Skip Tracing: Complete Guide For Real Estate Investors

As a real estate investor, you know the thrill of finding that perfect property — the one with untapped potential just waiting to be unlocked. But what happens when the owner seems to have vanished into thin air? You've got a hot lead, but no way to make contact. It's frustrating, time-consuming, and can feel like you're watching opportunities slip through your fingers. Enter skip tracing: your secret weapon in tracking down those elusive property owners. Whether you're a seasoned investor or just starting out, this guide will equip you with the knowledge and tools you need to turn cold leads into profitable deals.

 

What is Skip Tracing?

You've probably heard the term "skip tracing" tossed around in real estate circles, but what does it really mean? Simply put, skip tracing is the process of finding someone who's "skipped town" or can't be easily located. In the world of real estate investing, it's your go-to method for tracking down property owners who seem to have disappeared.

Picture this: you've found a promising off-market property, but the owner's contact information is outdated or non-existent. Maybe they've moved, changed their phone number, or simply fallen off the grid.

This is where skip tracing comes in handy. It's like being a detective, but instead of solving crimes, you're solving the mystery of where that elusive property owner has gone.

Skip tracing involves using various databases, public records, and other resources to piece together a person's current contact information. It's not about invading privacy — it's about connecting with people who might be interested in selling their property but are hard to reach through conventional means.

The Legality of Skip Tracing

Now, you might be wondering, "Is all this detective work actually legal?" It's a valid concern, and one you're smart to consider. After all, the last thing you want is to land in hot water while trying to grow your real estate business.

Here's the good news: skip tracing is generally legal when done correctly.

However, it's crucial to understand the boundaries and stay within them.

Remember, most of the information you'll be accessing through skip tracing is publicly available. You're not breaking into secret databases or hacking into private accounts. Instead, you're piecing together data from sources like public records, phone directories, and social media profiles — information that's out there for anyone willing to look.

That said, there are some important caveats to keep in mind:

1. Respect privacy laws: Different states have varying regulations about how personal information can be used. Make sure you're familiar with the laws in your area.
2. Use the information responsibly: Just because you can find someone's contact details doesn't mean you can harass them or share their information freely.
3. Be transparent: If you make contact, be honest about how you found the person and why you're reaching out.
4. Stay away from protected information: Some data, like financial records or certain government databases, is off-limits without proper authorization.

By sticking to these guidelines, you'll be able to leverage skip tracing as a powerful tool in your real estate investing toolkit without running afoul of the law. Remember, the goal is to make connections, not invade privacy.

Why Use Skip Tracing?

Every edge counts when it comes to real estate, and that's exactly what skip tracing offers you.

It's not just a fancy tool — it's becoming an essential part of the modern real estate professional's toolkit. But why?

Let's break it down.

First off, skip tracing gives you the superpower to find those seemingly invisible property owners. You know the ones — they've moved without a trace, their phone number is disconnected, and their mailbox is overflowing.

With skip tracing, you're no longer left scratching your head. You're back in the game, ready to make deals happen.

But it's not just about finding people. It's about staying ahead of the curve. Most savvy real estate pros are already using skip tracing as a core part of their business strategy. They're using it for marketing, tracking down non-paying individuals, and even networking.

Now, let's get specific. Skip tracing isn't a one-trick pony — it's got something for everyone in the real estate world:

• Property Managers: Ever had a tenant pull a Houdini act, leaving behind unpaid rent and a trashed apartment? Skip tracing is your magic wand. Use it to track down those vanishing tenants and recover what's owed. But it's not all about chasing ghosts — you can also use it to vet potential tenants, ensuring you're only handing over keys to reliable folks.
• Investors: If you're an investor, especially one with an eye for distressed properties, skip tracing is your secret weapon. It helps you cut through the noise and find those elusive absentee homeowners or people in pre-foreclosure. Imagine being able to negotiate directly with owners before the property even hits the market. That's the power of skip tracing.
• Real Estate Agents: Want to be the agent with the exclusive listings? Skip tracing can help you there too. Use it to find homeowners who are on the fence about selling. By reaching out before they've made a decision, you can position yourself as their go-to agent. It's about being proactive, not reactive.
• Lenders: For those in the lending game, skip tracing can be a lifesaver when borrowers go MIA. When someone defaults on a loan and suddenly changes all their contact info, skip tracing can help you reconnect and potentially work out a solution.

