In the United States, there are two main types of foreclosure: judicial foreclosure and non-judicial foreclosure. Both types involve the lender repossessing a borrower's property in order to recover the amount owed on a mortgage loan. However, the process for each type of foreclosure is slightly different.

1. What is Judicial Foreclosure?                    
   Judicial foreclosure is the process that takes place in states where the lender must go through the court system to foreclose on a property. This type of foreclosure is typically slower and more costly than non-judicial foreclosure, as it involves the lender filing a lawsuit and obtaining a court order.                    
   
   The process of judicial foreclosure typically begins when the borrower defaults on their mortgage loan. This can happen when the borrower fails to make the required payments, violates the terms of the mortgage agreement, or otherwise breaches the contract.
   
   Once the borrower has defaulted, the lender will send a notice of default or "NOD" to the borrower, informing them that they have a certain period of time to cure the default. If the borrower is unable to cure the default within the specified time period, the lender may file a lawsuit to begin the foreclosure process.
   
   Once the lawsuit has been filed, the court will set a hearing date and notify the borrower. At the hearing, the borrower will have the opportunity to defend themselves and present any evidence or arguments as to why the foreclosure should not proceed.
   
   If the court determines that the borrower is indeed in default and that the lender has the right to foreclose, it will issue a judgment of foreclosure. This allows the lender to take possession of the property and sell it at a sheriff's sale.
   The sheriff's sale is a public auction where the property is sold to the highest bidder. The lender is typically the first bidder and can bid up to the amount owed on the mortgage loan. If the property does not sell for at least the amount owed, the lender can apply to the court for a deficiency judgment, which allows the lender to seek the remaining balance from the borrower.
   
2. How does non-judicial foreclosure work?
   
   Non-judicial foreclosure, also known as a "trustee's sale," is the process that takes place in states where the lender does not need to go through the court system to foreclose on a property. This type of foreclosure is typically faster and less costly than judicial foreclosure, as it does not involve a lawsuit.
   
   The process of non-judicial foreclosure typically begins when the borrower defaults on their mortgage loan. As with judicial foreclosure, the lender will send a notice of default to the borrower, informing them that they have a certain period of time to cure the default. If the borrower is unable to cure the default within the specified time period, the lender may proceed with the foreclosure.
   
   In a non-judicial foreclosure, the lender does not file a lawsuit. Instead, the lender appoints a trustee, who is typically a third party such as a lawyer or a title company, to handle the sale of the property.
   
   The trustee will send a notice of sale to the borrower and publish the notice in a local newspaper. The notice of sale will contain information about the property, the amount owed on the mortgage, and the date and time of the sale.
   
   The sale of the property takes place at a public auction, similar to a sheriff's sale in a judicial foreclosure. The lender is typically the first bidder and can bid up to the amount owed on the mortgage loan. If the property does not sell for at least the amount owed, the lender may not seek a deficiency judgment against the borrower.
   
3. What exactly is pre-foreclosure?
   
   Keep in mind that the period from the filing of a NOD, sometimes referred to as a notice of intent to foreclose, kicks off what is commonly referred to as "pre-foreclosure". While pre-foreclosure is not an official legal status, this intermediate phase between NOD and judgement is what is being referenced. So, when you create a lead list on REISkip's list builder, and you use the pre-foreclosure filter, any property along that continuum is an eligible property for that list.
   
   Since there are multiple steps along the path to a foreclosure, there are different schools of thought about when is the best time to contact a homeowner in distress.
   
   As the name suggests, an NOD is simply a notice from the lender to the borrower, that they are in default on their mortgage and that the bank may execute its right to foreclose. Some investors believe that contacting the borrower at this early stage preserves the most options and minimizes the accumulation of arrearage in the event they are able to work out an arrangement with the homeowner. That said, an NOD is so early that it may not be a good indication of true distress.
   
   As a result, some investors will only pursue distressed properties where the official legal process has begun. The first court filing is called a lis pendens. A lis pendens is a public notice that is filed with the court and recorded in the county land records, indicating that a lawsuit affecting the title to real property is pending. Once a lis pendens has been filed, the foreclosure process begins in earnest. It is at this point that many homeowners will begin to seriously evaluate their options.
   
4. What is the impact on investors in judicial foreclosure states?
   
   The impact on investors can vary depending on what strategy you are pursuing. If you are a wholesaler, the timing considerations are the most relevant, as you will need to gauge how close the delinquent homeowner is to an actual consummated foreclosure.
   
