Investing | Skip Tracing
The Pros and Cons of Using Real Estate Skip Tracing

by | Mar 15, 2021

Real estate skip tracing can come with a lot of unknowns but when you weigh the pros and cons, it becomes easier to decide if it is worth the chase.

Skip tracing is vital when trying to find undiscovered seller leads.

These leads are not just undiscovered but highly motivated to sell out their property and hence land you that awesome deal of a lifetime.

The key is in knowing what to look for and identifying a gold mine when you see one.

Some homeowners that are potential sellers include:

  • Those that own an abandoned property 
  • Those at the risk of foreclosure 
  • Those that recently came to own property via inheritance 
  • Those with more than 50% home equity
  • Owners that are struggling with their mortgage or tax payments 
  • Those that just got a baby or a job in a new location 
  • Owners in a long-term facility or just got incarcerated 

These owners have higher chances to want to make a sale and because you discovered them using skip tracing it is very likely they haven’t gotten any offers from other real estate investors.

Employing skip tracing when finding homeowners is like reaching for the ripe fruits at the very top of the tree, instead of struggling for those nearer to the ground just like everyone else.


Just like everything in life, real estate skip tracing has its upsides and downsides. Knowing which side outweighs the other would help you determine if it is a worthy endeavor or just a blatant waste of your time.

Here are some pros and cons of employing skip tracing as a real estate investor:


  • Speed: skip tracing is one of the fastest ways to land real estate sale leads. It is way faster than going around town searching for signs that a house is on sale or finding homeowners through online ads. Skip tracing allows you to generate a bunch of leads and then you can get to follow them one after the other.
  • Goldmine: real estate skip tracing is like discovering a treasure in an abandoned alone, no one else knows it’s there so no one is out there searching for it. Avoiding the competition can help you tap into any market you so fancy. You no longer need to go for what’s readily available, instead, you search for what is not and strike up a good deal.
  • Little to no competition: the good thing about skip tracing is that no one else is looking where you are looking. Hence, there is a high chance that no other offer is on the table for these potential sellers, this means more chances for a win-win situation for you and the property owner.


  • Price: skip tracing can be costly since not every information or service available is free of charge, some cost good money to obtain.
  • No assurance: The fact is that even after spending money and resources on information to find this homeowner, there is still no absolute guarantee that you would be able to locate them. There are so many factors to consider and so many random variables that may turn the odds against you. For example, some individuals tend to change their identity or contact information regularly. Another thing to consider is that even after locating the property owner, there is still no assurance that they would make a sale. Even if they are willing to sell, how good would the deal be? Would it be worth the time and expenses put into the whole process?

Bottom line: There is hardly any goal worth pursuing that wouldn’t consume your money, energy, and time. Taking calculated and well-thought-out risks should be second nature to you as a real estate investor. Hence, it is very important to follow the right process and employ the right services when skip tracing.

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