How AI Helps Real Estate Investors Underwrite Deals in 10 Minutes

Jarred (00:00)
this solves, even if just solves 50 % of the things that I hate doing and it takes two weeks and I can cut it down under 30 minutes, I wanna have that conversation. And a lot of times it is, everyone’s pain points are a little different just based on what niche they’re in, but a lot of it is always, cost me a lot of time and if this mistake happened, it could cost me a lot of money and or both. So this is what we’re solving for.

Michelle Tack (01:53)
Hi, I’m Michelle Tack and we are with another great resource to talk with today with Jarred about how to automate software, software that he has to make better decisions about acquisitions of large scale property. And I’m really psyched to have you here, Jarred, for our Real Estate Pros podcast. am the leader of it, as you know. And you know, I think our listeners are really gonna ⁓

Jarred (02:14)
Thank you.

Michelle Tack (02:16)
take something away from how you’re approaching this because it’s rather unique and sort of green field what you’re doing right now. So I’d like to dive in right away and for people that may be not familiar with what you do, your world, can you give us the short version of what’s your main focus these days and what markets you’re operating in?

Jarred (02:45)
Yeah, so great question.

I would say very high level. If the next 10 seconds, all anybody ever watched.

I built a custom money guide that allows real estate investors across any asset class work less, make more and decide smarter. Reduction probably 70 to 90 % of time, however, they’re evaluating any asset. 10xing the decisions that are making is this good or not. So

We can get go or no go on a deal down to possibly under 10 minutes, no matter what it is.

And then from there, do you want to dig in deeper and see is this worth my time? You can do so at a very, very high institutional grade level answers.

Michelle Tack (03:23)
That’s really incredible. And are you doing, does the software work only in the United States or does it, is it for worldwide purchases? Can you help me with that a little bit?

Jarred (03:33)
For now, it’s just nationwide in the United States.

Michelle Tack (03:40)
Okay, so right now, it’s only in the United States, great. And that is, I mean, certainly there’s a ton of people, you know, from, as you mentioned in our pre-preparation period, to, you know, that would love to have this to really get that needle pinpoint niche on, is this a good investment or not?

you know, from a developer standpoint. So I really understand that. In terms of what caught me about your, when we spoke earlier, is how you can get that 70 to 80 percentile, you know, up to, you know, saving costs with the, you know, pinpoint really, and you said it better, maybe you can repeat it again, but in terms of does it fit into my portfolio? Can you talk about those metrics again?

Jarred (04:25)
Yeah.

Michelle Tack (04:30)
of 70 % and 80 % that you referred to earlier? Yeah, great. So everyone now, and I come from a hard money, a private money lending background, I broker, you know, $500 plus million of deals. So long history of being a realtor, flipper, putting funding together for real estate investors. How do lenders view and fund deals based on risk, right? So not only underwriting the deal, but underwriting the borrower. So I come from a very,

Jarred (04:34)
Yeah, great. So everyone now, and I come from a hard money, a private money lending background, I’ve brokered, you know, 500 plus million dollars of deals. long history of being a realtor, flipper, putting funding together for real estate investors. How do lenders view and fund deals based on risk? Right? So not only underwriting the deal, but underwriting the borrower. So I come from a very,

in depth understanding of the capital sources, what happens after they fund deals, how they sell them off, what determines that risk class.

Jarred (05:53)
Then on the acquisition side, historically, what has been everyone’s biggest problems? What are we always limited by no matter what we do? Right, we’re limited by our time, right? That is one of the biggest things that put limits on how we can scale a business. For real estate investors, it is now, well, how quickly can I evaluate a deal to possibly beat up my competition? And am I making the right decision on that deal?

Jarred (06:16)
crossing all the T’s, dotting all the I’s at a very high level. But no matter how good you do that, you can only historically review so many deals because you are limited by what? Your time. So with what I’ve built, people have now in the last 12 to 24 months, AI has become worldwide craze. Real estate investors are starting to see, okay, I probably think I could integrate this into my business somehow. But when the… Mid to high tier level investors start to play around with this. They quickly realize it is not all it’s cracked up to be because it hallucinates. It doesn’t have the underlying sophisticated knowledge to get them the useful outcome answers out of it. And they’re crazy prompts that they have to go and write. Whatever the AIs, it doesn’t matter. Pick any one. They’re writing a prompt.

