Equity Explained

[Renae Pinkney]

Hello All, Can anyone explain equity, the equity to loan ratio, and why it would be important to have a high equity as a buyer? I'm understanding so far equity is how much a owner has paid towards their loan? So would it be fair to say if the equity is low the buyer would have to put down more and it would be less likely to get a bigger return ? So what's an acceptable equity percentage to search for when attempting to build a list of preforeclosed motivated sellers?