🦃 AI in 2025, RV parks the next best thing, and Lofty

AI in 2025 - The Quiet Transformation

Artificial intelligence (AI) was the buzzword of late 2023, with much of the initial excitement steeped in hype. Bold claims about its revolutionary potential spanned all industries, including real estate. Now, as we approach 2025, that hype is crystallizing into tangible, transformative changes. AI is no longer a buzzword—it’s reshaping how real estate is bought, sold, and managed. And in a market where investors are laser-focused on net operating income during an affordability squeeze, its timing couldn’t be better.  

Smarter Data, Smarter Decisions

Real estate has always revolved around data—property values, market trends, and rental yields drive every investment decision. AI is transforming how this data is gathered, processed, and applied, offering investors sharper, faster insights.

Automated Valuation Models (AVMs) are at the forefront of this evolution. Unlike outdated models, AI-powered AVMs incorporate real-time data, from historical trends to macroeconomic factors, to provide precise property valuations. Their dynamic nature reacts to market changes almost instantly, offering a significant edge in competitive bidding environments. Beyond accuracy, access is improving: startups like Dataflik provide predictive insights, such as identifying properties likely to sell within 90 days with near 70% accuracy—data that was once locked behind expensive institutional platforms.

AI is also revolutionizing property searches. Internal AI agents now learn user preferences and behaviors, recommending properties that match specific investment goals. Instead of spending hours scrolling through listings, investors can rely on curated recommendations across multiple markets, significantly reducing manual effort. Think about your own experience on Zillow—if your buy box spans multiple zip codes, filters only go so far. With AI, an autonomous agent actively refines your search to pinpoint optimal opportunities.

Efficiency at Every Step

The most immediate and measurable impact of AI in real estate is in operational efficiency. In transaction management and loan processing, AI-driven automation is eliminating bottlenecks that have long plagued the industry.

According to Rocket Mortgage CFO Brian Brown, their AI-enabled platform has allowed the company to scale its origination volume to $150 billion without hiring additional staff. “Our scalable tech platform is what empowers us to navigate dynamic markets with agility,” Brown said. “From my perspective, the most powerful benefit of AI is the boost it gives to operational efficiency and productivity. Simply put, it’s about achieving more with the same resources.”

The numbers back it up. Rocket's new AI-powered Loan Origination System, Rocket Logic, has saved its team 800,000 hours annually—equivalent to roughly $30 million in cost savings. In a labor-intensive industry, these advancements are game-changing. The savings in time and resources aren’t just theoretical; they create ripple effects throughout the market, both good and bad.  This also isn’t limited to large players. According to 20-year veteran Leandra Torres, AI is automating 80% of tasks involved in processing loans and transactions. “At peak, I was handling 60 loans per month. With AI managing the repetitive tasks, that number could climb to over 100,” she notes. These gains in efficiency have broad implications for transaction timelines, costs, and labor needs across the industry.  

Title and escrow, a critical segment of the real estate industry, is already reaping significant productivity gains from AI investments. Historically, real estate has been slow to embrace technology, making it uniquely positioned to benefit from early AI adoption. However, the challenge isn’t just implementing the technology—it’s also about overcoming skepticism among seasoned professionals who are wary of regulatory risks. The industry's current approach—“trust but verify”—focuses on gradually proving AI’s accuracy and reliability through real-world use cases.

Kristin Miller, a veteran title and escrow executive with two decades of experience, including leading Doma through its public offering, sees AI as a game-changer. “A good portion of title and escrow work is stare and compare,” she explains, referring to the repetitive task of cross-checking documents for accuracy. “AI solves this instantly, flagging outliers and saving hundreds of hours per employee annually. This time can be redirected to enhancing customer experiences and resolving complex cases more efficiently.” 

Property management is seeing similar strides. From predictive maintenance to tenant communication, AI systems can handle routine management tasks more effectively than traditional methods. Startups like Oyster are getting in front of some of the costliest components of professional asset management by predicting repairs & maintenance along with strategic CAPEX.  By leveraging AI, they can analyze historical repair data to predict future maintenance needs, minimizing costly emergencies. This not only reduces operating costs but also enhances tenant satisfaction—a win-win for property owners and managers.

