How AI Is Changing Real Estate Investing - And 3 Prompts you can use today

Hello and welcome back to Multifamily Strategy, or if it's your first time, welcome to Multifamily Strategy. I'm Christian Osgood, your channel host. I've bought hundreds and hundreds of multifamily rentals and hospitality and RV parks. I'm going to be sharing with you what I think is the most usable skill. Now, obviously, AI is changing a lot of the landscape. We can get super deep into this and custom AI agents and other ways that people are competing, but if you are not doing the simple things I'm going to share in this video right now negotiating your deals, you are missing out on so much of what AI has to offer. So if you follow these simple tips and these simple prompts in your AI when you are analyzing and finding deals, you're going to close more real estate. And these skills will become more and more important as time goes on. But if you're not doing this right now, 2026, you're missing out. If you're watching this video in the future, this is doubly important. So here we go, diving in. First of all, the most important piece for me is the ability to instantly, without using any calculators, reevaluate the pricing of a deal. Now, of your bank, the most important metric to you is debt service coverage ratio, or DSCR. Now, banks like to see a debt service coverage ratio of 1.25 or above. And if you're watching this right now, you're like, what the heck is that? What I love about real estate is everything is named roughly what it's actually doing. So debt service coverage ratio, this is the amount that you have to pay your debt and then continue to pay your bills above and beyond that. If my total debt, principal plus interest, costs $10,000 a month, and my property brings in $15,000 a month of net operating income after expenses, I have a 1.5 DSCR. I can pay myself 50% of what I'm paying in mortgage, and that's a very stable spot. Banks want to see that you have enough to cover your obligations and pay your debt with 25% or more of those debt payments available in surplus to pay yourself and to pay your investors. That is a fantastic metric. Now, what you can do in AI is you can simply put in your net operating income, put in those incomes and expenses, or if they put them in an offering memorandum, you can literally go into ChatGPT or any any other AI, download the offering memorandum and say, hey, summarize this for me. It will spit out a net operating income. And as long as those are actual numbers, you may now use that to just underwrite the deals. Hey, at what price is the debt service coverage ratio, or DSCR, 1.25 or higher? And it will instantly run all the math and it'll tell you this is the price that a bank will likely value the property at and will likely lend on. Now it will ask you a few questions such as at what loan to value and what interest rates are we assuming, but you can literally say something like, hey, 75% loan to value and at market interest, and it will do all the research for you and it will spit out a number. Now this is really helpful if you are trying to negotiate on price or verify your assumptions. You can get a first look. This does not replace knowing how to do math, but the ability to instantly take your assumptions and edit them with no thought whatsoever is absolutely amazing. Now for myself, I like to negotiate around a 1.3 DSCR. So I'll do exactly that. When I believe I have the true net operating income, I'll plug that in and say, hey, based on this and these debt assumptions, at what price? Now, if you want to use this for creative finance, you can do the same thing. You can say, hey, if the price is this, so say your seller's married on a million-dollar price, that is, they're married to that price. You can say, hey, at what interest rate of interest-only debt would I need to negotiate to get a debt service coverage ratio of 1.3 or higher. And it will simply do that. Now, if you think about it, it makes sense, right? Because we're taking our debt service. If the debt service is cheaper, it increases our debt service coverage ratio. If the price is lower, we're paying less debt. Again, the payments are lower. We increase debt service coverage ratio. So you can do it with either interest rate or you can do it with the price, but either way you can play your sellers off the bank. Now you can make that phone call if you're negotiating price, very easy. Hey, analyze this the way that a bank's going to be looking at this. They're probably only going to lend here. Now I want to come in at 75% loan to value. So this is my price. I'm a broker or an owner, really hard to argue that because if that's the big thing for you, hey, I don't want to lever less than this. Well, then this is my maximum price. And that's realistically what a bank's going to look at. And that's realistically how every other investor is going to analyze the deal. Fantastic way to negotiate price. AI can do it for you. Now, zooming out even farther, choosing markets. What do we need to choose a great market? Because there's hundreds and thousands of markets all over the country that work fantastic. The best market typically is your backyard, but sometimes you're in a really rough market or a very, very challenging competitive market, and you need to expand your horizons. What I like to do is when I choose an area, I want to choose 5 or 6 submarkets in that area. So when I made the decision to move to Dallas, Texas, I drew a 2.5-hour radius with AI. Around Dallas. I said, hey, within a 2.5-hour drive of Dallas, what are major high-growth cities that are outside of the major, like the main DFW Metroplex? It spit out cities like Abilene, Texas, Stephenville, Texas, Granbury, Texas, Weatherford, Texas, Tyler, Texas, Sherman