Jarred (07:11)
But we’re also the fallback is they don’t have the elevated knowledge to get the outcome. So you’re rolling the dice. And it’s possibly making wide casting assumptions that are not useful. So with what I built, I’ve elevated the knowledge so extensively across several different minds that we can go into that here in a minute. I also eliminated the need for prompting. now anybody, let’s say it’s a builder buying a five acre lot. They could just start off with.

Jarred (07:37)
the hopes, their wishes, their dreams, their concerns about that deal. And just simply as check out this APN, I’m buying it for 300K. Does the price make sense? I’m buying this, but not only does the price make sense, what can I turn it into? Does that make sense to justify paying the price for it? So all they got to say is underwrite this, keep me safe. And just that simple one minor, because the operating brains of what I built, it will know how to go out and do everything they

Jarred (08:07)
basically

Jarred (08:07)
going to infer what to do for them. And that quick answer, which could be under five or 10 minutes could probably get them, like I said, 70 to 80 % of the way there on the decision, go or no go. Is this even worth me now stacking the layers and digging deeper and have a conversation with the AI to figure out ultimately how much peace of mind do I want to get and go a little deeper.

Michelle Tack (08:32)
For those of that are out there that may not have an AI background or understanding, can you just define what hallucinating is? I know what it is, but can you just define that Jarred for the team here? Most folks have probably ran into this. They go and ask it to do something and it makes wide casting assumptions. You’re like, what are you talking about? This actually makes no sense. This is not useful. So that’s pretty much what it is. If you go say, do a land feasibility study for me, I need to know this only, you know, it’s never going to do that. It’s going to be like,

Jarred (08:41)
Yeah.

Most folks have probably ran into this. They go and ask it to do something and it makes wide casting assumptions. like, what are you talking about? This absolutely makes no sense. This is not useful. So that’s pretty much what it is. If you go say, do a land feasibility study for me, I need to know the zoning. It’s never going to do that. It’s going to be like,

hey, cool. This is probably like two acres. Yeah, you could build a house on it. Well, that’s great. Thanks. know that. So it’s not going to get you the useful outcome answers that you need.

Thank you. You have a obviously a fantastic ⁓ capability. Can you talk about how you’re able to keep your machine running smoothly? I don’t mean machine as a CPU, but your business running in a efficient manner and etc. Can you talk to that a little bit?

Jarred (09:31)
Yeah, so I come from, I’m lucky to come from a marketing and technology background. So, right, what I did, I think everything, marketing in general comes down to human psychology, right? People want what they want because they want it, right? So how do you show somebody that this solves a major problem and is staying status quo possibly more expensive than investing in something that can massively reduce their personal time? Everybody wants to work less and make better decisions for real estate investors.

Jarred (10:35)
That is extremely valuable. So my goal now is just to talk and get in front of the right people. And I love helping people solve big problems, right? Because that’s a massive value. And massive value is not necessarily an easy sale, but it’s an easy conversation to have with somebody. Yeah.

Michelle Tack (10:35)
Thank you. Yeah. Did you want to add something else to that?

Jarred (10:57)
So that’s why I put a lot of time into marketing and social media. So that’s kind of how I keep it turning and running.

Michelle Tack (11:02)
Um, you know, not every operator I know has a moment where there are things got real, right? Maybe a deal went sideways or, or a time you had to pivot fast. Do you mind sharing anything like that in terms of if you occur, is something like that has occurred and how you resolve a situation? For myself personally, for like one of my clients. Well, either one in your business, it could be for you or for them or what have you.

Jarred (11:22)

Yeah, let’s answer both really quick. So me, it’s always about,

I make videos, right? But we don’t necessarily make videos. I always say you make hooks, then you make the content. So for me, it’s always about how can I stop someone from scrolling on the internet, right? Quickly understand, hey, this is awesome. I want to learn more about it. I’m always figuring out different ways to improve my marketing for my business, how to talk to the right people. ⁓ I would say for clients, it’s very easy because they come in when they see that video and in their mind they’re already starting to figure out,

this solves, even if just solves 50 % of the things that I hate doing and it takes two weeks and I can cut it down under 30 minutes, I wanna have that conversation. And a lot of times it is, everyone’s pain points are a little different just based on what niche they’re in, but a lot of it is always, cost me a lot of time and if this mistake happened, it could cost me a lot of money and or both. So this is what we’re solving for.

