Skip tracing is an important lead generation tool for real estate investors. The term "skip tracing" refers to finding details about a person in order to conduct business. Law enforcement agencies and debt collectors often use skip tracing, and real estate investors can also use it to gather information about motivated sellers.
For example, let’s say you find 10 suitable properties after driving for dollars. Two of those houses are vacant, while the other eight are occupied. You don’t know the owners of these properties. To contact them, you need to locate property information through public records and other databases. Skip tracing helps you uncover the missing pieces of the puzzle.
Yes, skip tracing is legal as long as it’s done ethically and within legal boundaries. Public data is available to everyone, and you can use public records like tax assessor sites, deed records, and court filings to create your own motivated seller lists. It’s legal to use skip-tracing services that provide aggregated legal data, and you can also utilize social media and public directories.
However, unauthorized access to private accounts or databases is prohibited. Harassing or overwhelming a homeowner with multiple contact attempts is illegal.
According to the Fair Credit Reporting Act, you cannot pull credit reports without permission. Skip tracing is permissible as long as you’re not using fraudulent means to collect financial or credit data.
Respect the privacy of your clients. Stay updated about TCPA and FCC laws. Make sure that you have appropriate permission to contact a homeowner after obtaining their information. If you’re cold-calling, make sure that you do not contact consumers on the DNC (Do Not Call) registry.
You can use skip-tracing software and AI tools to curate, clean, and sort your data. Most investors start with public records, such as property records and court documents, which can reveal changes in ownership. This information can be found through your local assessor’s office (property value, ownership history, and parcel data) or recorder’s office (deeds, mortgages, and liens). Social media, paid databases, and personal connections can also be used to find additional information.
Gather all available information about the property owner, including their name, address, current and previous phone numbers, email addresses, and property tax records. Perform an in-depth online search for licensing registries, current and past business affiliations, and participation in online communities. Look for ethical clues (such as social media) and verify the information you find. Organize your list with appropriate tags so you can easily use it for marketing purposes.
Various skip-tracing services can help you find the missing information. The important part is to find a service that collects data legally and provides verified (up-to-date) information. There should be an opt-out option for those who don’t want to share contact details.
What is the best tool to use for skip tracing? And how much does skip tracing cost?
Various skip-tracing tools are available to serve different needs. You can search for property address or parcel number-based skip tracing. You can input a property address to get details about the owner, mailing address, phone numbers, and emails. Some available tools are:
If you’re on a tight budget, you can use free sources like county tax records, Whitepages, FastPeopleSearch, or TruePeopleSearch. These won’t be as reliable but can sometimes yield useful data.
It depends on your investment strategy and lead generation volume. If you’re actively sourcing off-market deals, direct mail campaigns, or cold-calling lists, you’ll need skip tracing regularly—sometimes daily or weekly.
Fix and flip investors need skip tracing only when they need homeowner details for a specific property.
Long-term investors only use skip tracing to track down absentee owners or off-market rental opportunities.
Real estate investors need information to find off-market leads. The success of your entire campaign depends on the data. You need to aggregate data, clean up the lists, and make sure the information is up-to-date. A good list today could be outdated tomorrow. That’s why you must spend time researching the best technology available.
If skip tracing sounds like a hassle you want to avoid, you can connect with MotivatedSellers. At motivatedsellers.com, you can skip the hassles of lead generation. We’ll connect you directly with motivated sellers. You can choose the lead, pay a small fee, and start working with homeowners right away.