What is Skip Tracing in Real Estate? A Complete Guide

If you've spent any time in real estate investing circles, you've probably heard the term "skip tracing" thrown around. It's one of those skills that separates investors who consistently find deals from those who struggle to build a pipeline.

But what exactly is skip tracing? And more importantly, how can you use it to find motivated sellers and grow your real estate business?

In this guide, I'm going to break down everything you need to know about skip tracing—from the basics of how it works to the best tools and methods for 2026. By the end, you'll have a clear roadmap for integrating skip tracing into your lead generation strategy.

What is Skip Tracing?

Skip tracing is the process of tracking down and locating people—specifically their current contact information—when that information isn't readily available. In real estate, this typically means finding phone numbers, email addresses, and current mailing addresses for property owners.

Definition and Origins

The term "skip tracing" originally comes from the debt collection and bail bonds industry. When someone "skips" town to avoid paying a debt or showing up for court, investigators would "trace" their whereabouts to track them down.

For real estate investors, the concept is similar but the motivation is different. You're not chasing down people who owe money—you're trying to reach property owners who might be interested in selling but aren't actively marketing their property.

Why the Name "Skip Tracing"?

The "skip" part refers to someone who has essentially disappeared from their last known location or contact information. Maybe they:

• Moved and didn't update public records
• Inherited a property and live in a different state
• Own rental properties but use a P.O. box for correspondence
• Have outdated phone numbers on file

The "tracing" part is exactly what it sounds like—following the trail of public records, databases, and other information sources to locate current, accurate contact details.

Why Real Estate Investors Need Skip Tracing

Here's the reality: the best deals in real estate rarely come from properties listed on the MLS. They come from off-market opportunities where you reach motivated sellers before anyone else does.

But here's the problem—those motivated sellers are often hard to find. That's where skip tracing becomes essential.

Finding Absentee Owners

Absentee owners—people who own property but don't live there—are some of the most motivated sellers in real estate. They might be tired of managing rentals from a distance, dealing with problem tenants, or simply ready to cash out.

The challenge? Their mailing address on public records might be years out of date. Skip tracing helps you find where they actually live so your direct mail actually reaches them.

For a deeper dive on this topic, check out our guide on absentee owner lists.

Reaching Distressed Sellers

Distressed sellers—those facing foreclosure, divorce, probate, or financial hardship—often don't want their situation publicly known. They're not going to list their property on Zillow with a big "MOTIVATED SELLER" sign.

Skip tracing allows you to identify these properties through public records (foreclosure filings, probate court, etc.) and then find current contact information to reach out directly and discreetly.

Building Targeted Mailing Lists

Generic mailing lists are a waste of money. When you skip trace your own lists, you're ensuring that:

• Addresses are current and deliverable
• You have multiple contact methods (mail, phone, email)
• Your message reaches the actual decision-maker

Skip-traced lists typically convert 2-3x better than purchased lists with outdated information. That's a huge difference in ROI.

Skip Tracing Methods in 2026

There are two main approaches to skip tracing: manual (free but time-intensive) and automated (paid but scalable). Most successful investors use a combination of both.

Manual Skip Tracing: The Waterfall Protocol

The manual approach—sometimes called the "Waterfall Protocol"—uses free public sources in a specific sequence to locate property owner information.

Step 1: Start with Property Records

• County tax assessor website (owner name, mailing address)
• County recorder's office (deed information, purchase history)

Step 2: Cross-Reference Public Records

• Voter registration databases
• Court records (especially for LLC ownership)
• Business entity filings (Secretary of State)

Step 3: Search Online Platforms

• LinkedIn (especially for higher-value properties)
• Facebook (check location, contact info in profiles)
• Whitepages, TruePeopleSearch, FastPeopleSearch

Step 4: Verify and Document

• Cross-reference across multiple sources
• Document findings with source and date
• Flag confidence level (high/medium/low)

Pros of Manual Skip Tracing:

• Zero cost (just your time)
• Often yields fresher data than bulk databases
• Teaches you the fundamentals

Cons:

• Time-intensive (10-30 minutes per lead)
• Not scalable for high-volume campaigns
• Requires consistent effort and skill development

Pro tip: Use incognito/private browsing mode when searching. Many free sites limit searches per session, and this prevents tracking.

