January 30, 2023
Driving For Dollars 2023

Driving For Dollars 2023

Driving for Dollars: A Comprehensive Guide to Finding Real Estate Deals on the Go

Driving for dollars is a real estate investing strategy that involves driving around neighborhoods, looking for properties that show signs of distress, and then contacting the owners to see if they are interested in selling. It’s a simple and effective way to find off-market deals, and it’s something that any real estate investor can do.

In this comprehensive guide, we’ll cover everything you need to know about driving for dollars, including how it works, the benefits of doing it, and how to make it more efficient. We’ll also provide a 7-step system for driving for dollars efficiently and effectively, and share some tips on the best software and apps to use for this purpose.

Let’s get started!

Driving For Dollars 2023
Driving For Dollars 2023

What is Driving for Dollars?

Driving for dollars is a real estate investing strategy that involves driving around neighborhoods, looking for properties that show signs of distress, and then contacting the owners to see if they are interested in selling. These properties might be vacant, run-down, or have other visible issues, such as overgrown lawns or broken windows.

The goal of driving for dollars is to find properties that are not currently on the market, but that might be worth investing in. By contacting the owners directly, real estate investors can potentially negotiate a deal to buy the property at a discount, and then fix it up and sell it for a profit.

Driving for dollars is a simple and effective way to find off-market deals, and it’s something that any real estate investor can do. All you need is a car, a phone, and a willingness to spend some time driving around neighborhoods.

How Driving for Dollars Works (with Example)

Here’s an example of how driving for dollars works:

  1. Choose a neighborhood to drive through. This could be a neighborhood you’re already familiar with, or a new neighborhood that you think might have potential.
  2. Start driving around and looking for properties that show signs of distress. These might include vacant properties, properties with overgrown lawns or broken windows, or properties that look like they haven’t been maintained in a while.
  3. When you see a property that looks interesting, take a note of the address and any other relevant details, such as the condition of the property or any visible issues.
  4. Look up the owner’s contact information using a property records search tool (more on that later).
  5. Contact the owner and introduce yourself as a real estate investor. Explain that you saw their property and that you’re interested in buying it.
  6. Negotiate a deal with the owner, either over the phone or in person. If you’re able to reach an agreement, you can then move forward with purchasing the property.
  7. Fix up the property and sell it for a profit, or hold onto it as a rental property.

Here’s an example of how driving for dollars might work:
Let’s say that Jane is a real estate investor who is looking for off-market deals in her city. She decides to try the driving for dollars strategy, and begins driving around neighborhoods, looking for properties that show signs of distress.
As she drives around, she comes across a property with an overgrown lawn and broken windows. She takes note of the address and any other relevant details, such as the condition of the property and any visible issues.
Next, she uses a property records search tool to look up the owner’s contact information. She finds the owner’s phone number and gives them a call, introducing herself as a real estate investor and explaining that she saw their property and is interested in buying it.
The owner tells Jane that they are interested in selling the property, and the two of them negotiate a deal over the phone. Jane agrees to purchase the property for $100,000, which is significantly less than the property is worth in its current condition.
Jane then hires a contractor to fix up the property and bring it up to code. After the renovations are complete, she lists the property for sale and is able to sell it for $150,000.
In this example, Jane was able to find a great off-market deal by using the driving for dollars strategy. She was able to negotiate a discounted price for the property, and then flip it for a profit after fixing it up. This is just one example of how driving for dollars can work, and there are many other ways that real estate investors can use this strategy to find deals.

Example

This is just one example of how driving for dollars works, and there are many different ways you can approach it. The key is to be proactive, and to be willing to put in the time and effort to find off-market deals.

