Writing · AI / Automation / Tech
đ€ If AI Can Beat 93% of Stock PickersâWhat Happens When It Starts Picking Real Estate Deals?
Stanford researchers built an AI fund manager.
It rebalanced mutual fund portfolios using public data every 90 days.
Result?
It beat 93% of human stock pickers, earning $17.1M more in alpha over three decades.
How did it do it?
It didnât do anything flashy.
No secret data.
No genius insights.
Just cold, relentless pattern detection.
So, hereâs the question we should ask nextâŠ
What happens when we let AI underwrite real estate deals the same way?
The logic transfers cleanly:
Most of our âjudgmentâ comes from pattern recognitionâbad roofs, bloated expense ratios, unrealistic rental growth.
Every great deal and every disaster has breadcrumbs.
Some patterns show up before closing. Others scream during asset management.
The difference is that AI doesnât suffer from human biases that often make us look like fools in retrospect.
It doesnât get deal fever.
And it doesnât pretend the capex budget âmight come in under.â
The Stanford bot didnât even try to hit home runs.
It de-risked portfoliosâswapping weaker picks with index funds.
Imagine what that mindset could do in real estate.
Instead of calling brokers and hunching over ExcelâŠ
You train your Acquisition AI Bot with thousands of dealsâwins and lossesâand let it start screening, scoring, and selecting.
When will someone test this?
Drop the AI into 2005â2022 and see how many blown deals it couldâve dodged.
See how many boring-but-brilliant singles it wouldâve bought.
Weâre posting the article in the comments.
Worth reading.
This future isnât far off.
And it wonât just change how we buyâitâll change who gets to win
https://lnkd.in/enfUneYw