The Investor Advantage

For real estate investors, these developments are more than back-office efficiencies—they could reshape the bottom line. Savings from streamlined transactions and loan processing could potentially be passed on in the form of reduced fees. Faster loan approvals mean investors can secure financing more quickly, giving them an edge in competitive markets.

Better data also means better deals. With AI refining AVMs and property search tools, investors can identify undervalued properties and assess their potential with greater accuracy. 

Additionally, AI’s role in improving property management directly impacts rental income and property value. Fewer maintenance issues, better tenant communication, and predictive analytics help ensure properties run smoothly and retain their value over time.  There is also an exciting potential opportunity for more tech-enabled property management software solutions like Hemlane to continue positioning self-managers for more success without the need for a third-party.  

But it’s not just about cost and convenience. The integration of AI into real estate levels the playing field, giving individual investors access to tools previously reserved for institutional players. From smarter data to streamlined operations, the technology is quietly reshaping the industry’s foundation, even if the baseline mechanics remain the same old antiquated real estate norms. The best part? This is happening now, and savvy investors are already reaping the rewards.

With Retirement Wave, RV Parks Are Moving Up

Like other real estate classes, recreation vehicle parks felt the Covid-19 bump once states eased restrictions and allowed them to reopen. Many travelers were reluctant to get on airplanes or stay at crowded hotels, so the surge continued into 2021 and beyond, as the great outdoors beckoned.

“Since Covid we’ve been seeing extremely high demand for campers,” said Mia Caetano Johnson, owner of Northeast Campground Brokers. “Buying activity has been off the charts, exponentially higher since Covid. The peak market was two years ago when interest rates were low but the buying activity has been much stronger prior to the Covid outbreak.” 

Cap rates have also dropped as prices for RV parks have risen, said Johnson, who left a career as a lawyer to become a broker for RV parks. Before 2019 and Covid-19, buyers could count on cap rates of 9-10%, but now most deals fall into the 8-9% range. In the 15 years she has been in the industry, sales growth has been steady, 7-8% year over year. (During the pandemic, she said prices were jumping 20-40 percent.)

First some clarifications: An RV park is not necessarily a campground, and not all campgrounds accommodate RVs. The characteristics of an RV park generally include:

• Allotted spaces, known as “sites,” where RVs can stay overnight, or longer

• Paved or gravel roads throughout the park

• Concrete pads or dedicated spots for RVs that are at least 20 feet by 50 feet

• Hookups for water, sewer and electricity

• Many parks have other amenities, including restrooms, showers, laundry facilities, Wi-Fi, game rooms, and cable TV

• Luxury RV parks offer greater privacy and security, and resort-style pools, restaurants, EV charging stations, high-speed Internet and other perks

The Next Best Thing to Self Storage?

“What drew me to RV parks was storage facilities,” said Rob Brady, who co-owns Camp at Newfound Lake, a 45-site park in Bridgewater, NH. “I wanted to buy a storage facility. I was calling people that owned them and brokers, and actively pursuing deals but I just couldn’t find any good deals.”

He had a friend who owned RV parks “and that was in the hospitality lane and I know that lane,” he said. Brady had sold timeshares, first in New Hampshire and then in Colorado and Hawaii, then moved on to a high-end membership club in Telluride where members paid up to $500,000 to join.

Brady said he liked the scalability of owning storage units — buying one facility brings 100 doors, unlike buying a single family home or a vacation investment property. RV parks are similar — buying one can bring dozens or hundreds of sites in one fell swoop.

When raising rents, they go up for all the sites on a property, generating more cash than raising rent on a single unit.

“When you own 100 doors, you are putting a lot more money in your pocket,” Brady said. “Over 4-5 years that adds up.”

He was not interested in becoming a landlord and taking on the hassles of owning an apartment building or residential property.

“I didn’t want to deal with that bullshit,” Brady said. “I did not want to get a call during non-business hours from people telling me what the problem was with my property.”

When RV campers pull into a park, they are essentially bringing their home with them.

