How AI Can Help You Scale Your Real Estate Investing Business

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Today s guest is Dr Jeff Anzalone Dr Jeff is a full-time practicing periodontist in the great state of Louisiana author and founder of DebtFreeDr com His focus is on helping doctors and other high-income professionals create passive income from real estate Join Sam and Dr Jeff in today s show ————————————————————– Content Creation 00 00 00 Changes in Real Estate Investing 00 01 26 Using AI for Real Estate Analysis 00 05 52 Vetting Sponsors 00 09 22 Using AI for Content Creation 00 11 11 Repurposing Articles into Videos 00 16 41 Content Creation Hack 00 18 06 Fund to Funds Model 00 20 01 Finding Small Sponsors 00 21 46 ————————————————————– Connect with Dr Jeff YouTube https www youtube com DebtFreeDoctorJeffAnzalone Ebook https www debtfreedr com doctors-passive-income-guide Connect with Sam I love helping others place money outside of traditional investments that both diversify a strategy and provide solid predictable returns Facebook https www facebook com HowtoscaleCRE LinkedIn https www linkedin com in samwilsonhowtoscalecre Email me sam brickeninvestmentgroup com SUBSCRIBE and LEAVE A RATING Listen to How To Scale Commercial Real Estate Investing with Sam Wilson Apple Podcasts https podcasts apple com us podcast how-to-scale-commercial-real-estate id1539979234 Spotify https open spotify com show 4m0NWYzSvznEIjRBFtCgEL si e10d8e039b99475f ————————————————————– Want to read the full show notes of the episode Check it out below A Dr Jeff Anzalone 00 00 00 – So there s tons of different ways you can do content creation Uh ideas co uh help writing emails help writing blog descriptions YouTube to I mean just you name it Um it and again if you want to research a particular type of investment you wanna research particular type of area uh you know there s hundreds and thousands of chat G p t prompts you know that that you can use Welcome Intro 00 00 28 – To the How to Scale commercial real Estate Show Whether you are an active or passive investor we ll teach you how to scale your real estate investing business into something big Sam Wilson 00 00 41 – Dr Jeff Anzalone is a full-time practicing Pero Donis in the great state of Louisiana He s also also author and founder of debt free dr com If you don t know Jeff came on the show last on March What was that March 4th 2021 recording This now May I can t believe it s may already May 2nd 2023 So it s been a whole whopping that s 26 months Jeff since you ve come on the show I m sure a lot of things have changed Welcome back to the show It s a pleasure to have you Dr Jeff Anzalone 00 01 07 – Yeah thanks for having me back Uh honored to be back hopefully provide even more value to your audience and uh two years ago Sam Wilson 00 01 14 – Absolutely Jeff I do do this as a recap though for every single episode every guest that comes on the show in 90 seconds or less And you tell me where did you start where are you now and how did you get there Dr Jeff Anzalone 00 01 26 – Uh started uh as a periodontist trade in time for money Got about eight years ago had a snow skiing accident fell injured my wrist That was my wake up call to basically I needed to do something to bring in other streams of income besides something that uses my hands And long story short started researching found out wealthy people have multiple streams of income wealthy people on real estate That that led me to focus that because I m busy guy like most people on this show um didn t want to be an active investor which I m actually now kind of dabbling into that now but started off as a passive investor and syndications And um here we are started educating people on my website And then it s grown to uh leaps and bounds and and love educating people and connecting with people Sam Wilson 00 02 24 – Man that s cool I love I love that uh that journey there along the way And that s also fun to see see that you re now getting more into the active uh active investing side of things I I always say that there s no such thing as true passive investing Correct me if I m wrong but even even as a passive investor figuring out who you want to write that check to and tracking those investments There s still keeping up with the K one s and all that stuff There s still some work involved even as a passive investor But tell me you know in the last two years like what what are some things you ve been working on What has changed Where are you Dr Jeff Anzalone 00 02 58 – Now I um let s see When we spoke I started raising some capital for deals around September 2020 Mm-hmm So I d been doing it for what about seven or eight months when you and I spoke Yep And that that has really expanded because I ve gotten to meet a whole lot more groups to work with some good some bad some in between Uh so now I I now I m starting to focus more on what my you know my my target audience The people that come into my group you know these are mainly physicians and dentists but there are other high income professionals engineers nurses attorneys et cetera that are