Propstream | Propstream Tutorial | How to Find Motivated Sellers on Propstream

Hey, this is TJ with the Millennial Masterclass, and today I am speaking to Burton Alekondo with Propstream. Yay.

I am so glad you're here. You know, we spoke yesterday for a bit and you just are such a wealth of information in that little bitty timeframe. I learned so much. So I'm glad that you're here. I'm glad that you're teaching us and I so look forward to everything that you have to say.

Oh, absolutely. And I thank you so much for your time. And yeah, there's been a lot of questions and I would say a little bit of a lot of fog about Propstream. So I'm hoping today I can clear that up for everybody.

Awesome. So we are gonna dive right into it. I am going to share my screen with the audience and I'm also going to give you. I'm a login and then I'm going to give you the.

Give you the ability to move around. Is that cool?

Oh, that's perfect.

If it's easier for you as well, I can share my screen however. However you want to lay it out.

Okay. Okay.

So.

I'm gonna do.

Okay, so you should have control of my screen.

Not the mouse. Just I'm able to see your screen. Okay, there we go. All right, so now I can see it here. Okay. So what we are first looking at is when we first log into Propstream. So what Propstream can do is a two part system. We do lead generation, which allows you to build a list nationwide or pretty much anywhere in the United States. You can custom build your motivations, motivated sellers or buyers. You can then save them and export them. Right. That's what I call phase one of lead generation. So in this left side is our toolbar. So you're going to be performing your market building in the search page. So you'll search a county here, apply your filters, and we have over 150 different filters. And once you get your results and save that, we're going to store it in your my properties where you can export your data. Right. Because you're just here for the data. Totally understandable. So that's phase one of lead generation. Phase two of lead generation is to take any of your saved properties or marketing lists that you've saved and skip trace them. We can get you phone numbers and emails or both phone numbers and emails. And we're going to do our best to save you as much money as possible. We're going to let you choose what items you want. We're going to tier Price them for you and we're not going to charge you for any results you don't get back. So that's just our way of trying to help help out as much as possible with that part. Now a lot of people ask, what's the accuracy of the skip tracing? Here's the industrial secret. There's no such thing as accuracy because accuracy actually is dictated by your lists. If you skip trace a bunch of bankruptcies and pre foreclosures, expect an increase of disconnected phone numbers and wrong numbers because again, you're skip tracing a financially distressed list, right? So this is why you never hear an accuracy percentage on our end. On the other end, if you skip trace a bunch of high equity properties or cash buyers, they're going to get a lot. You're going to get a lot of people answering your phone call, right? So just understand that your list will dictate your accuracy and I'll leave that at that. Now that's what I call phase two. Because once you skip trace it, you're going to get your results in the contacts page here in the lower left hand side and you're going to have your phone numbers and emails. Now you can check them off and hit the export button. And then the third phase of lead generation is marketing. We can now take a marketing list that you just built through our database skip trace and got their phone numbers and emails. Now we can create a campaign and you can have as many campaigns as you like. Because the idea is you're going to have an auctions campaign, a tax liens campaign, a buyer's campaign, and we don't want you to mix them all together, right? And so the idea with the campaign section is that you put them in their own little bubble, right? So you have your foreclosure campaign, your buyers campaign, and every campaign you create gets a free website that you can address to that audience only, right? So if you're campaigning to cash buyers, this website should say things like, hey, I have a contract that you might be interested in, right? It has a great return. If you're campaigning to auctions, then that website would probably say things like, hey, we can cash you out before the auction date, right? So the idea is that you get a free website for each campaign that you create. And we know you're going to have more than one. So sky's the limit with as many campaigns as you like. If you want to have 100 campaigns with 100 different websites to each campaign have added. Now once you create the campaign and the website to accompany that campaign, you then get to decide whether you want to send postcards to that list of properties, do ringless voicemails to the phone numbers that you've collected, or send email marketing to the emails that you've collected through our skip tracing.

So there's no, there's no option for text messaging, correct?

