The benefits of skip tracing are quite much and although it seems too good to be true the results are evident. Skip tracing in real estate is basically using a combination of hacks, research, and prospecting skills to get information on property owners who might be willing to sell their property. They say the best jobs are not advertised, I’d say the most valuable houses are not advertised. Oftentimes, properties with potential for high yield are not listed and you have to spend efforts and resources into discovering such properties and property owners.
What you should know
But you might ask yourself ‘why is skip tracing popular with real estate investors?’. By definition, Skip tracing is the process of finding people who are seemingly difficult to find whether they are persons of interest, debtors or probably avoiding an obligation. This comes from an individual being difficult to find (aka, the “skip”) and the process of finding them (tracing), and skip tracing these individuals often requires more information than basic address and contact information. So where does skip tracing intersect with real estate investing?. Plugging in skip tracing with real estate enables you to be able to find properties and property owners who will be motivated to sell their property. This is not only confined to residential real estate but also applies to commercial real estate although the skip tracing approach will be different.
The Benefits Of Skip Tracing
The benefits of skip tracing outweigh the cost of investing in it. In fact we regard skip tracing as an unfair advantage to real estate investors who rely on it. Here’s Why:
Data is key: Using skip tracing in real estate helps you build a database of sorts as you have a pool of property owners and potential buyers across different locations and you can use this data to expand your reach by turning each person to an advocate by constantly engaging them either through calls or emails.
Bulk or Batch Skip Tracing: You can access a much larger pool of property owners with batch skip tracing. This means you have access to property owners who might be willing to sell their property for less than the market price as compared to when you look for houses on an MLS. This enables you to make a killing or profit across multiple properties as compared to being obsessed with making a considerable profit on a single property.
Beat The Competition: By using skip tracing, you avoid the hustle on listing services and create your own ideal customer segment. There are homeowners who might not have intention of selling until you make them enticing offer and since they have less real estate investors waving multiple offes in their faces, they are able to consider your proposition with favorable terms.
Verifying owners: With Skip tracing you can verify who the true owner of a property is. It is a vible tool for finding out where they are and getting in contact with them to make an offer.
In an increasingly competitive real estate landscape, you need every advantage you can get and Skip tracing packs a lot of advantage. Beyond finding property owners, some skip tracing services help you pull up a relationship report which highlights relatives and associates of a property owner.