Automated Skip Tracing Services

For most investors, especially those running direct mail campaigns at scale, automated skip tracing is the way to go. These platforms aggregate data from multiple sources and return results in seconds.

Here's how they work:

1. Upload a list of properties or owner names
2. Platform searches multiple databases simultaneously
3. Results returned with phone numbers, emails, current addresses
4. Pay only for successful matches (most services)

Modern platforms combine data from:

• Credit bureau headers
• Utility connection records
• Cell phone registrations
• Social media profiles
• Public records aggregators

The best services achieve 70-90% hit rates, meaning they successfully locate contact information for 7-9 out of every 10 records you submit.

AI-Powered Skip Tracing Tools

2026 has brought significant improvements in AI-powered skip tracing. These newer tools go beyond simple database lookups to:

• Predict which phone numbers are most likely current
• Score leads based on likelihood of motivation
• Automatically verify and validate contact information
• Flag potential DNC (Do Not Call) issues

The AI layer helps filter out bad data before you waste time or money on outreach.

Best Skip Tracing Tools for Real Estate

Not all skip tracing services are created equal. Here's a breakdown of the top options for real estate investors in 2026:

Batch Skip Tracing

Pricing: Pay-per-match (no monthly fees) Best for: Investors who want flexibility without subscriptions

Batch Skip Tracing uses a proprietary verification loop that cross-references multiple data sources. No minimum orders, no monthly commitments—you just pay for results.

REISkip

Pricing: Pay-per-match Best for: Investors who want CRM integration Hit rate: 85-90%

REISkip stands out for its built-in lead tracking features. When you're managing hundreds of skip-traced leads, having everything in one place is huge.

PropStream

Pricing: Monthly subscription (~$99/month) Best for: Investors who also need property data

PropStream is more than just skip tracing—it's a full property data platform. If you're already using it for comps and property research, adding skip tracing makes sense.

Lead Sherpa

Pricing: Pay-per-match Best for: SMS marketing campaigns

Lead Sherpa includes automatic DNC checks and "PropStack" list stacking for SMS outreach. If texting is part of your strategy, this integration is valuable.

Geopoint Data

Pricing: Pay-per-match Best for: High-volume operations

Geopoint claims access to 175 million landlines, 250 million cell phones, and 150 million email addresses. For investors doing serious volume, the breadth of data matters.

Comparison Table

How to Integrate Skip Tracing with Direct Mail

Skip tracing is just the first step. The real value comes from what you do with that contact information. Here's how to build an effective workflow.

Building Your Campaign Workflow

Step 1: Build Your Initial List Start with a targeted list based on your investment criteria:

• Tax delinquent properties
• Absentee owners with high equity
• Pre-foreclosure filings
• Probate properties

Step 2: Skip Trace the List Run your list through a skip tracing service to append:

• Current mailing address
• Phone numbers (cell and landline)
• Email addresses

Step 3: Clean and Segment Remove records with low confidence scores. Segment by:

• Property type (SFR, multi-family, land)
• Owner type (individual, LLC, trust)
• Motivation indicators (years owned, equity level)

Step 4: Launch Multi-Channel Outreach Don't rely on a single touch. The most effective campaigns combine:

• Direct mail (postcards or letters)
• Phone calls (if numbers are available and DNC-compliant)
• Text messages (where legally permitted)
• Email follow-ups

Step 5: Track and Optimize Measure response rates by list source and contact method. Double down on what works.

Automation Tips

Manual follow-up doesn't scale. Here's how to automate:

1. Use a mail automation platform - Services like REmail handle printing, addressing, and mailing automatically
2. Set up drip sequences - Multiple touches over 4-6 weeks dramatically improve response rates
3. Integrate your CRM - Push skip-traced leads directly into your follow-up system
4. Track at the property level - Know exactly which properties responded to which campaigns

The goal is to create a system that runs consistently without you manually managing every piece of mail.