   If you are a note investor or you are structuring wrap mortgages or other creative structures where you could need to foreclose, you are essentially the bank. You will have the same considerations other lenders do as you evaluate the time and risk associated with foreclosing on non-performing loans. Those strategies, when executed in judicial foreclosure states, will likely face longer wait times. You must account for this and include the additional cost in your contingency budget from the outset. Be sure budget for the additional time as well, as there will like be an extended period of non-payment as the process meanders through your state's court system.

It is difficult to estimate the average cost of a foreclosure action in a judicial foreclosure state, as it can vary significantly depending on a number of factors, including the location of the property, the complexity of the case, and the fees charged by the court and any attorneys involved.

Obviously, attorneys fees can vary wildly, but a good starting point is Fannie Mae's published guidelines for servicing foreclosure action on properties with Fannie mortgages. This is a state by state schedule of maximum allowable attorneys fees. Keep in mind that this has no bearing on what can be charged to foreclose non-Fannie properties.

Also, keep in mind that this is just one of the out of pocket expenses that lenders incur in servicing foreclosure actions. There are several others, as well as the cost of lost time and other intangibles.

Click the button below to use the REISkip list builder and create your first foreclosure or pre-foreclosure lead list. We have millions of records, compiled from data in both judicial and non-judicial states.

States that are Non-Judicial:

The following states are non-judicial states, meaning that lenders in these states may use the non-judicial foreclosure process: Alaska, Arizona, California, Idaho, Minnesota, Montana, Nebraska, Nevada, North Dakota, Oregon, South Dakota, Utah, and Washington

Real estate investing can be a lucrative and rewarding venture, but it can also come with its own set of challenges. One of the biggest challenges for landlords is dealing with the various state and local laws that govern how they can manage their rental properties. Some states are more landlord friendly than others, and understanding which states are the most favorable can help you make informed decisions about where to invest.

Here are the top 6 most landlord friendly states for real estate investors, based on rent yield, property taxes, the existence of rent control, and ease of eviction:

1. Mississippi - This state tops the list primarily due to its favorable price-to-rent ratio and very low property tax rates (just .52% on average). Mississippi landlords can expect a high rent yield, meaning rental rates are relatively high compared to the cost to purchase a single family home.
   
   Notably, even as rents surged nationwide in 2022, rents in Mississippi remained modest, averaging just $1495/mo. However, home sales prices also remained modest. The median was just $172,000. Dividing the annualized rent by median sales price delivers a gross rent yield north of 10%. This  ratio leads to very high cap rates for landlords in the Magnolia state.
   
   Another pro for the state is its stance on rent control. The legislature preempts the adoption of rent control statewide. Finally, Mississippi has a short notice to quit period (14 days) for evictions, making it easier for landlords to remove tenants who don’t pay.

Below are the states that round out the list of the top places for landlords to invest in 2023…

1. Oklahoma - Oklahoma is up next on our list. With typical rents of $1400 and home prices that average below $200k, landlords can expect handsome rent yields. OK also has an exceptionally short notice to quit period for evictions. For a tenant with a fixed-term lease, the landlord need only give the tenant 10 days' notice to vacate the property if they are in breach of the lease agreement.
2. Indiana - Median rent in the Hoosier state is just under $1,400. Median home price is a modest $221,000, making it a good choice for landlords looking to maximize their profits. It's worth noting that Indiana has no rent control laws, giving landlords full control over their rental rates and terms.
3. Alabama - Forest Gump's home state has a price to rent ratio is in line with the top 3 at $205,000 avg home price and rents that average $1450. If your tenant fails to pay on time (or otherwise break the terms of your lease), the state requires only 14 days notice to quit.
4. Arkansas - This state has a solid price-to-rent ratio, with median sales price of $250k and median rents of $1350. Notice to quit requirement is 30 days. Arkansas has no rent control.
5. Wyoming - The home of Yellowstone rounds out our list, thanks to very low property taxes (.57% on average) and a laissez fair stance on rent control. (The state legislature does not address the practice at all.) The state also favors landlords dealing with tenants who behave badly. The notice to quit requirement is just 10 days. Home prices are a bit higher than other entries on the list ($320k on average), and rents are nearly $1200 on average, so gross yield is about half the rate in #1 Mississippi.

While these states may be the most landlord friendly overall, it's important to note that there may be other factors to consider when deciding where to invest in real estate. For example, you may want to consider the local economy, the rental demand in the area, and the overall cost of living. When building lead lists on REISkip, it may be a good idea to overlay these rankings with your current criteria to find the best opportunities to continue building out your portfolio.

