Driving for Dollars is a phrase real estate deal finders or bird dogs use to describe the strategy of driving around in your market looking for off-market opportunities such as boarded homes, tall grass, For Sale By Owner signs, contractors working, etc. Basically, vacant and neglected homes that indicate a possible motivated seller.
I want to share with you why driving for dollars is so important with this story about how I made $4000 in about 30 minutes.
While driving for dollars, I came across a small, boarded-up house, perhaps 700 sq. feet. I looked through a window and saw the house had been gutted inside. I called the number on the For Sale by Owner sign. The owner told me he was asking $11,000. I managed to negotiate him down to $4,000. We agreed and he said he would send the papers to sign.
I continued my driving for dollars and saw another house being roofed. I stopped and asked if the owner was around. The owner of this house was a real estate investor intent on flipping the property. I asked if he would be interested in the house I owned. He said he would. He looked through the windows like I did and he said he would pay me $8,000 for it. He signed my papers and I went back to my office to make sure I had the papers for my purchase. The great thing about this story, not only did I make $4,000 in about a half hour, but the real estate investor did 20 to 30 more deals with me as a wholesaler.
I’d eventually come up with my own Flipping Houses 6 Step Formula that one one deal made me $8,100 wholesaling a house in less then 3 hours. It involved a house that came on the market for sale in an area I farm for deals reguarly. I saw it first thing in the morning at 8:00 am. It was priced at $44,900. Since I knew that area fairly well, it immediately stuck out as being a potential deal and I just went into Flip Mode.
In the two years I spent wholesaling houses, nothing was more important than driving for dollars, so get out there and take control of your future today!
What is Wholesaling?
The BIGGEST distinction to understand when it comes to flipping houses is that wholesaling is NOT doing any improvements to the property. It’s passing the deal off to someone else who will do the improvements. Essentially, wholesaling is taking less profit now with no work (not doing any improvements) instead of more profit later with a lot of work (doing improvements and flipping it or renting it).
A quick order of a Wholesaler's investing plan looks something like this:
Step 1: Finding Deals
Step 2: Analyzing Deals
Step 3: Controlling Deals
One of the easiest or best ways to find deals is driving for dollars. If making $5,000 to $10,000 per deal wholesaling houses sounds exciting to you then be sure to listen to my training video, The Importance of Driving for Dollars for FREE.