How to Automate Your Note Business with AI | Real Estate Notes Show

Welcome back to another Real Estate Note Show. I'm your host, Dave Putz, alongside me as always, Mr. Nathan Turner. Hello, hello. How are you? Good, man. Things are a little crazy right now. We got a lot of stuff going on and a lot of weird tapes I've seen recently. But before we get into that, how was the beginning of your spring and summer going for you? Me? Fantastic. We just got back from a really great trip. Took two weeks, took the family order to Korea and had just an absolute blast. It was such a great trip. So now back into it, back into the saddle, doing all the things. But I get to go and do that kind of thing because that's how notes can help set you up where I know I'm okay while I'm gone.

There are a couple of things I kind of try to stay on top of, but otherwise, on a great trip. We'll be traveling ourselves. And you're right. Notes doesn't give us the five o'clock AM or PM phone call. We're not chasing down deals, right? It's an assistant paper coming in our mailbox. As we talk about many times on the show, we're lazy investors for the most part. We like numbers. We like dealing with borrowers. We like dealing with servicers. And we actually like attorneys. Call us weird. So it's really fun. Well, you know, recently I've gotten a few deals kind of go sideways with me. It's a deal that wasn't able to close on for different reasons.

Yeah. And it moves on. Right. I think for me, you know, one thing is we recently came back from DME last month was relearning how many people on the creative finance side that don't know us. And for those who are creative finance and never listen to us, please reach out to us, questions, inquisit things. We can help you. We've been in this space for a long time creating notes and for new note investors. We're here for you, too. If you have any questions, topics recently, we have a few topics that came up in conversation where you're great. We want to hear from both sides. Right. That's the goal for us is to hit both sides of the coin here and help both you guys.

If you're one time, no creator. That's great. Let's talk. Yeah. If you're an investor, like to talk to you guys as well. Yeah. Yeah, I like I like getting together with like the seller finance folks. I think part of. Part of what we're trying to help figure out is there's there's a lot of talk about creative finance right now, and there's a lot of really great things that you can do. Invite us into that conversation because we're coming at it from a different perspective. So if you're out there doing your creative finance, you're you're know, you know, wheeling, dealing, doing deals and stuff.

Awesome. That's fantastic. I really, really am proud of you for that. Like, do it. But let's have just a little bit more of a conversation because there are things that you can do today that will pay off for years and years and years. So, you know, just think more long term. Think of the bigger picture. Yeah. We're there for that. I encourage you just to reach out for giggles. Just find out. You may be like, I got everything right. Reach out to us. Right. I had some recently asked us about originations. Is it twelve hundred dollars to originations? Yes, it can be because that makes it secure. And if you are creating a note and you don't do the right stuff in the beginning and you just put a deal, a borrow to a house, you could be paying for that long term much more than a dollar.

So, yeah, we've been through the non-performing. We've done a lot of those men and we can save you a lot of headaches. Yeah. And I think one of our upcoming shows we'll talk about is exits, possible exits in our notes someone brought up to us. And that's great for you, creative finance people to be worried, concerned and excited for the many topics, many different extra strategies. So at the DMV, we had a topic the Jersey boys talked about was a favers. And I don't want to scare anyone. Right. I want to talk about automation because many times people say, well, I can't automate anything. My business is so, you know, to depend on this, depend on that.

And I think people don't just simplify the simple things first, just start simple. You know, we get overwhelmed with automation, we get overwhelmed with AI. And I think people just need to start the basics. Yeah. Yeah, totally. Yeah. I'm looking forward to getting into this because you do a lot of automation because this is this is notes for you as the second. Yeah. It's a side gig. Yeah. So out of necessity, you've had to go in and figure out how to automate it so that you can do your nine to five and have notes going on on the side. For me, this is what I do full time. So I have been less. It hasn't been as much of a need for me to automate because I have the time, because I have, you know, this is what I do all day, every day.

And so it's not the same pressure for me to make sure that it's automated. So it'd be interesting to get in this conversation. So, you know, automation is something I think I just I'm just drawn to. And I think other people are scared of it. Right. They're nervous about it because if my hands aren't on it, it's probably be done wrong or I'm at the redo manually. So this is pointless to do anything else. Right. Challenge people say, well, how many times have you entered a number wrong or entered something incorrectly or forgot to take something out of a calculator and you didn't remember it? And the reason I automate a lot of stuff is because of mistakes I've made in the past.

So I challenge people to say, listen, there are a lot of things. And some people in our Facebook groups have brought up. Nancy brought up a cool thing the other day. And it really kind of drove this conversation. And I think automation not only saves you some time, makes you more efficient, but allows you to get ahead of the curve, allows you to take the things you manually do over and over again and remove them. So, you know, I got talking to Dominic. He's part of our private Wednesday call and we had a lot in common. So I wanted to bring Dominic on the show. The fact is, when Dominic and I connected, Dominic did I probably more than I did, which is shocking to everyone, including my wife, that there's someone doing something more flawed than I am and in general.

So I want to bring him in here to talk about automation in general, what the different AIs are out there. And then on top of it, what are some simple things that people in this creation world as well know buying world could do? Right. So, yeah, Dominic, I want to introduce you, Dominic. Thank you for joining us today. Please give a little introduction to who you are. How do you get started? What's your background? Because I would be honest, when we first met you, I think you're some new note investor that we've never heard of before. And I'm sure a lot of people in our space felt the same way.