A non-disclosure state is a state in which real estate transaction data, specifically the sale prices of homes, is not publicly available. The transfer is recorded at the county, but the actual price is not included. In non-disclosure states, the only way to access sales price is via the relevant MLS. This means that it can be difficult for real estate investors to conduct due diligence on properties when operating in these 12 states.

Without official price data, investors may struggle to determine the true value of a property. Running comps becomes very difficult. Worse, a lack of access to this data over time could blind you to negative trends, resulting in investing in an area with consistently declining property values.

But fear not. You don’t have to fly blind when doing business in these states. Given the many related data that are recorded as part of a property transfer, there are ways to deduce sales price–even if country officials cannot divulge. Fortunately, REISkip gathers these associated data points as part of every transaction we store.

The data point most closely correlated with sales price, of course, is mortgage amount. Outside of all-cash transactions, the vast majority of home buyers will obtain a mortgage for the bulk of the sale price. That proportion is largely dependent on the type of mortgage they obtain (FHA, VA, Conventional). Here again, is a data point (mortgage type) that REISkip displays in every lead list or skip trace order we process.

Borrowers who use traditional mortgages behave very predictably, based on the guidelines of the loan product. As a result, a common method to deduce sales price in a non-disclosure state is to gross up the mortgage amount by a multiplier. Each mortgage type has its own multiplier:

Conventional mortgage products typically require 20% down. As a result, the convention used by professional investors and fund managers is to gross up conventional mortgages by a factor of 1.3. That means a $100k mortgage likely corresponds to a purchase price of ~$130k.

FHA loans are popular for their low down-payment requirements, as low as 3.5%. The convention is to gross up by 1.05. This means that a $100k mortgage likely transales to a ~$105k purchase price.

VA loans are reserved for veterans, and offer the most generous borrowing guidelines (no down payment required). As such, a purchase with a VA loan can typically be grossed up by a factor of 1, meaning that buyer borrowed the entire purchase price.

As long as you know the mortgage amount and type, you can use this simple matrix to estimate the likely sale price of a property in any non-disclosure state.

REISkip goes one step further, and factors in a lender-grade automated valuation model (AVM) into the estimation process.

By combining mortgage amount and mortgage type as well as original listing price and an automated valuation, we are able to approximate sales price with 90%+ accuracy. This is the sales price figure that you will see displayed for records we deliver in non-disclosure states.

Always keep in mind that any display of sale price on our site (or any other site) in a non-disclosure state is an estimate.

The following states are currently non-disclosure states: Alabama, Alaska, Idaho, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Ohio, Oklahoma, South Dakota, Texas, Utah, and Wyoming.

Companies have an ethical and legal obligation to protect the personally identifiable information (PII) of their customers and employees. PII is any data that can be used to identify a specific individual, such as their name, social security number, or financial information. The use and handling of PII is regulated by various laws, such as the General Data Protection Regulation (GDPR) in the Europen Union and the California Consumer Privacy Act (CCPA) in the United States.

The origins of PII protocols can be traced back to the 1970’s when concerns about consumer privacy and the potential misuse of personal data first emerged. In the United States, the Fair Credit Reporting Act (FCRA) was enacted in 1970 to regulate the collection, use and dissemination of consumer credit information. The FCRA was later amended by the Gramm-Leach-Bliley (GLBA) in 1999, which added additional requirements for financial institutions to protect the confidentiality of customer information.

The GDPR, which went into effect in 2018, significantly strengthened data protection laws in the European Union. The GDPR applies to any company that processes the personal data of EU citizens, regardless of the company’s location. It gives individuals the right to access their personal data, the right to be forgotten and the right to data portability, among other rights.

In the United States, the CCPA came into effect in 2020, and it has similar provisions to the GDPR. It grants California residents the right to know what personal information a company has collected about them, the right to delete that information, and the right to opt out of the sale of their personal information.

To ensure compliance with PII regulations, companies should have a clear and comprehensive privacy policy in place. This policy should detail what personal information is collected, why it is collected, how it is used, and how it is protected. Companies should also provide notice to individuals before collecting their personal information and obtain their consent if necessary.

In addition to having a strong privacy policy, companies should implement technical and organizational measures to protect personal information. This includes encrypting data, regularly updating security software and limiting access to personal information to only those who need it for their job duties.

As a marketer, your research may go far beyond skip tracing. You may build out customer personas that you then populate with prospects’ actual information. If the data you obtain includes PII, you are subject to the regulations and protocols noted above. Be sure to incorporate the appropriate security measures to ensure your business does not violate the rules or the trust of the prospects you hope to serve.

