Skip tracing and especially free skip tracing is an invaluable tool for real estate investors, enabling you to locate property owners and their contact information in order to see if they are willing to sell. Whether you’re tracking down absentee owners or finding new investment opportunities, skip tracing can help streamline and speed up the process. Let’s dive into how you can leverage skip tracing for your real estate business without breaking the bank.
What is free skip tracing?
Skip tracing refers to the process of locating property owners, typically those whose contact information is difficult to find. For real estate investors, skip tracing helps to connect with motivated sellers. Often, these are owners of distressed or vacant properties who are willing to sell at below-market prices. Although there are paid services, free skip tracing can be done with the right approach and know-how.
Why is skip tracing beneficial for real estate investors?
Locate hard-to-find property owners
Skip tracing services pull data from multiple public and private records to help you locate property owners who are otherwise difficult to find. Whether it’s a phone number, email address, or mailing address, skip tracing can provide the updated contact information you need. Imagine finding a property you’re interested in, but the owner doesn’t live there or has moved out of state. Skip tracing helps bridge that gap so you can get in touch with them.
Increase lead generation
Let’s say you’ve done all the legwork and compiled a list of properties, but you’re missing one crucial thing: contact details. More contact details mean more potential leads, which ultimately gives you a better chance of closing more deals.
Save time and effort
Instead of wasting hours manually looking up each property owner’s contact information, skip tracing does it for you automatically. Some tools even allow you to skip trace hundreds or thousands of properties at once. So instead of manually searching through public records or scouring the internet, you can batch-skip trace and get the data you need in a fraction of the time. This leaves you more time to focus on closing deals instead of tracking down contact information
Types of potential sellers you can target through skip tracing
Although technically anyone with a property can be skip-traced, real estate investors focus on the following types:
Type of Owner | Why they are good for skip tracing |
---|---|
Absentee owners | Owners who do not live in the property, are often motivated to sell due to lack of personal attachment. |
Owners of multiple properties | Investors or landlords holding several properties, possibly looking to offload one or more for profit. |
High-equity owners | Homeowners with significant equity (30% or more) in their property, offer a strong selling position. |
Owners facing foreclosure | Individuals behind on mortgage payments, are likely eager to sell to avoid foreclosure proceedings. |
Long-term property owners | Owners who have held onto the property for many years may want to sell for retirement or liquidity. |
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How to perform free skip tracing
Skip tracing works by collecting information from both public and private databases. These include property records, utility listings, credit reports, and more. Once gathered, the information helps to locate contact details for property owners.
Key sources used in skip tracing:
- Property ownership records
- Public property records
- Credit bureau data
- Utility company records
- DMV (Department of Motor Vehicles) databases
1: Do skip tracing yourself by searching in a government database.
To perform skip tracing using public databases, the process is fairly straightforward. Start by gathering as much information as you can about the property, including details like the address and, if possible, the owner’s name. Once you have the basic information, search public databases to find related contact details. Once the search is complete, you typically receive a few phone numbers and email addresses for the property owner, allowing you to reach out directly.
2: Use free skip-tracing tools
TruePeopleSearch
TruePeopleSearch is a free tool that allows you to look up phone numbers and addresses for individuals. While not designed specifically for real estate, it’s a helpful resource for finding contact details. You can quickly search using names, phone numbers, or addresses, making it a flexible option for tracking down leads.
Website: TruePeopleSearch
FastPeopleSearch
FastPeopleSearch offers free access to public records, including phone numbers, addresses, and email information. It also features reverse phone lookup and address lookup features. This tool provides a fast way to find basic contact information, perfect for real estate investors starting with limited details.
Website: FastPeopleSearch
WhitePages Free Version
WhitePages provides free basic contact information. It’s less thorough than its premium service but can help locate contact info for property owners. The free version is useful for quick lookups, especially when you need to verify a phone number or address without paying for a subscription.