Yeah, absolutely. Well, thank you all for having me on, Nathan. Good to see you, David. Thanks for the time. Yeah, no, our family's been in the note business for a long time. We've been on the private side of the note business. So we've, you know, I think a lot of guys in the space are trying to raise great funds and raise money and things like that. And our our particular note investing business started way back with my grandfather after World War II. And he was a poker player and he was playing poker. He was a good poker player. Some of those poker games led to some loans. A lot of those guys that were in those rooms were real estate developers, attorneys, things like that.

And one thing led to another. Those loans kind of started getting collateralized by real estate. And then fast forward, you know, many years, there was a guy that he was playing poker with that had a subdivision that he could not finish. And he also had owed some money. And so they made a deal and he traded the subdivision for the for the debt. And long story short, that was how we got involved in the note space. So we originally my grandfather started in the apartment building business. And and that's how the notes note business got started. And so that started the portfolio. And we just we just grew from there.

And my dad and his brother moved into it. My dad was a homebuilder here in San Antonio. And my uncle was actually started his lending career out in the buy here, pay here, car loan business. So he was buying and selling car notes. OK. And yeah, we did a couple more developments. And then it primarily just landed on, you know, the final trajectory, which is we just buy Texas seller finance debt. After that, you know, we grew we grew that portfolio. There's obviously a lot of notes that we don't buy, because when you advertise for notes, you get notes from all around the country. And we've always had a very particular buy box.

So the opportunity kind of transitioned itself. My sister and I said, what what can we do that's kind of our own niche in this space? And we said, well, we know how to source notes. There's obviously a lot of good Texas notes. There's a lot of notes that we can't buy because, you know, we have very particular buy box and very particular discount that we want on each of those notes. We have lines that we refuse to cross. And that's just part of being in this space for a long time and seeing different economic cycles, making sure you're always in the money. But we said, well, let's see if we can take some of these notes that we can't buy and create some revenue from them.

So we established Note Buyers of America. I partnered with a great guy here in New Braun, Pouls Clayton Davis, who's been in the space for 29 years. And he was a local broker. Very, very, very good guy. A lot of knowledge. We started that. And then most recently, we just purchased a servicing company out of San Antonio. So we kind of have the trifecta in the note space. But we do keep a low key. We're just trying to buy notes, do deals, create generational wealth. Like you said, Nathan, be able to travel. That's the most important thing. We're doing all of this so that we can stay with our family and grow together.

Wow, that's so cool. What an interesting story. And Nathan, we've been in space for a long time. We've never heard of Dominic, right? No. Yeah, it's amazing that how big the space is for how small it is. It's just ironic. And, you know, we had Jeff Armstrong on the show probably over a year ago. And Jeff and Dominic talk all the time because they both do marketing, which is extremely interesting. Dominic, you do this full time, you and your sister. And, you know, you you perfected some of your tasks and your skills. When did you make a switch to going to do some automation where you weren't doing it manually or have you've always been tinkering with automation? Well, I think from a very young age, I was I was a pretty technical person.

You know, when I was in the third grade, my mom had bought a new computer and I proceeded to take it apart. So that was a that was a fun conversation. And, you know, my parents, my parents were always very you know, they my dad worked with his hands a lot. So he was he liked to teach. And my mom, you know, was a was a self-made woman. And so, you know, instead of them reprimanding me, my mom said, OK, let's go meet with the computer guy. Let's pick out some parts. Let's teach you how to build a computer. And so that was kind of my first intro from when I was a very young age. And and then working with tools and my father being a homebuilder, you know, I just I always had that drive and interest to kind of figure things out on my own and ask why.

And and and so when it came to automation after college, I worked in banking. And as you know, banking is very antiquated. There's a lot of things that that happen in banks. It's very, very old school. So I didn't have any control over that automation, but it was frustrating because I said, you know, there's easier ways that we can do this. And as we as I transition more into the private lending side, I worked for a private mortgage company in Austin. You know, they were all about automation. I just thought, how cool is this? They're really like moving and doing deals. They're taking away all of the the, you know, abrasiveness of the transaction, the friction.

And so it just kind of evolved from there. And I had a couple little side businesses, completely different unrelated industries, but I had, you know, wanted to improve those. And then obviously, working with a family office that's been in business for a long time, we were doing quoting on paper when I got there. So there was no I mean, we didn't even have a website domain. That's how, you know, we didn't have anything. So we were getting emails to Gmail and things like that. So there was a huge opportunity. And and we we got the opportunity to kind of test and play and learn and figure out what works and what doesn't work.

So I can tell you, I've definitely learned what not to do. You know, you can spend a lot of time, a lot of money if you're not careful paying attention to what you're doing and when it comes to automation. But at the same time, there's a lot of really low hanging fruit things that you can do that any non-technical person can do. And once they realize how it helps them, it just clicks. And then suddenly, you know, you're trying to figure out what's the next thing that I can optimize a little bit. Interesting. So so Dave's already in this world. This is what he does all day, every day with automation.

Like I say, I'm less so. I'm still a lot of the stuff I do is still manual hands on type thing. So I'm looking to learn what can I what can I automate so that I can go on more trips and do all the other things? What are some like just some basic things? What are some things that any person could start with their note buying or note creating business? How can they help? I don't know. Well, I think. Yeah, I mean, that's a that's a great first question. You know, when I think about what was the most tedious process or tedious part of learning to buy notes, because I, you know, growing up, I mean, I didn't I hadn't bought a note until I was actually working with our family.