So you skip traced a lead list to find potential customers. Now you’re planning to send a blast text message campaign to tell all your prospects why they should do business with you. Not so fast….

SMS is an incredibly effective communication channel for brands. But it’s important you understand how to set up that marketing campaign so you don’t violate the Telephone Consumer Protection Act (TCPA).

The last thing you want to do is get caught up in a government dragnet when you are simply trying to drum up business for your company.

Keep reading to learn how to create a safe and effective SMS marketing strategy.

SMS Open Rates Still Higher than Other Channels

SMS is still one of the most effective marketing channels with higher open rates than email, and far greater responsiveness than direct mail. The strong performance is due, in large part, to consumers’ near constant connectivity to their mobile phones.

In addition, data shows that the SMS channel is significantly less spam-filled than email marketing. According to data collected by Symantec, Kaspersky Lab, and Truecaller that was compiled by the CTIA, SMS/ texting had a spam rate of 2.8% whereas email ahd a spam rate of 53%.

While this data is exciting for business owners and marketers alike, the success of SMS marketing has certainly motivated regulators to enact guidelines.

TCPA

When it comes to telephonic communication with consumers, TCPA is the law of the land. The Telephone Consumer Protection Act was created in 1991. It limits the use of automated dialing systems for marketing purposes.

Businesses should focus on the following critical areas:

1. Consent

If there’s one thing you take away from this post, remember this: consent is critical. As with many consumer protection regulations, consent is the backbone. When a prospect has given consent for communication, only then does it become okay to engage. The same can be said for SMS/text messaging.

75% of people wouldn’t mind receiving an SMS text message from a brand, and when you combine that with the fact that People check mobile phones 85 times per day on average, there’s a massive opportunity to establish relationships and gain trust.

2. Opt-ins and Opt-Outs

Always, always, always include information about how someone can opt-out of future communications. If you’ve ever seen the “unsubscribe” button at the bottom of an email you receive or a note at the end of a text messaging telling you to text “STOP” in order to opt out, you’ve witnessed first hand how that business is attempting to stay compliant.

Every piece of communication should have opt- out information regardless of if it’s a text message, phone call, or email. Note: do not call list applies to text messages also.

3. TCPA and GDPR Fines

The various regulations have different fine structures for data protection violations, so we’ve highlighted a few below to showcase the importance of staying compliant and how the fines levied could be truly devastating!

• TCPA has provisions for fines of $500 to $1500 per violation, and every single phone call or text message can be considered a separate violation.
• GDPR fines are based on revenue, and fines can be up to 20 million Euros or 4% of a business’s total global revenue.

4. Cellular Telecommunications and Internet Association (CTIA)

Phone manufacturers and mobile carriers don’t have the power to deem an activity illegal. Since CTIA is not an enforcement agency, they also don’t have the authority to decide if an activity is illegal. However, they can decide — on behalf of their members — what behaviors are unwanted. Here’s how they do that:

The rapid rise of SMS marketing has led to an increase in automated activities that are known as A2P (Application to Person) messaging. This sophisticated automation has essentially led to the text message equivalent of the dreaded robocall.

On the other end of the spectrum is P2P (Person to Person) messaging, which is defined as a two-way messaging conversation between two people. In the CTIA’s Messaging Principles and Best Practices guide, they outline what the thresholds are for “typical” consumer behavior.

The idea behind the above matrix is that if you’re doing things that do not conform to the typical behavior model, your messages may get flagged as spam or result in a failed delivery attempt. Premium SMS platforms on the market are built in a way that encourages compliant behavior and rejects the automated sending of irrelevant messaging. When you’re searching for a platform for your business, it’s incredibly important to ask about the features and functionality that is built into the software that helps with deliverability and compliance.

Does TCPA apply to Real Estate Investors?

We hear this all the time: “But I’m messaging about BUYING from my prospect, not to SELL them something.” Our answer is that this is just semantics. TCPA is designed to address outreach for solicitation. Most attorneys would consider your offer to buy a commercial solicitation, and therefore covered under TCPA.

The takeaway:

You should play by these rules too and ensure you are taking the necessary steps to remain compliant.

Did you know that you can start wholesaling with just a small amount of money?

There's a lot of talk in the real estate world about wholesale deals. But what, exactly, is wholesale real estate? And how can you get involved in it?

In this blog post, we'll discuss the basics of wholesale real estate and show you how to get started in this exciting industry!

What is Wholesale Real Estate?

