To maximize profits as a real estate investor there are some strategies you need in your arsenal, one of these is skip tracing.
Skip tracing is an effective approach that connects real estate investors with amazing sale leads. It requires deep research and digging to unearth the contact information of homeowners whose properties are currently not on the market.
This means you are looking in a direction that other competitors aren’t, which would mean these potential sellers most likely do not have offers from other investors. If you play your cards right, you can get deals of a lifetime using this strategy.
To maximize profits using real estate skip tracing, you need to be able to identify a potential goldmine when you see one.
Here are some property owners that are most likely to make a sale:
• High-Equity property: homeowners with over 50% home equity on their property.
• Tax delinquent property: owners that still owe tax and are behind in their payment.
• Vacant property: owners of properties that have been reported vacant for over 90 days are also potential sellers.
• Empty nesters: homeowners that have kids that just recently moved out either to college or for independence. This set of homeowners may be looking to opt for a smaller house to reduce the amount they spend on mortgage and utility bills.
• Multiple homeowners: these are homeowners with multiple real estate assets, and as such may have properties that they are not actively habiting.
• Old listing: these properties have been on the market for a long while but have not had any takers. Contacting the homeowners would most likely generate valuable deals.
• Preforeclosure: when a property is in preforeclosure it means that the owner has fallen short in payments and the moneylender has started to take certain steps. Even if the property owner of a house on preforeclosure did not initially plan on making a sale, an offer from a real estate investor such as yourself might help make that decision.
Other sets of homeowners that are more likely to be motivated to make a sale include those that just recently had a new addition to the family and are looking to get a bigger house and sell off their current one. Properties owned by the recently deceased or those owned by old people that would rather stay in a smaller house may also be potential sale leads.
PERSUASIVE STRATEGIES TO HELP YOU MAXIMIZE PROFITS
Finding homeowners is one thing while convincing homeowners to sell their property to you is another. This is where you need to pull up your persuasive power and convince them that selling to you is a good step to take.
Here are a few tips that can help you land that sale:
• Learn to listen to your customers: knowing the exact need of your customers can go a long way in knowing the words to say to them to convince them to sell their property to you and this is where listening comes in.
• Provide the perfect solution: from listening to your customers’ needs, find a way to show them how selling their house to you is the best decision they can make right now.
• Make them see it isn’t here to stay: after pitching your sales in the form of a solution, the next thing is to make the client see that the opportunity might pass, as this might lead to faster actions and give them a sense of urgency.
Bottom line– skip tracing can help maximize profits since you would be exploring options and landing deals that are untapped by other competition.