As a real estate investor, your ability to track down distressed or off-market properties can transform your deal flow. One essential method for finding these opportunities involves locating property owners who are tough to reach. When you handle this process right, you increase your chances of closing more deals. But it’s easy to make mistakes that cost time, money, and sometimes lead to legal trouble. This article breaks down the top five mistakes investors make when trying to find hard-to-reach property owners—and how to avoid them.
1. Relying Too Much on Free or Outdated Data Sources
Many investors, especially those starting out, often rely on free tools or outdated data to track down property owners. Using "free" public databases seems appealing, but it’s usually a mistake. These sources often provide inaccurate or incomplete information. This leads to wasted effort trying to reach people who may have moved years ago or have new contact information unavailable to these sources.
Scenario:
Let’s say you pull up a list of leads from a free
skip tracing tool and start making calls. But the phone numbers don’t work, and your emails bounce back. You waste hours, if not days, trying to contact people no longer reachable.
Solution:
Invest in quality, paid skip tracing services that provide up-to-date and verified contact information. These platforms often use multiple data points to ensure higher accuracy. They may even include advanced features that allow you to access secondary phone numbers or email addresses. Always cross-check your results with other sources before reaching out.
2. Failing to Verify Contact Information Before Outreach
Another common mistake is failing to verify the contact information before reaching out. A phone number or email address may look good on paper, but you’ll waste time, energy, and resources if it's incorrect. For real estate investors, reaching out to unverified leads can be frustrating and demotivating.
Scenario:
You find a phone number for a property owner you’re interested in, but after several attempts, you realize the number no longer works. You’ve already invested time preparing scripts and setting up calls, only to find out the contact no longer exists.
Solution:
Before contacting any leads, always verify their information. Many skip tracing services offer verification tools that help ensure the data is accurate. Taking this extra step can save time and increase your chances of success. Plus, it’s a professional best practice that shows you respect people’s time.
3. Skipping Compliance Checks (TCPA Laws)
Real estate investors sometimes forget about compliance, particularly the
Telephone Consumer Protection Act (TCPA). The TCPA regulates how businesses can use automated calls, text messages, and emails for marketing purposes. Violating these rules can result in hefty fines. Many skip tracing services don’t check compliance, so you must follow the law.
Scenario:
You use a skip tracing tool to acquire phone numbers and send automated texts to potential leads. However, you fail to check if the numbers are on the national Do Not Call list. You get hit with a fine for violating TCPA laws.
Solution:
Always verify that your skip tracing efforts align with TCPA guidelines. Using a service that offers compliance features can help, but it’s still important to double-check before making any outreach efforts. This proactive step will protect your business from unnecessary legal trouble.
4. Failing to Cross-Reference Leads with Other Marketing Efforts
Skip tracing is a powerful tool, but it’s not the only strategy you should use. Relying on skip tracing to find property owners can lead to missed opportunities. Failing to cross-reference your skip tracing efforts with other marketing strategies, such as direct mail campaigns or social media outreach, can hinder your results.
Scenario:
You skip-trace a list of property owners and reach out, but none of your leads convert. Meanwhile, you’ve ignored your direct mail campaign, which might have been more effective. You could have identified potential leads from both channels if you cross-referenced both strategies.
Solution:
Make skip tracing one part of a larger marketing strategy. Combine it with direct mail, cold calling, online ads, and social media outreach. Cross-referencing these efforts allows you to identify patterns and increase your chances of reaching motivated sellers.
5. Treating Skip Tracing as a One-Time Task
Finally, many real estate investors make the mistake of treating skip tracing as a one-time task. Once they find a list of property owners, they stop and move on to other projects. Skip tracing, however, is an ongoing process. Contact information changes, people move, and leads evolve. If you treat it as a one-off, you’ll miss valuable opportunities.
Scenario:
You pull together a list of skip-traced leads for the year and send out offers. Months later, many of those leads stop responding, and you discover that the information has become outdated. You miss the chance to nurture and build relationships with fresh leads over time.
Solution:
Treat skip tracing as an ongoing part of your business. Update your data, check with previous leads, and ensure your outreach is always targeted. This proactive, ongoing approach will yield better results over time.
Conclusion
Skip tracing is a powerful tool for finding real estate deals, but it requires careful use like any tool. Avoid these five common mistakes to improve your skip tracing strategy and increase your chances of closing more deals. Start using verified, accurate data sources, and always double-check contact information before reaching out. Follow compliance laws, cross-reference your skip tracing efforts with other marketing channels, and make skip tracing an ongoing part of your business. By doing so, you’ll stay ahead of the competition and unlock more opportunities for success.