Wholesale real estate is finding deeply discounted properties and then selling them to investors for a profit. It's a business model that can be done with very little money and no credit, and it's one of the quickest ways to get started in real estate investing.

How Does Wholesale Real Estate Work?

The key to successful wholesale real estate is finding properties sold by motivated sellers. These people typically need to sell quickly for one reason or another, and they're often willing to accept a deeply discounted price to do so.

Once you find a motivated seller, you'll need to make an offer on the property. If the seller accepts your offer, you'll then need to find an investor to buy the property from you. This is usually done by finding a buyer interested in fixing and flipping the property.

How to Become a Wholesaler: A Step by Step Guide

Now that you know a little bit more about wholesale real estate, you might be wondering how you can get started in this exciting industry. Here's a quick step-by-step guide:

Step One: Set Your Goals

The first step is to set your goals. What are you looking to achieve by wholesale real estate?

Do you want to quit your day job? Make some extra money each month? Build up a long-term portfolio of rental properties?

Once you know what you want, you can start working towards it. Use the 1-5-10 year goal-making formula.

For example:

In one year, I want to be making $2000 extra each month from wholesale real estate.

In five years, I want to have a portfolio of 20 rental properties.

And in ten years, I want to retire and live off my rental income.

Step Two: Find Your Niche

The next step is to find your niche. This is the part of wholesale real estate that you're most passionate about.

Do you want to focus on finding properties for house flipping? Or do you want to work with landlords and build a rental portfolio?

While most wholesaling does not include land or tax liens, there are ways to go about it. Most wholesalers prefer working with houses rather than vacant land.

Maybe you're interested in tax liens or vacant land, but it is best to start wholesaling homes as a beginner.

No matter what you're interested in, wholesale real estate has a niche for you.

Step Three: Get the Money

The third step is to get the money. You'll need some money to start, even though it isn't a lot.

Of course, you won't purchase the house, but you will need to spend some money to develop a marketing strategy. Some great tools can help you get started, so it's important to have a little cash in your back pocket.

There are a few ways to get the money you need:

• Use your savings
• A loan from a bank
• Find private investors to fund your deals

Once you have the money, you're ready to start wholesaling!

Step Four: Find Motivated Sellers

There are a few ways to find motivated sellers:

You can drive for dollars and look for properties that appear to be vacant or in disrepair. When you drive for dollars, you look for particular items in houses.

For example, most wholesalers are looking for houses that are in disrepair, vacant or have gone through a foreclosure.

These owners are looking to sell their property fast and often for a steeply discounted price. However, they are having issues finding a buyer. This is where you and your expertise come in.

When looking for sellers, you will need to find their names, social media handles, and any other form of contacting them. Using an app such as REISkip, you will find all the information by just filling out the address.

You can search online listings for properties sold by motivated sellers. Or you can work with a real estate agent to find properties.

Pro Tip: Use the REIRail App to track your route when driving for dollars. It integrates perfectly with the skip tracing app we provide to find contacts, mortgage info, and property characteristics!

Step Five: Make an Offer

When a wholesaler is looking to make an offer on a property, they have to consider several factors to ensure that they are making a profitable offer.

The first and most important factor is the contract. The contract needs to be drawn up so that it protects the interests of both the wholesaler and the end buyer.

The second factor is the price. You need to offer a low enough price that the end buyer will be able to make a profit on their rehab but still high enough that you will be able to make a profit too.

To calculate this, you need to understand both the property market and the costs associated with rehabbing the property.

Once these two factors have been considered, you can start drawing up a contract!

Step Six: Find an Investor

The final step is to find an investor. This is usually done by finding a buyer interested in fixing and flipping the property.

You can find investors through your network of friends and family or search for them online. Once you find an investor, you'll need to present them with the contract. Then, if interested, they'll sign the contract and buy the property from you.

Max Maxwell: A Success Story

If you are still wondering if wholesaling is right for you, perhaps look at Max Maxwell, who climbed his way up from the bottom and is not a successful real estate investor and coach.

He started with only $300 in his bank account and now has one of the most successful real estate companies. In fact, he used skip tracing to find his first deal! His company generates millions now, and he is still growing!

Do you know how he did it? Wholesaling. From one deal to another, he built his empire and generated an income that allowed him the freedom we all wanted.

Start Wholesaling with REISkip Today

Now that you know the process of wholesale real estate, it's time to start!

REISkip is the leading provider of skip tracing services. We can help you find motivated sellers and get your wholesale business off the ground.

Click here to learn more about REISkip and how we can help you succeed in wholesale real estate!

Happy wholesaling!

