In the world of real estate, everyone wants to find the best deal, the type of deal you can brag about to your friends. This is where skip tracing comes into play. Skip tracing is an investigative process often used to locate individuals who have moved without leaving a forwarding address. It’s a huge help for real estate investors who want to connect with property owners, potential buyers, or tenants. This guide will provide a detailed look at what skip tracing is, its benefits, the challenges it may pose, and how to use it effectively in the real estate industry.
What is skip tracing?
Skip tracing is a method used to locate someone whose whereabouts are unknown, with the idea of that person being a potential real estate acquisition. In real estate, skip tracing helps property owners, landlords, and investors find people who are behind on payments or who might be potential leads for buying or selling properties. Skip tracing can involve digging into various sources of information, such as phone records, address histories, credit reports, and public databases.
Data sources used in skip tracing
Skip tracing involves gathering data from multiple public and private sources. Common sources include:
- Public Records: Data such as property ownership, court filings, and bankruptcy records.
- Credit Reports: Information on previous addresses and contact numbers can often be accessed through credit agencies.
- Social Media: Platforms like Facebook or LinkedIn can provide valuable insights into an individual’s location.
- Utility Records: Utility billing addresses can help locate individuals who have moved without updating other forms of contact.
Skip tracing vs other real estate search tools
Skip tracing is often confused with other methods for finding individuals, such as background checks or people finder services. While skip tracing is a powerful tool that can significantly benefit real estate investors, it also comes with certain risks. These risks can impact both the effectiveness of skip tracing and its compliance with legal and ethical standards. It is essential for investors to be aware of these challenges in order to mitigate potential pitfalls and make the most of skip tracing as part of their real estate strategy.
| Benefits of using skip tracing software | Challenges or drawbacks of skip tracing |
|---|---|
| Batch Processing: Skip tracing software like Batch Leads allows users to upload multiple contacts and process them all at once, saving time. | Privacy Concerns: Depending on the country or state, privacy laws may restrict access to certain information, which can make skip tracing difficult. |
| Integration with CRM Systems: Many skip tracing software tools can integrate with CRM systems, making it easier to track and manage leads. | Accuracy Issues: The accuracy of data can be an issue, especially if the information collected is outdated or incorrect. |
Potential downsides of skip tracing
While skip tracing is a powerful tool that can benefit real estate investors, like most things in life, there are some downsides and risks as well. These risks can impact both the effectiveness of skip tracing and its compliance with legal and ethical standards. It´s important for investors to be aware of these challenges in order to mitigate potential pitfalls and make the most of skip tracing as part of their real estate strategy. Some of the most common downsides with skiptracing are:
- Privacy Violations: Accessing data without proper authority may violate privacy laws. To mitigate this risk, ensure that you only use authorized tools and services that comply with the Fair Credit Reporting Act (FCRA).
- Outdated Information: The data pulled up through skip tracing tools may sometimes be inaccurate or outdated. To reduce this risk, cross-reference data from multiple sources and use reputable software.
- High Costs with Low Returns: Skip tracing can become expensive if not used strategically. Be mindful of focusing on high-value leads to justify the costs associated with using skip tracing tools.
Is skip tracing legal?
Skip tracing is legal in most places, but there are strict regulations to ensure that individuals’ privacy rights are respected. For example, accessing certain data without proper authorization can lead to legal consequences. Skip tracing should always be conducted in compliance with relevant privacy laws, such as the Fair Credit Reporting Act (FCRA) in the United States. Always ensure that you have a legitimate reason for obtaining someone’s information and avoid using it for purposes outside the scope of the law.
“Businesses must prioritize compliance with privacy laws such as GDPR and CCPA, ensuring they only access publicly available data and follow transparent legal practices. This includes obtaining informed consent from individuals when necessary, anonymizing data when possible, and using secure encryption methods to protect any personal information. Additionally, ethical standards should guide the use of technology—being transparent with customers about data collection and usage and ensuring that the search is for a legitimate purpose, such as for business-related inquiries or customer service. By using ethical guidelines alongside legal compliance, businesses can responsibly harness the power of technology while maintaining trust and safeguarding privacy.” – Daniel Di Cerbo, Co-Founder & Principal At Willowdale Equity
Best practices for using skip tracing tools
To make the most out of skip tracing, consider the following best practices:
- Verify Data from Multiple Sources: Cross-check the data obtained from skip tracing with other databases to improve accuracy.
- Use Reputable Tools: Choose well-known skip tracing software like Batch Leads or Skip Genie that are known for their reliability.
- Stay Compliant with Privacy Laws: Always conduct skip tracing in compliance with local regulations to avoid legal issues.
- Update Your Lead Database Regularly: Make sure you periodically update the contact details in your CRM to avoid using outdated information.
When should you use skip tracing in real estate?
Skip tracing is particularly effective in several real estate scenarios. It is highly useful for locating property owners who are difficult to find or are not actively listing their property, allowing investors to reach out directly for off-market deals. Skip tracing can help find tenants who have vacated without leaving updated contact information, making it easier to recover outstanding dues. It also plays a role in expanding a leads list, especially when building a portfolio of potential sellers for marketing campaigns, such as email, text, and social.
Bob Anarumo, from Florida Realty Market Place said: “Tools such as AI-powered skip tracing software, geospatial analytics, and enhanced CRMs with integrated social media tracking are game-changers for identifying and contacting hard-to-reach individuals. Platforms like Spokeo or TLOxp leverage big data, aggregating public records, digital footprints, and property data to provide robust search capabilities.”
How much does skip tracing cost?