Remember, in the world of real estate, information is power. Skip tracing gives you access to that information, helping you make smarter decisions, close more deals, and ultimately, grow your business. It's not just about finding people—it's about finding opportunities.

How to Skip Trace Manually?

Let's roll up our sleeves and get into the nitty-gritty of manual skip tracing. Here's a step-by-step guide to help you become a skip tracing detective:

1. Gather Initial Information
   • Start with the basics: full name, last known address, and phone number.
   • Collect any additional details: birth date, social security number (if available), names of relatives or associates.
   • Pro tip: Create a spreadsheet to organize your data. It'll make your life easier as you dig deeper.
2. Leverage Free Online Resources
   • Google Search: Start simple. You'd be surprised what a thorough Google search can uncover.
   • Social Media: Check Facebook, LinkedIn, Twitter, and Instagram. Look for recent activity, location tags, or mutual connections.
   • White Pages and People Search Sites: Use sites like Whitepages.com or Zabasearch.com for basic contact info.
3. Dive into Public Records
   • County Assessor's Office: Check property records for current or past addresses.
   • Court Records: Look for any legal proceedings that might provide current information.
   • Voter Registration: In some states, this information is publicly accessible.
4. Use Advanced Search Techniques
   • Google Operators: Use quotes for exact matches, or try "FirstName LastName" + "city name" to narrow results.
   • Reverse Phone Lookup: If you have an old number, services like Spokeo can help trace it to current info.
   • Email Search: Try sites like Hunter.io to find email addresses associated with a name.
5. Follow the Paper Trail
   • Utility Companies: Sometimes, you can verify if a person has active services at an address.
   • Post Office: For a small fee, you can sometimes get forwarding address information.
6. Network and Ask Around
   • Neighbors: If you have a last known address, try speaking with neighbors.
   • Professional Associations: If the person was in a specific industry, these groups might have info.
7. Document Everything
   • Keep detailed notes of your search process, including dead ends. You never know when a seemingly useless piece of info might become the missing link.

Remember, manual skip tracing is time-consuming but can be very rewarding. It's like solving a puzzle – each piece of information brings you closer to the full picture.

If you find yourself spending hours on manual searches, it might be time to consider professional skip tracing tools. They can dramatically speed up the process and often provide more comprehensive results. We'll dive into those options in the next section.

Tools For Easy & Fast Skip Tracing

You're ready to start skip tracing, but which tools should you use? We've done the legwork for you and narrowed it down to three top contenders. Each has its strengths, so let's break them down:

SkipForce (SkipForce website)

Think of SkipForce as the Swiss Army knife of skip tracing. It's a premium tool that offers a range of plans to fit different needs and budgets. Whether you're a lone wolf investor or part of a larger outfit, they've got you covered.

Pros:

• Comprehensive database that leaves no stone unturned
• Flexible plans for individuals and enterprises

Cons:

• It's a premium service, so expect to pay for quality

Bottom line: If you want the best and are willing to pay for it, SkipForce is your go-to.

Propstream (Propstream website)

Propstream is like the real estate data motherlode. Skip tracing is just one arrow in its quiver, but boy, is it a sharp one.

Pros:

• Extensive property data that goes beyond just contact info
• Competitive pricing for the wealth of information you get

Cons:

• The sheer amount of data might be overwhelming for beginners

Bottom line: If you want skip tracing with a side of in-depth property analysis, Propstream is your ticket.

Deal Machine (Deal Machine website)

Deal Machine is the Swiss Army knife designed specifically for real estate investors. It's not just about finding people—it's about finding deals.