I mean, I knew what they did, but I really hadn't taken the time to understand it. And, you know, the thing about note investing is that tomorrow's payment is never guaranteed. So and you're also not buying a piece of real estate, right? You're being you're buying a piece of debt. So to go ahead and resell that real estate. And I'm skipping ahead, but to go and resell that real estate, there's a lot of steps that have to happen in between. But before you even buy the debt, the most important thing is the due diligence component. And if you do the due diligence wrong and you trade money for that piece of paper and that paper is not legit or it's got problems or whatever it may be, you can find yourself in, you know, years of just.

Losing money effectively, right? You you so it's the due diligence component is really critical. And I'm like an innate thing where the people that had been in the office, they just knew how to do it because they had done it so long. I did not. Right. And I had to learn how to do it the right way. I had to learn from them, but I also had to learn, you know, how can I kind of accelerate this and make it better so that we can make a portfolio form perform better? We can buy notes at bigger discounts. We can identify different leverage points to get a better discount. So due diligence is like the number one thing that that I think is what people can utilize for immediately just out of the box.

So let's let's dive into due diligence for a second. What are some things that automation in general or even AI, you know, could do with due diligence? I mean, is it able to look at properties and get data points on these things? Or, you know, we use Google like it's a second child. Right. A lot of times where you type in a sentence, we get information back. But, you know, what could be automated in a due diligence that would make it easier? Well, I mean, I'm sure you all's inboxes look the same as mine, but in any given day, you know, you get a dozen different loan tapes, random marketing emails about different notes, brokers that are rebrokering stuff, whatever.

I like to look at things in a very structured way. I like to look at every deal the same. I like it to be laid out the same. So to be able to put all that information in the right place can be very tedious. With AI, I can say, hey, every time an email comes in that looks like it's a note, return it to me in this exact format, whether it's bullet points or a specific order or whatever, because that way I know exactly what I'm looking at without having to decide, is this a deal I want to do or is this a deal that I don't want to do? Is there too much information missing? Right. So that's like the first thing that you can do that's so simple.

Just say, hey, you don't even have to connect your email to it, but you can say, hey, here's a printout of this email. I want every time I give you a printout of an email, give it to me in these bullet points or put it in this format or put it in this Excel sheet with these columns. That's all I want. That's something that takes two clicks. Anybody can click file print to PDF. Anybody can drag and drop into Claude or OpenAI and do that. And it'll work. If you set it up the right way, it'll just work consistently and do it the same way every time. That's a great point because same thing. Yeah, I get these emails and things.

And one of my first tasks is to figure out what's missing because they'll send me a bunch of information, but nobody ever sends the same thing. You know, it's always different. And it just depending on what background they have and or don't have or whatever, I get different information. So and that's first key. As I look through that, I'm like, OK, so I and I'm doing this manually. So I'm like, OK, well, I don't have this number. I don't have this date. You know, these kind of things are the things that are missing. But I'm doing that manually. So that's a great point. And just drop that into AI and say, yeah, I think we get some summaries of a deal.

We get PDFs. We get documents. Yeah. Where we get the new calculations. We get all these kind of different formats of email. Right. They're not just you know, it's not just a spreadsheet. Nice and clean, like a lazy investor like it's a PDF of stuff. It's a document of the note. You know, we can literally take this up and send it to AI, automated and go, hey, what information do we have and what information do I need? And we can reply back to the center saying, hey, we don't have the next due date. And we need the servicing data to get it. So, yes, the great first step to doing that for people who already have one, two or five notes.

Is there a way to create simple systems to track it and find out, hey, which note is defaulted or a tracking it and flag it and do that kind of stuff either in a spreadsheet or some kind of create a fancy system that you need to hire someone for 20 grand to build and either one of those be done by a general person with almost no technology skills. Oh, yeah, absolutely. So, you know, AI really excels when you give it data. You know, the thing about chat, GBT that I'll say, and you and I have talked about this data, but chat GBT is the worst name that could be because chat GBT, you know, originally was a chatbot.

It was just, you know, you ask it a question, it gives you back an answer. But with what I refer to as agentic AI, you know, it really thrives on data. And if you give AI the right data and then you ask it, you query it about that specific data, it can tell you all sorts of insights that you would have never thought of or realized. So in your example, a really simple way would say to be, let's just say that some third party is servicing your note portfolio and you've got 10 notes, right? So you call up to service company and say, hey, I want to lender statement of account for all my notes and I also want you to send me the payment histories and the communications.

So that's three PDFs or excels, however, they're going to give it to you. And you can feed that into AI and you can say, hey, here's my whole portfolio. Show me some correlations. I want to know, you know, what counties seem to have the highest rate of default in my portfolio? What percentage of my borrowers seem to be paying, you know, 15 days late? Like, are there any borrowers in here that could potentially be getting paid on the 15th? And that's why they're paying late every month. You know, could I build some borrower trust by maybe reaching out to him and saying, hey, would you want to modify your payment to the 15th? Because it looks like you're getting paid on the 15th.

I mean, that's another way to keep a borrower paying, right? When they hit hard times because they know that, hey, this guy, you know, went out of his way to realize something like this. So those are just like simple things. And then in regard to displaying the information, I think that's a big thing that people don't realize. AI is excellent at visualizing data. It's excellent at creating dashboards very, very easily. So if you've got a bunch of unstructured data and spreadsheets and PDFs and all these different things, it can turn that unstructured data into structured data by creating a visual representation, a dashboard of your entire portfolio.