too busy to really do this themselves So as as this as this group has grown to now I ve got um about 1800 people in my investor group and growing it it it it actually puts more pressure on me to be a steward of people s money Dr Jeff Anzalone 00 04 04 – So it actually makes it even more important to go out and really find these groups these people to work with you know so for instance I went to and I ve never been to Vegas before Went to Vegas a couple weeks ago with with a uh a smaller group that are doing mobile home parks We went out there there was a convention I got to meet with them I got to see how they work with brokers We got to you know look at property So I m really getting involved with it instead of just somebody emailing me going Hey you wanna raise capital for my deal And that happens a lot and people will you know unfortunately people will take people up on that without even getting to know them So am I perfect No but I do everything I can because I m I m putting my money with these people as well so I you know I don t wanna lose you know money Dr Jeff Anzalone 00 04 53 – So uh that that has changed now um with trying to really find these groups that are up and coming That s one difference Uh second difference is um I ve become a fund manager because a lot of these groups now are wanting to do real estate funds instead of just these one-off syndications So I m able now to go to these groups and go and leverage my my network investor s size with having a fund to to get potentially better returns You know basically you know like so for instance I start I started I started a short term rental fund last year and I and I started another one this year Well I went to the group and they were paying I think a seven pref with a 50 50 split And I was able to negotiate better terms uh an eight pref 70 30 split or a nine pref with an 80 20 split depending on how much money you invested Dr Jeff Anzalone 00 05 52 – Uh hard to do that without having a fund and without having a group like that to leverage So that s number two And then number three is uh November 2022 Chat g p t was launched uh openai com Uh I use it all the time now to to help analyze steals create content um check for Market Con you know if if I m looking in a certain area like Sarasota Florida you know you can get all kinds of stuff I mean the the what I m telling you right now probably in about two weeks would probably be obsolete you know cuz it it changes so fast So it s it s it s amazing the um what you can do It s amazing the people that are using it And um so those are the three main things that have changed Sam Wilson 00 06 42 – That is a lot uh uh of moving pieces Let s I want to hear how you re using ai Let s get into that here in a minute But before before we do that let s let s kind of go back You said something earlier you said good bad And in between those were the three words that you had used to describe the various sponsors and or deals that you ve been looking at and reviewing as a passive and or maybe even a fund in Vater What what does that mean to you and how are you how are you how has your strategy changed on vetting sponsors Dr Jeff Anzalone 00 07 18 – I think the number one thing is I m getting as I mentioned I m getting a whole lot more involved Plus I ve met people that are very wealthy 5 000 plus million net worth people And listening to those people who they invest with what they re investing in who they re avoiding that has helped um a lot And and I and I understand these people can take risks but a lot of times they ll say you know a lot of times they don t wanna take risks They just wanna not lose money you know even though they can afford to lose a lot So uh and I and I ve gotten uh actually I got my mobile home park group from one person like that And so networking more has helped uh finding out the people to really stay away E even though they have a great website and you know they have all this stuff the bells and whistles they look great but really digging deep in finding out about I m doing a background check you know anything I can talking to their investors um to figure out again it s not a hundred percent foolproof but I I m I m focusing on that more and and talking a whole lot more spending more time before I even consider working with them Dr Jeff Anzalone 00 08 34 – Uh because you know before I d only been working for what seven eight months raising capital Now it s you know it s been almost three years So um you know you learn a lot you make mistakes Um but uh but you know my main goal is to not lose you know every deal looks the same almost on social media and everything s a five year hold and a two x equity multiple and a seven or eight president It s like well how do I tell if everything looks the same I m like well I always tell people I graduated with 58 dentists but I want I would only let about four or five of em work on me But they re all dentists right Meaning there s a lot of syndicators out there But those just a handful of em that I would work with Right And and and the the million dollar question is how do you