I'm exploring resources that use AI to refine my firm's current development model and build out a new model that can support multiple development deals. What resources do you all suggest could help me?
Our current model is dynamic and has all the capabilities to properly underwrite a development deal but is meant for only one deal. Ideally just looking for ways to streamline or make improvements more easily as needed.
Based on the most helpful WSO content, integrating AI into financial modeling for real estate development deals can significantly enhance the efficiency and accuracy of your models. Here are some resources and suggestions that could help you in refining your current model and building out a new, more versatile one:
AI in Fundamental Investing Resources: Look into the discussions and resources available on Wall Street Oasis regarding AI in fundamental investing. These can provide insights into how AI is being used to improve financial models, including those for development deals.
Financial Modeling Best Practices: Ensure you're up to date with the best practices in financial modeling as outlined in WSO's resources. This includes understanding the types of financial models and how they can be optimized with AI for better forecasting and scenario analysis.
Advanced Excel Formulas and AI Tools: Utilize advanced Excel formulas alongside AI tools that can automate data analysis and scenario testing. This can help in managing multiple development deals by quickly adjusting variables and assessing outcomes.
Machine Learning in Fundamental HF: Explore how machine learning techniques are applied in hedge funds for fundamental analysis. These techniques can be adapted to real estate development models to predict market trends, evaluate risk, and optimize investment returns.
WSO Financial Modeling Templates: Leverage the financial modeling templates available on WSO. These templates can serve as a foundation for your AI-integrated model, allowing for customization and scalability to handle multiple deals.
WSO Forums and Community: Engage with the WSO community in forums related to AI, financial modeling, and real estate investment. You can gain valuable insights from professionals who have experience in integrating AI into their financial models.
Events and Training Bootcamps: Consider attending WSO events and training bootcamps focused on AI and financial modeling. These can provide hands-on learning experiences and networking opportunities with experts in the field.
By exploring these resources, you can find ways to integrate AI into your financial modeling processes, making them more dynamic, efficient, and capable of handling multiple development deals simultaneously.
Sources: Q&A: AI will automate many roles in the IB/PE world. A live Q&A with Arctic, who are recruiting finance professionals to help manage that change, Thoughts on AI and the future of the job market?, AI in Fundamental L/S Equity, Machine Learning in fundamental HF?, AI in fundamental investing
A bit late here but Claude 3 has metaprompt which has been very helpful.
I have a minimal technical background and was able to automate a pretty good chunk of my analyst bitch-work over the past week.
Mind giving examples on the sort of work you've been able to automate?
Here are a few use cases I have found:
Sourcing/Summaries: Massively helpful using Perplexity to find/explain new companies - no more mindless scraping through search results or midwest news sites. These outputs still need to be word-smithed and checked, but saves me an unbelievable amount of time that I would have spent on Google or LinkedIn. "Cold Sourcing" sucks and everybody knows it, being able to understand players in a small market/vertical in a quarter of the time is an actual superpower.
PowerPoint: Feed in an anonymized/generic template slide and it filled out an entire overview from public websites and press releases to about 85% accuracy.
Data Rooms: GPT4 coded a few Powershell prompts to rename several hundred files when PowerRename broke. Has worked flawlessly.
Excel: Formula/model broken? Copy formula text into ChatGPT and explain each group - it will propose fixes or rewrite a new formula. Works 70% of the time. Also helpful for OCR from screenshots, Claude works infinitely better than the Adobe OCR and Excel data abstraction tools. I have not found a good way to automate line item tagging or actual model construction, but I think those are reps I need to do myself anyways.
Public Comps: FinTool is one I just discovered, but has been very helpful in summarizing things that would otherwise require I dig into a 10k for hours to find.
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