And, you know, automation is this buzzword, right? Everybody's like, let's automate everything with AI. I don't think that that's the right way. I think that we use AI as a way to complement what we're already doing. And that's also what keeps things safe and on track and accurate. But when you build a dashboard, right, you don't have to connect that dashboard to a constant source of data. You could just say, okay, now I've got this. Hey, AI, here's these three PDFs that are the culmination of my portfolio over the last year. Tell me about it. Okay, here's these insights. Okay, build me a dashboard.

Okay, so that's two prompts right there. All right, now you've got this dashboard. You tweak it. You say, I want this over here. I want that over there. Whatever. Non-technical. You just plain English. And then you say, okay, I want you to build every time I upload these same PDFs. I just want you to update it and keep track of the history. So then you tell your servicing company next month, you say, hey, send me those reports again. Upload them again. Again, this is like you've created a way for you to understand the data in a way that you like to view it. You haven't had to create this super complex automation pipeline.

It's just as simple as here's the data. It's updated. I've uploaded it. You know exactly what to do with it. And it just keeps everything super simple. And that's something that any non-technical person can do. And then once you really start unlocking those insights, you know, then kind of it's limitless what you can do. You could actually have it. So it emails you, hey, listen, these three assets are 90 days delayed or these three assets keep an eye on because it's six days delayed. You have to file a demand letter soon. All those stuff can be emailed to you, notifying you. Hey, we made a dashboard, but watch out for these loans.

Or hey, these loans have been paying so well lately. Maybe we'll do a partial on these or completely different thought process than just I have assets. What can I do with them? Or what can I what did I buy this right? How is it tracking? Is it in the yield that I wanted or do I have to sell it off? It could do all kinds of cool stuff. I mean, when we talk about this, no creators are a little different from us. They literally go out, find the property, find the house, take over the property, either through a subject, choose or fix it up and sell it. A lot of these people don't understand the financial part of this stuff.

Right. And they get lost on creating the note because it's not their bread and butter. Amortization schedules. When we bring up the word partial, they get completely lost on it. But those are listening in and are creating notes. What can they use automation or AI to do in their world to supersize or make their job easier and become more lazy like we are? Yeah. I mean, I think for instances like that, it's again, just determining what you want to get out of the situation. So if you want it to update data in real time, you're going to have to keep feeding it data. And so that adds a little bit more complexity, I would say.

But you could also say every time I get an email from Nathan Turner, I know I need to look for these particular things and then update. Can you rephrase the question? So can they create Amortization schedules, learn about partials, learn about what makes a note valuable? Yeah. Can they use it? And then when they go to create the note, can they say, hey, listen, AI, you know, look over my collateral file. Does it look good? And, you know, I want to make sure I can sell this at the table or 30 days later. What can I do to create better paper and more sellable paper? How can they do that on an ongoing basis? Yeah.

OK. So that's and that's already happening. I mean, average people and I say average, just non-technical people are already doing that kind of thing. We have won some deals simply because the person that had been shopping his note around looked up Note Buyers of America in Chachi BT. And I've spent a lot of time and energy on SEO, AO to make sure that, you know, perplexity, Gemini, Chachi BT, those things. Whoa, whoa, whoa, whoa, hold on. SEO we know of, right? Yeah. And I'm throwing a softball. You mentioned something else. You know, we on Google, it pops up, right? The feed pops up. Are you saying it's different for Chachi BT and all these LLMs? Yes.

Yeah. Definitely. It's LLMs. I think the old version of like scraping a website, right? I mean, you're just looking at text, you're seeing what's on certain pages, you're looking at articles, word count, these types of things. That's how that's how ranking is being defined. How many if somebody's searching for note investor, how many times does your website say note investor? And I'm generalizing that's not all that is to it. There's a whole lot more. But that is kind of the old school way of what we refer to as like SEO. And AEO is really more of, and there's another term that's escaping me right now.

There's a third one now. GEO. GEO. But it's basically optimizing your site so that when an LLM, which is an AI model, whether it's Claude or Chachi BT or whatever, accesses your website, it's not looking at raw text. It's looking at markdown. It's looking at an index of every single one of your sites. It's looking at effectively like think about a very high fidelity blueprint of your house. Right. Well, there's AI needs one for your website in order to make decisions really quickly because when you send a chat off to AI, when you ask AI a question, it's going out and searching a dozen different resources.

And so whatever resources that can get the information from the fastest is the one that it's going to own in on. If your website isn't optimized for that, it's going to say, well, there's some information from this website, but this other one over here, while it's not ranked as high, it actually tells the person asking me the question exactly what they want to know. So I'm going to pull it from there. So that's kind of the difference is it's setting up the language. Like if your website is a language and SEO is English, AO is really about making it into a language that the AI model is native. So we start off.

So we start off with the fact that no creators can use AI to do that kind of stuff with our website, too. But if they're looking to create a note and they don't know what's valuable or correct and they use AI to create an amortization schedule, and they use AI to, I want to sell this when I create it. What do I go? How do I do it? How do I structure the note? Or does this claddo paper look good? And can I trust AI to give me a good answer? Or do I have to go talk to an attorney about it? Yeah. Well, I think definitely when it comes to legal stuff, you definitely want to talk to an attorney. So when it comes to something really significant, so I wouldn't trust AI about that because it can make mistakes.