find that And and that s what I m trying to do Sam Wilson 00 09 22 – Right Yeah And I don t I don t know that there I mean there there are the the checklist items you mentioned background checks you know references investor references deal performance how close to their how close to their deals perform relative to the shiny brochures that we all put out when we re launching a deal Did they meet their cash flow projections You know how many exits if any have they had those things You can but then there s also there s also I think the finer art to that the more subjective side of it which is the do I wanna work with these with this group What s the communication style like Is are we are we philosophically aligned Um you know those are important things too that I think maybe like you said it just takes some of that massaging and that time it s really just time maybe mm-hmm Sam Wilson 00 10 10 – with those with those deal sponsors that uh that you need So that s really cool Thank you for taking the time to share that One thing that we ve not had on the show is anybody really talking to us about how they are meaningfully using AI to help them in the real estate business So I d love to give you some time here just to just to share that with us I had a buddy yesterday that was shooting some video here in our office And then before the day was over yesterday he sent me images of people at some of our facilities that were all our logo branded I mean they look just like you and me real humans And he is like this is all ai It s completely made up I fed a bunch of words in and here s what I ve got I m like your wait you re telling me that this person actually doesn t exist anywhere in the world He s like Nope this is crazy So I want to hear what you re doing and how and then that was just kind of for fun fun gimmick Wasn t really using it for anything purposeful but what are you doing to use ai You mentioned using chat G p t for research for underwriting for what Just gimme the gimme the down and dirty on that Dr Jeff Anzalone 00 11 11 – Well you know the the main thing that my goal is on my website is to educate people a a about real estate about different things And by going through that process I educate myself you know let s let s say I wanna learn about cap rate Well you know going through the process writing an article publishing a YouTube video that sort of thing Um that helps me educate myself But now you can use AI to help with content creation ideas You can use it for uh you know article blog article outlines I mean you can get it to write the article for you I don t recommend that because you know Google will flag you But just coming up with ideas you know 50 different ideas from one topic you know maybe it s a a multi-family apartment you know whatever real estate syndication or whatever you wanna do Dr Jeff Anzalone 00 12 04 – So there s tons of different ways you can do content creation uh ideas con uh help writing emails help writing blog descriptions YouTube to I mean just you name it Um and again if you want to research a particular type of investment you wanna research particular type of area uh you know there s hundreds and thousands of chat G p t prompts you know that that you can use Again this will this will probably be outdated when we re after you listen to this for a couple weeks but still I mean literally uh you know we were I ll talk to my brother last night He s a civil engineer and he d never even used this And you know and I and I got pulled it up on my phone I was like you know give me a difficult problem that a typical civil engineers tries to solve or whatever and hit it and showed it to him You know it s just spitting out all this stuff He s like man that s that s unbelievable You know So this you know whatever you want whatever you want help with you know just think about if you re like a c of a billion dollar company and you ve got all these people all these secretaries all these assistants working for you how would you talk to that person to get something done You know Hey I want you to go do this And and you d be very specific and you hit entering That s it And and it s mind boggling Sam Wilson 00 13 25 – Wow Wow Yeah I ve even seen YouTube videos out there people using it um to solve their Excel issues where they re like gosh I can t figure out what am I doing wrong if I want to get this what am I doing wrong And they ll put it in they show you how to use chat g p t to help solve Excel problems I like the idea there though of kind of the content creation side of things cuz I m not I m not real creative Jeff It s why I do an interview based podcast because I get to ask you questions then you talk to me It makes it makes it a lot easier I don t have to generate my own content So I think you know coming up with ideas like you said I ideas from one topic that s brilliant Like hey well Dr Jeff Anzalone 00 14 05 – Here here s a here s an example of that So let s say you re gonna interview Joe Smith that owns a self storage facilities and he s a podcaster blah blah blah Well you could go in the chat G p T and go Hey I