Driving For Dollars
Absolutely The Best Way TO Find Wholesale Deals
Driving For Dollars - The Ultimate Guide
If you're here chances are you've been looking for a way to find distressed houses you can buy, wholesale or flip. Actually, it wasn't that long ago I was doing the same thing. Scouring the internet looking for a way to find motivated sellers that genuinely works, and driving for dollars was the thing I'd been searching for all along!
I couldn't really afford to send out bulk mail, yellow letter, or postcards. I wasn't flat broke, but I didn't want to waste all my savings on this "wholesaling houses" thing if I weren't sure it would indeed work. I knew some real estate investors, but they had connections and were picking up bank-owned properties dirt cheap because of the housing market collapse. But they weren't going to share their strategy with little ole me.
Honestly, I don't remember where I first heard about driving for dollars, I'm guessing it was YouTube but I can't swear to it. Doesn't really matter, what does matter is I found it and with a little bit of tweaking I made it work really well for me. (Don't worry I'm going to explain what that tweaking was) But first things first...
I couldn't really afford to send out bulk mail, yellow letter, or postcards. I wasn't flat broke, but I didn't want to waste all my savings on this "wholesaling houses" thing if I weren't sure it would indeed work. I knew some real estate investors, but they had connections and were picking up bank-owned properties dirt cheap because of the housing market collapse. But they weren't going to share their strategy with little ole me.
Honestly, I don't remember where I first heard about driving for dollars, I'm guessing it was YouTube but I can't swear to it. Doesn't really matter, what does matter is I found it and with a little bit of tweaking I made it work really well for me. (Don't worry I'm going to explain what that tweaking was) But first things first...
What Is Driving For Dollars?
Driving for dollars is a term used by real estate wholesalers and investors that describes a strategy for finding vacant distressed houses they can potentially buy from the owner at a substantial discount. Using a map or driving for dollars app the person drives residential neighborhoods looking for vacant properties, compiling a list of addresses they can later use to skip trace the property owner. It's also advisable to leave a driving for dollars letter on the door in case attempts to find the owner are unsuccessful.
Now that you have a clear understanding of what driving for dollars is let's dive in a little deeper, and I'll share some secrets to success.
Driving for dollars is a term used by real estate wholesalers and investors that describes a strategy for finding vacant distressed houses they can potentially buy from the owner at a substantial discount. Using a map or driving for dollars app the person drives residential neighborhoods looking for vacant properties, compiling a list of addresses they can later use to skip trace the property owner. It's also advisable to leave a driving for dollars letter on the door in case attempts to find the owner are unsuccessful.
Now that you have a clear understanding of what driving for dollars is let's dive in a little deeper, and I'll share some secrets to success.
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The Old Way...
When I initially heard about driving for dollars the method was drive through neighborhoods, look for vacant houses, write down the addresses and then go back to your computer and skip trace the owner. Then with the owners mailing address you'd send them a letter expressing your interest in buying the property. Quickly I noticed a few things I didn't like about this method and the biggest one was I didn't want to sit at my computer for hours on the county website looking up tax records to find addresses (can you say boring?) The thing that attracted me to real estate investing was not sitting at my desk 8 hours a day. I'd done that too many years in the mortgage business and I wasn't about to do it again. The second issue was many of the tax records I looked up didn't have a tax billing address other than the vacant houses, and if nobody is living there the post office isn't delivering mail there, so essentially I'd be wasting a stamp (and paper, ink and envelopes) trying to send a letter to these owners. |
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Lastly, as I mentioned before, spending a ton of money sending out mail wasn't something I wanted to do, I mean would this wholesaling thing even work? I needed some results and a few deals under my belt before I was going to spend my hard earned-money doing mass mailing campaigns.
Driving For Dollars - The Better Way!
I'd spent some time preforming occupancy inspections on bank-owned homes before my wholesaling days, and I knew for a fact if you start poking around a vacant house long enough a nosy neighbor will come to ask what you are doing. In fact, most neighbors know where the owner moved to and still speak to them. (or at least have their phone number)
Many times the owner of the vacant house still lives close and will drive by regularly to check on the property, and if they can't do it a relative or a friend might be doing it.
