You do not need a degree, a license (in most states), or prior experience to start a surplus funds recovery business. What you need is a clear process, the right tools, and the willingness to do the work. This guide walks you through every step from zero to your first closed claim.
Step 1: Understand the Business Model
When a property is sold at a tax sale or foreclosure auction for more than the amount owed, the extra money (called surplus funds or excess proceeds) is held by the county. The former property owner has the right to claim it, but most people never do because they do not know the money exists.
As a recovery agent, you find these unclaimed funds, locate the former owner, and help them file a claim. In return, you earn a percentage of what is recovered, typically 10% to 35%. You are providing a real service: connecting people with money they are owed.
Step 2: Pick Your Starting State and Counties
Not all states and counties are created equal. Some publish surplus funds lists online for free, others require public records requests, and a few make the data difficult to access. As a beginner, start with states that make data accessible.
Best states for beginners: Florida publishes surplus lists in every county. Georgia has a centralized system. Ohio and Colorado post lists online. Texas has high volume but requires county-by-county requests. Explore Georgia surplus funds as a starting point.
Pick 3 to 5 counties in one state to start. Focus on counties with large populations because they generate more tax sales and therefore more surplus funds. Once you have a system that works, expand to more counties and states.
Step 3: Get Surplus Funds Lists
Surplus funds lists contain the names of former property owners, the property address, the amount of surplus held, and the date of the sale. These are public records.
For counties that publish online, you can download the list directly. For others, submit a public records request to the county clerk, tax collector, or whichever office handles surplus funds in that jurisdiction. Some counties charge a small fee for fulfilling records requests.
Alternatively, platforms that aggregate surplus funds data across multiple counties save you dozens of hours per month. Instead of contacting each county individually, you get pre-compiled, skip-traced leads ready to work.
Step 4: Skip Trace the Property Owners
The address on the surplus list is usually the property that was sold, meaning the owner no longer lives there. You need to find their current phone number, mailing address, and email. This process is called skip tracing.
Skip tracing services use public records databases, phone registries, and other data sources to find current contact information. You can use standalone services or a platform that includes skip tracing as part of the workflow.
Step 5: Contact the Owner
This is where deals happen. Reach out to the former property owner by mail, phone, or both. Be direct and professional: explain that you found public records showing they may be owed money from a property sale, and that you help people recover those funds.
Direct mail is the most common starting point. A clear, professional letter explaining the situation gets strong response rates. Follow up with a phone call 5 to 7 days later.
Phone calls close deals faster. Speaking directly with the owner lets you answer questions, build trust, and move to a signed agreement in a single conversation.
Florida is one of the highest-volume states for new agents. Browse Florida surplus funds to see what is available county by county.
Step 6: Get a Fee Agreement Signed
Once the owner agrees to work with you, get a written fee agreement signed. This contract authorizes you to file the claim on their behalf and specifies your fee percentage. Many agents use e-signature tools to speed this up, and the owner can sign from their phone in minutes.
Step 7: File the Claim
Each county and state has its own claim process. Some accept a simple application form. Others require court filings or notarized documents. Review the specific requirements for the county where the funds are held, prepare the paperwork, and submit it.
Processing times vary from 30 days to several months. Stay organized, follow up with the county office, and keep your client informed throughout the process.
What You Need to Budget
Startup costs are low compared to most businesses. Expect to spend $200 to $500 per month covering skip tracing, CRM or lead management software, phone service, and postage for direct mail. No office space, inventory, or employees are needed to get started.
Your first closed claim will likely cover several months of expenses. Reinvest early profits into more leads and better tools to accelerate growth.
Ready to find your first leads? View Texas surplus funds lists for one of the largest markets in the country.
Getting Started Is the Hardest Part
Most people overthink the preparation phase and never take action. The truth is that you learn by doing. Get your first batch of surplus funds data, skip trace the owners, send your first round of letters, and make your first calls. Your first deal will teach you more than weeks of research. The business rewards action and consistency above all else.
As you prepare to launch, consider forming an LLC to protect your personal assets and establish credibility. Build a professional website so property owners can verify your business when you reach out. And once your pipeline grows, a virtual assistant can handle the repetitive tasks so you can focus on closing deals.