So Jarred, can you give an example of maybe where you got a…

pushback, but you were able to pivot and still get that client. Can you talk to that a little bit? Yeah, excellent. Everyone comes in thinking this is not possible right away. Possibly people come in when I tell them the investment into this, right? Some people, depending upon what level they’re playing at in real estate, either that’s an easy, easy justification or someone who’s maybe only flipped the house one time. That may not be so easy. So

Jarred (12:35)
Yeah, excellent. Everyone comes in thinking this is not possible right away. Possibly people come in when I tell them the investment into this, right? Some people depending upon what level they’re playing at in real estate, either that’s an easy, easy justification or someone who’s maybe only flipped the house one time, that may not be so easy. So

historically, when you’re selling something, price is always sometimes an objection.

Jarred (13:03)
But a lot of times what I’m talking about the capabilities and I kind of go down the rabbit hole of what technically is possible. They see the light bulb starting to go off, but their fear is how easy is it to use? So even though they realize this might still be possible because they’ve experienced general AI and it not being useful, their fear is how can I use this? What’s my learning curve?

Right. I always fall back to the way I built this is I’ve eliminated that need for prompting because the elevated knowledge is there. So I built this going in, knowing the biggest fear would be, cool, this probably could help me in a lot of ways, but maybe possibly a little older now. I’m not techie. I don’t know how to use this. the way I built this is I wanted to eliminate that concern as well. So I think that probably answers that. That’s awesome. You know, that obviously, you know, a lot of people

Michelle Tack (13:55)
you know, coming to the business, real estate, regardless of where they are in their journey. And, you know, that really separates those that dabble versus those that are really committed and the types of, ⁓ I wouldn’t call it a tool. would say solution that you provide clearly adds like a lot of gravitas to ⁓ the industry overall. So kudos to you.

What’s the next real big goal that you may have and then we’ll wrap after that? Yeah, the real big goal would be, you know, helping families maybe get out of the rat race. More people exiting the nine to five or more people building their dreams a little faster because what I can provide to them, you know, in a way they never thought was possible. Like, hey, I’m kind of tapped out and hitting the ceiling at 10 deals a year. Well, if I can maybe even help them just do three more deals a year.

Jarred (14:28)
Yeah, the real big goal would be, you know, helping families maybe get out of the rat race. More people exiting in nine to five or more people building their dreams a little faster because of what I can provide to them. You know, in a way they never thought was possible. They’re like, Hey, I’m kind of tapped out and hitting the ceiling at 10 deals a year. Well, if I can maybe even help them just do three more deals a year, that

could be hundreds of thousands of dollars in somebody’s pocket, right? You can possibly change their life. So that is my goal to have more conversations.

Jarred (14:58)
with the people that feel like they’re coming close to the ceiling or they’re trying to expand their comfort zone. They’re like, if I could do that, if I could figure out a way to do that without adding another 20 hours a week to my life or my family’s life, ⁓ and I can reduce that workload, but help them reach that. And I think that’s a win for everybody. So my goal is just to speak to more of those clients

Michelle Tack (15:20)
I feel like they want more out of life. They want to reach those goals possibly a little faster, a little differently. And

Jarred (15:26)
I kind of have a solution to help them get their possibly a little smarter.

Jarred, this is, mean, I really have loved the interaction and what you’re doing is pretty incredible. For the team that’s out there, ⁓ please continue to look into Real Estate Pros by InvestorFuel.com if you’ve not subscribed.

Jarred (16:18)
Thank you.

Michelle Tack (16:30)
please subscribe because we have other content from other operators. Maybe not an exact industry that Jarred is, but lots of folks that can provide help to you or partner with. So Jarred, again, really appreciate it. You did a fabulous job. Thanks so much. My pleasure. Thank you. See you on the next podcast for those that tune in. Take care.

Jarred (16:47)
My pleasure, thank you.