Not at the moment. Only because there's a lot of legalities with that right now and we don't want to put it into our system and potentially one of our users is held liable for some sort of situation. So until our legal team can make sure it's, it's, it's thoroughly clear nationwide, then it'll be applied. But for those that still want to use sms, you can remember, export our data. So after you do skip trace and get the phone numbers and emails, when you export it, we're going to put it on an Excel sheet for you so you can upload it to your SMS platforms or your dialer or other marketing platform. Again, these are just additional options. The skip tracing and campaign is just something we've thrown in there to just kind of help you put it within one system. And so that's the first part, Propstream its lead generation to search to get their contact information to market to them. Now, whether you do that in our platform or the next platform, or you do it manually, go to the county, get the contact information manually, send postcards manually, someone's bound to call you. Someone's bound to call you and say, hey, you know, I'm interested in selling my house. It's at that point that you go back to our search page. This time you search an address. Here's an address I was looking at in Tampa, Florida. But the way it works is that when you search an address, we're going to give you all of our data in that environment. We're going to take that zip code and give you the local listings. We're going to show you how many MLS's there are in that zip code, pre foreclosures and auctions and foreclosures. We're going to show you the cash buyers, the liens, vacant properties or properties on answering their mail. So let's just get that clear. Right now it's not vacant as abandoned. It just, these are properties that didn't receive their mail or they were flagged as undeliverable by mail. And then we have high equity. So the moment you search an address, we're just letting you know what's going on. We're going to give you a brief description of the subject property on the right.

Real quick.

All of this that you see at the top regarding the numbers for MLS pre foreclosures options, that's based on that zip code only, or is that the entire city?

No, just that zip code only.

Oh, wow. Okay.

Yeah, it's because when you're searching that property in that zip code, we figured, hey, you know what, is this the right area to get ourselves involved in? Right. Because these numbers are indicators. Right. If we see a high amount of pre foreclosures and a low amount of cash buyers, probably not an area we want to be in. Right? But you can see the opposite. We see not enough pre foreclosures, but we definitely have a lot of cash buyers in the area. So these buyers are just looking for leads and you might be the investor that's going to help them out with that. It's just again, local knowledge. You type in an address, whether it's this address or perhaps my childhood home address in Downey, California. I mean, again, nationwide we can go from Tampa to California, but we're going to take that zip code, give you the local listings and then give you the subject property on the right hand side and a brief description of that. Okay, so whether it's one or the other. Now I'm going to go back to that other property because it had some extra things I wanted to show you about our data. One of the most important ones is the photos of that property. You'll get photos on properties that were listed or are currently listed because of our MLS data that we have. But again, as you pull up the property brief description and the nearby listings down below, neighbors the mls, which is what you see on the map. Right. Pre foreclosures and foreclosures, these are all historical records that we're showing you around that subject property. Now, it doesn't end there because we're also going to give you the statistics of the zip code, whether we've identified price changes and rent changes and how the square footage has trended. We use the MLS data to let you know the listing averages of a three bedroom, a four bedroom. Again, it's all for you to make that best informed decision. Right. Is this the right market that I need to be in or is it not the right market? So all of our statistics are provided to you county trends and county trends and listing trends. And it doesn't even end there. We give you more tools on the map. You can zoom in, zoom out. If the streets turn blue, you can click on the blue streets and we're going to give you ground level view as well. So the final thing with the map is the heat map. Maybe you've never been in this area. So you have four heat maps to choose from. Estimated values, MLS stats to see what properties that are listed in their statistical information. Price growth and rent values. Right. So I've never been here. So let me see what the estimated values look like. And as you can see, they're all in the light blue, dark blue. So 100, 130, 140, $200,000 value. Right, we can see MLS stats. Show me if there's any properties currently listed right now and what their listing prices are. And so you can see there are a few properties listed in the area. Price growth, how has this environment grown in the last three years? You can see there's several properties that have had 100% growth, probably due to these cash buyers going in there buying and fixing up properties. And then we have rent values. What if you wanted to rent out this property? What does my rental prices look like? So this is just the data that we're giving you from the get go once you search a specific property's address. But we haven't even gotten to the details yet because our bread and butter really, when you click on the details, this is our property details page and this is where the story of the property unfolds. So when you go into the details of property, here's what's happening. We're going to give you the dashboard, which takes all of our data from multiple sources and puts it and summarizes it for you. A more advanced or someone that's going to get familiar with Propstream will be able to use this data and make a quicker decision faster, right? But if you're a data junkie like I am, all this information is scattered in finer details through these several different tabs that you see. Now I want you to understand that no two property is the same. This property is not going through many situations like it's currently off market, it's not in pre foreclosure, it doesn't have any liens on it. Right. So because of that, it's not gonna have any additional tabs down here. Now as you can see, we just have property details to comparables, right. Pulled up a property, there's nothing wrong with it on record, so let's go ahead and run comps right after. But you might pull up a property that has a really big story to tell, right. So here's a property I found in Miami and remember that first property pulled up didn't have that many tabs. But let's take a look at this property. This property is going through a pre foreclosure. So we see the pre foreclosure tab. This property is going through liens, so we see the lien tab. It's going through a bankruptcy, so we see the bankruptcy tab. It was listed on the MLS at one point and failed. So we see the MLS tab with the agents information and listing history. So you can see there's been price adjustments. So do you see how no two properties are the same? The layout is the same most definitely, but the story is different. Like this person's really going through some pain. A bankruptcy, there's a lien, lenders want to foreclose on it and they try to sell it on the market and after a year it failed. Talk about a motivated seller. Right. So that's the idea with Propstream is it's a two part system. You're going to build a list and then you're going to market to that list and then someone's going to call you back and want to sell. And when they do type in that address and we're going to have the details to now talk upon. And you might look at details as just details. I look at details as a story. And not only as a story but as ammunition that you can potentially use when dealing with the homeowner. Right. For example, you can see own this property for three years. Right. Well, what if the kids were 16 years old when he bought the property three years ago? They could be 19 now and in college. What are you doing with those extra two bedrooms? Right. So just using the data to talk upon the homeowner. Right. You know what, you're right. I don't know. Why am I paying extra for that? The kids aren't going to come back for the next four years. Maybe I should downgrade, you know, I mean, property's falling apart as you can see in the photos. All right, you're going to see the owner's information. So do you need to talk to one or both of the owners to make a decision? You're going to see property characteristics and building size information and land information like zoning and school districts. Maybe your buyers need to know that information. Legal descriptions, if you're writing out contracts, tax information. So you got the property details and any other tabs accompanying that property. And then finally the owner is going to want to make, the owner is going to want you to make an offer. So in every property details we give you the comparables and nearby listings section. And what this area allows you to do is to see the comparables properties that recently sold. You can see your neighbors and we're going to give you a map too. And this is important neighbors, because you might be in a gated community, a country club, a cul de sac with properties built in 1920s. So to see your neighbors is very important.