The Benefits of Driving for Dollars

There are several benefits to using the driving for dollars strategy:

  1. Off-market deals: One of the biggest benefits of driving for dollars is that it allows you to find off-market deals. These are properties that are not currently listed for sale, but that might be worth investing in. By contacting the owners directly, you can potentially negotiate a deal to buy the property at a discount.
  2. Low competition: Because driving for dollars allows you to find properties that are not currently on the market, you’ll often have less competition when it comes to negotiating a deal. This can be especially beneficial in markets where there are a lot of other investors looking for deals, as it can be difficult to find good properties that haven’t already been snatched up. By using the driving for dollars strategy, you can potentially find properties that other investors don’t even know about, giving you a leg up in the negotiation process.
  3. Cost-effective: Driving for dollars is a relatively low-cost way to find real estate deals. All you need is a car, a phone, and some time to spend driving around neighborhoods. There are no expensive marketing campaigns or lead generation fees to worry about, which makes it a great option for real estate investors on a budget.
  4. Flexibility: With driving for dollars, you have the flexibility to focus on specific neighborhoods or areas that you think might have potential. You can also choose the days and times that you want to go out driving, which makes it a convenient strategy for busy investors.
  5. Networking opportunities: Driving for dollars can also be a great way to build relationships with other real estate professionals and investors in your area. You never know who you might meet or what connections you might make while you’re out driving around neighborhoods.
How to drive for dollars
How to drive for dollars

What To Look For When Driving for Dollars?

When driving for dollars, there are a few key things you’ll want to look for:

  1. Vacant properties: Vacant properties are often good candidates for driving for dollars, as they may be owned by someone who is no longer interested in maintaining the property or who has moved away and is unable to keep up with the property.
  2. Run-down properties: Properties that are in poor condition or that have visible issues, such as broken windows or overgrown lawns, can also be good candidates for driving for dollars. These properties may be owned by someone who is unable or unwilling to fix them up, and may be willing to sell at a discounted price.
  3. Properties: that haven’t been maintained: Properties that look like they haven’t been maintained in a while, such as those with peeling paint or other visible issues, can also be worth investigating. These properties may be owned by someone who is no longer able or interested in maintaining them, and may be willing to sell at a discounted price.
  4. Properties with multiple units: Properties with multiple units, such as apartment buildings or duplexes, can also be good candidates for driving for dollars. These properties may be owned by someone who is having trouble filling the units or who is unable to keep up with the maintenance, and may be willing to sell at a discounted price.

By looking for these types of properties while driving for dollars, you’ll have a better chance of finding off-market deals that are worth pursuing. It’s also important to pay attention to the overall condition of the neighborhood, as this can give you a sense of which properties are likely to be good candidates for driving for dollars.

How to Make Driving for Dollars More Efficient

Here are a few tips for making driving for dollars more efficient:

  1. Use a property records search tool: A property records search tool can help you quickly find the owner’s contact information for any property you come across while driving. Some popular options include Zillow, Redfin, and RealtyTrac.
  2. Create a system for organizing your leads: It’s important to keep track of the properties you come across while driving for dollars, as well as the owner’s contact information and any notes about the property. You can use a spreadsheet, a notebook, or a real estate investing software to do this.
  3. Use driving for dollars app: There are several app that can make driving for dollars more efficient. We’ll cover the best ones later in this guide.
  4. Recruit a team: If you don’t have the time or energy to do all the driving yourself, consider recruiting a team of people to help you out. This could be other real estate investors, friends, or even delivery drivers who are willing to help you out in exchange for a fee.

7-Step System to Driving for Dollars Efficiently & Effectively

Here’s a 7-step system for driving for dollars efficiently and effectively:

  1. Gather your supplies: Before you head out on your driving for dollars mission, make sure you have everything you need. This might include a smartphone with a property records search app, a notebook or spreadsheet for tracking leads, and any other tools or supplies you might need.
  2. Analyze the street scene: As you drive around neighborhoods, pay attention to the overall condition of the properties you come across. Are there a lot of vacant or run-down properties? Are there any properties that look like they haven’t been maintained in a while? These are the properties you’ll want to focus on.
  3. Look for red flags: As you drive around neighborhoods, be on the lookout for red flags that might indicate a property is worth further investigation. These might include overgrown lawns, broken windows, or other visible signs of neglect.
  4. Record and research: When you come across a property that looks interesting, take a note of the address and any other relevant details, such as the condition of the property or any visible issues. Then, use a property records search tool to look up the owner’s contact information.
  5. Market to your leads: Once you have a list of potential leads, it’s time to start marketing to them. This might involve sending letters, making phone calls, or even visiting the properties in person to talk to the owners.
  6. What if you can’t find the owner?: If you can’t find the owner of a property you’re interested in, there are a few things you can try. You can try looking for the owner’s contact information on other public records databases, such as county assessor records or property tax records. You can also try reaching out to neighbors or other people in the area who might know the owner and be able to help you get in touch. ** I use spokeo ***

Pro tip:

Recruit an army of delivery driver scouts “Uber, DoorDash, UPS, ect”: If you don’t have the time or energy to do all the driving for dollars yourself, consider recruiting a team of delivery driver scouts to help you out. These are people who are already out driving around neighborhoods on a regular basis, such as food delivery drivers or package delivery drivers. You can pay them a fee to keep an eye out for properties that show signs of distress, and then pass along the leads to you.

What is Driving for dollars
What is Driving for dollars

Does Driving For Dollars Work?

Driving for dollars can be a very effective real estate investing strategy, as it allows you to find off-market deals that might not be available through other channels. However, like any real estate investing strategy, it’s not a guarantee of success.

To make driving for dollars work, you’ll need to put in the time and effort to find good properties and negotiate deals with the owners. You’ll also need to have a good understanding of the local real estate market, as well as the skills and resources to fix up and sell properties (if you’re planning on flipping them). Make sure you create amazing driving for dollars lists.

That being said, many real estate investors have had success with driving for dollars, and it can be a great way to find off-market deals in any market. It’s just important to approach it with a realistic understanding of the time and effort it takes, and to be prepared to put in the work to make it successful.

Here’s a sample Driving for Dollars script you can use when contacting owners while driving for dollars:

“Hello, my name is [Your Name] and I’m a real estate investor in [City]. I saw your property at [Address] while I was driving around the neighborhood and I’m very interested in buying it.
I understand that the property is not currently on the market, but I’m willing to make you a fair cash offer for it. If you’re open to the idea of selling, I’d love to discuss the details with you and see if we can come to an agreement.
I know that your property needs some work, and I’m willing to take on those repairs as part of the deal. If you’re interested, I’d be happy to set up a time for us to meet and discuss the details in person.
Thank you for considering my offer. I look forward to speaking with you soon.
Sincerely, [Your Name]”

driving for dollars script

Keep in mind that this is just a sample script, and you’ll need to tailor it to your own style and the specific circumstances of each property you come across. It’s also important to be respectful and professional when contacting owners, as this will increase your chances of success.

What Is Virtual Driving for Dollars?

Virtual driving for dollars is a real estate investing strategy that involves using online tools and resources to identify potential off-market deals, rather than driving around neighborhoods and looking for properties in person.

There are several ways to do virtual driving for dollars, including:

  1. Using online property records search tools: There are several online tools and websites that allow you to search for properties by address and view owner’s contact information, property value, and other details. These tools can be used to find properties that show signs of distress, and then reach out to the owners to see if they are interested in selling.
  2. Using social media: Social media platforms such as Facebook and LinkedIn can be a great way to find potential off-market deals. You can use these platforms to connect with local real estate professionals and investors, and look for properties that might be available for sale.
  3. Using real estate investing software: There are several real estate investing software platforms that offer tools and services for finding off-market deals, including property records search tools and lead generation tools. These platforms can be a great way to find potential deals without having to physically drive around neighborhoods.