But in regard to creating amortization schedules, in regard to being able to set proper pricing expectations, I think AI has been wonderful for that. And I'll say, just like we've won deals based on people finding our company in Chad GBT, we've had more pleasant conversations with note sellers because they're able to go to Chad GBT and say, why do notes trade at a discount? Versus them just coming blind to the table and you offering a discount and say, but the loan balance is $100,000. I should get $100,000. This is insulting. And AI will kind of tell them, hey, this is why notes buy and sell at a discount.

This is a high level overview. This is an explain like I'm five overview. And I would say in the last couple months, I can't tell you how many conversations I've had with people where they say, look, I already went to Chad GBT and I know that this note is going to buy and trade at a discount. I just want to get a price for it. So it is highly beneficial in that, for sure, to understand. Yeah. That's great. All right. So what else we've got? Due diligence, helping create the note, understanding why notes are done at a discount. What are some other things that I can do as a note buyer? And real question for me, what else can I be incorporating? Because to me, part of the whole thing with AI is it's so huge that it's like, I don't even know where to start.

I don't know what it can do for me. So I think that's a better question, Dominic, right? And we talked about this. We have a me and Dominic run a class for those who are looking to level up is often the first question, Ethan asks is probably the most common question. Hey, I'm a note buyer. Tell me what I can do. Yeah. And they get really bad answers. Then they start telling you about their business and the switches. You should talk a little about the difference of what most people do and why they say it doesn't work where other people are out there saying, I'm working it and it's killing. It's working really well for me.

Yeah. So I like to break it down like this. Take AI out of the equation completely. Let's say that Nathan, you're going to hire somebody to come work for your company. Right. And you set them down in front of the computer and you say, okay, here you go. What kind of output do you think that they're going to give you? Yeah, nothing. They don't know what they're doing yet. They don't know what they're doing. And the thing about AI is that every time you go back to it, every time you start a new chat, it knows nothing about nothing. It's got to go out and reestablish all of that knowledge. So again, like we say about chat GBT, a lot of people go to chat GBT in a reactive way.

They've got a question. They're looking for an answer. The right way to use AI is in a proactive way. And that's giving AI the context of your business. So I would say, Nathan, that like, and this is for anybody. If anybody is really interested in wanting to incorporate AI, I've done it so many different ways at this point. I could tell you exactly what not to do. And I think probably the number one thing that you don't want to do is you don't want to go in without having any knowledge for the agent. Because the agent needs to know your business. Right. And to Dave's point, like he just said, you go into it blind.

It's going to give you these completely off the wall, bizarre use cases that are like, this is not relevant to my business in any way. But if you say, you know, hey, here's my Google Drive. This is where I store all my files. These are my company policies. These are my H.I. policies. Go through this and tell me, you know, what are some things in here that we can improve? Or what are some things in here that you can help me with? And that would be the same thing that you would give an assistant. Right. If you're like, hey, I need you to respond to my emails, my text messages, schedule dinner with my wife, whatever.

Okay. They're going to need to know who your wife is and where you like to eat and all those kinds of things. So that's really the number one thing is just giving AI the right knowledge. And everybody has it. Right. It's the same thing we talked about earlier, which is taking unstructured data and moving it into a structured way. Like people get just like you're saying, people get analysis paralysis by analysis. Right. Because they're just like, oh, I don't have the right data source. I don't have the right information. I don't know how to feed this to AI. You can feed it anyway. Can be any format.

It can be a video. It can be all of Dave's podcast. It can be, you know, all of your meeting recordings. It could be your website, your text messages, your website, what, you know, whatever it is that you want. You can also give it to your competitor. You also can give them competitor information. A better website, a better podcast and say, hey, listen, what are people doing their blogs? You know, Dominic put a blog out and he killed it. Everyone's talking about it. How can I replicate or steal it and make my own version based on my information? Yeah. And I think the other thing that you can do, and this is really powerful.

I've discovered this recently, but I can send out the exact prompt that I use, but I'm effectively tell the agent when I have a question that I don't know how to answer when I'm wanting to create a solution for something that I don't know what the right solution is. I don't know what I want. I asked the agent to interview me until it's 95% certain it knows what I actually want versus what I think I want. And that I've been using the last two months. That has been just such a game changer because now I'm getting out of Dom's head, right? How Dom thinks about it, how Dom would explain it. And now I'm actually reaching out to an expert or what would become a subject matter expert in whatever it is I'm asking about.

And then show me like, oh my gosh, this is actually what I wanted. If I would have gone down that other road, what Dom wanted, I would have said this doesn't work. This is not the right trajectory. That's interesting. Yeah. Yeah. I mean, that's a big one. And then the other thing, Nathan, would just be to think about, and again, this is information that you can feed to the agent. Doesn't have to be pretty formatted dinner thing. But as you're going through your day, write down or record, you know, I just did this. I just sent this email. I just did this thing. Like you don't need to give it a blueprint.

That's AI's job. It can reason and it can learn. So what do you do already over and over? Write it down and then go back and say, hey, here's my company. This is what I do. And here's a recap of yesterday. What do you see here that could benefit me? That's very low hanging fruit that you can help me with. And it will give you some much more dialed in feedback. Just make sure when you do that, have it explained to you in fifth grade or ninth grade words because it can explain things extremely technical. And that's something you don't want. Right. Have it talk to you like you're in fifth grade. I just make it dumber down because we all actually read much lower level than we think we do.

Right. So, Nathan, we talk about this all the time. Me and Dominar, again, those are interested. We have a call for those who are real estate driven and AI. And I'll put it in the show notes because we'd love to have you come on our Wednesday calls. There are so many things I think when people finally click, it becomes almost an addiction. And it's bad because you start realizing everything you do technical can be automated to a point. Right. You look at a property, what's your first step and train it like you would train a VA. They think that's the key in it. Like, OK, this is my due diligence steps.