“It’s kind of just like storage — people are renting space from you and you’re going to increase your rents as inflation goes up,” Brady said. “If something is broken in their house I can recommend somebody to fix it but I’m not getting called to fix it.”

An Industry Primed for More Growth

Brady cites data that shows approximately 10,000 Baby Boomers are retiring every day as his primary market analysis driving his decision to buy an RV park.

“A lot of them don’t have a lot of money, and they’ve worked in factories and put their savings in bonds and stocks,” he said. “People are on a budget and inflation is high, and there is a housing shortage. They are looking to travel and they can’t afford to go to the Ritz Carlton.” 

A study from the RV Industry Association found that the overall annual economic impact to the US economy from the industry is $140 billion, and supports nearly 680,000 jobs paying more than $48 billion in wages. This is a 23% increase in economic output in the past three years.

The $140 billion total annual economic impact includes:

• $73.7 billion generated by RV manufacturers and suppliers

• $35.7 billion by RV campgrounds and related travel

• $30.5 billion by RV sales and service activities

Some of the seasonal campers at Camp at Newfound Lake live in the nearby New Hampshire White Mountain region and rent their homes out for the summer to vacationers. Others are traveling north for the summer to avoid the heat in the south.

“You’ve got snowbirds and a lot of them want to be in New Hampshire in the summer,” he said. “A lot of them like to go to these parks and use them as a jumpoff point for other activities.”

Johnson said the business is seasonal in the Northeast, but parks south of New Jersey stay open year round. The model in states like California, Arizona, Texas and Florida is much different, where snowbirds will stay longer and some parks have a more residential atmosphere.

“Other parts of the country have RV parks where they might also have cabins and resort-style amenities,” she said.

Brady said there are plenty of pitfalls buyers need to be aware of, which include faulty water lines, sewage problems, local permitting issues, and details as mundane as making sure that the tenants observe quiet hours.

“You can go wrong buying a park from somebody you don’t know — you’re dependent on a good transfer of ownership,” he said, adding it’s a business that requires a delicate touch. “You need to have the knowledge and wherewithal on hospitality and how to treat people when they walk in the door.”

Johnson said that RV parks are attracting different demographic groups, but most are looking for a chance to spend time outdoors.

“Over 75 percent of the market share are millennials and they are looking for an affordable vacation and getting back to nature,” she said. “Some baby boomers are not worried about an affordable vacation because they are driving a $350,000 RV.”

Commercial Investors Take an Interest in RV Parks

Most RV parks are still very much a mom-and-pop businesses — a 2023 industry report found that 78% of RV parks in the United States are owned by small, independent businesses, and  88% of parks with fewer than 50 sites were independently owned. 

These mom-and-pop operators typically are not compelled to upgrade their parks, increase income, and maximize value for their investors. The increased demand in the last few years has raised occupancy rates and profits; those who want to sell their parks can demand a premium because investor interest has increased their value.

More sophisticated commercial real estate investors are interested in parks that offer more amenities and qualify for the “luxury” category. These include swimming pools, fitness facilities, restaurants and bars, package lockers, sporting courts, office spaces and dog parks. They also have better security than standard RV parks, individual fencing for each lot and lockable entry gates and other upgrades, such as 100% concrete paving and individual sanitary sewer hook-ups.

“RV parks are an evolving asset class for investors and are becoming more sophisticated properties, similar to the trend we saw with self-storage properties,” John Hutchinson, co-chief executive officer at Trez Capital told Connect CRE in a recent interview. “These properties have great potential as they transition from mom-and-pop run operations to more institutionalized ownership.”

The total RV Market was valued at $7.3 billion in 2023 and is expected to register compounded annual growth rates of more than 5.2% between 2024 and 2032, according to an analysis from Global Market Insights. 

The report goes on to say that the industry is modernizing, and it’s no longer your grandpa’s and grandma’s RV, or RV park.

Newer RVs feature solar panels, smart home systems, and better fuel efficiency, appealing to tech-savvy travelers and others seeking off-grid or eco-friendly travel experiences. These innovations are increasing demand for specialized RV parks with appropriate hookups, and some parks are now offering high-speed Wi-Fi, electric vehicle (EV) charging stations, and green energy options. 