Maybe you’ve asked…

“What is real estate skip tracing anyway?”

The term gets tossed around a lot at real estate investor conferences and REIA meetups.

Keep reading to learn what it really means and why you should care…

DEFINITION

First, you don’t technically skip trace real estate.

Skip Tracing is the process of locating a person who isn't readily accessible.

In real estate, that means finding a property owner’s contact information so you can get in touch with them to do business.

Since investors and real estate wholesalers often target vacant or absentee owned homes, it can be difficult to make contact with the responsible party.

Obviously, knocking on the door of a vacant house is pointless! And sending mail directly to the subject property is likely to land with a tenant rather than the person who owns the property, if it’s a rental.

By skip tracing the owner, you can determine their mailing address, as well as get their phone number and email address. With REISkip, you’ll even get their social media handles.

*We are the only skip trace service in the real estate industry that provides this important data point.

REISKIP STT TECHNOLOGY

A word about our Skip Tracing process–and why it’s different from other systems you may have considered.

REISkip 2.0’s new dynamic matching protocol will shred your research time and 10X your profits.

We call it STT - Skip Trace Triangulation Technology.

The truth is, most skip tracing companies are simply reselling phone numbers from only one of the big data companies.

But imagine if you had a way to get the best numbers from ALL the great data companies.

What if you could merge the best data from the best companies in the world... then add some of the sleuthing secrets of the world’s top investigators?

On your own, this would be nearly impossible–and it wouldn’t be worth taking time away from growing your wholesale real estate business.

But that is precisely what is “under the hood” of the REISKip platform.

A WHOLESALER’S SECRET WEAPON

Whether you are a mortgage broker, a solar installer, or a process server,  you know that having good homeowner contact information is valuable –but especially if you are wholesaling real estate.

A wholesalers’ super power is his/her ability to find off-market investment opportunities. These are often distressed situations where homeowners need help, but they want that help to come discreetly. So having tools to track down hard-to-find homeowners like this is mission-critical.

If you want to make a living wholesaling real estate, you’ll have to get good at a few key activities:

(i) Identifying distressed situations

(ii) Consistently marketing your services to homeowners

(iii) Cultivating relationships with cash buyers who will buy your deals.

One of the things that makes REISKip so powerful is that we can help you with all three.

Our list builder allows you to mix and match filters to find homeowners who will be receptive to your marketing message.

Lastly, our platform gives you the ability to find the investors and house flippers who will buy your wholesale deals. Simply open the List Builder and select the “Cash Buyer” filter and the system will scour our data warehouse for home purchases that were completed as cash transactions. We flag them for you and deliver a tidy list of your future business partners.

With REISkip, real estate wholesaling becomes less about the drudgery of scouring public records for leads, and more about coming up with solutions to help people who need a creative solution to a financial challenge.

Thanks to the powerful technology inside this platform, investors, agents and brokers (and others) can easily fill your sales funnel with the best prospects in your market.

The real estate market has seen a huge increase in value over the last few years. And with the entrance of big corporate investors like iBuyers and hedge funds, staying ahead of the competition is harder than ever.

If you're an investor who is looking for more properties to add to your portfolio, and if you want to find the inventory that big corporate players aren't pursuing yet, then driving for dollars may be a strategy you'll want to consider.

What Is Driving for Dollars and How Does It Work?

Driving for dollars is a strategy that involves driving around neighborhoods and looking for properties that may be in need of repair.

Once you've found a property that appears to be in disrepair, you can research the owner of the property and see if they're interested in selling. In this case, you are ahead of the competitors who are only looking online!

Pros and Cons of Driving for Dollars

There are both pros and cons to using this strategy. On the plus side, driving for dollars is a great way to find properties that may not be listed on the market yet. Even more importantly, D4D can help you find properties that aren't even on so called motivated seller lists yet. Remember, when a home owner falls behind on their taxes or misses a mortgage payment that information is recorded and accessible via public records. But there's a lag between the missed payments and the time that some list company finds out about the situation and builds a marketing list from it. If you can get to the homeowner before marketing companies turn these addresses into tidy lists, it gives you the opportunity to beat the competition to the punch!

On the other hand, driving for dollars can be time-consuming, and you may not always find what you're looking for. In addition, some people may not be interested in selling their property, even if it is in need of repair.

Should You Try Driving For Dollars?

If you're a seasoned investor and want to add more assets to your portfolio, driving for dollars may be a viable option. You can even build a team of drivers to scour your target neighborhoods for you. This will let you be very strategic and targeted in your search. But setting up an operation like that takes time. If, however, you're just starting out in the world of real estate investing, or if you have more money than time, you may want to consider other strategies first.

