The Multifamily Industry, Tradition over Innovation

Clinging to traditional methods and legacy truths can hinder progress—especially in the multifamily industry. Our organizational charts, workflows, and processes were designed for a different era. Continuing to rely on them without adaptation may leave us behind as technology advances at a pace we’ve never seen.

As the Chairman of the Multifamily Innovation® Council and Founder and CEO of nectarflow.com, I am prioritizing innovation over tradition in every aspect of our work—even in something as simple as choosing which events to attend.

A few weeks ago, I was one of only 400 people invited to the OpenAI Developer Day out of 3 million developers on the platform. I mention this because we are not just learning about AI—we are building with it.

AI is something we do, something we create.

Today, as owners and operators, we have opportunities to customize our own software. This means we are less dependent on outside companies to achieve our business objectives. Everything you decide in your business should support your objectives and priorities.

This week, I will be attending the TEDAI event in San Francisco, one of the most significant gatherings in the AI community.

How do you stay ahead of the AI curve? By understanding the concepts powering it.

My goal is to immerse myself in discussions and AI developments, bring back invaluable insights to guide our product innovation at nectarflow around the future of AI and business—especially with the rising focus on AI agents and AI Agent platforms.

The demand for nectarflow's platform and services is higher than ever. While we cherish our relationships and the camaraderie at traditional industry events, we recognize the imperative to be where the future is being shaped. By stepping outside our usual circles, we're positioning ourselves—and our clients—to lead rather than follow.

Here is how I see it….AI as Leverage: Business Value Like Financial Leverage in Investments

Just as seasoned multifamily investors use debt as leverage to amplify returns on real estate investments, AI serves as leverage to amplify business performance.

Understanding both real estate fundamentals and technology as forms of leverage allows owners and operators to unlock value others miss.

If your role involves creating proformas around future cash flows, recognizing where the world is heading with AI is essential to stay ahead of the curve.

By leveraging AI, you can:

• Enhance Productivity: Automate routine tasks to focus on strategic initiatives.

• Improve Efficiency: Optimize operations to reduce costs and increase margins.

• Drive Profitability: Uncover new revenue streams and improve asset performance.

• Adapt to Workforce Changes: Equip your team with tools that enhance their capabilities in a changing landscape.

Just as you wouldn't ignore market trends when making investment decisions, you shouldn't overlook the transformative potential of AI in shaping the future of your business.

Transitioning Through Technological Evolutions with Confidence

The multifamily industry has successfully navigated numerous technological shifts before—from personal computers to the internet, cloud computing, and mobile platforms. Each transition brought challenges but also opened new opportunities for growth and efficiency. As we stand on the brink of the AI and automation era, it's natural to feel overwhelmed. However, history shows us that we have the capacity to adapt and thrive through technological evolutions.

Understanding the evolution of technology platforms can give us confidence:

Personal Computer Platform: We embraced computing power at individual desks, revolutionizing productivity.

Internet Platform: We leveraged global connectivity for communication and information sharing.

Cloud Platform: We transitioned from on-premises infrastructure to scalable, on-demand resources.

Mobile Platform: We adopted smartphones and apps for on-the-go productivity.

AI Platform: Now, we're integrating intelligent systems that can learn and adapt.

Each step required us to rethink our strategies and adapt our operations. The AI era is no different. By approaching it with the same openness and willingness to learn, we can navigate this transition successfully.

Thinking in Terms of Platforms

What's most important as we make business decisions in this new era is to think in terms of platforms. When evaluating new technology, we must ask: "What platform can I access this technology on?" It's not enough for a solution to be standalone or confined within proprietary systems. We need platforms that are open, interoperable, and capable of integrating seamlessly with other applications.

Just as our teachers asked us to "show our work" in math class, we must now ask AI vendors to "show us the AI." This means demanding transparency and understanding how their AI solutions function within our business ecosystems.

We are in the early stages of AI—a period reminiscent of the early days of electricity. Just as electricity rearranged our world, AI is now rearranging our work.

In the beginning, electricity was a revolutionary force, but it lacked the infrastructure of safety and standardization we take for granted today. There were no licensed electrical contractors, and the risks were high. It took time for the industry to develop regulations and certifications, giving leaders confidence that hiring a licensed contractor meant their buildings wouldn't burn down.

In the realm of AI, we don't yet have this level of standardized assurance. Many software companies are rapidly embedding AI into their offerings to enhance features and boost valuations. But without established industry standards or certifications, it's up to us as leaders to exercise due diligence. We must be vigilant, asking the right questions to ensure that the AI solutions we adopt are safe, effective, and aligned with our business objectives.

Remember, we will be accountable for our own businesses. It's crucial not to rely solely on vendors' assurances without verification. The questions we've outlined are designed to guide high-level conversations and help you make informed decisions. Make sure you're not learning inside a sales conversation—educate yourself beforehand so you can ask meaningful questions and critically assess the answers.