Virtual driving for dollars can be a convenient and efficient way to find off-market deals, especially for investors who don’t have the time or resources to do all the driving themselves. However, it’s important to remember that virtual driving for dollars is not a replacement for physically driving around neighborhoods and looking for properties in person. It’s best to use a combination of both virtual and in-person strategies to maximize your chances of finding good deals.

The Best Software Setup for Driving for Dollars

There are several software tools and apps that can make driving for dollars more efficient and effective. Here are a few of the best options:

  1. Zillow: Zillow is a popular real estate website that allows you to search for properties by address, and view details such as the owner’s contact information, property value, and more. You can also use the Zillow app to search for properties while you’re out driving.
  2. Redfin: Redfin is another popular real estate website that offers similar features to Zillow, including the ability to search for properties by address and view owner’s contact information.
  3. RealtyTrac: RealtyTrac is a real estate data and analytics company that offers a variety of tools and services for real estate investors, including a property records search tool that allows you to look up owner’s contact information and other details about properties.
  4. Google Maps: Google Maps is a free app that allows you to search for properties by address and view satellite imagery of the area. This can be helpful for getting a sense of the overall condition of properties and identifying potential leads.
  5. PropertyRadar: PropertyRadar is a real estate investing software that offers a variety of tools and services for driving for dollars, including a property records search tool, a lead generation tool, and a system for organizing and tracking your leads.

The 8 Best Driving for Dollars Apps

In addition to the software tools and websites mentioned above, there are several driving for dollars apps that can make the process of finding off-market deals more efficient and effective. Here are a few of the best ones:

  1. DealMachine: DealMachine is a driving for dollars app that allows you to take photos of properties you come across while driving, and then automatically look up the owner’s contact information and send them a direct mail or text message. deal machine driving for dollars
  2. Roofstock: Roofstock is a real estate investing platform that offers a variety of tools and services for finding and investing in rental properties. The Roofstock app includes a driving for dollars feature that allows you to search for properties by address and view details such as the owner’s contact information and property value.
  3. REIPro: REIPro is a real estate investing software that offers a variety of tools and services for driving for dollars, including a property records search tool, a lead generation tool, and a system for organizing and tracking your leads.
  4. PropStream: PropStream is a real estate data and analytics company that offers a variety of tools and services for real estate investors, including a driving for dollars app that allows you to search for properties by address and view owner’s contact information and other details.
  5. Realeflow: Realeflow is a real estate investing software that offers a variety of tools and services for driving for dollars, including a property records search tool, a lead generation tool, and a system for organizing and tracking your leads.
  1. HouseFlippingHQ: HouseFlippingHQ is a real estate investing software that offers a variety of tools and services for driving for dollars, including a property records search tool, a lead generation tool, and a system for organizing and tracking your leads.
  2. LandGlide: LandGlide is a mobile app that allows you to search for properties by address and view owner’s contact information and other details. It’s a great tool for driving for dollars, as it allows you to quickly and easily find the information you need while you’re out on the road.
  3. PropStream Mobile: PropStream Mobile is a mobile app version of the PropStream platform, which offers a variety of tools and services for driving for dollars, including a property records search tool, a lead generation tool, and a system for organizing and tracking your leads.

Conclusion

Driving for dollars is a simple and effective way to find off-market real estate deals. By driving around neighborhoods, looking for properties that show signs of distress, and then contacting the owners to see if they are interested in selling, real estate investors can potentially negotiate a deal to buy the property at a discount, and then fix it up and sell it for a profit.

By following a 7-step system and using the right software and apps, driving for dollars can be a very efficient and effective strategy for finding real estate deals on the go.

Sources:

  1. “Driving for dollars: A beginner’s guide to finding off-market deals” by Justin Williams, BiggerPockets.com
  2. “The Ultimate Guide to Driving for Dollars” by J Scott, 123Flip.com
  3. “Driving for dollars: A simple guide to finding off-market deals” by John Williams, TheRealEstateGuys.com

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