Real estate investors are always on the hunt for motivated seller leads. One of the most overlooked but effective strategies involves using public records to locate water shut-off properties. This guide will break down the process step by step, showing you how to turn local utility data into actionable real estate leads.
Why Water Shut-Off Leads Are Gold
Vacant properties offer some of the best real estate opportunities. These homeowners often face financial strain or have moved on, making them more willing to sell. Water shut-offs are a strong indicator of a vacant or distressed home. Whether the property’s owner left, fell behind on bills, or there’s some other issue—these leads hold significant potential.
Now, let’s learn how to find these properties using public information.
The Texas Public Information Act (TPIA) allows individuals to request records from local governments. It’s similar to the federal Freedom of Information Act (FOIA), but TPIA is specific to Texas. While the process may vary slightly in other states, similar laws exist nationwide.
The keyword here is right. Under TPIA, you have the right to obtain public information like water shut-off records. Cities must comply with your requests unless they fall under specific exceptions outlined in the statute.
The Power of Water Shut-Off Records
A home’s water shut-off is often like a blinking neon sign for investors. Think about it: People don’t live in homes without running water. If the water is disconnected, one of a few scenarios is likely happening:
- The homeowner sold the property (not a useful lead).
- The owner moved out, leaving the home vacant.
- The occupant is in financial distress and couldn’t pay the water bill.
- There was an emergency shut-off due to a major problem like a burst pipe.
Each scenario opens the door to potential real estate opportunities. A vacant property? That’s a clear lead. An owner in distress? You could offer to buy and help them relieve financial burdens.
Most people make the mistake of contacting the local water department directly for this information. That won’t work. Instead, you need to submit a request through the City Secretary’s Office (or City Attorney’s Office in larger cities).
Most cities have a section on their website for public information requests. If you don’t see it, a quick call to the secretary’s office will point you in the right direction. They’ll guide you on how to make the request properly.
Step 2: Filing an Open Records Request
When submitting your request, be precise to avoid unnecessary back-and-forth. Here’s a straightforward way to frame it:
“I am requesting a list of all residential properties where water services have been disconnected in the past 30 days. You may redact any private information protected under the Texas Utilities Code.”
This ensures you receive addresses without overloading your list with apartments, businesses, or irrelevant data. By narrowing it to recent disconnections, you’re targeting fresh leads that are more likely actionable.
Step 3: Handling Denials
Occasionally, cities will deny your request, often citing privacy laws. Don’t panic. By law, cities must consult the Texas Office of the Attorney General (OAG) before rejecting your request. If your request was declined without proper OAG approval, they’re in violation.
Here’s the twist: Even if protected details like names or account numbers are redacted, the addresses themselves are public information. The OAG has confirmed this in past rulings, giving you leverage to obtain the data you need.
Step 4: Cross-Referencing With County Records
Once you have the addresses, the work isn’t done. You’ll need the owner’s name and mailing address. To do this, cross-reference the property addresses with your county’s Central Appraisal District (CAD). This step will give you the details needed to reach out to property owners.
If doing this manually seems tedious, hire a virtual assistant (VA). VAs, particularly those from countries like the Philippines, can complete this repetitive task affordably—usually around $3 per hour.
Step 5: Put the System on Repeat
Systematizing this process is key to scaling your business. Create a spreadsheet to track every city you’ve contacted, their response, and the status of your requests. Include columns for:
- City name
- Contact person/email
- Link to the request portal
- Date of submission
- Date response was received
- Payment, if any (most requests are cheap, often under $50)
Once you’ve mastered this in one city, expand to other municipalities. Smaller towns often have less competition and may yield even better results.
Step 6: Marketing to Your List
With a fresh batch of leads, it’s time to reach out. Direct mail works well for this strategy. Postcards are affordable, quick, and effective. Since most homeowners on this list won’t be overwhelmed with other investor mailers, a simple postcard highlighting your services should get their attention.
If you’re on a tight budget, consider door-knocking or cold calling. Services like Skip Genie can help you find phone numbers for property owners. Door-knocking might take time, but it’s a great way to build rapport and close deals.
Pro Tips for Success
- Focus on Small Cities: Small municipalities often lack competition. These areas are goldmines for finding leads others aren’t targeting.
- Stay Consistent: Marketing doesn’t yield immediate results. Stick with it every month to build momentum.
- Think Creatively: Unique approaches (like innovative bandit signs) set you apart. Instead of generic phrases like “We Buy Houses,” try something like “Santa Buys Ugly Houses” for seasonal engagement.
Conclusion
The water shut-off strategy is a powerful but underused approach to finding motivated sellers. By leveraging the Public Information Act, you can build a consistent pipeline of fresh, actionable leads for your real estate investment business.
Whether you’re new to investing or looking to mix up your lead generation, this strategy works. Focus on one city, dominate it, and then scale. The real estate game rewards those who take action, stay creative, and hustle harder than the competition.
Ready to get started? Pull out your laptop, start drafting your first open records request, and take advantage of this untapped opportunity. If you found these tips helpful, share them with other investors and let’s all grow together!