Essential Due Diligence Questions for AI Vendors

To ensure we're making informed decisions, here are critical questions to ask AI vendors:

Transparency of AI Algorithms:

• Can you demonstrate how your AI works?

• What algorithms and models are being used?

Data Handling Practices:

• Where is the data coming from, and where does it go?

• How is the data processed and stored?

• Who owns the data as it moves through your system?

Platform Accessibility:

• On what platforms can we access this technology?

• Is it compatible with our existing systems?

API Integration:

• Does your solution offer an open API for seamless integration with other platforms?

• Can we connect to it from another platform without issues?

Data Ownership and Control:

• Will we retain ownership of our data as the AI processes and integrates it?

• How are data privacy and security maintained?

Customization and Differentiation:

• For AI embedded into existing applications built before the launch of LLMs, how will this AI be different from other customers on the platform?

• Can the AI be tailored to meet our specific needs?

Team Expertise and Track Record:

• Does your team have a history of executing together successfully?

• Did your Founder self-fund or raise capital from competitors?

• Are your prominent customer logos true clients who find value in your product, or are they merely investors?

Innovation and Future Development:

• How do you access a diverse set of Multifamily Operators to determine what to build next?

• Are your product teams attending industry events to stay ahead, or is it only your salespeople?

Staying Current with AI:

• Is your AI native to your company, or are you utilizing large language models (LLMs)?

• If you're wrapping a LLM, how do you handle technical debt and rapid changes as these models evolve?

• If you're not using a LLM, how will you compete with frontier AI companies that are out-investing your organization?

• Do you have the ability to use multiple LLMs?

• Can you self-host your own data using an open-source LLM?

• Is your technical code built on a widely understood platform, or will hiring engineers for your unique native AI be a challenge in supporting growth?

Support and Updates:

• What kind of customer support do you offer?

• How will updates and improvements to the AI be handled?

By asking these questions, we ensure we're partnering with vendors who offer not just advanced technology but also transparency, integration capabilities, and respect for our data ownership.

Embracing the Future with Confidence

The transition into the AI and automation era doesn't have to be daunting. By leveraging our past experiences with technological shifts and focusing on platforms and integration, we can move forward confidently. The key is to remain proactive, ask the right questions, and choose partners who align with our commitment to innovation.

Wrapping this up…

Our commitment to innovation over tradition is not just a mantra—it's a strategic imperative. By attending events like OpenAI Developer Day and TEDAI, and prioritizing groundbreaking platforms like nectarflow, we're dedicated to bringing you the insights and tools needed to thrive in the AI era.

The upcoming Multifamily Innovation® & AI Summit this December will further this mission, featuring the head of industry human-centered AI research from Stanford, industry pioneers in AI, and even the former head of talent and capability of Microsoft who will work with attendees on how to productively move through change to avoid either radical change or status quo that leaves us outpaced by competition.

Let's embrace new ideas and prioritize platforms that foster integration and interoperability. By doing so, we ensure that our businesses are not just part of the change but leading it.

Join the Movement

I hope this has encouraged you in a small way to Be Unstoppable!

P.S. If you found this newsletter insightful, feel free to share it with a colleague or a friend who could benefit from these ideas. Or just pass along this link https://newsletter.nectarflow.com/subscribe 

Together, we can shape the future of the multifamily industry—one conversation at a time.

Stay Unstoppable!

Patrick Antrim
Founder & CEO
nectarflow.com

About the Author:
Patrick Antrim is the Chairman of the Multifamily Innovation® Council and the Founder and CEO of nectarflow.com, a productivity platform to bring together AI, automation, and data in your business providing a marketplace to reduce IT spend, consolidate operations, reduce costs, integrate point solutions, and increase margins for Multifamily companies.

With a focus on reducing IT spend, consolidating operations, and increasing margins for multifamily companies, nectarflow™ offers a unified AI and automation platform that brings everything together—from native CRM and custom company AI agents to marketing automation and open API integrations.

An MIT-certified expert in Applied Generative AI and Digital Transformation, Patrick has built nectarflow™ into an industry-leading platform that empowers business owners and operators to bring AI and automation into their companies. With over a decade of experience producing executive-level multifamily events like the Multifamily Innovation® & AI Summit and the Multifamily Women® Summit, he is a thought leader on the future of work and how technology can help build great careers and businesses.

Patrick's extensive industry experience includes managing $1.2 billion in multifamily apartment portfolios, scaling a management company across 13 states. He has advised proptech companies on go-to-market strategies and founded the Best Places to Work Multifamily® Research and Awards program.

He has managed real estate portfolios and launched businesses for influential investors such as Tony Robbins, John Saunders, Dean Graziosi, and The Hon. George Argyros. Passionate about leveraging AI as the greatest tool for business operators, Patrick helps multifamily investors, operators, and business owners build efficient, profitable revenue growth through innovation and technology.