Paul Do Campo

Ultimate Skip Tracing Guide for Real Estate

Ever wonder how some real estate investors seem to have a magic touch for finding those elusive off-market deals? You know, the ones that aren’t plastered all over the MLS or waving “For Sale” signs in their front yards?

Well, buckle up, because we’re about to pull back the curtain on one of the most powerful tools in a savvy investor’s arsenal: skip tracing.

It’s not about skipping rope or tracing drawings. Nope, it’s about uncovering hidden gems in the real estate market. And let me tell you, when done right, it’s like having a secret map to buried treasure.

But here’s the kicker: most investors are doing it wrong. Or worse, they’re not doing it at all.

In this guide, we’ll unpack the mysteries of skip tracing, show you how to wield it like a pro, and combine it with killer marketing strategies to unearth those juicy off-market deals that everyone else is missing.

Ready to give yourself an unfair advantage in the real estate game? Let’s get started.

What is skip tracing

Skip tracing is the process of locating a person’s whereabouts using various data collection methods and investigative techniques, often employed when an individual cannot be found through typical contact information.

In the real estate world, skip tracing is your secret weapon for finding property owners who seem to have vanished into thin air. It’s how you track down those elusive sellers of potentially lucrative off-market properties.

How to get unlimited skip tracing…

How investors use skip tracing to find off-market properties

1. Finding Absentee Owners
Ever driven by a neglected property and wondered, “Where on earth is the owner?” That’s where skip tracing shines. Investors use it to track down owners who’ve left their properties to gather dust and weeds.

2. Uncovering Hidden Gems
Some of the best deals are hiding in plain sight. Skip tracing helps investors identify properties with high equity, inherited homes, or those facing foreclosure – all potential goldmines for savvy buyers.

3. Building Targeted Mailing Lists
Gone are the days of spray-and-pray marketing. With skip tracing, investors create laser-focused mailing lists of motivated sellers. It’s like fishing with a spear instead of a net.

4. Expanding into New Markets
Want to invest in a hot new area? Skip tracing lets you dive deep into unfamiliar territories, uncovering opportunities others miss.

5. Reconnecting with Lost Leads
Remember that promising lead from six months ago? The one whose number suddenly went dead? Skip tracing helps you pick up where you left off.

6. Solving Probate Puzzles
When properties get tangled in probate, finding the right decision-makers can be a nightmare. Skip tracing cuts through the confusion, connecting investors with executors and heirs.

7. Beating the Competition
In real estate, the early bird gets the worm. Skip tracing gives investors a head start, reaching owners before properties hit the market.

8. Verifying Ownership
Nothing kills a deal faster than title issues. Smart investors use skip tracing to confirm true ownership, saving time and headaches down the road.

By leveraging skip tracing, real estate investors transform from passive opportunity-waiters into active deal-hunters. It’s not just about finding people; it’s about finding the right people at the right time. And in this game, timing is everything.

How to Do a Skip Trace

Let’s cut to the chase – if you want to skip trace like a pro, you’re going to need the right tools. Here’s the breakdown:

1. Choose Your Weapon
First things first, you need a skip tracing tool. Forget about DIY methods – they’re like bringing a knife to a gunfight. Popular options include:

LexisNexis
TLO
Intelius
BeenVerified
Deal Machine
Propstream

2. Gather Your Intel
You’ll need some basic info to start:
– Full name (or last known name)
– Last known address
– Any other identifiers (age, relatives, etc.)

3. Fire Up the Tool
Log into your chosen platform. Each one’s a bit different, but they all want the same thing: data to hunt with.

4. Input and Go
Punch in the info you’ve got. Hit that search button. Now you’re cooking with gas.

5. Sift Through the Gold
Your tool will spit out a treasure trove of data. You might find:
– Current address
– Phone numbers
– Email addresses
– Social media profiles
– Asset information

Is Skip Tracing Worth It?