What do you think the colors mean for the purple and blue and.

Good question. Those are the sell situations that happen. Yeah. Was that neighbor bought because of a bank foreclosure or a family transfer? Those are very important. Like you can see like this person 11 transferred it to a family member for $21,000. Right. I mean, rarely do family members transfer properties at full price. That's kind of rough. But you don't want to use these variables when running comps on that. And again, it's just local knowledge with the neighbors. For most of our users, they're usually using comparables and cash buyers. Cash buyers to know what buyers are willing to pay in this area. Right. You don't want to lock up a contract more than what buyers are willing to pay. But ultimately, when getting the ARV or the after pair value, our users are in the comparables. The others are just the local knowledge or what we call nearby listings. But if I'm trying to get an after pair value of this property, I'm going to go into comparables. And then users get two options to choose from. Public records, which are official county recorded records, MLS records, which are records strictly from the mls. Or they can put them side by side, both public and MLS records. Now there's a benefit to both. Besides being official records, public records will show you every other transaction as well, just like we talked about. Right. Those cash transactions. So the challenge with that is that if you're trying to get an after repair value and you want officially recorded records, not records from the county that haven't or from the MLS that hasn't been recorded yet. Then go to public records. And what I recommend that you use is choose finance records. These are properties that have been financed by a bank. And most properties that are financed by a bank have been rehabbed. And you can see so yourself by clicking on these photo icons and seeing, you know, was this property rehabbed and sold? Right. And it looks like it has now. That's a good sign because not only do we know what banks are willing to put properties on, like how much banks are going to put a note on a property. Right. 241. But I now know what it takes to get a property to sell for 241 using these photos. Okay? So that's the luxury with public records, they're official. Just make sure you're using finance. That way you're not getting these low dollar values. Okay, now the second thing you want to do is apples to apples, right? If your subject property, which you see here is a three bedroom one bathroom property or 1.5, then that's what you need to filter for three bedrooms, 1.5 bath, year built, square footages, right. You can increase or decrease your distance and most importantly you need to make sure again, apples to apples. If you're comping a mobile home then you're going to need to comp a residential property type would be mobile home, right? Now in this case it's a single family property. So I would just need to click on single family property and there you go. Now you're not done yet because you still have to investigate just a little bit, right? Look at the details. Oh hey, you know what? These are four bedroom properties, they don't apply to this three bedroom property. So I'm going to deselect that. Now you always have to ask yourself why, why did this property, that's three, two, sell for 301? And that answer is to look at the photos. Was it the material that was used? Right. And if the material was like designer stuff, then now we know exactly what it takes to sell a property in this market for 301. If we use the same material, the same layout, the same design and the property has the same characteristics as our subject property, then we can conclude that our property can also sell for 301 as well. Right. So the idea with running comps is ask questions, look at the photos and then choose the ones you really want. And when you do like the ones that you really want, all you got to do is hit actions and view comps report. And what we're going to do is we're going to generate a PDF report for you. It's going to take your results that you selected and the characteristics and do this with them. And it's by far the most beautiful report I've ever seen in our industry. So it takes the subject property, its characteristics, then it's going to show you the listing history, your comp search criteria. Right? You're looking for three bedrooms 1.5, just like the subject property. It's then going to take your results that you got and show you the low, the high and the average. It never gives you the exact arv. Because that's irresponsible. Right? What we're telling your buyers and your sellers is, hey, based on the data, this is as low as properties that are fixed and cleaned up are selling for and as high as properties being fixed and flipped are selling for. Now, if we take those values and average it out, then most properties are selling around 259. They might not believe you. So let's keep going down. We'll show them where those comps are on the map. Keep going down. We'll let them know the sources that you use for your comps. And then if you keep going down, we're going to even summarize every single comp for you and their photos, and they still might not believe you. So if you keep going down, we're going to include the photos of those comps as well. So there's just no questions asked that. This is why I can't give you full price because your house looks nothing like these houses on the market, right? So we can price anchor property. Owner wants half a million. Well, that's not happening because properties are selling for 269 in your market and your house looks nothing like them. So this is why I can only offer you the 130 in cash, 140 and so forth. Does that make sense? So I hope you guys understand our goal is to help you build credibility. Now think about it. When you're a homeowner and you're trying to negotiate with an investor, who brings this to the table. And negotiating is going to be hard when someone knows what they're doing on the other side of the table, right now, on the other spectrum, your buyer, you got a contract you're telling you're going to make. You know, it's a great deal for me. I don't believe you. Right. You got it for 130. You're telling me properties can sell for 260 average? Show me. Here you go, Mr. Buyer. Here's the show you record that you wanted, right? So all that information is there for you guys. So that's how we lay out our property comps for you. And that's just public records. I mean, we could have just used MLS records like agents do when running comps. The benefit with MLS records is frequency. You can see properties that sold that the county hasn't recorded yet, especially because of what's been happening this year. But the other benefit is you can see pending listings as well, and you can see active listings as well, Right? Show me what properties are currently being Listed for. And I think that's a great negotiation piece when you're talking to like a buyer. Hey, Mr. Buyer, you know, I'd like to, you know, here's property I got. It can sell for 269 right now. And these active listings are like now 270, 280. So there's been an increase in market recently. That kind of nudges it right now. Other perspective, right? What if he active listings are dropping in value? Well, that could probably be used for your sellers. Hey, Mr. Seller, look, I'd like to help you out, but look, check this out. Properties are now starting to drop in value. You can see the active listings are lower in value based to what sold last month or two months ago. So the longer you wait, the lower my offer is going to get. Right. So it's all about using that data to help you build that credibility, help you have that ammunition to make that credible decision. Right. And make that informed decision real quick.