But Mia Johnson says that these professional investors — who may be ready to spend $10-20 million, or up to $100 million — often do not understand what it takes to run an RV park.

“What the real estate investors and private equity groups don’t realize is that these are businesses,” said Johnson, the owner at Northeast Campground Brokers. These buyers are generally not prepared to do what it takes to manage an RV park with hundreds of sites. 

Water and sewer lines need to be maintained, showers and bathrooms need to be cleaned, and somebody has to greet new arrivals and direct them to their site.

“Suddenly they’ve got 40 employees they’ve got to manage,” she said. “That’s not a passive investment. They’re looking for a passive investment.”

With an RV park, you are “running a business, running a hospitality business,” Johnson said.

Johnson said the parks that are most desirable in New England are those that are within about two hours of a city or major population center.

Brady said his goal is to get more seasonal renters — upping from one-third of his sites in the first year to one-half in year 2, which will reduce the overhead and allow him to operate like a more passive investment.

“We want to mold this into something like a storage business,” he said, “so that we have less to do and we need fewer employees to run the place.”

Huntsville, Alabama

The city's population and economic growth, driven by its position as a technology and aerospace hub, provide a solid basis for investment. Huntsville's population has grown nearly 20% from 2010 to 2021, far outpacing the national average. The metro area’s population is expected to exceed 530,000 by 2030. 

Rents have grown at an average of 7.7% annually over the past eight years, and home prices have appreciated by 9.3% annually during the same period. The median home sales price was $339,900 in October 2024, a 2.2% decrease from the previous year, but up from $293,797 in 2022, or nearly 16%. This is less than the median sales price of $385,000 in the US as of August 2024, reflecting the affordability of the Huntsville market.

A Thriving Local Economy

Aerospace and defense dominate, with major employers including Redstone Arsenal, NASA’s Marshall Space Flight Center, and defense contractors like Boeing, Northrop Grumman, and SAIC. The US Army employs some 38,000 people at the Redstone Arsenal, including active duty soldiers, civilians, and contractors. This is up from 14,000 people in 2005. NASA's Marshall Space Flight Center has a workforce of nearly 7,000 employees and an annual of $4 billion.

• Toyota Manufacturing: Toyota announced a $222 million investment to expand its Huntsville facility for a new line of four-cylinder engines.

• Downtown Growth: Huntsville's CityCentre project, including mixed-use developments and new residential units, is expanding the city's urban footprint

Best Neighborhoods:

• West Huntsville: This region continues to see strong growth, bolstered by commercial developments and proximity to amenities.

• Hampton Cove/Big Cove: Located in southeastern Huntsville, this area remains a popular choice for families because of its good schools and suburban feel.

• North Huntsville: Historically underserved, North Huntsville is undergoing revitalization with new developments and infrastructure upgrades.

• Hays Farm in South Huntsville: A large mixed-use development that includes residential, retail, and green spaces.

• Lowe Mill Area: Known for its arts district, this neighborhood has become attractive for residential growth alongside its cultural and commercial appeal.

• Trailhead on Chapman Mountain: Positioned along Highway 72 East, this area is developing with both multi-family and single-family homes

6523 Green Meadow Rd

Newly updated for almost everything, this home sits in a prime spot of Huntsville ready for growth. North of Huntsville, means it’s easy to get into downtown and all that Huntsville has to offer.

The Investment Thesis

→ With the space race blasting off, Huntsville is primed to continue to attract population and industry to support NASA
→ This zip code has seen a 68.9% growth in appreciation over the past 5 years.

 Property Details

 Financial Projections

Interested in Learning More?

*Appreciation based on 6% growth rate. 

Kim Hastie Thrives by Not Growing Attached

Achieving top seller agent status in the cutthroat New York real estate industry takes a lot of hustle, marketing savvy and a mastery of the market. Kim Hastie embodies all those traits, and then some. Her videos for apartment sales, which often include Broadway performers and classical musicians, have set her apart and brought her clients some of the highest sale prices in their category.

She has been involved with more than 1,000 sales with a volume in excess of $500 million over the last 20 years or so.

