Property Play: New AI tool from Fundrise brings high-level CRE analysis to the public

Fundrise, an online investment platform based in Washington, D.C., is making waves in the real estate sector with the launch of RealAI, a cutting-edge artificial intelligence tool designed to empower both real estate professionals and individual investors. This innovative platform provides users with instant access to a wealth of market intelligence, including neighborhood income levels, migration trends, multifamily comparisons, and average rental prices, all the way down to specific properties. Ben Miller, the co-founder and CEO of Fundrise, highlights that RealAI surpasses the capabilities of general AI models such as ChatGPT. Initially focused on residential data, he anticipates expansion into other commercial real estate sectors within a six-month timeframe. "It performs the duties of a real estate analyst, making it accessible to everyone," Miller explained. The platform boasts an impressive database that encompasses 3.5 trillion data points related to every property across the United States. RealAI is available for free for the first twelve uses, after which a standard subscription plan is offered at $69 per month. Fundrise aggregates its data from a combination of public records and private databases, enriching the insights with information about the demographics of residents and workers at the properties, including education levels, credit scores, and income, some of which is sourced from social media. This comprehensive dataset allows users to effectively compare markets, assess properties, and simulate investment returns. In a demonstration for Property Play, Miller showcased how the tool helps users identify the best property investments based on various factors. As the real estate industry has historically been slow to embrace modernization, the introduction of AI is seen as a potential game changer. Major firms like JLL are already deploying AI tools for property analysis, though these are limited to internal use. Barry Sternlicht, CEO of Starwood Capital Group, recently stated that AI's impact on the world could surpass that of the industrial revolution, expressing concerns about the implications for employment within his hotel businesses. Miller's mission to democratize investment access began with the establishment of Fundrise in 2012, which originally operated as a crowdfunding platform for real estate. Today, Fundrise manages $3 billion in assets across commercial real estate and technology, with over 2 million investors participating, and a low investment minimum of just $10. By leveraging technology to pool capital, Fundrise opens doors to asset classes that were once exclusive to wealthy individuals and institutions. Despite the potential for job displacement caused by AI, Miller emphasizes his commitment to ensuring that these advancements are available to everyone, rather than just large corporations. "This is the trend we have seen over the last two decades. Technology tends to enrich the wealthy while negatively impacting the average worker," he remarked. "My goal is for everyone to benefit from these changes, not just the largest institutions."