Important Filters When Pulling a List
Real estate investing can be extremely profitable, but it requires extensive research and analysis to succeed. One of the key components of this is identifying potential properties to invest in, which can be done through property data aggregators.
This article described a real estate investor from Indiana’s approach to filtering potential investment properties based on various criteria.
The investor starts by selecting the city of Hammond, Indiana, where they frequently buy properties. Next, they mention that one can choose to filter based on county, city, or zip code. After applying no filters, the investor is presented with a list of all the houses in Hammond, Indiana. They then proceed to narrow down the list by filtering based on several factors.
The first filter they apply is the owner-occupied status. The investor only wants properties where the owner is not living in the property, which provides an investment opportunity. They also mention that occupancy status does not matter to them, so they leave that as any.
The investor then narrows down the list further by specifying the type of property they want to buy. They choose to buy only residential properties and exclude condos and townhomes. However, they include multi-family properties with two to four units and five or more units.
When it comes to property characteristics, the investor does not use the bedrooms and bathrooms criteria because they may not always be accurate. Instead, they prefer to include other motivation points, such as liens, bankruptcy, and divorce status.
Years of ownership are an important criterion for the investor, and they prefer properties where the owner has owned the property for at least five years. They also want to include the unknown last sale date because it could include some excellent properties that still need to be updated in the system.
Equity in the property is another important criterion for the investor. They only want to invest in properties where the owner has at least 30% to 40% equity. This helps ensure that the owner has a strong motivation to sell the property at a price that makes sense for the investor.
The investor concludes that the two most important filters to use are the years of ownership and equity in the property. By focusing on these criteria, the investor can ensure that they are investing in properties where the owner has a strong motivation to sell and the potential for a profitable return on investment.
We’ve included a detailed video explaining the important filters when pulling a list.
In conclusion, filtering potential investment properties based on various criteria is essential to the success of real estate investing.
The investor in this article provides a practical example of how to filter properties based on their experience and preferences. By following this approach, investors can find the right properties to invest in and increase their probability of success in the real estate market.