.

>> Yeah, we're lazy in no investors, right? So, I want it's a great opportunity to show you guys what I'll typically do with this kind of thing. I read all this stuff and say, listen, I want to summarize it and explain me like I'm a high school freshman. This allow it to dumb it down and let us understand. And it was giving me some risk outlooks, bare market, bull market, all this stuff, a lot of stuff, bit points, right? So, it said that it thinks that there's going to be missing payments. They'll go up a little bit. The biggest risk will be low credit borrowers. Makes sense, right? Foreclosures are going to slightly go up, but not high, which we've been expecting to go up, but they keep going up a little bit, dropping down back and forth.

And it explained why. Equity, >> right? >> Yeah. >> Explain, >> which was different than 2008. So, yeah, that makes sense, >> right? re refies. If the if it's the uh interest rate drop below six, they probably be some refi booms, right? They're gonna jump into that stuff. Um origiation say it expects it to be slower to improve the the drift, right? >> Yeah. >> What are the key things? And explains each one of those key points on why it doesn't, right? Um they expect that the price of the house to be flat slightly up and said the equities to be safe which is interesting right um what happens the government borrows more all that stuff.

So what it means for us no buyers right and no creators we're selling them and we're going to go there in a second. So slightly higher chance for fewer loans to roll in late. We'll have some 30s and 60 day late kind of thing. >> Um repayments will go up a little bit. Right? Most borrowers will stay put where they're at. They're probably not going to sell, right? Which makes sense. And that the prices will hold pretty steady. That the they think or Chad thinks that non-performings will increase. Some borrowers will have a struggle, but not a wave because the equities protection makes all sense.

>> And then they're still workable resolutions. Believe me, me and Nathan been through too many >> resolutions that we could not work out. They just they had no equity. All that crazy stuff. It sucked. Um the collateral value helps a lot which is key right and then pricing lower equity juniors may soften which may even better and then clean reperforming loans with a good pay history will keep going bits right how buyers and sellers should think that anyone tightening your screening right make sure your borrowers who are coming on are solid borrowers not just someone who can sign a piece of paper and give you a down payment >> right thin DTI loans want to make sure that's low debt to income loans underwriting slightly higher roll rate, right? And things like this.

Pretty much a lot of stuff we we already saw, but those who listen to podcasts, that's this is stuff we're worrying about. Sellers performing paper with clean files uh with a clear ATR ability to repay uh with an ARM law will get the best pricing. Makes sense, right? Um not performing priced current BO legal stat. So the equity still supporting it. So it thinks it's going to be a uh rates will closer to 6% and the jobs will hold steady and delinquencies will stabilize. We'll see. Um it's up at the base level 6.2 to 6.8 as unemployment edges up a little bit. Delinquencies will rise a bit. The performing prices will steady.

Non-performing supply uh up modestly. I mean it'll be a little bit more because borrowers who have been struggling are to continue to struggle and make it worse. He thinks it'll be a bear with a recession where sticky inflation unemployment will be above 5% which means delinquencies will jump up and then as a glossery of what these terms mean. >> So we might have to revisit this a year from now and just see how the predictions have made out just to see >> can't call out Chacha BT and what it does and how it does it. Right. >> So >> um we'll we'll we'll get to >> progress. So, that does it. We've talked a lot about AI today, a lot of topics.

I hope it was helpful for you guys out there. We we jumped back and forth. Um, we shared a lot of good information. Um, and we're really excited to explain this stuff. We're no we're not experts. I may play a little bit more with it, but we're we're far from experts out there. And granted, sometimes the experts explain things way over our head that we don't understand anyway. So, sometimes we chat to explain it. >> Yeah. Hopefully the takeaway is you don't need to be an expert. Is you can just be, you know, a regular person and and get started with it and start to see how great it really is because it's it's extremely helpful.

It's been very very good. >> Yeah, that's awesome. Well, guys, again, thank you so much for listening in. We'll be back in a few weeks with our next episode. Uh till then, enjoy your afternoon, enjoy your weekend, and we'll see you guys soon. Thanks everyone..