Burton. So for the people who are not accustomed to running comps or you're a brand new investor, when you see this date range, let's think like an appraiser that's working for a lender. Normally that date range, they're going to go out six months. They aren't going to go out a year. So you change that date range from today to out six months ago, right?

Absolutely.

Yeah.

What's the date today? 22nd, I believe. Right. Okay.

Right. So I mean, of course we know that we are in a whole brand new crazy situation right now. So when Covid hit, all of this didn't make sense. But houses have not stopped selling during this time. The distance is good. That half a mile is good. You want to make sure that you are in a square footage range.

That is appropriate. So you don't want to go too far over the square footage. Like you know what he has right there?

Yeah. And usually our, our system will default by 20%, but. Okay, you can always override that so you can make it even tighter. 900 to 1100.

I love that you explain that. 20%. Awesome.

Yeah, yeah. Because again, we know that our investors deal with, we have all sorts of data. And I love that you mentioned the distance because this is a very dense area. So half a mile is perfect if you want to go even lower. Like let's say Caleb park up here is in a whole different subdivision and we know that subdivision is a little bit more luxurious, so we can go 0.25 miles if we need to and keep it much, much, much tighter. But we do allow you to go even further, higher, even more. You can go a mile, two miles. You might be dealing with a vacant property or vacant land, farm, a ranch. So feel free to go up to five miles if you need to.

Okay that year. Built is also very important because you cannot compare a property that was built in 1975 with the property that was built in 2007. So ensure that you, you know, if you need to look at those comparables and manipulate that search so that you are looking at it as a potential.

