Skip tracing vs. lead generation

[Veronica Gilbert]

 Hello All,

   This is the most important question when it comes to the toughest part of real estate investing... how do I find the motivated sellers?  Skip tracing and lead generation are the 2 basic ways to find motivated sellers but they are very different methods in doing so. 

Skip tracing starts with locating vacant properties through a bird dog or vacant property list or purchasing a list such as pre -foreclosure, probate or divorce list. No matter how you obtain a list or locate a vacant property that is just the beginning, you then must skip trace the list. Whether you learn how to skip trace or you pay for a company to do the skip tracing for you, this is a crucial step. Skip tracing involves finding the new contact information for the homeowner of properties that you are interested in. Once you have located the new information for the property owner, you must call them or hire a VA (virtual assistant) to call them for you. Wow, that is a lot of steps! That is why many people go with the second option which is motivated seller lead generation. There are companies that will obtain leads by PPC ( pay per click) and SEO (search engine optimization). These people go to the lead generation company because they are motivated to sell their home, very often they are looking for an investor that can make a cash offer. Some companies charge a monthly fee but many charge a price per lead and you set your own monthly budget.

    The above methods are very different, depending on the real estate professional, either method works well...you just have to see which method is best for you.

Thank you,

Veronica Gilbert

[Tim Oppelt]

Hey Veronica! We do ppc for our own wholesaling biz and for other investors! It's great, but isn't for everyone. It can be expensive if you aren't doing it correctly. Cold calling / skip tracing can be enticing because it is cheaper. A lot of newer investors have the time to put into those types of marketing. SEO is great too, but will take a long time to see any type of return, with a lot of initial investment upfront. PPC is great for established investors looking to grow. And for investors who are worried that texting/calling regulations are going to make it much harder in the future...