Have you ever come across a vacant, distressed, or rundown property that you knew had incredible investment potential, but couldn't track down the elusive owner? It can be frustrating, but fear not! There's a solution called skip tracing, and it's a game-changer for real estate investors.
What is Skip Tracing in Real Estate?
Skip tracing is the art of finding property owners who have "skipped" town. As a real estate investor, skip tracing can help you not only close a deal on a property you've already discovered but also uncover new investment opportunities. Skip tracing is not limited to real estate, as it is also used to track down fugitives and individuals subpoenaed by courts. However, finding people who have skipped town is challenging, as they leave behind few clues.
Real estate investors and organizations can hire skip tracers, professional investigators skilled in searching computer databases, gathering clues, and employing specialized techniques to locate individuals who have skipped town.
Image: Skip tracing services
The Value of Skip Tracing for Investors
Skip tracing offers tremendous value for real estate investors. Many distressed properties are abandoned or overlooked while their owners are out of reach. By utilizing skip tracing, investors can locate motivated sellers and secure great deals. Obtaining the owner's signature is often essential for closing a real estate deal, making skip tracing indispensable.
Proactive investors can also leverage skip tracing to identify new distressed properties and discover fresh investment opportunities. The depth of information provided by skip trace services varies, ranging from basic details like home addresses and phone numbers to extensive data such as mortgage information, criminal records, and even vehicle ownership.
Ultimately, skip tracing enables real estate investors to secure deals on distressed properties or find owners looking to sell, increasing the chances of purchasing properties at favorable prices.
Real Estate Skip Tracing Services
While skip tracing as an industry is relatively limited, several reputable skip tracing services cater to real estate investors. It is crucial to select a service that meets your specific needs and maintains a stellar reputation, avoiding cheap or poorly reviewed services that may provide outdated or useless information. Here are some of the top skip tracing services for real estate investors:
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Melissa Data: Offers a comprehensive data provisioning service that allows you to research individuals and properties yourself. It provides valuable information, including mortgage details and the number of properties owned, with affordable per-record pricing.
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Skip Genie: Specifically designed for real estate investors, Skip Genie provides relevant data for investment goals. Its services cover individuals and properties, offering information such as email addresses, owner names, and mailing addresses. Pricing options include monthly rates or per-record charges for bulk searches.
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Data Zapp: Primarily a contact information service, Data Zapp also features a database for vacant properties, individuals with multiple properties, and out-of-state property owners. Investors can use Data Zapp to uncover lucrative deals in advance, with payment options available on a per-record basis or discounted prepaid packages.
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Reonomy: Ideal for multifamily and commercial real estate properties, Reonomy provides extensive property data, including owner names and tenant details. Investors can explore Reonomy's vast database and target properties for their next investment cycle. The service operates on a monthly subscription model, providing unlimited property data for a fixed cost.
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PropertyShark: This skip tracing service caters to LLCs comprised of residential properties. Although limited to certain markets, PropertyShark offers detailed information on properties within target LLCs. This includes owner contact information, building permits, recorded documents, and more. Access to county data requires a monthly subscription fee per county.
Picking the Right Skip Tracing Service
When selecting a skip tracing service, it is crucial to consider several key factors. Ensure that the service offers:
- A substantial amount of reliable data
- Recent data - outdated information is of little value
- Experienced skip tracers
- Reasonable pricing for each trace or document pull
- Access to private information that cannot be easily obtained through a simple Google search
Taking these factors into account will ensure you choose a skip tracing service that meets your needs and delivers the results you desire.
Summary
In the world of real estate investing, skip tracing is a powerful tool for uncovering hidden opportunities in abandoned, distressed, or subpar properties. While finding owners can be challenging, skip tracing empowers you with the tools and data needed to connect with them and close the deal.
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