I do this, this, this, this, and more than likely if you could teach your VA to do it, you could teach an AI. The biggest thing is I talked about the DME is it doesn't forget. It creates a system repeatedly. Nathan, in your past years, what have you think has been the most time consumed besides email? Does email something that's a bigger driven thing? Has it been tracking your deals? Has it been borrower outreach? Has it been emailing people? What do you think has been a system drive that you think that most people have who were either creating notes or buying notes? I'm going to give you a lead.

You ever forget to follow up with somebody about something? Yeah, I was going to say that. I think the thing that probably takes most time is just staying on top of all the deals and just knowing where each of them are. What's the next step for all of those? And so, you know, I get my calendar system and all those things. And so I know, you know, I did this today. So then I put it in my calendar for three weeks from now to make sure I follow up on that. And just like trying to stay on top of everything. So nothing gets left behind. I think for sure that's what takes up the most time. And the frustration, the worry and anxiety, all that stuff.

And you realize two weeks later, you forgot to get a hold of this person or you emailed it, but there was no response. Right. Right. Right. Those kind of things can be automated through systems. So, Dom, when you talk about that stuff, if someone wanted to start developing that, I don't expect them to develop the whole thing. What is something they can ask AI? Hey, can you do this? What is a good way of asking the systems out there? Be it Claude, be it Gemini, be it, you know, open AI to find out if AI can build something in the long run? Yeah, well, I guess I would say the first thing would just be to ask it.

You can tell it what you want. My biggest pain point is I struggle following up or I struggle remembering to put something in my calendar. Right. And there's a lot of tools out there now that can kind of help you manage that. I will say, though, that there is definitely a difference between, again, like, chat GBT and what are referred to as like agentic AI where AI has a file system and it can make it can connect to things and, you know, make decisions and help you evaluate. So those are different things. Going to chatgbt.com and saying, hey, monitor my emails and create follow ups in my calendar without any connection to any of your actual tools is not going to work.

It will say it very well may say, yes, I can do this. And then it's going to lead you down this whole rabbit hole and it's going to tell you, okay, go get make, go do APIs, go connect this web hook, do those things. That's wrong. You need to be using either some type of local application, whether it's Claude or the Codex application. And that's where things really unlock because those are true AI assistants. And there's a multitude of other. What about Gemini? Is that a good one? Because all I do is Google. So is Gemini one that I should be using? Well, Gemini is good because obviously it is Google native.

So it's in your calendar and all those kinds of things. And I think that Gemini is getting better. If I'm being honest with you, I mean, Gemini to me is in the, is part of the club just because it's Google and they're so big. But I would definitely argue against them being the best or the most advanced. When it comes to true like work cohesiveness, you know, the Google ecosystem, they've got an API for everything. They've got an OAuth connection for everything. So Claude, beautiful. I mean, it connects with Google, with all your Google services, your Google workspace beautifully. Right. And Claude is something that can live on your desktop that will run all the time on a schedule, however you want.

And it's something that you can interact with in your own space. Right. Whereas like with Gemini, and I've not explored this much, but I also use workspace for my businesses. And you know, Gemini has that Gemini icon in Gmail and you can ask questions about email and things, but it's very reactive. It's not very proactive and it's also in Gmail's interface. It's not in my desktop. Whereas like Claude or Codex, those are desktop applications that I can download. And the information can meet me where I'm at, where I'm comfortable working and notify me just like an assistant would notify me. This is a lot of information.

It's a lot of information. Just two quick questions, Dom, for you, some softballs for you. Why do AI screw up so much and read you down a rabbit hole? And B, why choose Gemini or chat or Claude or, and it's Claude, code, new word that you and I use daily. Why use one over another? And is it personal? Is it one's better than the other or is it personal preference? To start off with, why does AI lead you down a rabbit hole that doesn't work? What's the native of AI that does that? It just doesn't say, I'm not sure. Yeah. Well, AI has a problem with saying, I'm not sure. And again, that is a prompting thing that you can do.

If you don't know, be honest. Don't try to invent a solution. That's something simple that you can tell AI at the end of each prompt. But the biggest thing is it comes back to context. If AI doesn't know about your business or what tools you're using, it's not going to be able to give you the right answer when it comes to more technical things like that, like important things, email follow-ups, things like that. As soon as you connect it to the right tools, that is when it really becomes intelligent. In regard to just different models, I mean, each model is kind of its own personality. And so I use different models for different things.

So when I'm trying to be very creative, I like using Claude because Claude is excellent at writing copy. It's excellent at brainstorming. It's not afraid to break the barriers of what's possible. Open AI, which is, you know, chat, GBT, or what I'm referring to as Codex, is much more scientific, I would say. So like if you were going to implement something, and this is, you know, beyond a level, but if you were going to implement something technical, you know, I would brainstorm it in Claude to get this really beautiful grand idea. And then I would have Open AI implement it because open AI is going to implement it in a very scientific, structured way.

But Claude, while it can also implement it, it also has that tendency to kind of dream big and not completely follow through. So you utilize different tools for different things. But on the bare bones level, like backing up, you know, Claude is very conversational. Open AI is more direct. Gemini is, you know, they're very integrated with the Google ecosystem. So it's all kind of your own flavor. But it's really important to say this. You don't have to have the perfect setup, right? You just need to choose something and give it the right context. That's the number one thing. And then you can say ELI 5, which is explain like I'm 5.