Pros:

• All-in-one solution with features like deal analysis
• Tailored for real estate investors

Cons:

• Pricing is on the higher side
• Might be overkill if you only need basic skip tracing

Bottom line: If you want a tool that does it all and you're willing to pay a premium, Deal Machine could be your new best friend.

Marketing for Deals Using Skip Tracing

Skip tracing isn't just about finding people who've gone off the grid—it's a powerful tool that can supercharge your marketing efforts. Let's dive into how you can use skip tracing to uncover more deals and boost your conversion rates.

Skip Trace Niche Lists to Cold Call

Ever feel like your cold calls are, well, a bit too cold? Here's how to heat things up:

• Start with a targeted list of potential leads in your niche.
• Run these leads through your skip tracing tool to get the most current contact info.
• Now you're ready to make those calls count. You're not just dialing random numbers—you're reaching out to qualified leads with accurate information.

Pro tip: Use the extra details you've uncovered to personalize your approach. A little background knowledge can go a long way in building rapport.

Skip Trace Your Mailing Lists

Direct mail is great, but why stop there? Here's how to double down:

• After sending out your letters or postcards, skip trace the recipients.
• Follow up with a personal phone call.
• This one-two punch of mail and call can significantly boost your response rates.

Remember, people do business with people they know, like, and trust. That personal touch can be the difference between a "maybe" and a "yes."

Skip Trace Return to Sender Mailings

Don't let those returned mailers gather dust. They're not dead ends—they're opportunities in disguise:

• Gather all your "return to sender" mail.
• Skip trace to find updated contact information.
• Reach out again, this time with current details.

This approach not only saves you money on wasted mailings but also shows persistence. You might just catch someone at the right time with your follow-up.

By incorporating skip tracing into your marketing strategy, you're not just casting a wider net—you're casting a smarter one. You're reaching the right people, with the right information, at the right time. And in the competitive world of real estate investing, that can make all the difference.

Remember, the goal isn't just to find people; it's to find opportunities. With these skip tracing marketing tactics in your toolbox, you're well on your way to uncovering those hidden gems in the real estate market.

Ready to turn your marketing efforts up a notch? Get skip tracing, and watch those deals start rolling in.

Final Thoughts: Use Direct Mail to Find Deals Predictably & Consistently

Now that you're armed with skip tracing knowledge and ready to reach out to potential sellers, let's talk about how to make your outreach truly stand out. In today's digital age, there's one method that still cuts through the noise: good old-fashioned direct mail.

But not just any direct mail — we're talking about handwritten mail.

Why handwritten?

Simple. In a world of automated emails and robocalls, a handwritten letter feels personal, authentic, and impossible to ignore. It shows you've taken the time to reach out personally, which can make all the difference when you're trying to connect with a potential seller.

Here's where Ballpoint Marketing comes in. We specialize in creating handwritten direct mail campaigns that get results. Our approach combines the personal touch of handwritten notes with the efficiency of modern marketing techniques. Here's how you can leverage this powerful tool in your skip tracing efforts:

1. Personalized Follow-ups: After skip tracing a list of potential sellers, send them a handwritten note. It's a great way to introduce yourself and your interest in their property.
2. Re-engage Cold Leads: For those leads that haven't responded to other outreach methods, a handwritten letter can reignite interest.
3. Stand Out from Competitors: In competitive markets, a handwritten note can set you apart from other investors sending typical, impersonal mailers.
4. Build Trust: A handwritten note feels more sincere and can help build trust with potential sellers who might be wary of investors.

Remember, consistency is key in direct mail marketing. It often takes multiple touch points before a seller is ready to engage. With Ballpoint Marketing, you can maintain a steady stream of personalized, attention-grabbing mail that keeps you top-of-mind with your skip-traced leads.

By combining the precision of skip tracing with the personal touch of handwritten direct mail, you're creating a powerful marketing strategy that can significantly boost your deal flow.