The cost of skip tracing can vary depending on the tool and the type of access you need. Some services offer subscription models where you pay a monthly or yearly fee, while others offer pay-per-use options. For example, Batch Leads and Skip Genie have different pricing tiers based on usage volume. On average, skip tracing tools cost between $0.15 and $1.00 per search, making it a relatively affordable option for most real estate investors.
| Service Name | Pricing Model | Cost Details | Features |
|---|---|---|---|
| BatchLeads | Subscription-based | Plans start at $69 per month | Bulk upload, address history, CRM integration, real estate investor focus |
| Skip Genie | Subscription-based | $58 per month for 100 searches; additional searches at $0.17 each | Advanced searches, real estate agent focus, no CRM integration |
| SkipMatrix | Pay-per-match | Starts at $0.15 per match for lists under 5,000 records; volume discounts available (e.g., $0.10 per match for over 100,000 records) | Batch processing, integration with CRM systems, U.S.-based support |
| SkipForce | Membership-based | $49/month membership fee; skip tracing costs as low as $0.06 per match for premium members | Real-time results, carrier data, number quality score, optimal call window |
| Tracers | Subscription-based | Pricing varies; offers batch processing and API access | Access to over 120 billion records, real-time data, comprehensive reports |
| TLOxp | Subscription-based | Pricing varies; tailored for professional tracers | Advanced supercomputing technology, proprietary linking algorithms, comprehensive profiles |
| Penny Skips | Pay-per-match | Competitive rates; specific pricing not listed | Instant results, high-quality data, affordability focus |
| SkipTracing.ai | Flexible plans | Pricing details not specified; offers free trial | Purpose-built platform, customizable add-ons, user-friendly interface |
Popular skip-tracing tools
There are several skip-tracing tools available that cater specifically to the needs of real estate professionals. These tools help investors, landlords, and agents quickly locate property owners, potential buyers, and tenants by providing accurate contact information and streamlined lead management. Below, we explore some of the most popular skip tracing tools, their features, and pricing details to help you choose the right solution for your real estate business.
BatchLeads
BatchLeads is a leading skip-tracing tool favored by real estate professionals. It enables users to upload lists of individuals and swiftly obtain updated contact information, including address histories, phone numbers, and email addresses. The platform also integrates with CRM systems, facilitating efficient lead management. Pricing plans start at $69 per month.
Skip Genie
Skip Genie offers a user-friendly interface with a variety of search options, making it easy to locate the information you need. It provides advanced search capabilities to uncover even the most elusive leads. Skip Genie is particularly suitable for individuals and agents, with subscription plans starting at $58 per month for 100 searches; additional searches are available at $0.17 each.
SkipMatrix
SkipMatrix provides premium skip-tracing data tailored for the real estate industry. Users can upload lists and receive accurate contact information, benefiting from batch processing and CRM integration. Pricing starts at $0.15 per match for lists under 5,000 records, with volume discounts available (e.g., $0.10 per match for over 100,000 records).
SkipForce
SkipForce specializes in real estate skip tracing, offering unique features like carrier data, number quality scores, and optimal call windows. The platform provides real-time results and integrates with CRM systems. A membership fee of $49 per month grants access to skip tracing costs as low as $0.06 per match for premium members.
How to choose the best skip tracing software for your needs
When deciding which skip-tracing software to use, consider the following factors:
- Budget: Some tools offer a pay-per-search model, which might be cost-effective if your needs are limited, while others provide a subscription plan that might be ideal for large-scale skip tracing.
- Data Accuracy: : Always prioritize tools with a good reputation for data accuracy, as incorrect information can waste time and money.
- Features: Look for features like batch processing, CRM integration, and advanced filtering options that fit your specific workflow.
- Customer Support: Opt for tools that provide excellent customer service, ensuring any issues you encounter can be resolved quickly.
How to implement skip tracing effectively
step-by-step guide for using skip tracing
If you are a real estate investor or landlord looking to implement skip tracing, follow these steps:
- Identify the Individuals You Need to Find: Determine if you need to locate a tenant, property owner, or potential buyer.
- Select Your Skip Tracing Tool: Choose a tool like Batch Leads or Skip Genie based on your needs.
- Gather Data: Use the software to pull up current contact details.
- Reach Out: Make contact using the provided information. Always verify data to ensure accuracy before reaching out.
How effective is skip tracing in real estate?
Skip tracing is generally highly effective in the real estate sector, particularly when it comes to off-market properties. The success rate of skip tracing depends on the quality of the software used and the experience of the skip tracer. Tools like Batch Leads have reported success rates as high as 70-80% in locating the correct property owners or individuals. While no method is 100% reliable, using multiple sources and the latest software can significantly boost your chances of success. Skip tracing is an invaluable tool for real estate investors, landlords, and property managers who need to locate individuals quickly and accurately.
FAQ
Is skip tracing only used for real estate purposes?
Skip tracing is not limited to real estate. It is also widely used by debt collectors, private investigators, law enforcement, and legal professionals to locate individuals. However, in real estate, it is specifically used to connect with elusive property owners, tenants, or potential buyers.
How can I ensure the data obtained through skip tracing is accurate?
To ensure accuracy, it is best to cross-reference data obtained through skip tracing with multiple sources, such as public records and other databases. Using reputable skip tracing software that frequently updates its records will also help reduce inaccuracies.
What information do I need to start skip tracing?
To begin skip tracing, it is helpful to have as much initial information as possible about the individual, such as their full name, last known address, phone number, or email address. The more data you have, the higher the chance of successfully locating the person.