Have you ever tried driving for dollars? What was your experience like? Share your story in the comments below!

Tips for Getting the Most Out of Your Experience

Now that we've gone over what driving for dollars is, let's discuss some tips to help you make the most out of this strategy. It takes practice and experience to pinpoint the best investments, so don't be discouraged if you have difficulties.

1. Use REIRail Drive

The first and foremost tip you should keep in mind is to use the right tool for the job. The REIRail Drive app is the best D4D app on the market today. And also the most reasonably priced The app is available for both Android users and Apple.With this app, you can track your route so that you know exactly where you or your team went. As you look at your route, you can refine your search with property filters.

For example, if you're looking for pre-foreclosures or absentee owners you can have the app show you just the houses that fit that criteria. Then you can drop a pin on that specific location.

One of the best features of this app is that it offers a Deal Desk. This is a service that will help you and your team analyze the different properties, compare them to similar houses, and allow you to develop effective exit strategies for the property you're considering. Knowing what to do once you come across a good potential property is often the toughest part. So this additional service makes the app very valuable, especially for newer investors.

2. Prepare Yourself for Rejection

One of the challenges of driving for dollars is that homeowners will likely reject you. This is because many people are not interested in selling their property, even if it requires repair.

It's important to be prepared for rejection and not take it personally.Remember that you only need one yes to make a deal, so don't get discouraged if you hear many no's.

3. Look for Problem Signs

You'll want to look for problem signs when you're driving for dollars. These are signs that the property may require repair or that the owner is interested in selling. Some common problem signs include:

• Overgrown grass
• Peeling paint
• Broken windows

By looking for these problem signs, you'll be able to quickly identify properties that may be a good fit for your investment strategy.

4. Take Notes

Once you've found a property that you're interested in, it's important to take notes. This way, you can remember the address and other important details about the property. You'll also want to research the owner of the property so that you can contact them at a later time.

By taking notes, you'll be able to keep track of the properties you're interested in and follow up with the owners later.

You can also take pictures of the property, the area, and any amenities that may be nearby. This will help you remember the property and what it looks like. If you're driving for dollars with a partner, make sure to have one person take notes while the other drives. This way, you can cover more ground and not miss any properties that may be a good fit for your investment strategy. However, don't forget that you can use the REIRail app to assist you in the notes! Simply fill them out in the property filters, and you'll have all the information at the click of a button!

5. Research the Property

Once you've found a property you're interested in, it's important to do your research. This way, you can learn more about the property and see if it fits your investment strategy well. You'll want to research the following:

• The property address
• The owner of the property
• The value of the property
• Any liens or encumbrances on the property

By researching the property, you'll be able to make an informed decision about whether or not to invest in it.

Luckily, REISkip, while integrated with REIRail, will provide all of this information! (See tip 6!)

6. Use Skip Tracing with REISkip

Another tool that can be helpful when driving for dollars is skip tracing. This is a process of finding a property owner using public records.

You can use REISkip to help with this process. At REISkip, we help you search for a property owner using the address. However, that is not the only information we provide!

While using our app, you will have access to information such as:

• Square footage
• Mortgage info
• Property characteristics
• And more!

The most valuable information is likely the social media handles we provide. As the world is moving away from phone calls and embraces social media, it is important to have the social media handles of the homeowner so that you can connect with them faster.

Skip Tracing Software: Step Up Your Game

Now that you know what driving for dollars is and how to do it, it's time to step up your game. If you're serious about finding investment properties, then you'll need to use skip tracing.

Are you a real estate investor looking for skip tracing software?Submit your list today!

Skip tracing the right way can change the game for you as a wholesaler or real estate investor.

The quality of the data you use to find and close deals... and the ability to move quickly and efficiently using that data can be the difference between struggle and success as in the real estate game.

Now, just in case you're not familiar with the term, you may be asking, “What is skip tracing?”

Skip tracing is the process of locating someone who isn’t readily available. In real estate, that means finding property owners’ contact information so you can get in touch with them about the possibility of doing business with them. If you have the address, city and state of the property, that’s usually enough to start getting results.

You can upload a single property or a list of properties you want to market to.

A good skip tracing software will give you accurate, up-to-date information like phone numbers and email addresses to help you reach out to the right person.

The best skip tracing software gives you so much more.

There are multiple companies out there, and many of them are good. Obviously, we believe REISkip is the best skip tracing software available.

In fact, REISkip represents the future of skip tracing.