Appraiser is looking at correct apples to apples as usual. It's like a matchmaker. It's a, it's a matchmaker game. You're playing matchmaker. Right. So I love that that you brought that up. And so that's our comp section again, the reports come with your subscription. That's not an extra cost or anything. But just to wrap it up, we give you the tax information on the property details. We even collect mortgage data. So we have identified that this property has two loans, conventional and a standalone second. Right. So they pulled against the property. We can calculate that information. You can get the documents on those loans if you want. It is an additional cost if you wanted to do that. But again, this is as aggressive as we collect data. We, we want you to be able to talk upon how much they owe. We want you to be able to talk them on how long they've owned the property, the liens that they have, the bankruptcy that they filed for the failed listing. Not in a mean sense, but you know, again, just to help you them know that, hey, yeah, I've done my research. I'm really here to help. Even with you going through all of this situation, I'm not running away, are you? You know, and you kind of go from there. So we are going to let you look through the data. That's what's part of your subscription. You can tag properties, let's say we sent marketing schedule, appointment, you can put tags on that property. You can even put notes on that property. You know, huge sports fan. So we can talk about the sports game this weekend and when you apply that, it's going to actually let you save the property. And I won't do that now. But what it's going to do is, is it's going to open up this middle area right here and put your notes right smack in the middle. So when you log in and click on this property next week to follow up. Ah yeah, let's talk about the sports game this Sunday. Right. Build that Credibility. Leave notes on the properties. You can also print property details. How do I explain this to my business partner? Well, just hit the print button. It will give you the property details. We're going to give you an analysis for those running your roi. If you're the fix and flipper, or you're going to cash flow this property, you can punch in your variables, what you bought it for, mortgage being used, income applied, expenses out of pocket, how you're selling it. And then we'll generate a report. Very popular again, for people wanting to know, to amortize their payments. People want to know how this property is going to cash flow. You might be using private money lenders and they want to know their return. You might be using hard money lenders. They, they don't see the same vision that you see. So these reports can definitely help out there. And finally, we also give you the rehab calculator. It takes you to Blue Hammer, which allows you to pretty much shop for your rehab. You know, we need this item and we need that item, or we need to do a complete bathroom rehab. And it's going to give you the retail costs on the parts and labors for that project. Now, key word, retail. Right? And I like that word because when you say, hey, Mr. Mr. Buyer, I did your rehab report, but I use retail prices, that's good for them because they know they're always going to beat retail prices. So if you say, yeah, the bathroom retail price for rehab is 15,000, they're thinking 10,9000. Because their contractors can beat it. Right. Which means that they're going to get more money on the deal. So just be safe and understand that the rehab calculation is going to give you a retail price.

So when you say retail price, is that a regional retail price or is.

That like zip code base? Oh, zip code base. Yeah. We work with a company called Bluehammer. It's. They work with companies like HUD and AIG Insurance when there's like a property damage. Obviously in the past they would do regional and then they realized, whoa, like, we're overpaying to some areas. So we actually send the subject property and the zip code to Blue Hammer. And what they really do is they go through all the invoices that are publicly reported when a property is being rehabbed, and they look at the line items and then they say, okay, these are the line items that are performed on that project. Here is the cost per each line item and how many hours it takes, and then that's their value. But again, it's all retail. Based, Right. So some of the invoices could be the, that it is a discounted job. Some of the invoices could be at full price. So that's why it's an average. And I usually kind of just be cautious when you present it. Just say, hey, you know what? These are retail prices. I looked online, you know what I mean and this is what I believe it needs to be done. What you're trying to do is you're trying to just kind of anchor the buyer by not saying, hey look, your rehab should not be more than this. It could, you know, so you always want to forward it. But the idea is by saying retail, it's kind of nudging them saying hey, yeah, you know, it's 15,000 retail to a buyer who's been doing it for 15, 20 years, who's worked with a contractor for 15, 20 years, they don't ever look at retail. They always look at, you know, what they can do on their end. And 15 to a very well established buyer is usually around 10, 11,000 within their contractor. And the prices that they get that best friend discount. Right.

