Learn Driving For Dollars
Driving for dollars is one of the most effective ways of finding distressed and vacant properties. If you are just getting started or if you are a seasoned investor this is a strategy you must include in your marketing
Driving for dollars entails driving around subdivisions or areas in your town to find distressed or vacant properties. From there, research is needed to find the owners to see if they are interested in selling you the property. It is that simple
This method is one of the most important strategies you can do that requires little money out of pocket.
Although many investors do not prioritize this strategy, it has proven to be very effective. By driving through neighborhoods, you are able to identify properties that need work.
If the current owners are not taking care of the property you can offer a solution and purchase the asset from them in its current condition.
You will be surprised by the great deals you can find driving for dollars, especially if you focus on targeting properties that need work as opposed to simply hoping someone will call you.
How To Go About Driving For Dollars Effectively
Before you get in the car you need to research your market.
Start picking 3 zip codes around near your area and research the subdivisions online.
For example, the website of the Houston Association of Realtors, Har.com, has excellent information regarding subdivisions
Simply typing a zip code will give you detailed information on the top 50 neighborhoods in that zip code.
You can use your local realtor’s website or free websites like Zillow or Trulia.
Older homes tend to have more obvious signs of distress. Of course, the older the home, the more work is needed if owners have not been able to do any maintenance or upgrades.
Older homes tend to be the best subdivisions to peruse as they are more likely to have degraded structures.
The best thing to do is google and print a map to see where the subdivisions are located and put together a driving plan.
The worst thing you could do is set your destination without having a clue how to get there.
It will waste time and gas trying to figure things out in the car and will leave you very frustrated.
Do the research first from your home, then go for a drive. The local realtor website, also, shows the number of homes in each subdivision.
There are apps that you can use to further ease the situation. One app that was a life saver, is Zillow.
This app will show each street and the address of the property while driving for dollars.
Sometimes, in older subdivisions, it is hard to see the property number as the paint has faded or one of the numbers is missing.
So, instead of driving back and forth trying to figure out the property number by looking at the address of homes nearby, the Zillow app will show your exact location next to the parcel of land.
If you click on that land it will tell you the address you are looking for. It cannot get any easier.
Also, you will need a pen and paper to write down the properties or a voice recorder device if you don’t want to write anything down
When To Go About Driving For Dollars
The best time to be driving for dollars are mornings from 8-12pm. The afternoons are not terrible but there is more traffic, so you have to be careful.
Also, in the afternoons, there are more neighbors outside doing yard work.
People will find you to be suspicious slowly driving around their neighbors and looking closely at their homes.
One way to avoid suspicion from the neighbors is to put some form of advertising on your car, like magnets signs.
Whatever you choose, make sure that it displays a message like “We buy Houses” and a phone number
This is not necessary but it will clear up some unnecessary concerns the neighbors may have.
Usually, on a good day, it will take about 2-3 hrs to gather 15-25 property addresses.
After 3 hrs of driving for dollars, your head will be spinning and you may get tired.
So, keep it short from 2-3 hrs if you can. It is recommended to have someone with you in the car.
One will be focusing on driving, while the other will be looking for properties and taking notes It is extremely hard to drive and looking at houses.
Just To Recap
Before getting in the car and driving for dollars you need to do the following:
- Pick 3 Zip Codes Around Your House
- Research For Subdivisions In Those Zip Codes With Houses Built In The 1980s And Below
- Print A Map From Google And Mark The Subdivisions You Will Be Driving.
- Download Zillow App
- Have A Pen And Paper
- Have An Extra Person Driving With You
- Pick A Time And Date To Start Driving.
If you follow these easy steps, you will be 100% prepared for a successful driving for dollars adventure. Hopefully, this information can get you one step closer to your goals.
The next blog will be discussing Part II of driving for dollars and what to look for once you are in the car driving.
As we are in world cup month, I want to leave you with a quote from Pele, a soccer legend
“Success is no accident. It is hard work, perseverance, learning, studying, sacrifice and most of all, love of what you are doing or learning to do.”
Until Next Time, good-bye, happy investing, and happy driving for dollars.
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