In this video, we’ll unveil the secrets to successfully identifying motivated sellers in the competitive world of real estate.
Whether you’re a seasoned investor or just starting out, our expert tips and strategies will guide you through the process, helping you uncover lucrative opportunities in the market.
From targeted marketing techniques to leveraging online resources, we’ll equip you with the knowledge and tools needed to connect with motivated sellers, secure great deals, and advance your real estate career.
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Transcript:
Jamie Bounds 00:00
Hi, Burton, thank you so much for joining us. You can unmute your microphone for us, please.
Burton Alicando 00:04
Great. Hey, how’s it going? Thank you for having me. How are you guys doing?
Jamie Bounds 00:08
Great. It’s been an awesome day. We’re so excited to have you on here. A little bit about Burton, he is going to talk about finding motivated sellers. Burton is the Senior Product Specialist at PropStream, which is a data and analytics company for real estate investors and agents. He has trained thousands of investors on how to use better data to find better deals. So thank you so much for joining us. Go ahead, take it away.
Burton Alicando 00:38
Absolutely. Thank you so much for having me. So first and foremost, I’d like to explain are what PropStream does. So PropStream started in 2006. We actually started, I always have this with me, just so we can remember that we started in the software era. So you used to have to install rostering. And in the past, our goal is still the same as it is today, which is to go get records on your behalf. Right. And those are public records, records from third-party aggregators, mortgage information, and HOA information. And put it all on a platform so that you can easily read that information. Now, the main goal with that data was to essentially paint a story on an individual property.
And this is where that led us today, a realtor just like yourself, an investor, banker, contractor, or anybody in the real estate space for that matter can go in PropStream. And immediately on our search page, zoom in on a market. Maybe it’s somewhere in North Carolina, like Riley, North Carolina, maybe the homeowner has a property, maybe it’s their mother’s property, maybe it’s a cousin’s property, but you’re going to be able to go into any market, zoom in and click on a parcel and immediately get four important things, which are property details, mortgage information, situational data or like they have multiple properties.
In this case, they bought this one in cash back in 2019. And last but certainly not least, is the comparables to be able to look at public sell data and get an idea of what the market value would be for this rehab property or this property if it was rehabbed. And that’s not the point of today’s presentation. But I needed to paint a picture of such data, so much data, that we can paint a picture for each individual property on a nationwide level. Now, that’s one aspect of our business, analyzing an individual property, you know, negotiating with the home over the phone, obviously, looking at our details page and using that, to build confidence to ask the right questions.
And again, maybe run a comp and print our comps report. But the other most important part about profit sharing is the same fact that we have a lot of data. And so what I’d like to share with you today are two different ways that you can build a list and profit sharing and I’m gonna give you some best practices along with that. And before we go into the two best ways to build a listen to PropStream. The first thing we need to do is search for a market. And let me zoom in a little bit for us to see a little bit better. But the first thing we need to do is pull up a market.
And in production, you can either search by a county, a city, one or up to five zip codes. Another feature, not too many people are utilizing is our draw search feature here at the top left. Now, before you begin a search if you need any assistance or guidance on where the hot markets could be, on the map itself, at the top right, we have a heat map. And this heat map can show you estimated values, MLS that’s like listing prices, price growth and rental values. Now, nothing’s going to happen right away. Because each category has a subcategory. You’re going to need to select. So once you choose the category, click on a subcategory and select a subcategory. So in this case, if I choose estimated values, I can see where all the million dollar properties are in United States.
All the properties within $100,000 and everything in between MLS. That’s is what MLS data look like. Show me all the listing prices and you know what the listing prices match up that estimated value. Again, we’re using data from multiple sources to paint this picture for you. My personal favorite of the bunches the price growth. Right. If you’re not familiar with your market or you’re endeavoring into a new market, use the price growth. Show me how that area has grown over the last year. And now, you can see the markets where there have been over 100% growth markets that have taken a loss and everything in between. Maybe, you’re representing an investor buyer who likes to rent out properties. Rental values, you can see rent prices on a nationwide level.
Read our properties renting for $5000, or more makes sense, they’re by the coastal area. Right. Properties $500 or less everything in between. And you can even use that on top of a search. So you can say, “Hey, I’d like to see how this area has grown over the last year.” And show me, Richmond, Virginia. I can zoom into Richmond, Virginia, again, or county or zip code, and the heat map will still stay there. Or another cool option is that draw search feature. Once you’ve highlighted an area, you can use our draw search feature and draw out your own shape through several left clicks. So left click, left click, left click. Essentially, you’re making your own shape. Once you have your own shape, enter on the keyboard. So the main point here is we need to get to a market. So you can search by county, you can use the zip code feature, you can use the city feature, or the draw for search feature and feel free to use the heat map along the way. Okay. Now, let me clear everything.