Hastie has been busy handling her own portfolio since she first bought her first property for $340,000 in San Francisco, where she moved back to in her mid-20s after working in Europe for a few years as the head of duty-free sales for the liquor company that is now known as Diageo.

“The trajectory was a little insane at the time,” she said. “I sold it for $800,000 a few years later.”

Over the years she’s bought almost 20 properties on the East and West coast, avoiding large capital gain tax hits through a combination of using the homes as primary residences and executing 1031 exchanges. She also rented out some of the homes to cover expenses, bought and sold a ski-in, ski-out condo in Snowmass, Colorado, and often took on partners to spread the risk.

“It’s always better to have partners because then you can share expenses,” Hastie said. 

She’s traveled a long way from Saigon, Vietnam, where she was born near the end of the Vietnam War. She and her mother arrived in her father’s hometown Fall River, Mass., when she was two, but did not stay long. 

“We took a bus cross-country because we were so poor,” she said, “and we lived in an SRO until my dad could find a job.” 

Her father landed a job at Pacific Bell, the telephone company that later merged with AT&T. 

“Once he got his first job we were able to move out of the SRO,” Hastie recalls. “We lived in the Mission District because it was cheap.”

Her family moved to Vacaville, a suburb about 55 miles northeast of San Francisco, to a house that accommodated relatives who left Vietnam for the United States. She went to high school in Vacaville, then on to the University of California at Berkeley where she majored in communications. A beverage sales job after graduation took her to Europe.

“When I moved back to SF I looked at buying some properties that I could afford and started fixing them up and flipping them,” she said, saying she bought and sold five properties in the late ‘90s and early 2000s. “After a couple years of fixing up these properties, I realized I should get a real estate license.” 

Her husband, who was working at Pepsi, landed a promotion that brought them East around 2004 and Hastie decided she was going to focus on real estate. 

They took the profits from their West Coast properties and built a house in Little Compton, Rhode Island, that they originally thought was going to be their retirement home (she sold it in 2016). That was four properties ago. These days she has a place in St. Helena, Calif., and an apartment on 150th Street in Manhattan, and is building a house in Hamptons Bays, a seaside community on Long Island. 

“I’m buying and selling every two years, more or less,” she said. “I only sell when I can make a profit. I’m not attached to anything.” 

This interview has been edited and condensed for clarity.

What is your special real estate power?

Negotiating. Getting things sold. Marketing. No one else does my videos for apartment listings. Creative marketing. That’s how I win my listings. I recently hired an actor who was in “The Book of Mormon” to star in a video.

What was the hardest lesson you learned early on in your real estate journey, and how did you overcome that and persevere?

I think the toughest thing in real estate is people always say no. If you can’t take rejection, the industry is not for you. The other thing to learn is that you are going to run into problems with every contractor, every job. You have to be clear with the contractor what you want done and you have to be communicating. I’ve had people put subway tile in vertically and it had to be redone. You need to make yourself available. I go into every project knowing there is going to be major mistakes and I just prepare myself to handle that.

What advice would you offer to somebody looking to get into real estate or grow a portfolio?

You have to be prepared for the market. I’ve had properties that I planned to sell in two years but I had to hold it for four years. You have to be prepared to sell when it’s time to sell. If you have an incredible market you have to realize that it’s time. If there is a downturn you have to be ready to adjust.

Among the strategies a property owner could pursue — long-term rental, mid-term rental or short term, (Airbnb), co-living — what works best for you, and why?

I’m not an Airbnb person at all because I don’t want to deal with a lot of traffic. I prefer a long-term renter because there is less to manage. Our condo in Aspen had a manager on site but we had to pay Hyatt Management a 50 percent cut so that was a big expense. 

What do you think is the biggest issue investors face in 2024 and beyond?

Nowadays if you are investing you need a higher amount of cash flow because everything is so much more expensive. When I started out I could buy property in San Francisco for $350k and now things cost so much more. You have to look for places that are out of the ordinary and not in the most desirable neighborhoods — look at how prices have risen in Harlem in the last 20 years. These days, a lot of my clients who are investors are now buying up in the Bronx.

