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.
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.
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.”
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.
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.
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.
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.
By integrating utility and county mailing addresses, DealMachine ensures only highly accurate matches are shown. This method eliminates the incentive to push inaccurate data.
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.
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."
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