So that is our analyzing of a property. Again, we're a two part system. Build your list and market to it and send your get skip traced information and then when they call back, we got you covered. We're not going to leave you in the dark. We have the ability to run comps on properties. Now I do want to kind of revisit the lead generation part because a lot of people don't realize what amazing things you can do with Propstream. So for example, there's two ways to search in Propstream. You can pull up a county like Harris county and we're going to tell you all the results. Now you can go through the 1.4 million records if you want, have at it. But we're going to categorize them. We're going to show you the MLS listings and the pre foreclosures and auctions. But here's the first way of searching records in Propstream. You're going to pull up your county and then go into the filter and you're going to choose one of our quick list choices. What is it that I want to start off with? Well, I want to start off with the high equity properties and from there you can start refining your search by adding additional filters. Now feel free to stack and suppress. Stacking means taking two categories and putting it together like for example, high equity and vacant. Right? Because we have vacant data. Not only that, but we have MLS data. So show me the high equity properties that are vacant and they failed on the market. And actually they failed on the market this year. So they tried to list it in 2020. Covid probably prevented it from selling. So here are my high equity vacant properties that failed in 2023 categories, high equity, vacant, MLS status. And then we have more categories, right? We could stack a pre foreclosure category to it because we have pre foreclosure. So how many of these properties are also facing a default or an auction? That's four issues, right? Or three issues high equity. The three issues are vacant, failed, and you have a default in auction, right? We're constantly stacking and driving that motivation even higher. Now, you can also suppress, right? Let's say that these six properties that I have here, all these other investors have already called them. And you know, I don't want to waste my time with properties that have been bombarded with marketing. So what we can do is we can stay away from pre foreclosures. We can say, you know what, exclude the pre foreclosures. Let them call the pre foreclosures. I'm going to call the people right before pre foreclosures, the failed listings that are vacant, right? Because I know if that property doesn't sell and if you don't fulfill that vacancy, that you're probably going to end up heading into pre foreclosure, right? So as much as you can stack like I did, you feel free to suppress. You can take away from your records, you have ownership info. So you can do some amazing stuff like high equity. It's vacant, owner has owned it for four years or more. Heck, the owner is a person who doesn't even live in the same state, right? And with COVID I mean, who's flying anymore? Nobody. Right? Here are those four properties that are in trouble. It's not being rented out. They try to sell and it failed. Owners are living in a different state and they just can't fly over to the property easily. Right? So lots of filters for you to get creative in terms of adding to your original list. You have lien information. So again, we can stack liens and bankruptcies and divorces to your list. You can specify the liens that you're looking for. You can suppress. I don't want any bankruptcies. I hate dealing with bankruptcies. I hate dealing with liens. I hate dealing with divorces. You can stay away. That was the whole purpose of these filters is to allow you to have full control of what you want to deal with. Instead of coming across it and then saying, sorry, I gotta go, right? Like that's not what we wanted you to do. Right? You also have valued equity info and then you have mortgage information you can filter. So this is the first method. This is what I call the traditional route. This is what many of us are familiar with. We search an area, we start with one list and then we use the filters to refine that many platforms out there have the same setup. I just don't think they have enough filters like we do. However, when you hit close, there are your results, right? We started with a million records, landed with 154 high equity vacant failed listings, individually owned. Now we can check them off, add it to a marketing list that we had already or create a new one, then skip trace it, then send marketing. And if anybody calls back, we can search the address and run com sign, right? So this is the first way, the second way of building leads. Understand you're not here to build a list. Understand that this industry is not about helping a list, it's about helping a person, right? And I think that's where we kind of got lost. We got lost because in the heyday, that's how we found leads. We had to go to a source and choose a list to start with, right? And that's what we have. We have that ability to choose a list and our filter and start with that. However, because we've been doing this for 15 years and we finally realized many years ago that investors aren't looking for a list. They're looking for an individual who's facing a predicament that has a high probability of wanting to sell their house to you at a discounted price. So here's what you can do. This is what I call the propstream method of searching is don't even choose a list. Build your problem, right? Here's an example of a big problem. 2020. You can't evict anybody that's renting out your property not paying your bill, right? That's an issue. Landlords are pulling their hair out because of it. So let's go look for those guys. Let's look for a non owner occupied property that's occupied by a tenant, and that tenant or the owner is an individual who happens to live in a different state. So think about that, right? If there are people renting out a property in a different state and there's someone there, and if that person doesn't pay the rent, you just can't fly to that property easily, right? What if that person is not answering the phone anymore. What if the rent didn't come on the first? What do you do as an owner in a different state? You're starting to panic, right? To make matters worse, I can go into the mortgage information, say, how many of these properties are actually renting with a mortgage on it, too? Because there's a lot of owners that took that risk. Well, hey, I'm going to get a loan on this property and then I'm going to rent it out for a little bit more and I'm going to pocket that difference. And hey, that's a great strategy. But when you have 40 million people filing for unemployment, well, there are sure some of these homeowners here that are now facing a tenant they can evict that isn't paying the rent, who's living there for free, and that homeowner is in a different state. So what do you do now? Right, so that's the new way of searching is you go into our filter and you just build that problem that you want.

Real quick. Real quick. Let's stop there. I want to give them a lesson on if you found that scenario, how would you approach that homeowner who's out of state? Somebody is in their house not paying the rent, and they still have a mortgage to pay. How would you approach that person?

Be myself?

Yeah.