Anything that it's telling you, explain like I'm 5. But give it the right context and then say, you know, what do you think, what are some things that you can help me with? And then once you give it the right context, the right connections, it can actually help you. So we have a lot of people who are we talk to this are again, for those who are looking to sign up, we have a classmate, Dom, but a lot of people think that they have to be experts and they have to have the perfect situation, the perfect plan. The average American, where are their levels on AI? Because we see AI everywhere and people get overwhelmed and thinking, I'm nowhere close to the experts.

What is the average person out there that you see, Dom, who are using AI? What level are they at? Are they are they super experienced? Or is most people at that chat, GPT using it wrong level? I mean, I would argue that the majority of them are using it wrong because it's just a it's a new technology and it's changing the way that the world operates. So not everybody has figured it out. I mean, there's a lot of statistics out there. I don't know what they are, but you know, there's a large majority of people that have never even used chat, GPT or Claude or any of those things. They just hear about AI and they never explored any further.

They get bombarded with AI ads. It's, you know, it's just the majority of people aren't using it properly. Right. But it and that's why they say it doesn't work. That's why they're frustrated. That's what I would say. There's a learning curve to understanding how to use it. Because and we've talked about this, Dave, where we've I think all of us have developed. We've grown along with Google. So we learn how to ask questions in Google. And that was I was a learning curve as well. You know, like just yesterday, I was looking up what's the population of Seoul Korea? And I was going to talk about it with the class that I teach.

The class that I teach. And so I go to Google and I say population of Seoul. And that's it. You know, that's that's that was the prompt. And it gives me exactly what I'm looking for because that's all I want on it. I just wanted the population, which is a very different way of talking to chat GPT, where I was in there yesterday. And then I'm saying, well, here's the context. Here's what's going on. This is given what you already know about me. Here's what I'm trying to create, helping create it. And that's a completely different thing than population of Seoul. So learning how to talk to it is is it's a learning curve, but.

It's not an insurmountable obstacle. This is something we all can all learn how to do. So, yeah, it's interesting. So how would someone who start off learn, get over that learning curve, right? What would you suggest for people who are either tinkering, playing with it besides during a class? How can someone who's experienced in anything in real estate or creative financing or whatever start using AI and how can it how can it use it more effectively? We talked about context before. What are some things they could do today that they can improve their prompts tomorrow kind of thing or results tomorrow? Yeah.

Well, one thing I'll say glossed over, but definitely join our group because it will do exactly that. And in a really fun, you know, team building way. But in general, I mean, it's kind of what we've already talked about a couple times. Just you just have to get started and you just have to give it. You have to really think about, you know, what am I just what am I doing? I don't need to have an answer, right? I just need to know what did I do yesterday? What are all the things I did yesterday? Can I write them down on the list? Okay, let me give these five things to chat to you. How could you help me with this? Um, that that is like as simple as it is.

I mean, you don't you don't have to go any further than that. The whole thing with AI, like everything about AI, if you think about it, is just an exploratory mission. Everything you do, right? It's just saying, hey, go and give me some insight that I didn't already have or give me some piece of knowledge I didn't already have. So if you break it down super simple, this is what I did yesterday. How can you help me today? I mean, that's and then the other thing I would say is on the opposite end of the spectrum, just like with anything in history, when there's something revolutionary like this, there's always people out there taking advantage.

And there's a lot of guys that, you know, are doing that. They're they're charging tremendous amounts of money to be experts on AI and doing all these kinds of things. All of that information is public, right? So don't feel like you need to go spend five thousand dollars a month on some mastermind course to learn something secret that nobody else is going to know. What you get like within our group is that on a much higher level and it's real world use case. But the same thing, I mean, AI, you could say, hey, I want to learn about AI just like a five thousand dollar mastermind course is going to teach me.

Give me the course. And I think I think just like notes, create notes, buy notes, getting around the circle, people who are doing similar stuff is probably the best way of, hey, I did this, this, this, and I didn't get the result I wanted. Well, hey, check out this or a different thing about selling the note and doing a partial. Oh, I didn't think about that. And getting around other people who are your level is exactly what you need in any course of business. And I think that's what missing out is that most people go out AI by themselves, which is definitely possible. But just talking to other people and not only for learning AI, but creating ideas like, hey, what do you use AI today for? Oh, I create a website.

You know, we have one of our guys in our class like I create a website with AI today. Look, look at this thing. It's awesome where they would spend a couple of hours and then they ask AI, how would you put it on their website? And they did it. Now, did it take it longer? Yes, but they can repeat that pattern of, hey, I want to improve this or I want to improve that. Or, hey, here's my email. How can I write this way? Because this is my intent. And I think people, when they get around others who are doing this regularly at their level, supersize themselves and just completely blast through the territory of, I don't know what they use it for.

How do I use it today? What's missing in my business? And the spark of interest comes full tuition, right? Full circle. It's amazing. Right? Yeah. So Nathan's stream over there. He's trying to figure out. We have our famous last question. I'm going to let him answer this one. This is going to be a hard one for him, but what do you think? Yeah, right. So yeah, we all we always try to get some insight from people who've been around and been doing things. They know what they're doing because best predictor of future is what's happened in the past. So we want to get people that know their stuff and have been around.