My point being someone is watching that property, and it presents a significant advantage for those of us who are driving for dollars. So being the savvy marketer I am, off I went to Walmart to pick up a couple of reams of paper, a box of envelopes and a few rolls of blue painters tape.
I'd spent some time preforming occupancy inspections on bank-owned homes before my wholesaling days, and I knew for a fact if you start poking around a vacant house long enough a nosy neighbor will come to ask what you are doing. In fact, most neighbors know where the owner moved to and still speak to them. (or at least have their phone number)
Many times the owner of the vacant house still lives close and will drive by regularly to check on the property, and if they can't do it a relative or a friend might be doing it.
My point being someone is watching that property, and it presents a significant advantage for those of us who are driving for dollars. So being the savvy marketer I am, off I went to Walmart to pick up a couple of reams of paper, a box of envelopes and a few rolls of blue painters tape.
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The Psychology Behind The Letter
Why would leaving a letter on a door work better than one sent through the mail? Good question, and if I were a psychologist, I'd probably know the answer. But since I'm not, I'll just give it my best guess. We all get a LOT of junk mail, and if you're like me, you throw a lot of it away without even opening it.
But if someone drove to your house and left a note for you on the front door, you'd open it wouldn't you? I know I certainly would open it. So that right there gives you an immediate leg up on your competition which only sends mail through the post office.
In addition to that some people don't update the tax billing address with the county so wholesalers who just mail letters aren't even reaching them. That means when you leave a letter on the door, it's entirely possible that you're the only person they have received any marketing from ever. In my opinion, leaving a letter on the door at least doubles your chances of hearing from the owner of the house.
Why would leaving a letter on a door work better than one sent through the mail? Good question, and if I were a psychologist, I'd probably know the answer. But since I'm not, I'll just give it my best guess. We all get a LOT of junk mail, and if you're like me, you throw a lot of it away without even opening it.
But if someone drove to your house and left a note for you on the front door, you'd open it wouldn't you? I know I certainly would open it. So that right there gives you an immediate leg up on your competition which only sends mail through the post office.
In addition to that some people don't update the tax billing address with the county so wholesalers who just mail letters aren't even reaching them. That means when you leave a letter on the door, it's entirely possible that you're the only person they have received any marketing from ever. In my opinion, leaving a letter on the door at least doubles your chances of hearing from the owner of the house.
The Ultimate Driving For Dollars Letter
When I create any type of marketing, I think to myself, would that work on me? If it seems like a sales pitch, computer-generated or un-genuine I'm immediately turned off by it. But if I needed to unload an unwanted house and someone came along I felt that I could trust then I'd hear them out, wouldn't you?
Let's take a minute and check out the letter I use...
When I create any type of marketing, I think to myself, would that work on me? If it seems like a sales pitch, computer-generated or un-genuine I'm immediately turned off by it. But if I needed to unload an unwanted house and someone came along I felt that I could trust then I'd hear them out, wouldn't you?
Let's take a minute and check out the letter I use...
Dear Homeowner,
I stopped by to leave this note today because I am interested in purchasing your property, if you are considering selling it.
I live nearby in <Your City> and I purchase properties throughout the state of <Your State>. Currently I’m working on other projects in the neighborhood, which is how I noticed your vacant property.
Please call me at (555) 555-5555, so I can tell you how we can buy your property quickly, with no hassles and most importantly, at a fair price. I purchase the house directly from you, so there is no real estate commission or extra fees coming out of your pocket.
Furthermore, I always make cash offers, so you never have to worry about delays resulting from a buyer trying to qualify for a mortgage and wasting your valuable time.
I’d be glad to personally tell you more about how we can work together. All calls are completely confidential and there is no obligation whatsoever. Even if you have made other arrangements, you should keep this letter for future reference, since things in life have a tendency to change unexpectedly.
Thank you for your time and consideration and I look forward to speaking with you.