Well, definitely, we want to make sure we are sympathetic to the homeowners. Everything. Okay. Now we have to understand the homeowner. This is a thing that I learned a long time ago. My mentor told me a term that we're very common with, and I used to do this all the time in my college year. But it's living paycheck to paycheck. Right. And that's a very common term. And again, I'm guilty of it. Right. But there's also a term that he taught me. It's called living rent check to rent check, meaning that there are landlords out there that need to have that rent paid every month because if not, it disrupts their whole lifestyle. Right? And this is what my mentor taught me. You ever realize why some landlords are really happy and some of them are really grumpy? The grumpy ones are the ones that are living rent to rent because if you don't pay, they get grumpy. Right? Because they need to pay for that vehicle they lease that they should have never leased because it was expensive, but they're only leasing it because you're paying the rent the moment you stop paying the rent, that Mercedes that they should have Never leased is now in trouble, and that's why they get grumpy with you. Right. So you have to be sympathetic, first and foremost with these homeowners that are renting properties in a different state. Second, if you've probably visited the property, they're probably going to want to know the condition. Right. What's going on with the property. Right. So be sympathetic. Understand, you know, that they're in a different state. And then I would start asking if you can probe politely the financial situation, how has this impacted your business? Right. You know, I see in my records that there may be a mortgage on the property. Are they paying? Are they not paying? Now, you have to understand that that could be an impactful conversation. So probe very lightly when it comes to that situation. And then finally, you know, I mean, what solutions can you provide? Right. Can you be a person that can cash them out, take care of that mortgage, and then, you know, you're the one that's going to deal with the tenant. So, hey, Mr. Mrs. Homeowner, look, we can cash you out. As for the tenants, don't even worry about it. You know, we'll take care of it. We've dealt with tenants who didn't pay before. You know, maybe we'll renegotiate with them. If they don't do any, you know, if they don't pay, then, you know, we'll worry about the eviction and all this other stuff. Right. Let us just get you out of this situation. And that's essentially what most investors I've become like I've come across Nationwide approach. It just. You have to be sympathetic to both audiences because the tenants, again, they might have gone through something.

Yeah.

Maybe they are rebuilding themselves. So I always, from the investors I've spoken to Nationwide, everybody gets an opportunity, the tenants, the homeowners. But as long as you're sympathetic to both situations, then I think you're going to be able to approach that effectively, period.

Awesome. Thank you for that.

Yeah, absolutely. But I hope this guy's enlightened you on how to build leads. I always say build situations that yield high probabilities. A simple definition is build problems. You know, go to Harris county, look for the person who doesn't occupy their property and it's vacant and it's sitting on two mortgages, because that's a headache. Why would you have two mortgages? And it's being vacated right now. Right. So you. These are the hidden gems that people are overlooking because we got so used to. Okay, I have to go get a list. Well, when you have 150 filters to choose from and the ability to no longer choose a list. Well, sky's the limit now, right? A property with two mortgages and it's built in 1920, 1920 and 1950. Right. Want old properties that pulled against it? Well, there you go. Here are your results on the right hand side. Have fun with that. And just as the cherry on top, we do have the mobile app as well, which allows you to take this data on the go. It has driving for dollars features like skip tracing on the spot, sending postcards on the spot, and we even have the ability to run comps on the spot too. Again, all of our data that we just went over is transferred over to our mobile app as well. But. But that's prop shrm in a nutshell for you.

Well, thank you so much. So I have a question. I want to talk about what we spoke about yesterday regarding the data. So I have mentees currently in Atlanta, Georgia, Texas.

As well as Virginia and Florida. And we talked about the pre foreclosure information yesterday in Texas. And what did you tell me about that as far as the.