and Denison, Texas, Wichita Falls. I went through all of these different markets and I asked AI about their population growth and it pulls from sites that I love, like World Population Review. And a bunch of other ones. Now, if you're using ChatGPT, there'll actually be a link in the bottom where you can actually click it and you can look at where it got its sources from. So if you really want to dive deep into it, you can actually fact-check the research. But essentially, it's going to give you demographic information instantly. What am I looking for? I'm looking for job stability and population growth. You can put all of your parameters in. It will recommend markets to you. And now you can hop into LoopNet or CREXi and actually start looking through listings there. What this did for me and what I believe it's going to do for you. I did not know all of those markets when I was looking at that area. If I was on a map just going through DFW, I might have missed some of those or just never heard of them. I'll be completely honest, being from Washington State, I've never heard of Wichita Falls. Sorry if you're from Wichita Falls. I just didn't know that was a place. I also, before researching Dallas, Texas, and the surrounding markets, I didn't know what Stephenville was. Today I own 186 units there. And it's because I was recommended this as a potential high-growth market because of the job diversity, population growth, and the fact that it is the fastest growing D1 college in the United States. All of these combined make for a very, very, very strong market that I have made a lot of money in. Leasing is going fantastic. My employees there are fantastic. My tenants are happy. My buildings are full. Rent has gone up in a stable and sustainable way where I can keep excellent tenants and continue to increase the income of my properties, all because of a simple search in ChatGPT. So that worked for me. Do what works for you, but you can literally spell out your buy box, your perfect parameters, and look around the markets you're looking in. See if you are missing submarkets or cities in an easy driving distance from where you want to invest that you didn't even know existed. That happened to me in Stephenville, and again, it's the second largest market I own in. Largest market I own in, Guess what it is? Abilene, Texas. A little farther than I thought I was going to invest, but it's the very peak of that 2.5-hour radius. It came on my radar, 225 units in that market 2 years later using these exact same skills. Last, and this is just a no-brainer, it has caught— it being ChatGPT— has caught so many errors in documents that are created by legal professionals. Now, ChatGPT does not replace having a lawyer. Nor does Claude AI powered by Anthropic or any of the other AIs. You should still have a great real estate lawyer. That being said, often they will miss things. This prompt I use every time we do an operating agreement, a purchase and sale agreement, I have it search for weaknesses. I say, hey, read this document and look for potential problems or contradictory language in this document. And if you have anything else you're looking for, you prompt it there. It will then read the entire document and it will recommend how to fix certain weaknesses. Now I have actually found in certain documents we had contradictory tax language. My lawyer drafted it. I reviewed it. It was about an 84-page operating agreement. We both missed the same thing. They had a legacy clause for an old contract that we did that found its way into our template for our current contract. It was not applicable. It shouldn't have been there. Would it have caused legal problems? Maybe. If it did, I definitely would have lost. It would've assigned taxes incorrectly to the wrong investors. I had a great lawyer. I'm good at reading them. AI found it in seconds and potentially saved me hundreds of thousands of dollars. Again, the most likely situation is you don't have a conflict and your investors, you know, we all do what we verbally agreed on. However, if your contract in writing is incorrect and everyone signs it and your lawyer gives you your blessing, too many people assume, hey, this is going to be perfect. This is something that AI can do instantly. But in the course of this video, you could have found a listing on CREXi. You could have taken that OM, offering memorandum, plugged it into GPT, summarized it, found a price that works, written the offer, and you could have already reviewed your entire OA. It takes minutes to do all of these things. You can also submit an offer, an LOI. Literally, I go into ChatGPT,. And I have a custom one called OsgoodGPT, but it's powered by ChatGPT. Plug into ChatGPT, I'm writing a letter of intent for this property at this address that we just analyzed. Please fill it out with everything that I just put above in this chat, and it will write it out and it'll ask you the questions for anything that's missing. It's absolutely incredible, but you can be saving an incredible amount of time with these simple prompts. So apply all of that, negotiate your pricing or your terms, or at least fact-check it on ChatGPT or your AI of choice. Get the legal review. Markets you didn't even know existed almost instantly. If you apply this today, you'll buy more real estate tomorrow. If you want to join a community of investors who are doing the same thing, thousands and thousands of investors in one place, all looking at multifamily with some of the same tools like free calculators, educational resources, and community all in one place, check out skool.com/multifamilystrategy. Link is below, or just look for the Multifamily Strategy Community on skool.com. We'll see you there. See you on the next episode.