Skip Tracing Costs and ROI

Let's talk numbers. What should you expect to pay, and what kind of return can you realistically achieve?

Typical Costs

For most investors, the sweet spot is $0.15-0.25 per record for a balance of quality and cost.

ROI Calculation

Let's run a realistic scenario:

• List size: 1,000 properties
• Skip tracing cost: $200 ($0.20 × 1,000)
• Mail cost: $700 ($0.70 × 1,000 for postcards)
• Total campaign cost: $900

With a 2% response rate (very achievable with skip-traced lists), you'd get 20 leads. If you close just one deal with a $10,000 wholesale fee or flip profit, that's an 11x return on your marketing spend.

The math gets even better as you refine your lists and improve response rates over time. Use our free ROAS calculator to model different scenarios based on your market and deal sizes.

Skip Tracing for LLCs and Trusts

One challenge you'll encounter: many investment properties are owned by LLCs or trusts rather than individuals. Here's how to handle them.

LLC-Owned Properties

1. Find the LLC name from property records
2. Search your state's Secretary of State website for business filings
3. Look for the registered agent - this is often the actual owner
4. Check the "Statement of Information" for managing member names
5. Skip trace the individual once you have a name

Trust-Owned Properties

1. Look for the trust name on the deed
2. Find the trustee's name - this is usually listed on recorded documents
3. Skip trace the trustee to get contact information
4. Note: The trustee may not be the beneficiary (actual decision-maker)

These extra steps take time, but LLC/trust-owned properties often have less competition because many investors skip them entirely.

Frequently Asked Questions

Is skip tracing legal?

Yes, skip tracing using publicly available information and legitimate data services is completely legal. You're essentially aggregating information that's already accessible through various public and commercial databases. However, what you do with that information matters—always comply with DNC regulations and local solicitation laws.

Important for Service Providers: When using skip tracing services, be aware that:

• Data providers must comply with FCRA if using credit bureau data
• You must comply with TCPA/DNC regulations when contacting individuals
• State licensing requirements may apply in certain jurisdictions (e.g., California requires private investigator licenses for performing skip tracing services)
• You are responsible for compliance with all applicable privacy and data protection laws
• Data accuracy is not guaranteed and should be verified
• When using third-party skip tracing APIs, ensure your service provider agreements clearly define compliance responsibilities

How accurate is skip tracing?

Modern skip tracing services achieve 70-90% hit rates for locating contact information. However, "hit rate" doesn't guarantee the information is current. The best services cross-reference multiple sources and provide confidence scores so you can prioritize high-quality leads.

What's the difference between skip tracing and data appending?

Skip tracing specifically refers to locating hard-to-find contact information for individuals. Data appending is a broader term that includes adding any additional data points to existing records (property value, mortgage info, etc.). Skip tracing is a type of data appending focused on contact details.

How often should I re-skip trace my lists?

Contact information changes frequently—people move, change phone numbers, etc. For active campaigns, re-skip trace every 6-12 months. For high-value target properties, consider re-verifying before each outreach attempt.

Can I skip trace myself (as a property owner)?

Yes, and it's a useful exercise. Try skip tracing your own information to see what's publicly available and understand the process from the other side. This perspective helps you craft better outreach messaging.

What's the best skip tracing service for beginners?

If you're just starting out, I'd recommend a pay-per-match service like Batch Skip Tracing or REISkip. You won't be locked into monthly fees while you're learning, and you can scale up as your business grows.

Start Skip Tracing Today

Skip tracing is one of those foundational skills that pays dividends throughout your real estate investing career. Whether you're wholesaling properties, fixing and flipping, or building a rental portfolio, the ability to find and contact property owners directly gives you a massive competitive advantage.

The key is integrating skip tracing into a systematic lead generation process. Skip trace your lists, send targeted direct mail, follow up consistently, and track your results.

Ready to put your skip-traced lists to work? Check out our automated direct mail platform designed specifically for real estate investors. We handle the printing, mailing, and tracking so you can focus on closing deals.

Questions about building your skip tracing workflow? Reach out to our team—we're happy to help you get started.