So we’re back to a clean slate here. But let’s go ahead and assume we’re gonna pull up a market. And let’s use a different market here. Let’s use Denver, Colorado, I know why. But the cold has gotten me thinking about maybe Denver, probably cold out there right now. I can only imagine. But I’m in Denver, Colorado. And the first thing that happens when you pull up any market, a county, a city or zip code is we’re gonna give you the collective total results that we’ve collected on your behalf. Right. So there are over a quarter million records that I can go through. And if I wanted to, I can go through them manually, one at a time. And I can click on Next to get to the next page. Next page. There are over 5000 pages of 50 properties per page. I don’t recommend going through them one at a time. Not the point here, right time. Point is to be smart. We are one of our models is working smarter, not harder. And I don’t think going through each property. I mean, even though we have the details of each property. So I can click on one of them at a time.
Hey, David, I see you have a lien. I see you have multiple properties. I see you have a mortgage on this property. Yeah, you might be motivated, let me call you. Right. Let me reach out to you. To do that across the board. It’s going to take way too long. So to help you out a little bit, we’ve categorized them into our first eight categories. We’ve taken those records and we’ve broken them up for you. So we’re showing you how many of them are on the MLS that we’ve been able to capture on your pre-foreclosure, auction, bank-owned, cash buyers liens, and vacant high equity. So whether it’s Denver or the homeowner in Denver says not my house in Denver, you kidding me? That’s my vacation home. I like to ski. I’m talking about my property in Atlanta, Georgia. Ah, okay, we can search Atlanta.
The same thing happens to 300,000 records, they’re broken up into individual categories. But what you need to get familiar with is our search filter here on the right-hand side. Now, if you know you want auctions and that’s it, yes, you can click on auctions. And then just go through the 212 properties here. But once you’re done with that, you’re probably going to need to click on another category. Right. I recommend, after pulling up a market, whatever your market is, get used to going into the filter. And here’s why. These eight categories that you see here are the first quick list choices of our filter. So you’re gonna see the market all the way to high equity. Right. And 10 other options. Tired landlords, senior owners, zombie properties, which are pre-foreclosures and vacant properties combined. Right. Flippers. These are homeowners that bought a property and now they’re listed within two years of that purchase. But let me make things even more easier for you because not only do we have 18 categories, we have over 120 plus filters. It doesn’t look like it but if you click on property characteristics, you get more characteristics or filters.
If you click on MLS status, you get more filters, pre-foreclosure Banco and you get the pre-foreclosure filters and so forth and so forth. So I decided to create this PowerPoint to show you the two different ways you can build a list of PropsStream. The first way I called the traditional search and prior to PropStream and even today, investors and agents have been doing this. There’s nothing wrong with this. This is actually the way you should be building your list. If you’re starting or again, just trying to get into this and getting deals. Right. But there are different ways to build leads. And the other ways the four golden rules search, but we’ll get to that in just a second. Let me show you how you can build a traditional list in PropStream or search traditionally. The first thing you do after you pull up your market, in this case, Atlanta, is you’re going to pick a list. So once I go to Atlanta, gonna go to the filter, and I’m gonna pick a list.
And now this could be, again, vacant properties could be liens, it could be all the senior owners in Atlanta. So instead of 300,000, records are now down to 25,000 records. Now, we don’t want to mark it to 25,000 records, that’s still quite a bit of marketing money. Right. So I’ve noticed over the span of nearly 10 years of working with proper human investors and agents that there are some best practices. And those are the following three steps, which are after you pick a list, let’s make sure it’s off-market. We’re not needing to buy from the realtor. Not that you can’t, but probably easier to do directly to seller. Right. Speak to the homeowner and get them contracted. So off-market that can be found in our MLS status. Why? Because if a property is off-market, we need to have that MLS data and we have that. So I can go to MLS status. And in regards to the SR owners that 25,000. I can see the ones that are on market by hitting “Yes” or by hitting “No” and seeing the ones that are not on market, or both. Most of us are going to probably aim for the off-market one. So make sure you hit “No” here.
Now the third role is equity. Right. We don’t want to have the homeowner bring money to the table when they’re listing their property. Investors as well. Most investors want to get equity, so that when they buy the property, and put their rehab in there. There’s still enough equity. Right. After the price goes up from the rehab to sell the property and not trying to buy a property at over market price and then rehab it and then not be able to sell it because the market value is lower than what you invested. That just doesn’t make any sense. So I’ve noticed equity tends to be the third rule and best practice that our users apply. And that can be found in the valuation and equity section here. I’ll see users go in there and they’ll put the percentage, maybe it’s like 10%, minimum, or maybe it’s a 50% to 60% in this case.
Last and final characteristic or best practice, I see in the traditional searching is this before PropStream and with PropStream. And I’m sure going forward, we’re still going to be doing this property owner characteristics. So users will go to our property characteristics can say, you know, I’m looking for a residential class. I’m looking for commercial buildings. I’m looking for office spaces,. Industrial vacant land. Most of us are probably in the residential space. So we’ll click residential. And then we can go to the property types and specify what residential property. Is it a duplex? Is that a car condominium? Is it a triplex? Is it a quadruplex, mobile home or single family? Dad’s bathrooms, and school district search numbers of stories in an HOA, not an HOA. All property characteristics are available. Owner characteristics. I’ve noticed is usually the last stop for most searches.
