You might have noticed a property with a messy outlook and old-fashioned structure near
your home town. If yes, you would have also wanted to buy that property for a small price.
Well, that’s normal; you’re not alone. Every real estate investor is wondering about the same
situation, and they’re more likely to go for skip tracing to find out the owner of a home or
property before making a purchase offer. But before getting into more details, it’s essential to
understand what skip tracing is in real estate and how it works. In this article, we’ll provide
detailed information on Skip tracing. So, let’s get started with it!
What Is Real Estate Skip Tracing?
Real Estate Skip Tracing is tracking down and finding home or property owners. This
process is essential for real estate investors willing to purchase an income property that still
needs to be listed in the market. Therefore, real estate skip tracing is an effective way to
land off-market deals.
These absentee or missing property owners are often ready to sell their property. Still, they
either don’t want to go through the process of putting their property on the market or are
unwilling to work with real estate agents. Considering the current situation, such property
owners are likelier to have other business activities or urgent and important matters to deal
with. This scenario creates an excellent opportunity for real estate investors to make a
profitable deal for both sides.
How To Do Skip Tracing In Real Estate?
Skip tracing is a concept that comes from police investigations. It is a legal term that can be
applied in real estate for lead generation. As a real estate investor, you can carry out the
skip tracing process by yourself or hire a professional skip tracer to do the job for you. These
professionals either have access to different software for tracing, or they might approach
their private referrals to get the required data. However, if you’re willing to skip-trace a
property owner, follow the following steps to ensure an effective skip-tracing process.
Step 1: Reaching Out Through A Phone Number Or Email
Address
As a real estate investor, the first step you need to take is to pick up your phone and try to
reach out to the property owner through a phone call or email. If the property owner answers
the phone or email, you have what you need and won’t have to continue the more intensive
skip-tracing strategies.
Step 2: Tracing The Mail Address
However, if the owner needs to respond to your phone calls and emails, another step is to
check the mailing address. The owner may not be at the property address, but they may be
at the mailing address.
Step 3: Reaching Out Through Delivery Services
Now you’ve figured out that the owner is at the mailing address but they’re still not
answering, the next step is to try delivery services like FedEx and UPS. Most people will
respond to such delivery services as there is a different intent behind these delivery services
that engage people’s attention.
Step 4: Checking Other Addresses Associated With The
Property Owner
Do you still need to reach out to the property owner? There’s another step to get in touch
with that owner. You’ll have to start looking for all the addresses of the property’s owner.
Step 5: Searching The Property Owner On Social Media
Channels
Social Media is one of the most effective tools in finding the people you want to get in touch
with. Now you’ll have to search for the property’s owner on Facebook, Linkedin, Twitter,
Instagram and many other platforms. However, if you don’t contact the owner through social
media platforms, you can search for people with connections with the owner. They might be
friends, neighbours or relatives. You can request them and politely ask about the property
owner.
Step 6: Reaching Out To The Neighbors And Relatives Of the
Property Owner
Reaching out to the neighbours and relatives is the next step if the strategy of contacting the
homeowner needs to be revised. You’ll have to request the owner’s neighbours to help you
get some information about the owner. However, if you can contact the owner’s relatives,
you can inform them that you’re interested in the property, and it is essential to meet with the
owner.
Step 7. Hire A Private Investigator
When you’ve done everything you could to find the homeowner, and you’re unable to get in
touch with them, then hiring a private investigator might be the best option. These
professionals can access specialized skip-tracing services only available to authorized
people. These skip-tracing services allow investigators to access credit reports and other
databases that might help reveal various addresses or connections. This information is
significantly helpful in reaching out to the property’s owner.
What Are The Pros And Cons Of Skip Tracing?
Pros Of Skip Tracing
Here are some of the most common reasons why you should include skip tracing in your real
estate investing strategy:
Unveils Hidden Opportunities
Real estate skip tracing provides opportunities to a large group of property sellers and
distressed homeowners. As a real estate investor, you’ll identify distressed properties and
meet their owners who are eager to sell. In this way, you’ll be able to gain an edge over your
competitors and emerge as a successful real estate investor over the period.
Skip Tracing Gives You An Edge In The Competition
Skip tracing is essential in real estate as it puts you one step ahead of the competitors. Most
real estate investors aren’t willing to pay for skip tracing services, and if you are ready to pay
for such services, you’ll be able to explore some exceptional deals.
Re-Engagement With The Leads
Some of the real estate leads vanish, and you won’t be able to get in touch with them. But
skip tracing allows investors to re-engage through conversations and building relationships.
This strategy is more likely to increase the opportunities of closing the deals.
Time Saving And Efficient
Real estate skip tracing can save a lot of time. As an investor, you won’t have to manually
search or drive in pursuit of distressed properties. Instead, you can focus on more important
matters that require your attention.
Automated Marketing
Skip tracing results and data from some solid software enable investors to automate their
marketing process. As an investor, you’ll need to gather the information of multiple
properties during skip tracing. And then you’re all reading to start an automated marketing
campaign. You can automate emails, text messages, or voicemails.
Cons Of Skip Tracing
While real estate skip tracing can be beneficial in many ways, there are a few limitations
investors need to consider.
Expensive
Real estate skip tracing can be expensive because whether your investigator has found the
desired information or not, you’ll pay for skip tracing services. However, it happens rarely
that an investigator gives you nothing regarding your desired information about the property.
Angry And Confused Reaction From Homeowners
During skip tracing, real estate investors often encounter property owners who are either
angry or confused about how you got their personal information. Therefore, as an investor,
you’ll have to deal with such situations, and with your concerns, you’ll have to try to solve
their problems as well.
No Sale Guarantee
No sale guarantee is one of the significant drawbacks of skip tracing. Reaching out to the
homeowner through skip tracing doesn’t mean the deal is done. Skip tracing will help you
initiate your conversation with the homeowner, but many other factors play an essential role
in securing a successful transaction.
Frequently Asked Questions (FAQs)
Is Skip Tracing Legal?
Skip tracing is legal as long as you don’t break any law. This means it is legal if you don’t
violate any laws while taking the measures to get the desired information. On the other hand,
if you’re forcing someone to get the information or stealing documents for that purpose, then
it will be considered a crime.
How Much Does Real Estate Skip Tracing Cost?
The expenses of real estate skip tracing vary depending on the services you choose for your
work. Hiring private investigators can cost you more as compared to using online tools. If
you’re willing to go for online services, there are various options to choose from; some online
services offer free trials, and some require instant payment. However, it would be better to
research and compare different skip-tracing services and select the one that best suits your
needs and budget.
How Long Does A Skip Trace Take To Gather The Desired
Information?
The Skip tracing period varies from investor to investor, depending on how important and
urgent it is to find the owner. So, there’s no exact period for skip tracers to gather the
information. There are many instances where skip tracers have found the homeowner within
two days, but some of these professionals also take up to one month to finish their work.
In conclusion, real estate investors need opportunities to get the best deals in the market
and skip tracing is one way that has enabled investors to get one step ahead in the
competition. Skip drawing connects investors with potential clients and provides detailed
information about distressed properties, which can lead towards a successful transaction.
