Driving For Dollars As Real Estate Investors

Frank Chen

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got a quick video about driving for dollars as real estate investors.

Driving for Dollars is just another way of saying driving around looking for good deals. When you find them, you make money.

Why should investors drive for dollars?

affordable way to find deals simply by keeping your eyes open
Great way to train your eyes to locate the best opportunities
Great way to get familiar with neighborhood trends Rental vs. For Sale, are there a lot of vacancies?
Another way to market for sellers drop off mailers, or business cards in areas you are investigating
Minimal competition because many people use the internet now, which don't show these properties

Where and What to Look For?

I wouldn't recommend “war zones” Boarded up windows, high hassle, low returns areas. Tons of vacancies = harder to sell. Look for working class neighborhoods.
Driving home from work take a different road every time and look for “signs” of opportunity
“signs” only trash can not out, unkept lawn, HUD Papers on the window, lock box, FSBO signs, mail overflowing, neglect, vacancy, etc…
Knock on neighbors doors if you aren't sure if the home is vacant
Explore adjoining/adjacent neighborhoods from MLS properties your realtor sends you
Give your business card to the mailman tell them you have a referral program where you pay $$$.
Rehab/contractors great way to build a contact investors or contractors see quality of work

What to do with the leads?

Create a map at home and pinpoint the properties and areas of interest
Document the amount of time you drove around and number of deals you found put a value on time spent. Focus on areas with best potential.
Take the addresses and put them into the county tax assessor website you will find the owner either home owner or investment group/bank.
Use Phone Book find homeowner
Do your research, and pull comps for the area
Create postcards, use direct mail
Prepare scripts and benefits for when you talk with the homeowner the “why” they should sell you their house.

Driving for Dollars is a great way to find pockets of real estate that aren't listed to the public. It's a great way to find properties with minimal competition because the average real estate investor does all their research online: google maps, zillow, county tax records, which are all great, but it won't find you the same type of deals when driving around. By dedicating that extra bit of effort, you will gain much more from it. In addition to the deals my realtor sends me, I'm always driving around keeping my eyes open for that next deal.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.