How AI Can Save Real Estate Investors Hours on Market Research

Disclaimer: PropStream does not offer legal advice. This article and the PropStream Intelligence (PSI) Assistant are for informational purposes only. Consult a financial and/or legal professional before investing in real estate. 

These days, real estate data is abundant. Anyone can look up property details online and in public records. However, organizing and analyzing this information quickly to make smart investment decisions is what sets the pros apart from the amateurs. After all, time is money.

In this article, we’ll explain why manual market research is holding you back, the benefits of leveraging AI for analyzing deals, and PropStream’s new Intelligence Assistant to help you work smarter, not harder.

The Cost of Manual Market Research

A lot of property data is public record. For example, you can access any property’s ownership history, liens, and mortgage information from the local county recorder’s office or county clerk, if you live in a disclosure state.

However, scouring through public records can be tedious. You’re often using outdated software (if any) to search through reams of files that aren’t always well-organized. You may find yourself on a wild goose chase, spending hours searching for a single data point.

By the time you find what you’re looking for, you may have wasted valuable time on a property lead that doesn’t even meet your investment criteria. But there’s a better way: PropStream!

Related Read: What Are Disclosure and Non-Disclosure States?

How PropStream Changed the Game (for the Better)

PropStream aggregates real estate data from public records, the MLS, and other sources to give you information on over 160 million properties nationwide on one platform. More importantly, it makes the data searchable with over 165 search filters and 20 expertly curated Lead Lists.

For example, you can choose the Senior Owner Lead List and stack filters like equity % and number of stories to pinpoint empty nesters who are ready to cash in that equity and move to their dream retirement community.

From there, you can analyze individual properties by looking at their respective Property Details page, which includes estimated property value, mortgage & debt information, a comparable sales (comp) analysis, Demographic Insights, and so much more.

Once you’ve finalized a lead list, you can skip trace* the homeowners’ contact information and launch a postcard, email, or dialing marketing campaign without leaving the platform.

However, PropStream recently added a new AI feature that can take your market and property research a step further: the PropStream Intelligence (PSI) Assistant.

The PropStream Intelligence (PSI) Assistant

The PropStream Intelligence (PSI) Assistant is a multilingual chat assistant that can answer specific questions about any property listing on the platform.

PropStream Intelligence (PSI) Chat

Within a listing’s Property Details page, you can ask the PropStream Intelligence Assistant specific questions about the property the same way you would ask a human research assistant.

The Assistant will then provide tailored answers in real-time based on the platform’s available data. That way, you don’t have to skim the Property Details page yourself. You can skip right to the information you need.

Keep in mind that the assistant will also identify whether the data was sourced from the MLS or a public record file, so you can weigh the data accordingly.

Note: When running comps on properties in non-disclosure states, the Assistant automatically prioritizes MLS data over public record data, since public record sale prices are estimates and may be less reliable in these states.

Finally, you can save your chat transcripts with the PSI Assistant by clicking the printer icon in the top-right corner of the chat box. That way, you have a record for future reference.

The Rental ROI Calculator

Note: PropStream's calculators are not powered by AI. However, the AI Assistant (PSI Assistant) can backfill them for you, allowing you to use the calculators alongside PropStream's AI tools seamlessly.

The Rental ROI Calculator is another addition to the Property Details page (under the Tools dropdown menu). It can help you evaluate a property’s potential return as a rental by giving you a complete ROI breakdown, including built-in mortgage modeling, pro forma projections, sensitivity stress tests, and more

All you have to do is enter some deal assumptions into the calculator, such as the purchase price, rental income, expenses, and financing details.

The Fix & Flip Analyzer

The Fix & Flip Analyzer was also added to the Property Details page (under the Tools dropdown menu). It can help you determine whether a property is a viable fix-and-flip project by breaking down the total investment cost vs. the projected return. It helps you account for financing, rehab costs, holding costs, etc., and then shows what your total potential profit, ROI, profit margin, equity multiple, and maximum allowable offer would likely be.

That way, you can check if a deal is viable before committing, make an informed offer, and avoid overpaying or entering a deal that won’t pencil.

Important: Don’t rely on PropStream’s AI Assistant alone for deal viability. We recommend seeking legal guidance and doing due diligence before entering into any real estate contracts.

The Benefits of Using AI for Real Estate Research

Here’s why you should seriously consider leveraging AI tools like PropStream’s Intelligence Assistant in your real estate research:

• Speed: AI can analyze dozens of data points in seconds, condensing hours of manual research into a quick answer to a chat query.
• Accuracy: AI can reduce human error in calculations like cap rate, after-repair value (ARV), and ROI that are easy to miscalculate.
  
• Consistency: AI can apply the same analytical framework to every property, removing emotional bias from your deal analysis.
• Accessibility: AI can make sophisticated analysis available to newer investors who may not yet know what questions to ask or what metrics to calculate.
• Scalability: AI can help you evaluate more deals in less time, so you can cast a wider net and get to deals faster.

Common Mistakes to Avoid

That said, avoid these common pitfalls when relying on AI to do real estate research:

• Treating AI output as a final answer: Always verify key figures independently and consult a financial or legal professional before committing to a deal.
• Putting in inaccurate or unrealistic information: Entering inaccurate or overly optimistic deal assumptions (purchase price, rehab costs, rental income, etc.) can produce misleading projections.
• Skipping your own due diligence: AI tools can summarize available data, but they can’t replace physical inspection, title search, or local market expertise.

Try the PropStream Intelligence Assistant Today to Transform Your Research Process

One thing is clear: If you aren’t adapting to AI, then you may get left behind by competitors that are. Don’t know where to start? PropStream is an easy entry point.

PropStream features integrated AI capabilities designed to streamline your investment process. Whether you’re evaluating market trends or assessing a specific deal's potential, our tools provide the support you need. Leverage PropStream to quickly identify your next opportunity and proceed with greater assurance.

*PropStream engages an independent third-party to perform skip tracing.