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Looking to find your first real estate deal? Using phone number contact information as your primary way to get in touch with property owners can be challenging. This blog post is a deep dive into skip tracing and its accuracy—a vital part of any effective real estate acquisition strategy. The insights here are drawn from a talk with the nation’s largest house flippers, those doing over 100 flips per year.
Introduction to Skip Tracing in Real Estate
Skip tracing is the process of locating a person’s contact information, often used for cold calling or text messaging, direct mail campaigns, and finding those elusive property owners.
For a full guide to Skip Tracing, check out this article.
The Basics of Skip Tracing
- Primary Goal: To find accurate contact information for property owners.
- Usage: Commonly used for real estate acquisitions, especially in wholesaling, flipping houses, and buy-and-hold strategies.
- Challenges: Inaccurate data often leads to wasted efforts and resources.
Why Accuracy in Skip Tracing Matters
David Lecko, co-founder and CEO of DealMachine, shares that traditional skip tracing methods are fraught with inaccuracies. Up to 33% of skip trace data fails to match the right property owner. This statistic emphasizes why more precise data is crucial for effective property acquisition.
“33% of skip trace data is not matching to the right person who owns the home.”
The Evolution of Skip Tracing Techniques
Traditional Methods
Previously, skip tracing involved purchasing hits on properties at a fixed price, such as $0.05 per hit, and reselling them on platforms for a slightly higher cost. This method, however, doesn’t always ensure accuracy.
New Strategies for Better Accuracy
In November, DealMachine implemented a significantly more accurate method by developing a comprehensive database containing every person’s phone number, current, and previous addresses across the United States. This pivot means no longer paying for inaccurate data.
Corporate and Property Data Integration
Even though individual data accuracy improved, challenges remained with properties owned by corporations. Users often had to refer to multiple external tools to find information about corporate owners.
Addressing Common Issues with Skip Tracing
Inaccurate Matching Due to Unupdated Information
Frequently, property owners move without updating their addresses, leading to mismatches in data. This is particularly true for rental properties where the taxes might be managed by the mortgage company, eliminating the need for updated mailing addresses.
Increasing Data Precision
By integrating utility and county mailing addresses, DealMachine ensures only highly accurate matches are shown. This method eliminates the incentive to push inaccurate data.
Showcasing the New Skip Tracing Tool
Hands-On Demonstration
- Example Use Case: For one of David's properties, the tool can display all individuals with that name across the country. For accurate matching, it cross-references phone numbers, previous addresses, and other identifiers.
- Corporate Property Example: By pulling data from open corporates, users can find the officers associated with corporate-owned properties and access their contact information.
David Lecko also shared an incident where accurate skip tracing information helped salvage a deal that was about to fall through. By locating the property owner’s contact information directly, he managed to resolve a communication breakdown between agents, exemplifying the tool's practical benefits.
Final Thoughts
Precision in skip tracing significantly enhances the effectiveness of real estate acquisition strategies. With tools like DealMachine’s new skip tracing method, real estate professionals can close more deals by having access to the most accurate and comprehensive data available.
Stay ahead in the ever-evolving real estate market by leveraging cutting-edge tools that bridge the data accuracy gap and propel your business strategies forward. For more in-depth insights and updates, visit DealMachine.
Accurate, efficient skip tracing transforms real estate strategies from good to exceptional. By increasing the likelihood of contacting the correct property owner, investors can maximize their efforts and see tangible results more quickly.
"Closing the 33% gap means our skip tracing is now 50% more accurate, leading to 50% more conversations and deals."
Stay tuned for more innovations in real estate technology by keeping up with DealMachine. Unlock smarter ways to thrive in your real estate endeavors.