Sincerely,
Sam Wholesaler
(555) 555-5555
P.S. If you would like to e-mail me information and pictures of your property, please send to SamWholesaler@youremail.com
I stopped by to leave this note today because I am interested in purchasing your property, if you are considering selling it.
I live nearby in <Your City> and I purchase properties throughout the state of <Your State>. Currently I’m working on other projects in the neighborhood, which is how I noticed your vacant property.
Please call me at (555) 555-5555, so I can tell you how we can buy your property quickly, with no hassles and most importantly, at a fair price. I purchase the house directly from you, so there is no real estate commission or extra fees coming out of your pocket.
Furthermore, I always make cash offers, so you never have to worry about delays resulting from a buyer trying to qualify for a mortgage and wasting your valuable time.
I’d be glad to personally tell you more about how we can work together. All calls are completely confidential and there is no obligation whatsoever. Even if you have made other arrangements, you should keep this letter for future reference, since things in life have a tendency to change unexpectedly.
Thank you for your time and consideration and I look forward to speaking with you.
Sincerely,
Sam Wholesaler
(555) 555-5555
P.S. If you would like to e-mail me information and pictures of your property, please send to SamWholesaler@youremail.com
Now let me explain why I think this letter works well...
It's short - I've marketed with a lot of letters, flyers and advertisements and believe me when I tell you the shorter the better! If marketing is too long, wordy or cluttered you'll lose their attention FAST, so keep it short and to the point.
It mentioned you stopped by - Yes, they have your letter and they know you did but saying you stopped by is something a friend or family member would say to you. It's personable and friendly :)
You live nearby - You're real, you're close and best of all you're not a big company... Just someone nearby that want's to buy their house, someone like them out trying to make a buck.
Clear message - You'll buy quickly, with no hassles at a fair price... That sounds good!
It's short - I've marketed with a lot of letters, flyers and advertisements and believe me when I tell you the shorter the better! If marketing is too long, wordy or cluttered you'll lose their attention FAST, so keep it short and to the point.
It mentioned you stopped by - Yes, they have your letter and they know you did but saying you stopped by is something a friend or family member would say to you. It's personable and friendly :)
You live nearby - You're real, you're close and best of all you're not a big company... Just someone nearby that want's to buy their house, someone like them out trying to make a buck.
Clear message - You'll buy quickly, with no hassles at a fair price... That sounds good!
No obligation, no pressure - I'm not pushy and if you have already made other plans that's cool... People like non-pushy people
Don't want to talk, then email me - Some people don't like talking on the phone, giving your email let's them test the waters without the risk of getting on the phone with a smooth talking salesman. Bottom line is this letter works so give it a try!
Don't want to talk, then email me - Some people don't like talking on the phone, giving your email let's them test the waters without the risk of getting on the phone with a smooth talking salesman. Bottom line is this letter works so give it a try!
Download A Copy - Driving For Dollars Letter
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How To Spot A Vacant House
Alright, let's say you're all in on this driving for dollars concept but you are not sure how to spot a vacant house, well let me give you some tell-tail signs you can look for when out driving.
Don't worry once you get a little practice you'll be able to spot a vacant house from a mile away.
Alright, let's say you're all in on this driving for dollars concept but you are not sure how to spot a vacant house, well let me give you some tell-tail signs you can look for when out driving.
- Grass is high, unkempt yard
- No curtains in the windows
- Doors/windows boarded up
- Flyers/papers piled up on the front porch
- Mailbox is full of old mail
- Foreclosure or code violation stickers on the front door
- No tire tracks or footprints in the snow
- Electric meter is missing
- Gas meter is locked
- Lack of personal items (no porch furniture, garden hose or any personal items whatsoever.
Don't worry once you get a little practice you'll be able to spot a vacant house from a mile away.
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Your Driving For Dollars Supplies
Before you hit the road you need to get some supplies ready, as a matter of fact you should always have these items in your car so if you get some unexpected free time you can drive some neighborhoods. Below is my list of recommended items.
Before you hit the road you need to get some supplies ready, as a matter of fact you should always have these items in your car so if you get some unexpected free time you can drive some neighborhoods. Below is my list of recommended items.