Let’s cut to the chase: yes, skip tracing is worth its weight in gold for serious real estate investors. Here’s why:

1. Unearths Hidden Opportunities
You’ll find deals others can’t see, giving you a serious edge.

2. Saves Time
No more wild goose chases. You get straight to decision-makers.

3. Increases ROI
Better targeting means higher response rates and more closed deals.

4. Expands Your Reach
Break into new markets or niches with confidence.

5. Competitive Advantage
While others fight over MLS listings, you’re tapping into a secret well of off-market properties.

The Bottom Line:
Skip tracing isn’t just another expense—it’s an investment in your business’s growth. Sure, there’s a learning curve and some upfront costs. But for investors ready to level up, it’s a game-changer.

Think of it this way: Would you rather pan for gold in a crowded stream, or use a metal detector to find buried treasure? Skip tracing is your metal detector in the real estate world.

Is Skip Tracing Illegal in the US?

Skip tracing isn’t illegal in the US, but how you use the information can be. It’s widely used in real estate, debt collection, and legal services. The key is to use it ethically and for legitimate business purposes.

Misusing skip-traced data for harassment, stalking, or fraud is illegal. Real estate investors should be aware of privacy laws and regulations like the FDCPA. When used responsibly to connect with potential sellers, skip tracing remains a powerful, legal tool in your real estate arsenal.

Always prioritize privacy and ethical use. When in doubt, consult a legal professional.

How Much Does It Cost to Skip Trace?

Skip tracing costs can vary widely, depending on your approach and volume. Here’s the quick rundown:

DIY Method: $1-$5 per search
Using public records and free online tools. Cheap but time-consuming and often incomplete.

Basic Online Services: $0.25-$3 per search
Platforms like Intelius or BeenVerified. Good for occasional use.

Professional Skip Tracing Tools: $0.10-$1 per search
Bulk services like TLO or LexisNexis. Cost-effective for high-volume investors.

Full-Service Skip Tracing: $5-$200 per search
Hiring a professional skip tracer. Pricey, but thorough for complex cases.

The bottom line? For most real estate investors, expect to pay between $0.25 to $3 per search. But remember, it’s not just about cost—it’s about ROI. A successful skip trace can lead to deals worth thousands, making it a smart investment for savvy investors.

Pro tip: Many services offer bulk discounts. The more you trace, the less you pay per search.

Skip Tracing, Cold Calling, and Direct Mail for Off-Market Gold

Now, let’s dive into how wholesalers can combine these powerful strategies:

1. Start with Skip Tracing
Use skip tracing to uncover contact details for property owners who might be willing to sell. This is your foundation. Focus on:
– Absentee owners
– Properties with high equity
– Homes in pre-foreclosure

2. Launch Your Cold Calling Campaign
Armed with fresh contact info, it’s time to hit the phones:
– Script your calls for maximum impact
– Be prepared for objections
– Track your results meticulously

3. Follow Up with Direct Mail
For those you couldn’t reach by phone or who weren’t ready to chat:
– Design eye-catching mailers
– Personalize your message
– Use multiple touchpoints (postcards, letters, etc.)

4. Rinse and Repeat
Create a cycle:
– Skip trace a new batch of potential sellers
– Start calling immediately
– Send mail to those you couldn’t reach
– Circle back to previous contacts who showed interest

5. Analyze and Optimize
Keep tabs on which methods are working best:
– Track response rates for calls vs. mail
– Adjust your approach based on results
– Continuously refine your target list

The magic happens when these three strategies work in concert. Skip tracing feeds your cold calling and mailing lists. Cold calling creates immediate opportunities and warms up leads for future mailings. Direct mail reinforces your message and catches those you missed on the phone.

Remember, consistency is key. This isn’t a one-and-done approach. It’s about creating a steady pipeline of off-market opportunities that your competition can’t touch.

By leveraging this trifecta, you’re not just finding off-market properties – you’re creating a deal-generating machine that sets you apart in the wholesaling world.