The secret to any successful business is focusing your energy and effort on projects and tasks that will make you money. In the real estate investing business, this means getting in contact with actual sellers and buyers and not just blanketing an area with postcards saying that you buy homes. Everyone has seen the signs on street corners about people who buy homes. But how many times do you really think people call that number? The answer is not very often.
Skip tracing will help you to focus your attention on real potential clients. The first step is to compile a list of potential resources. This can be looking at tax liens, mortgage defaults, or other listings of distressed properties. You can also spend a few hours driving around and looking at properties that are in disrepair or look to be vacant. These are the properties that will sell at a very affordable price and hold the potential for a solid increase in value.
After you have a group of properties, narrow the list down to the ones that you want to make an offer on. This can be determined by the location, market in certain areas or whatever criteria that you choose to use. These are the properties that you will use skip tracing techniques on to locate the owners. If you are not interested in investing the time and effort in learning and practicing these skills, there are professional companies that will do the work for you.
Some of these companies will allow you to enter information into a website and then they do the work, while others require more direct contact to communicate your needs and the information that you have on the properties. In either situation, your goal is to obtain a phone number, email address or physical mailing address for the property owner. Any additional information that can be gathered is also useful. For example, knowing that the owner could be strapped for cash due to a divorce or liens can help you to tailor your offer to meet the sellers need for fast cash.
Using skip tracing skills or hiring a skip tracing company can greatly increase your return on investment for both your time and money. Making legitimate offers to property owners who are interested in selling or who need to sell is a far better use of your time that mass emails or postcards to entire zip codes.