would like for you to help me create some interview questions for a person You know do you understand And it ll say yeah I understand Gimme information about it And then you start copy and pasting stuff from podcasts from his website and it ll go through there and then it ll give you things to talk about That s just one example That s wild And it takes like 60 seconds Sam Wilson 00 14 38 – That s wild And those those are those are pre-programmed prompts like you asked there Do you understand Dr Jeff Anzalone 00 14 46 – Um I I like the the more information you can feed it before you start asking questions the better So I m I m feeding information you know hey it let s say you wanted to write a business plan for like a new business or new you know new something or you need want to do like standard operating procedures whatever So you need to feed it information you know all about what you re trying to do you know And um the more information the more the more information you can give it the better outputs it s gonna give you instead of being generic So for instance my my my son is graduating from high school and and in a couple weeks So my wife was like well can you help can you help him create like a a a couple of uh you know he s getting these graduation presents or whatever Dr Jeff Anzalone 00 15 36 – Oh oh he had a um some of our friends threw him a fiesta like a party you know graduation party So I was very specific and said Hey you know I would I m a you know 18 year old senior in high school I would like for you to create a letter to my um to my mom and dad s best friends that gave me a party for graduation It was a fiesta And it and it literally took all of that and it cr it was perfect I ma I made a few changes but again to get what you want you gotta put in more information about it Sam Wilson 00 16 10 – Now that make that makes a a lot of sense Let s transition here One of the things that you ve been doing recently is your your YouTube channel and you ve got I think 2000 what subscribers at this point which is great Uh but part of that you were you we talked about this off offline was taking articles and creating those into videos What s a what s a meaningful way We I know we re spending a lot of time here on content creation but I think I think it s been the thrust maybe of what you ve been doing in the last two years is becoming that educator right Is that is that Dr Jeff Anzalone 00 16 41 – Yeah and if you re like like if you have a podcast like you mm-hmm you can get transcripts and then you can get chat G P T or you can get people that use chat G p t to repurpose what we re talking about Repurpose your podcast to blog articles repurpose your podcasts to YouTube videos whatever So I you know the way that I learn now more than ever Yep Is YouTube videos podcasts and then blog articles in that order Mm-hmm right So I was like you know I ve got I ve got these um I ve got all these articles so why not convert them over to uh um YouTube videos Right You know so um so I went ahead and I did that and um I think I ve got 160 something videos now I I try to publish one or two a week Yeah And and I can tell if you re trying to educate people out there you re gonna build a lot more trust quicker cuz you can see somebody and you can see how they interact versus just reading a generic article And I really like that about YouTube Sam Wilson 00 17 53 – Right No I I couldn t agree more So you re taking these articles you ve already written them How do you how do you do you just restructure the video or I mean obviously you re not gonna read it word for word cuz that s boring but Dr Jeff Anzalone 00 18 06 – This is gonna be this is gonna be funny I m gonna give you a hack that I ve never even told anybody before All right You you you can copy your article you can copy anybody s article and paste it in the chat G p t and go I I want you to rewrite this article below Uh and I usually do this and you re gonna laugh but it really helps I want you to give this uh I want you to rewrite this article for an audience of uh either sixth or seventh graders into a YouTube video and give me like a catchy introduction or whatever And it really dumbs it down for you like depreciation right I mean that s sometimes that s hard to explain It s like you know depreciation is like a gift from the government and and and it it just it it it really dumbs it down for you but it ll convert it for you So it it ll sound more like a a a video than you sitting there reading it you know word for word I do that all the time That s Sam Wilson 00 19 00 – Awesome I love that Yeah And you re so right cuz the that is again going back to what you ve been doing not just you know obviously raising your funds and and doing that But but on the education side of things I mean I had this very conversation with a very intelligent uh attorney friend of mine yesterday that just couldn t quite get his head wrapped around the idea that he has a phantom loss on uh one of his investments last year due to bonus depreciation He s like wait he put 50 grand and he is like how do I have a 45 000 