Website: WhitePages
3: Use social media for skip tracing
Platforms like Facebook and LinkedIn often contain valuable information that can help you track down property owners. By searching for the owner’s name, you may come across public profiles that list their current address, phone number, or even email. Many people share more information on social media than they realize, such as their workplace, location, and contact details. A simple search on these platforms can sometimes reveal enough information to help you connect directly with the owner, making social media an underrated tool in the skip-tracing process.
Free skip tracing vs. paid skip tracing
Free skip tracing is ideal for investors just starting or those working with smaller property lists. However, if you have a large portfolio or require detailed data, it’s worth investing in a paid service for faster, more reliable results.
When to use free tools:
- Small lead lists
- New or beginner investors
- When basic contact info is sufficient
When to upgrade to paid services:
- Large-scale investment operations
- Need for comprehensive data (e.g., liens, mortgage info)
- Seeking faster results and batch processing
Free skip-tracing tools work well for small property lists but may lack the depth and speed that professional investors require. For larger-scale operations, paid skip-tracing services offer more comprehensive results, including additional data like lien records, criminal history, and bankruptcy information.
Service | Description | Pricing |
---|---|---|
PropStream | Comprehensive property data with lead generation and marketing tools, including DNC scrubbing. | $99/month + $0.12 per skip trace |
Skip Genie | Focused on providing deep skip tracing data for real estate investors, helping locate homeowners. | $0.17 per skip trace |
IDI Data (idiCORE) | Offers extensive contact and asset data, widely used for bulk and detailed skip tracing needs. | Custom pricing, no monthly minimums |
Bottom Line: Free skip tracing tools are great, but pay if you need to
Free skip-tracing tools can be a good starting point for locating information like phone numbers or addresses, but they often have limitations, such as data that is outdated and phone numbers that don’t work. If you’re serious about finding someone, especially for important matters like real estate leads or legal purposes, it might be worth considering paying for a professional service. Paid skip tracing tools offer more accurate, detailed, and up-to-date results, helping to ensure you get the information you need efficiently. So while free tools are fine for basic needs, investing in a paid service can save you time and hassle when it really counts.
Looking to increase your cash flow so you can acquire more investment properties via skip tracing, either free or paid? Consider a cost segregation study by booking a call here.
Here’s a comment from a 20+ year licensed Realtor:
“Real Estate cost segregation for investors’ properties involves examing all the cost components of a property to allocate them into categories to maximize depreciation on the property. Some components of a renovation/building can be depreciated over a shorter term than the customary 27.5 years for residential or 39 years for commercial real estate. A shorter term that depreciation is spread over equates to higher deductions on income tax returns.” – Scott J. Wheeler of Posh Properties
FAQ
What is batch skip tracing?
For real estate investors handling multiple properties, batch skip tracing is an efficient way to skip trace several properties simultaneously. Instead of manually searching for each owner, you can upload large lists into skip tracing software and retrieve the necessary contact information in bulk. This method not only saves time but also boosts productivity when managing extensive property portfolios.
Is skip tracing legal?
Yes, skip tracing is legal as long as it adheres to privacy laws and regulations, such as the Fair Debt Collection Practices Act (FDCPA) in the U.S. It’s important to ensure that the information is obtained from legal and public sources and used for legitimate purposes, such as locating property owners for real estate deals.
Can I skip trace tenants for rental properties?
Yes, skip tracing can be used to locate tenants who have left without providing forwarding addresses or contact information. This can help landlords or property managers track down individuals who owe rent or need to return security deposits.
How accurate is free skip tracing compared to paid services?
Free skip-tracing tools can provide basic contact information like phone numbers and addresses, but they may lack the depth, accuracy, and comprehensiveness of paid services. Paid skip-tracing services often pull data from more extensive databases and include additional details such as lien records and credit reports.
Can I automate skip tracing for large lead lists?
Yes, automation is possible through batch skip tracing tools offered by services like PropStream, REsimpli, and others. These tools allow you to upload multiple properties at once and receive contact information in bulk, saving time and effort compared to manual lookups. However, most batch skip tracing tools require a paid subscription.