So I want to get your opinion here. And I'm debating here whether we want to talk to you about AI or real estate because usually we want to get your take on what do you see happening in the market. So maybe how is that combining those? What's happening in the market with AI? How is that going to be something that you're going to be able to use going forward? And how does that change your life? How does that change your perspective? And how could we take advantage of that? Yeah, so very specific use case. I mentioned that we just finished the purchase of a servicing company. And that has years and years and years of data.

I mean, just so much data that AI can analyze and go through and pick up correlations and patterns and all sorts of things. So I would say that on the mortgage note servicing side, collection side, AI is becoming extremely powerful. Eliminating overhead or reducing or preventing overhead from growing as your business grows, AI is good at those things. Is it perfect? No. But from a collection standpoint, imagine as a lender, let's just say you had a thousand loans at whatever servicing company. If you had a dedicated agent that knew everything about your portfolio and you could call any time or you could text any time or you could perform any action on your behalf, listen to collection conversations with your borrowers, data promise to pay comes through, whatever it may be.

That's something that's happening right now. Banks are obviously some of the biggest collectors in the world, I would say, because their primary function is to create loans. And they're obviously very far behind, like we talked about. They have investors and they've got to do things a certain way. But on the private side, I'm making significant strides just on the voice agent side when it comes to collections and when it comes to providing personalized agentic services to our customers. So that's something that's going to change rapidly in the next. The voice AI has gotten so good. What's going to change rapidly in the voicing? Because no creators out there who are taking phone calls from sellers, how could they implement voice in their business to make it easier for them? So that's one thing that I would say isn't there yet.

And I don't think that will be there for a long time. You know, humans are, you know, we want to do things a certain way and we generally want to talk to humans. And there is a stigma against voice agents, for sure. So I don't think that on a sales side, voice agents are going to be taking over anything. I think that Nathan and Dave still need to talk to that note seller. And that's what I'm going to continue to do. I have no interest in taking that piece out. But on the servicing side, being able to improve collections, detect patterns, being able to determine, you know, what is the best time and date to contact this borrower to ensure I've got a payment because I've had 20 other payments in the past and this seems to be the same hurdle we hit every time.

That insight right there is invaluable. So that's the side that I see it really improving on. And then I'll also tell you, statistically, people, so one thing that's really coming out of the woodwork right now, people are using chat GBT, not for overly technical things. People are using chat GBT for like very personal questions like health, fitness, blood work analysis, all sorts of different things. Why are they doing that? They're doing it because the thing that's responding to them is doing it in a very non-judgmental way. It's not some other person on the other line that's like, oh, you have this problem.

I'm going to go tell my friends about it. It's not that, right? So when it comes to collections, same type of thing, right? Yes, it's not a human and on the sales side that matters, but on the customer service side, if you're a borrower who's down in the dumps, who's three months behind and is about to lose their home, right? You can be more forthcoming. You can be honest. You can, you know, you're more willing to really let somebody know what's going on. And I'm generalizing, but that's happening right now with chat GBT on the medical side. I would second that. On addition to this, I've talked to a few note investors recently and I said, I'd let chat GBT review your bid calculator on the creative side, buying a property, let it evaluate that calculation and saying, is there something I'm missing? Is there something that not be calculated correctly or just what are you? What does it look like? And what am I missing on it? Exit strategies.

Be an expert in buying this stuff. Be a multimillion dollar billion dollar company and consult for me and review my calculator to bid assets. I'd see what it comes up with, right? I'm up with 10 ideas. Where am I missing it? Yeah. And you can figure that out with AI to kind of review it. It's amazing. Yeah. Well, and that comes right back down to like, let's just say you have a bunch of data from your servicer, right? And now you're like, hey, I've got my note calculator here. Here's all my data. And, you know, show me some correlations. Okay. Your highest foreclosure county is Bear County in Texas.

So when we let's modify your calculator. So anytime the county let's do a selector with the drop down bear county. Anytime it's bear county, we're going to reduce the purchase price by 5% every time because I because the likelihood of you having to foreclose in bear county is higher. So let's build in that extra discount. Like that is something so simple that you could do with no technical knowledge and it would greatly improve your portfolio. Awesome. But, Dom, it's always good to connect with even men. For those, again, I will put the link at jkpholding.ai-mastermind. But that group is for those who are beginning, right? It's for those who are just starting out wanting to learn more about it.

But at the same time, I'm going to drop also your information so people can reach out to you. Not only to sell you guys notes, right? If they're a note seller, please reach out to Dom. But if you're a note investor, just want to learn some stuff, take a look at his website and I will put that in the show notes. It's been awesome, Dom. And I appreciate it explaining from both sides of it, right? From the experienced person, but also for those who are beginners, because like Nathan said, it's hard to start off and just jump in chat with BT and go, now what? And you put something in and you get nothing good back and you say, this isn't working.

They rely on it, right? And that understanding is key. And I think I did the first time I did it three, four years ago. I said, this doesn't work, right? Because I answered a Google question and it didn't come back. As you can see, Google now transisting to using Gemini, the top feed, because going to a website off Google's probably going to be going away in the future because you want a direct answer. The sources will be there, right? And being able to use Google at home and say, hey, Google, what is the best note investing companies? Your Google Home and Alexa Home will actually come back with an answer.

So it's awesome. Once again, Tom, thank you so much for joining us for the hour. Me and Nathan are very grateful and I'm sure we'll see you soon. For everyone else, we will see you guys soon. The summer will be a little bit lighter than normal, but we'll be around and we'll be kicking back off with a few more topics. And we'll see everyone shortly. Take care, everyone. Thanks, guys..