What Is Skip Tracing in Real Estate?
Skip tracing in real estate involves searching through publicly available documents and information to identify motivated sellers and find their contact details. While professional real estate investors use automated skip tracing solutions, new investors can start skip tracing for free in two ways.
What Does Skip Tracing Uncover?
At its core, skip tracing helps real estate investors find:
1. Motivated Sellers
The materials you search through in skip tracing will help you identify property owners who are potentially motivated to sell. Here are some common types of motivated sellers you’ll find through real estate skip tracing:
Property Tax Delinquent Properties
Owners who are behind on their property taxes are known as tax delinquent properties. If you’re skip tracing to find these properties, it’s likely (though not guaranteed) that the owners can’t pay their property taxes. They might have just forgotten to pay, giving you an opportunity to reach out and potentially make an offer.
Pre-foreclosure Properties
When a house is in pre-foreclosure, the owners haven’t paid their mortgage, but the lender hasn’t repossessed the property yet. During this time, investors can contact the property owner and make an offer, helping them repay the lender before their credit score suffers significantly.
Zombie Properties
These are properties where the pre-foreclosure process started but was terminated before foreclosure. Owners might leave during pre-foreclosure and not know the process didn’t go through. Investors can identify these vacant properties and see them as investment opportunities.
Inherited/Probate Leads
Skip tracing can help uncover property owners who have inherited properties or will soon inherit homes through probate. These owners may not be aware of the costs and responsibilities that come with their inheritance, and they might prefer to sell.
2. Property Owner Contact Information
Skip tracing for real estate gives investors the names and contact info for property owners. This can be phone numbers, but there’s almost always an email included. And even if that email is now out of date – you have their name, and you can use publicly available online information to find their new or even work email.
Two Free Ways to Skip Trace for Real Estate
Skip tracing doesn’t have to be expensive. Here are two ways to do it for free:
1. Use Publicly Available Online Information
The internet makes it easier than ever to access information about property owners. Here are some common sources: – Social Media: Platforms like Facebook, Twitter, and Instagram can provide contact info and insights into property owners. – LinkedIn: This site can reveal employment details, networks, and sometimes email addresses. – Webpages: Personal or company websites, blogs, and forums may offer contact info. – Employer Websites: Sometimes, employer sites list email addresses, which can be useful even if they’re work emails.
2. Use Publicly Available Government Documents
Publicly available information is a powerful tool for finding motivated sellers. You can access this information by visiting local government offices such as the tax office, county recorder’s office, and county clerk of court’s office. – Property Tax Records: These can provide names, addresses, assessed property values, and tax delinquency status. – Property Records: Available at the county recorder’s office, these documents offer information on ownership, liens, and other encumbrances. – Court Probate Proceedings: Probate records can reveal properties in the probate process. – Preforeclosure Records: Found at the county recorder’s office, these records detail properties in pre-foreclosure.
Reminder: Use Only Publicly Available Records and Information
It’s important to note that ethical and legal considerations come into play when skip tracing. Using publicly available information is acceptable, but investors should avoid private information obtained through illegal means. Misusing private information can harm your reputation and lead to legal consequences.
How to Skip Trace at Scale
Scaling your skip tracing efforts requires technology. While there are skip tracing services available, many investors prefer to keep their data and operations in-house. Realeflow is designed for investors who want to scale their skip tracing. Realeflow lets you skip trace hundreds of properties at once and automates your marketing efforts to those leads, allowing you to tailor your outreach to each property owner’s needs.