write off from this deal last year I m like well ge bonus s Like so wait but I got distributions last year Just the whole you know how how do you explain that to someone The that s I love the I love that that hack that s a lot of fun When you talked early on when you re now negotiating better terms with your deal sponsors cuz you guys can come to them now as a single check investor a large a large investor are you doing this on a fund to funds model Is that is that the way you re working that Dr Jeff Anzalone 00 20 01 – Yes I am Sam Wilson 00 20 02 – Okay that s really really cool Can you give just maybe shed some more light to that uh and tell us kind of how you go about negotiating those better terms what deal sponsors are typically looking for I know we ve got just a couple minutes left here but I didn t wanna leave that rock uh unturned So Yeah if you can if you can break that down for us I think that would be insightful Dr Jeff Anzalone 00 20 22 – Yeah So you know sometimes if it s like so for instance if it s a hundred thousand dollars minimum a lot of times people are more comfortable with like a 50 000 minimum to get started So I ll a you know I ll start there Can you can you lower your minimum Can you uh give a better preferred return Can you you know anything that you can nego anything that I can do based on what they re already offering whether it s one one part two parts or you know luckily with the short term rental it was like all three I was able to negotiate all different parts when it sells Um I was able to negotiate like hey if you do if you invest like a hundred thousand dollars or more within a certain time period you get a better preferred return versus if you wait later in the year So there s all different creative way again you could and I ve never done this but now that I m thinking about it you could basically take uh and I ll probably will do this next time I uh are negotiating I can take the term somebody s offering put it in chat G P T and ask it Hey what are some better terms that I can negotiate this group based on these returns and just see what it says just to give me ideas you know Sam Wilson 00 21 30 – Right No that that makes a lot of sense What are you finding for those that maybe don t do the fund to funds model What are you finding the minimum kind of check size needs to be or sponsored to say all right yeah we can come to the come to the table and start negotiating better better terms Dr Jeff Anzalone 00 21 46 – The the smaller smaller sponsors Million million and a half the larger ones probably 5 million or more is what I m seeing Right And and and another thing the reason why I like finding some of these smaller sponsors are we can get better returns because they re not having to pay 5 000 thousand dollars a month in marketing fees to go out and run Facebook ads and Google ads to get investors Uh these people aren t paying anything So they they re like okay well if I don t have this huge budget I can give more return You know like uh I found a a guy that s an attorney and a dentist together they were doing RV parks together and now I taught em about syndications and I and I introduced em to my s e c attorney We re you know our IRRs on are like 30 34 that we re getting And it s and it s like where can you get that It s because you you find these these people that are you know these needle in the haystack people that are just killing it And and it s just from getting out there and networking you know And I love finding people like that because they re excited because now they can expand because I ve taught em how to uh do a fun I ve taught em how to do a syndication instead of just them using their own money you know Sam Wilson 00 23 02 – That s really really cool Jeff you ve taught us so many things here today It s been a blast having you come here back on the show Certainly enjoyed it Uh as much the second time around as we did on the first episode a couple years ago If our listeners wanna get in touch with you and learn more about you what is the best way to do that Dr Jeff Anzalone 00 23 18 – Oh they can go to my website debt-free doctor com Um I have a uh if they want to um start getting articles YouTube videos that sort of thing they can go to debt-free dr com free F r e e free guide download our passive income guide They ll automatically put be put in the system and uh start getting the emails Sam Wilson 00 23 40 – Fantastic We ll make sure we include that there in the show notes Jeff thank you again for coming on the show today Sam Wilson 00 23 44 – This was a blast I certainly appreciate it My pleasure Hey thanks for listening to the How to Scale Commercial Real Estate podcast If you can do me a favor and subscribe and leave us a review on Apple Podcast Spotify Google Podcast whatever platform it is you use to listen If you can do that for us that would be a fantastic help to the show It helps us both attract new listeners as well as rank higher on those directories So appreciate you listening Thanks so much and hope to catch you on the next episode Click here to visit this podcast episode