The future’s here, at last. But instead of just claiming the throne by making unsubstantiated claims, it’s helpful—and fun—to compare REISkip with one of its best-known competitors, BatchSkipTracing.

Even though this “battle” is REISkip vs. Batch, you can use these 5 points to help you choose the best skip tracing service for your real estate business.

(We’ll let you make your own decision about who the winner of the battle is.)

1. Accuracy of Skip Tracing Data

Obviously, the quality of your data is the most important thing. Getting up-to-date, usable intel is the entire reason you’re skipping a list in the first place.

Both REISkip and Batch tap into the big data companies (like LexisNexis and TLO) to get phone numbers, etc. So you’ll get lots of personal information on property owners with either program.

But just REISkip goes a whole lot further.

Most other services simply compile mountains of information… and when you run your skip, they toss everything at you.

Sure, you get a lot of data, but how much of it is current? In many cases, you end up spending more time sifting and sorting through phone numbers to find the right ones.

REISkip is now the only skip tracing engine that gives you the same powerful people finding ability that was once available only to FBI agents, elite bail bondsmen, and private investigators.

We go to great lengths to get data others don’t have – AND we validate the accuracy of our data in advance. That means you’ll save time and have more confidence that you’re calling the right people at the right numbers.

Finally, we use our proprietary Skip Trace Triangulation Technology (we call it STT for short) to pick the top phone numbers from the data.

Our users consistently see 85-90% of their lists matched with phone numbers.

2. Which Skip Trace Software Provides “Deeper Data”

Let’s face it. The real estate game has gotten crazy lately. The world has gotten crazy.

Real estate investors find it more difficult than it was 6-12 months ago to get in contact with homeowners. And it’s taking more calls to get an appointment.

You need every advantage you can get in this market.

REISkip provides an edge that no one else in the real estate industry can give you.

Because we dig deeper into the data than anyone else.

REISkip now includes social media profiles in your skip trace results.

Do you think it might be a little easier if you had another channel to reach property owners? Now you’ll be able to reach out on social media, if you want to go that route.

Or, you can use social media for recon. How much easier will it be to build rapport and have a quality conversation with the additional background information you’ll find?

BatchSkipTrace doesn’t give you anything like this.

REISkip is the innovator bringing this breakthrough to real estate.

3. How Your Skip Traced Data Is Organized

Countless wholesalers and realtors fooled themselves into thinking they had a healthy pipeline because they’ve crammed every prospect from every list they ever bought into a CRM platform.

All that does is complicate your marketing process.

REISkip gives you everything you need to keep track of your leads and opportunities… so you may not even need a separate CRM.

You can also keep notes from every touch point so you always know where the conversation left off with each homeowner.

Plus, if you do have a CRM, we’ve made it push-button simple to hand off your skip trace data to that system through our Zapier integration.

And here’s the best part, this is a built-in part of REISkip. It’s completely FREE. You have access to it the moment you sign up.

Other skip tracing software ain’t built for this. Sorry Batch!

4. Skip Tracing Prices

Price is another important factor you have to consider.

On the surface, REISkip and BatchSkipTracing look comparable: Our retail price is $0.19 or $0.22, depending on how many you run.

But we recently implemented flat fee pricing. Just $0.15/skip. No matter how many records are on your list.

Batch costs $0.20/skip.

With REISkip you actually get more firepower for less money.

Also, REISkip doesn’t charge for duplicate records. That means you’re not paying for the same number twice.

Again, this isn’t a benefit other programs offer, including Batch.

REISkip also makes sure you’re getting the most accurate phone numbers with each skip. Which means you’re not paying for wrong or outdated numbers. According to our research, you can boost your close rate as much as 300% by talking to the right people most of the time.

All of this adds up to massive savings of both time and money.

So the $0.15/skip fee is an even better value than it looks.

What To Do Next

The constant innovation and top-notch experience REISkip brings to our users can easily multiply your productivity and profitability.

If you’re looking for better data, smoother conversations with prospects, and a simpler marketing process that puts you in a position to close more deals in less time…

We believe REISkip is your best option, hands down.

Our team has been raising the bar for wholesalers and real estate investors since 2018. Nearly every new development in the field originated right here.

In other words, if you want to be one of the first investors in your area to get access to “the next big thing” in skip tracing (like social media profiles), REISkip is the way to go.

The future’s here, at last.

It’s easy to get started. Just sign up for an account… upload your list (no clunky templates required)... and you’re plugged into the world’s most advanced skip tracing engine.

Give yourself an extra edge now with REISkip.