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Make Driving For Dollars Even Better With The Deal Machine App
This Driving For Dollars App works amazing well... Let's you look up owner information, skip trace and start your email campaign right from your smartphone. Watch my video review and sign up for your 14 trial using the promo code "Toolbox"
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Where Should You Drive?
Good question... as a professional real estate wholesalers you're looking for a property an investor would love to have. This is going to be a property they can fix and flip or renovate and turn into a incomepr operty. Most times you'll want to focus your attention on low to middle income eighborhoods, and avoid areas that have a high number of abandoned homes. You'll also probably want to pass by the wealthy neighborhoods with Bentley's in the garages .
The best rule of thumb is to build your cash buyers list first, identify their buying criteria (what they're looking for) and go out and find it for them.
Good question... as a professional real estate wholesalers you're looking for a property an investor would love to have. This is going to be a property they can fix and flip or renovate and turn into a incomepr operty. Most times you'll want to focus your attention on low to middle income eighborhoods, and avoid areas that have a high number of abandoned homes. You'll also probably want to pass by the wealthy neighborhoods with Bentley's in the garages .
The best rule of thumb is to build your cash buyers list first, identify their buying criteria (what they're looking for) and go out and find it for them.
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Plan of Attack...
My driving for dollars strategy is a little different than others (I use the old school method) I'd like you to forget your Apple Maps, Google Maps and GPS and head down to your local book store and buy a street atlas of your metro area. Now just like in any good search and rescue effort we're going to use a strategic grid search to find vacant properties ( vs randomly driving around town missing properties and wasting time)
When you have a map in had pick a good income property area your investors are interested in as your target. You'll drive EVERY! street in this city from one end to another marking it off with a highlighter as you go.
Up one street, down the next... Back and forth, side to side.. looking for vacant houses. Using this map/grid method will help you to cover the entire area completely and when you've finished a city move onto the next.
***Remember to keep a list of vacant house address and post your letter on each and every door
My driving for dollars strategy is a little different than others (I use the old school method) I'd like you to forget your Apple Maps, Google Maps and GPS and head down to your local book store and buy a street atlas of your metro area. Now just like in any good search and rescue effort we're going to use a strategic grid search to find vacant properties ( vs randomly driving around town missing properties and wasting time)
When you have a map in had pick a good income property area your investors are interested in as your target. You'll drive EVERY! street in this city from one end to another marking it off with a highlighter as you go.
Up one street, down the next... Back and forth, side to side.. looking for vacant houses. Using this map/grid method will help you to cover the entire area completely and when you've finished a city move onto the next.
***Remember to keep a list of vacant house address and post your letter on each and every door
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Driving For Dollars Success Rate
There is one last secret you need to know about driving for dollars, and that secret is simple if you want good results you have to do a lot of driving! When I started doing it my mindset was "I'm going to do this until I get a deal no matter how long it takes" and that should be your mindset.
If you want to be successful in wholesaling you can't "kinda" do some marketing. You have to market HARD!!! So pick you method and do it! If it's driving for dollars, bandit signs, cold calling, direct mail, internet ads or a combination of a few of them, do it until your nose bleeds.
Your success rate depends on you, plain and simple, so make it happen!
There is one last secret you need to know about driving for dollars, and that secret is simple if you want good results you have to do a lot of driving! When I started doing it my mindset was "I'm going to do this until I get a deal no matter how long it takes" and that should be your mindset.
If you want to be successful in wholesaling you can't "kinda" do some marketing. You have to market HARD!!! So pick you method and do it! If it's driving for dollars, bandit signs, cold calling, direct mail, internet ads or a combination of a few of them, do it until your nose bleeds.
Your success rate depends on you, plain and simple, so make it happen!
One last thing... I've recently started using the driving for dollars app, Deal Machine which allows you to look up property ownership information, skip trace for email addresses and phone numbers, as well as starting a mail campaign for each property right from your smartphone. Check out my review on Deal Machine by clicking the link below.
Take your driving for dollars to the next level with Deal Machine - The Driving For Dollars App (It's pretty damn cool)