Yeah, there is a misconception. First, let's clear this out. That somehow we're connected to this data live. That when a property is sold or property is recorded as pre foreclosure, that we're supposed to have it immediately. And that's not how this works. We're what we call a data aggregator, right. These records are initially sourced or recorded at a source county and a broker, postal service, a mortgage company, a lien company. So the data is recorded at a source and then we go in there and get that information and send it back to our data, our database. Right. Now every county is different, right? Like when it comes to Texas, they only do auctions first Tuesday of every month. And most of their pre foreclosures are usually released to the public like on the 1st and like the 15th. And when I mean release the public, I really mean like on a clipboard. Here you guys go have fun. Right? So for those of you guys that collect pre foreclosures in Texas, you know what I'm referring to. So we're no different. We're in that same crowd, looking at those records, writing it down and then getting it over into propstream to where it lands and one of these two boxes. So it's not live data. There, there is a delay for two reasons because of how it's collected. And the second reason is because we don't just give you a copy and Paste of what we just collected. We take those pre foreclosures that we have, and when you click on them, it ties it in with our other details. Like, oh, hey, that pre foreclosure is currently on market and it's pending. Don't need to deal with that pre foreclosure. No need to send a postcard to it. Right. You see how important that is and why it takes time for us to get it and then put it in here and then us to connect the two so that you know what you can deal with and what you can't deal with. But also it allows us to allow you to weed out that property. Like 209 Visconte Boulevard is obviously on market. So I can say no on market, and it's immediately gone out of our records just like that because of just us being able to piece the two data sets together. Well, 11 data sets together and many, many more. So every county is different. Texas usually 1st and 15th and every Tuesdays are the auction. When it comes to, like, Atlanta and California and Miami, every county is different. So some of those counties are giving us their data every day, every other day, once a week. But then you got to remember 2020 has thrown everything upside down. Right? Data is recorded at the county courthouses, counties, they're all closed right now. Well, some of them are reopening now. But that has impacted the recording. Like, remember the statistics I was showing you? Like, if I go to Dallas County, Texas, remember, this is why we collect MLS and county records. But in Dallas county, the county has only recorded 31 homes sold in the last 30 days. The MLS that we have recorded 3,000 records sold. Right? So evidently the county is struggling with recording these properties. So that's why I wanted to explain to you guys that this is not live data. It could. Well, hopefully in the future we can get there. But this data is aggregated, so there is a delay. But that's why I explained suppressing data. If you're frustrated that our pre foreclosures are two, three days behind, hey, totally understandable. So I challenge you with this idea. Nobody wakes up in pre foreclosure overnight, right? You're frustrated because pre foreclosures aren't getting to you fast enough. Hey, let's curve that thought a little bit, right? I'll give you an idea. A lien turns into a pre foreclosure if you don't pay for it, right? So let's look for liens that are off market. Here's the kicker. They're not in pre foreclosure yet. Right. So we're going to get to them before they turn into a pre foreclosure. Here's another kicker. How do I know that lien is going to turn into a pre foreclosure? So the amount on that lien is 5,000 or more now. So you're not in pre foreclosure yet, but that $11,000 tax lien that you have here on the right hand side is probably going to cause that pre foreclosure. Right. That $9,000 hoa lien haven't been paying your ho fees. Yeah, that's going to cause a pre foreclosure. So again, you have to understand that nobody just shows up in pre foreclosure at night. We have several categories that are early indicators of soon to be very motivated homeowners. And that's just a perfect example. And again, you can stack right liens not in pre foreclosure yet. They have 5,000 or more on it. Hey, guess what? They tried to sell with an agent and it failed. Right. So now when I call these homeowners, hey, I see that you tried to sell your house and couldn't do it. Have you considered this strategy? What strategy? There we go. We go from there, right? So that is essentially how our system should be approached. Either take the traditional route, search and market, choose one of our 14 categories and then build upon that, or just don't even choose a category. Go into our filters, sit there and think about, you know, what would cause a homeowner to want to sell me their house at a discounted price. Aha. Put in those filters. These are your results that you're going to get from there. You can save them, skip, trace them, and then directly market to them as well. And then if you do decide to visit the property, take your mobile app with you because the details will just carry on over for you.

Awesome. So another thing that I want to make sure that everybody knows is Texas. The houses are foreclosed in basically 41 days. A homeowner will get a 21 day notice of default. They have 21 days to cure that. And then they get a 20 day notice of acceleration. So that notice of default, that's not advertised, there's no requirement that that's advertised. Isn't that correct, Burton?

Yes, correct. And that's why in like Dallas, you notice that all pre foreclosures are the same with auctions, because they go straight to auction. There's no notice of default. Where like if we go to it's.

Not public information is what I'm saying.

Exactly.

There's no requirement or law or act that says you have to record that publicly so it can go straight to auction.

Exactly. Whereas like in Los Angeles we have that luxury where we get the notice of default first or a less penance where the bank actually has to take the homeowner to court and then the court decides whether there's an auction or not. So you're absolutely right. Some markets like Dallas, Atlanta is another one where it just goes. Well like you said, they don't record the in between it just once it's in pre foreclosure, it's a notice of trustee sell it has an auction assigned.

To it immediately when we get off the call. Can you do me a favor so that I could give them like it doesn't have to be a long list, but if you have a list that says or where I can find it. What state.

Give you that type of advertising advertisement for notice of default and what states don't.

Yeah, yeah, I can get, I think, I believe I have a list that shows you the states that are judicial and non judicial and the potential documents they typically record within each state.

Perfect. Well, awesome. So you are so awesome, Burton. I know that my audience and Definitely everybody on YouTube and Facebook are going to love this video because I have, I've been using this platform. I mean I was on a grandfather program, right. So I've been using it forever and I learned a lot. So I thank you for your time. You have been amazing. For those who are watching, we have a link down below where you can get a seven day free trial of PropStream. Make sure you click on that link. Check it out. This platform is absolutely worth it. I haven't seen and I've tried a lot of platforms, there's nothing like this on the market right now. They have certain aspects of it and other aspects they don't. But nothing is as encompassing as this piece of software is. The guys at PropStream have really worked on it and done an absolutely amazing job. Once again, Burton, I want to thank you. And with that said, we're out.