And that starts at the top, do you want the owner occupying the property? Yes, I mean, you knock on the door, and they should most likely be there. Do you want the owner not to occupy the property? No, and so forth. Ownership info is the next final area. This allows you to specify owner corporate own and so forth. Let’s say individual in this case. When you’re done, the Close button here is at the bottom and now your results are on the right-hand side. This is the traditional search that you can do in profit sharing. So what you’re used to already. Go into the county grabbing a list. Refining it you can do in production. What I’m about to leave you guys off with is what I call the four golden rules. And this is something that you should pay very close attention to. This will help you find leads or leads not being found. Right. I call this finding homeowners situations. That’s the power of data. I took two three and four of those rules and I made it the first thing. So if I go to Atlanta for example.
Before doing anything else, I’m going to make sure it’s off-market. That’s in the MLS. I’m gonna make sure as equity in the equity section. Let’s say 60% once more. And then, I’m going to put my property characteristics and owner characteristics. Maybe for this one, we’re looking for residential and single-family properties. Now, for owner information, this is where I can build a situation. I’ll show you an example. One situation to be individually owned properties, but not just a list of situations but rather than choosing a list. How about I create one and that one being individuals that bought a house in 2019 to December of 2019. And also in our mortgage information section, specify that they have a single mortgage as well. There are 324 properties in this market that bought a property with a mortgage a year before the pandemic. That’s the situation.
They’re probably regretting that. And that could be a listing for some of us. Right. So I want you guys to start thinking of situations, this is just one of them. And, again, it did not rely on that traditional method of choosing a list. I just said, “Hey, you know, if there’s a pandemic, I’m sure people that bought a house might be regretting it. Maybe we call this the regret lists.” Right. So these are 324 that bought a house in 2019. No one knew about the pandemic. I’d have had a hinge but no one knew about it. But 324 individuals bought a property with a mortgage. Maybe we should be checking up on them. Here’s another one I can give you. And take this away realtors, I saw a realtor look for properties that had three bedrooms, but with one bathroom maximum and a minimum 1000 square footage. Here’s the situation though, not only do you have one bathroom but you’ve been owning this property for 10 years. So this is what she called the “I need to upgrade my property list.”
Because you have 3435 properties that are market that all have one bathroom. These are probably families with small children at one point, but 10 years have gone by they don’t have small children anymore, probably teenagers, and they may now need upgrade. So ladies and gentlemen, this is what PropStream is ultimately about not only just the property details of the homeowners who need upgrades in this scenario but the ability to manipulate our data on a nationwide level, to not just find things that we have on a list, but to find situations that others are potentially overlooking. If you get good at that, I mean you can even mix it up. You can pick a list like a senior owner property, not just any senior owner, but a senior owner, that’s perhaps in a two-story building. Have we considered maybe senior owners that haven’t gotten to the second store in months or maybe years.
These are potential listings right here as well. So once you understand traditional and four golden rules, you should be good to go. I see a very powerful question here. And that is, how frequently is your data updated? Right. That’s a tricky question. Because if you caught on we have so much data. So here’s the best way to check the frequency of data in your market. Once you pull up your market. Let’s say your market today is and I’m gonna pull up a random one. Let’s say it’s Salt Lake City today. Pull-ups your city, your zip code or whatever it may be. Use this feature right here. It’s the spreadsheet feature. By clicking on that you can see the last updated. And if you click on that twice, you can see which record which property was the most recent updated. You can even do that for individual categories. You want to know what’s the most recent MLS listing click on it, MLS. Hit that tab, last updated. The most recent listing we had was three days ago, pre-foreclosures.
Again, same thing. The last updated when it comes to pre-foreclosure records, was seven days ago. No two data sets are the same. This is the best way to identify how up-to-date that data set is in that market. Thank you guys so much for watching. My name is Burton. If you guys have any questions regarding PropStream, I highly recommend you visit our website, PropStream.com. We do live webinars, Monday through Friday starting at 3pm, Pacific Standard Time. We also have a free PropStream Academy course. So if you guys want to learn more about PropStream and just prop stream alone, check out our academy. Again, it’s free. There are quizzes, you even get a certificate at the very end once we teach you everything about PropStream. So thank you guys so very much, Chris. I give that back to you, brother.
Chris Bounds 19:35
Yeah. Thanks very much Burton. Um, I mean, regardless of what market you’re in, especially in real estate, this is data, everything’s with data, everything you’re doing marketing, it’s all about data, better data, how to organize. And actually, the data actually can be a problem because you have too much data you can’t make sense of it. So being able to organize and filter and then process and know how to use the data to maximum effect. That’s the Power. The folks can use the best data, the most accurate data and then implement good marketing on top of that. That’s how you can get better deals and more deals. So, appreciate it. We did put property names links in the chat. Thank you so much, Burton.
Burton Alicando 20:19
Thank you so much. Have a wonderful day, everybody.
Chris Bounds 20:21
You too.