Skip tracing is the secret weapon of so many successful real estate investors.
It helps them find and contact off-market property owners who are completely off the radar of other investors, which means there’s little (if any) competition. It allows investors to customize their offer to directly address the property owner’s pain points – and moves them directly to the front of the offer line.
What Is Skip Tracing In Real Estate?
While professional real estate investors employ automated skip tracing solutions to find this info, there are two ways new real estate investors can start skip tracing for free.
What Does Skip Tracing Uncover?
At its essence, skip tracing aids real estate investors in uncovering;
1. Motivated Sellers
Skip tracing enables the identification of potentially motivated sellers by examining various materials.
Here are some common types of motivated sellers uncovered through real estate skip tracing:
Property Tax Truant Properties
Property owners who are behind on their property taxes are referred to as tax delinquent properties. When skip tracing to locate tax delinquent residences, it’s probable, though not certain, that these owners are unable to pay their property taxes. It’s possible they simply forgot to pay.
This presents an advantageous opportunity when approaching tax delinquent leads. Even if the property owners are not initially interested in selling, reaching out to them helps determine if they are potential motivated sellers or serves as a reminder to pay their taxes.
Pre-foreclosure Properties
Pre-foreclosure properties occur when homeowners have fallen behind on mortgage payments, but the lender hasn’t repossessed the property yet. During this interim period, the homeowner must either settle the mortgage or begin the foreclosure process.
This transitional phase presents real estate investors with a prime chance to reach out to the property owner and propose an offer. Such an offer could enable the owner to settle the debt before their credit score is severely affected. Given their urgency for funds, they may be inclined to accept a lower offer on the property.
Zombie Properties
Zombie Properties are those that have initiated the pre-foreclosure process but, due to various reasons, the process was halted before foreclosure took place.
Often, property owners vacate during pre-foreclosure without realizing the process hasn’t proceeded. By compiling a list of pre-foreclosure properties from the county recorder’s office, you can visit these properties to determine which ones are vacant, indicating they haven’t undergone foreclosure.
These Zombie Properties present excellent investment opportunities for investors.
Inherited/Probate Leads
Skip tracing can assist in revealing property owners who have inherited their properties, or who are poised to inherit homes via the probate process.
Many of these present or future property owners haven’t contemplated the implications of their inheritance yet. The majority of the associated inheritance costs stem from property taxes, legal expenses, and other fees linked to homeownership.
You could potentially be the first individual to apprise them of these less-than-ideal expenses, and they might opt to sell to you rather than contend with the headaches and costs that accompany inheriting a house.
2. Property Owner Contact Information
Real estate skip tracing furnishes investors with the names and contact details of property owners, typically including phone numbers and often an associated email address.
Even if the provided email is outdated, having their name allows for leveraging publicly available online resources to locate their updated email, potentially even their work email.
2 Free Ways To Skip Trace For Real Estate
Skip tracing doesn’t have to be costly; there are a couple of methods to skip trace for free in real estate.
1. Use Publicly Available Online Information
The internet has streamlined the process for real estate investors to obtain information about property owners. Here are some of the most prevalent publicly accessible online sources investors can utilize to acquire property owner contact information:
- Social Media: Facebook, Twitter, and Instagram serve as publicly accessible sources of information, offering insights into property owners’ whereabouts and potential contact details, including indications of vacant properties.
- LinkedIn: Utilizing LinkedIn can aid in uncovering property owners’ employment specifics, their professional network, and potentially even their email addresses.
- Webpages: Personal or company websites, blogs, or occasionally forums can provide contact information for property owners or their businesses.
- Employer Websites: Exploring an employer’s website might yield an employer’s email address. While not as preferable as a personal email, it serves as a starting point.
2. Utilize Publicly Available Government Documents
Publicly accessible government documents stand as one of the most potent sources of information for investors seeking motivated sellers.
And the best part? You can access all this valuable information simply by scheduling an appointment with your local tax office, county recorder’s office, and/or local county clerk of court’s office (note: the names of these offices may vary depending on your local county).
- Property tax records: These records furnish investors with property owners’ names, addresses, the assessed value of their property, and whether they’re delinquent on tax payments.
- Property records: Accessible at the county recorder’s office, these documents provide information about property ownership, liens, and other encumbrances.
- Court probate proceedings: Probate records offer invaluable insights into properties undergoing the probate process, often indicating highly motivated sellers.
- Preforeclosure records: Obtainable at your local county recorder’s office, these records detail properties currently in the pre-foreclosure process.
Reminder: Use Only Publicly Available Records And Information
Young investors should take note: ethical and legal considerations are paramount when engaging in skip tracing for real estate. Publicly available information is fair game, but investors are strongly advised against using private information obtained through hacks, security breaches, or other illicit means.
Apart from being unethical, the risks associated with using private information far outweigh any potential rewards. Not only could it tarnish your reputation as an investor, but it may also lead to legal repercussions. Accessing and leveraging such information could be construed as a breach of privacy regulations in certain circumstances, potentially resulting in fines, lawsuits, or even criminal charges.
Always bear in mind that your reputation and integrity are invaluable assets as a real estate investor. Establishing trust with property owners, fellow investors, and industry professionals is essential for sustained success.
