Unlocking the Power of PropStream: How to Generate Low Equity Real Estate Leads for Maximum ROI

In the fast-paced world of real estate investing, access to the right data is essential to uncover hidden opportunities. One tool that has gained tremendous popularity among real estate professionals is PropStream—a powerful platform that allows investors to gather property data, perform market analysis, and build targeted marketing lists. For those looking to maximize their return on investment (ROI), particularly by targeting low equity properties with low interest rate mortgages, PropStream can be a game changer.

This article walks you through the process of pulling low equity real estate lists using PropStream. Whether you're a seasoned investor or just starting, these insights will help you streamline your approach to finding properties and increase the likelihood of closing profitable deals.

What is Low Equity and Why Does It Matter?

In real estate, "low equity" refers to a property where the owner has a relatively small amount of equity compared to the total value of the property. These properties can often be ripe for deals such as subject-to purchases, short sales, or creative financing strategies. Owners of low-equity properties may be more motivated to sell creatively, especially if they face financial difficulties or want to move quickly.

Targeting low equity properties offers several advantages:

• Motivated Sellers: Homeowners with little equity are often more willing to negotiate favorable terms.
• Opportunity for Creative Deals: Investors can utilize strategies like lease options, subject-to financing, or seller financing, making it easier to acquire properties with less upfront capital.
• Faster Transactions: Low equity properties often move faster in the market because motivated sellers are eager to offload them.

Now that we understand the value of low equity properties, let’s dive into how you can use PropStream to build a list of these potentially profitable opportunities.

Step 1: Setting Up Filters for Targeted Properties

The first step in using PropStream effectively is setting up your filters. This ensures that you are targeting properties that meet your investment criteria. In this case, the focus is on low equity properties with the potential for quick sales.

• Owner Occupied: Set the occupancy to "Any" so you can capture both owner-occupied and non-owner-occupied properties.
• Property Type: For investors focused on residential properties, filter by single-family homes, condos, and multi-family units. A good rule of thumb is to target properties with at least two bedrooms since properties below that often don’t cash flow well.
• MLS Status: Select "On Market" and include "Pending" and "Contingent" listings. These properties are often overlooked, but deals can fall through, offering new opportunities for investors. Real estate agents are usually aware if a sale is at risk of falling through, making this a critical filter.
• Time on Market: To narrow your list further, you can filter properties that have been on the market for at least 60 days. This helps focus on properties where the seller may be more motivated to negotiate.

Step 2: Narrowing Down with Financial Filters

Next, it’s time to focus on the financial aspects of the properties. One of the biggest benefits of PropStream is the ability to customize financial filters to hone in on the best deals.

• Maximum Price: Set a cap, such as $600,000, for the properties you want to target. Properties above this range tend to move slower, even if they cash flow well. Sticking to properties below this price point increases the chances of moving them quickly.
• Ownership Length: Another filter to consider is the number of years the current owner has held the property. Setting a maximum of four years of ownership can help identify properties with a higher chance of having low equity.
• Equity Percentage: Setting an estimated equity percentage of around 25% helps target properties that are more likely to meet your criteria. PropStream data may not always be 100% accurate, but this is a solid starting point for your list.

Step 3: Selecting Loan Types and Finalizing Your List

PropStream also allows you to filter properties by the type of loan attached. This can be particularly useful for investors looking to target specific financial situations.

• Loan Types: Focus on properties with conventional, FHA, or VA loans. These loans typically have terms that may result in low equity situations.
• Interest Rates: Filter for properties with interest rates around 6% or lower to ensure you're focusing on properties with manageable mortgage payments.
• Unknown Equity: Include properties where the equity is listed as "unknown." Although the data isn't always perfect, adding this to your list can help you uncover hidden gems.

Once you’ve applied these filters, save your search so you can easily return to it later. PropStream allows you to set alerts, so anytime a new property meets your criteria, you'll be notified.

Step 4: Exporting and Organizing Data for Actionable Results

After finalizing your filters, the next step is exporting the data into a format you can use. PropStream allows you to export lists into Google Sheets, making it easier to organize the information and share it with your team.

The key fields to include in your export are:

• Property Address
• Owner Name
• MLS Status
• Mortgage Balance
• Loan Type
• Real Estate Agent Contact Info (for on-market properties)

Once exported, this data can be integrated into your CRM or used to create targeted email campaigns to reach out to sellers or agents directly.

Final Thoughts: The Importance of Consistency

While pulling your first list may seem like a lot of work, the process becomes second nature after a few attempts. The key to success with PropStream is consistency. Regularly updating your lists, tweaking your filters, and reaching out to potential sellers is essential for uncovering the best deals.

As you refine your process and learn the ins and outs of PropStream, you'll find that low equity properties can be a goldmine for your real estate investment strategy. Whether you're wholesaling, fixing and flipping, or looking for rental properties, PropStream is a tool that can help take your business to the next level.

Call to Action

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