How Can Predictive AI Help You Find Off-Market & Distressed Leads?

Disclaimer: PropStream does not offer investing advice. Before pursuing off-market or distressed leads, we recommend doing thorough research and weighing potential risks.

Tired of chasing the same real estate leads as everyone else? Predictive AI might be your new secret weapon for finding properties before they hit the market. Read on to learn what predictive AI is and how it can identify off-market and distressed properties.

What Is Predictive AI in Real Estate?

Predictive AI analyzes historical data to find patterns and make predictions. Of course, humans can do this, too. What sets predictive AI apart is that it can do it on a much larger scale, with billions of data points and in just a few seconds.

As a real estate investor, predictive AI can be a powerful tool for forecasting trends and other information within your local housing market. For example, it can predict future home values or even when a particular home is likely to hit the market. Having this information could give you an edge when hunting for deals.

The Power of Pairing Predictive AI with Real Estate Data

That said, predictive AI is only as strong as the data it uses. For the best forecasts, you need high-quality data from reliable sources. That’s why PropStream aggregates its real estate data from public records, the MLS, and other trusted data providers. Together, they offer more accurate and current data than any one source could on its own.

Our real estate data covers:

• Addresses and parcel numbers
• Owner contact information
• Mortgage details
• Ownership history
• Home condition reports
• Local zoning requirements
• Property tax records
• Historical sales data
• Liens and title issues
• Foreclosure and bankruptcy history

When you pair this information with PropStream’s predictive AI data, you can gain powerful insights into particular property qualities, like the likelihood of foreclosure or property condition. Simply let machine algorithms do the hard work of detecting patterns and anomalies. Then use our AI filters to spot investment opportunities. 

For example, say you’re a wholesaler who specializes in bridging the gap between flippers and homeowners who urgently need to sell. Local competitors may pursue homeowners in preforeclosure. However, with PropStream Intelligence’s foreclosure factor data, you can hone in on properties that have not yet reached preforeclosure but have a high likelihood of going into foreclosure—allowing you to find leads before they’re on anyone else’s radar.

Or, if you're looking for distressed properties, you can use a custom property condition filter combined with other signs of financial distress, like bankruptcy, liens, and more, to identify low-competition homeowners who may be motivated to sell.

For more on PropStream Intelligence, check out this page!

Benefits of Using Predictive AI for Lead Generation

Using predictive AI to generate real estate leads has many benefits.

For one, it lets you quickly analyze millions of data points to generate leads faster. That way, you can seize opportunities before your competition does.

Furthermore, predictive AI improves the quality of your leads by focusing on sellers who are most likely to sell based on statistics, not just intuition.

Meanwhile, you can generate leads at scale and still keep your marketing costs relatively low since one AI tool can do the job of many human analysts.

Common Misconceptions about Predictive AI in Real Estate

Before you get started with predictive AI for real estate, let’s clear up some common myths:

“AI is a magic bullet.”

As powerful as predictive AI is, it can’t solve all of your business problems. Some aspects of real estate investing still require human judgment and insight. Let AI inform your investment decisions, not control them.

“Predictive AI is too complicated to use.”

Though predictive AI algorithms can be complex, harnessing them is not. Tools like PropStream are designed to be user-friendly so you can gain valuable real estate insights with little expertise or effort.

“All predictive AI tools are the same.”

Predictive AI tools vary in the quality of their data and algorithms. For the best results, choose a tool that uses a wide variety of data sources and refined algorithms.

Why PropStream’s Predictive AI Gives You an Edge

PropStream was founded in 2007. Since then, we’ve built a massive database of over 160 million property records nationwide and 165+ unique search filters. More recently, we’ve added predictive AI capabilities with PropStream Intelligence to help you generate even more leads.

For example, you can use PropStream Intelligence to predict the likelihood of a property entering foreclosure or study thousands of properties’ conditions without ever leaving your home. Plus, you can automate your lead generation efforts by having fresh leads that meet your criteria sent to your inbox via Lead Automator.