AI vs. Multifamily Expert Valuations

A new construction multifamily investor came into my office this week to hear our marketing pitch on the value of one of his Hollywood buildings.

After I shared the valuation, he pulled up ChatGPT and said:

“Chat told me cap rates are between 4–5%, not 6% for new product.”

What I took from that:

Chat and any AI model is only as good as the data you give it. With no real inputs, it can actually hurt valuations and underwriting. Especially in a market like LA where everything is deal-specific. He was expecting pricing to be 25% higher than our proposed value! Luckily, our pitch deck had the data he needed — real comps, real market activity — to understand where the deal actually trades. That’s the difference between generic answers and having a real multifamily expert.