Lofty

Lofty is one of the latest entrants to the fractional real estate investment marketplace, with a blockchain twist. Founded in 2018 and headquartered in Miami, Florida, the company combines artificial intelligence and blockchain technology to offer fractional ownership of real estate properties. With a mission to democratize real estate investing (can we leave this in the past already?), Lofty is making property ownership accessible to everyone, starting at just $50.

How Lofty Started

Lofty was co-founded by Jerry Chu, Max Ball, and Mark Keane. At the helm is Jerry Chu, whose unconventional path to leadership underscores the innovative spirit of the company. Chu, a graduate of USC with a Bachelor of Science in Mathematics and Economics, went on to earn a Master of Science in Financial Engineering from Claremont Graduate University. A self-taught programmer, Chu's expertise in data science laid the groundwork for Lofty's AI-driven approach.

Initially, Lofty focused on using neural networks to predict neighborhood price appreciation, offering this as a SaaS product. However, the founders soon recognized a larger opportunity to revolutionize real estate investment by removing traditional barriers. This realization led to a bold pivot: fractional real estate investing powered by blockchain.

Democratizing Real Estate Investing 😵‍💫

At its core, Lofty aims to make real estate investing as straightforward as buying stocks. Using blockchain technology, the platform allows users to purchase fractional ownership tokens for as little as $50. Each token represents partial ownership of a property, with investors receiving daily rental income payouts. This setup eliminates high financial thresholds, opening the door to a broader range of investors. Unlike competitors like Arrived, Lofty minimizes steep penalties for liquidity, offering more flexibility for investors.

The platform’s use of the Algorand blockchain ensures secure and transparent transactions, reinforcing investor confidence. Each property is managed as a Decentralized Autonomous Organization (DAO), giving token holders voting rights on decisions such as property maintenance and leasing terms. For savvy investors, the DAO structure also presents opportunities to redistribute risk and unlock liquidity through unconventional strategies during the holding period. 

The Role of Artificial Intelligence

AI plays a pivotal role in Lofty’s operations. The platform employs advanced algorithms to evaluate properties for potential appreciation and rental income. By analyzing data points such as market trends, demographics, and historical performance, Lofty identifies properties with the highest potential for success on its platform. This data-driven approach minimizes risk while maximizing returns, appealing to both experienced investors and newcomers seeking a straightforward entry point.

Why Investors Choose Lofty

Lofty’s model offers several compelling advantages:

• Low Barrier to Entry: Traditional real estate investment often requires substantial capital. Lofty lowers this barrier, allowing anyone to start investing with just $50.
  

• Daily Rental Income: Investors enjoy consistent and immediate revenue streams through daily payouts, a rare feature in real estate investing.
  

• Diversification: Spread investments across multiple properties, reducing risk while optimizing returns.
  

• Transparency: Blockchain technology ensures that every transaction is secure, traceable, and immutable, fostering trust and confidence.

Challenges and Adaptations

As an early-stage platform at the intersection of real estate and blockchain, Lofty faces unique challenges. Regulatory uncertainty remains a significant hurdle as governments work to define and govern digital assets. While a more crypto-friendly political environment in Washington could provide tailwinds, real estate blockchain adoption is still in its infancy.

Additionally, fractional real estate platforms often struggle with profitability. Creating a scalable two-sided marketplace is expensive, requiring significant resources to attract both investors and property owners to platform supply. Lofty’s success hinges on whether its total addressable market is large enough to sustain itself over the long term, something we have yet to see in the industry outside of a couple eREITs like Fundrise. This is a critical consideration for investors, as the stability of the platform they use can directly impact their returns and exit strategy timing.

2025 and Beyond

As of 2024, Lofty is doubling down on its mission to expand its user base, particularly among retail investors. By simplifying the investment process and integrating tools to manage portfolios seamlessly, the company is aiming to make real estate investing as intuitive as online shopping.

For those intrigued by the potential of AI and blockchain to revolutionize property ownership, Lofty represents a bold step into the future of investing. Whether you're a seasoned investor looking for alternative strategies or a newcomer ready to dip your toes into real estate, Lofty provides a compelling opportunity to rethink ownership—one token at a time.

If this future sounds interesting to you, check them out today!

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