Driving for dollars is a proven strategy where real estate investors search neighborhoods to find potential off-market properties for flipping or wholesale deals.
What is Driving for Dollars?
The process involves physically driving through target neighborhoods to identify distressed or vacant properties that could be potential investment opportunities.
Signs to Look For:
- Overgrown lawns and neglected landscaping
- Peeling paint or damaged siding
- Boarded up windows or visible damage
- Uncollected mail or newspapers
- Code violation notices
- Properties with obvious deferred maintenance
Essential Tools for Driving for Dollars
- DealMachine App – Maps, property data, and owner contact info
- PropStream – Property analytics and owner information
- Smartphone with good camera
- GPS tracking device or app
- Notebook or digital note-taking system
Step-by-Step Process
- Choose target neighborhoods based on:
- Average home values
- Age of homes
- Recent sales data
- Demographics
- Create a systematic driving route
- Document properties with photos and notes
- Research property ownership
- Contact owners through direct mail, phone, or door-knocking
Best Practices for Success
Start with neighborhoods you already know well to build confidence and local market knowledge.
Drive during daylight hours, preferably early morning or late afternoon when more homeowners are present.
Keep detailed records of all properties visited, including photos, notes, and follow-up actions.
Marketing to Property Owners
- Direct Mail: Send personalized letters expressing interest in purchasing
- Phone Calls: Use skip tracing services to find owner contact information
- Door Knocking: Personal approach for immediate contact
Safety and Legal Considerations
Always respect private property and local regulations while conducting property searches.
Carry business cards and proper identification to establish legitimacy.
Tracking Results
Metric | Target Goal |
---|---|
Properties identified per hour | 15-20 |
Contact response rate | 3-5% |
Deal conversion rate | 1-2% |
Cost Analysis
- Gas and vehicle expenses: $50-100 per week
- Software subscriptions: $50-150 per month
- Marketing materials: $200-500 per month
- Skip tracing services: $0.25-1.00 per lookup
Track your expenses and results to calculate your return on investment and adjust strategies accordingly.
Consider joining local real estate investment groups to share experiences and learn from other investors.
Resources
- BiggerPockets – Real estate investment community
- DealMachine – Driving for dollars app
- PropStream – Property data software
Building a Follow-Up System
Implement a systematic approach to maintain contact with property owners over time. Most deals happen after multiple touchpoints.
- Create a contact management database
- Schedule regular follow-up intervals (30, 60, 90 days)
- Use automated email sequences
- Track all communications and responses
Scaling Your Operation
Hiring Help
- Virtual assistants for data entry
- Local drivers to expand coverage
- Marketing specialists for campaigns
- Administrative support for paperwork
Technology Integration
Leverage technology to automate and streamline operations:
- CRM systems for contact management
- Route optimization software
- Automated direct mail services
- Digital documentation systems
Common Mistakes to Avoid
- Inconsistent follow-up
- Poor record-keeping
- Targeting wrong neighborhoods
- Neglecting to verify ownership
- Insufficient market research
Conclusion
Driving for dollars remains a valuable strategy for finding off-market real estate deals. Success requires consistency, proper tools, and systematic follow-up. Start small, track results, and scale operations based on proven success metrics.
Remember that building a profitable driving for dollars operation takes time and persistence. Focus on creating efficient systems and maintaining professional relationships with property owners.
FAQs
- What exactly is Driving for Dollars in real estate investing?
Driving for Dollars is a real estate investment strategy where investors drive through neighborhoods to identify potential investment properties by looking for signs of distressed, vacant, or poorly maintained homes that could be acquisition opportunities. - What are the key signs to look for when Driving for Dollars?
Look for overgrown lawns, accumulated mail, boarded windows, visible exterior damage, code violations, outdated features, peeling paint, damaged roofs, neglected landscaping, and vacant properties with utility shutoffs. - What tools and apps are essential for Driving for Dollars?
Essential tools include a smartphone with GPS, property data apps like DealMachine or PropertyRadar, a camera, note-taking app, tax assessor website access, and a spreadsheet or CRM system to track leads. - How much money can I make from Driving for Dollars?
Profits vary widely, but successful deals typically yield $5,000-$50,000 per flip, depending on the market, property condition, and negotiation skills. Some investors make more on high-end properties or in competitive markets. - What’s the best time of day to drive for dollars?
Early morning or late afternoon are optimal times as it’s easier to spot vacant properties and assess maintenance issues. Weekdays are better than weekends as you can observe whether properties are actively occupied. - How do I research property owners once I find potential deals?
Use county tax assessor records, property data websites, skip tracing services, public records databases, and local title companies to find property owner information and contact details. - What should I do after identifying potential properties?
Document the property with photos, research ownership and property details, skip trace the owner if necessary, send direct mail or make contact attempts, and add the lead to your tracking system for follow-up. - Is Driving for Dollars still effective in today’s digital age?
Yes, Driving for Dollars remains effective because it helps investors find off-market properties that aren’t listed online, reducing competition and potentially leading to better deals with motivated sellers. - How many hours should I spend Driving for Dollars per week?
Successful investors typically spend 3-6 hours per week driving for dollars. Consistency is more important than duration, and regular routes help build market knowledge and spot changes in property conditions. - What neighborhoods should I target when Driving for Dollars?
Focus on transitional neighborhoods, areas with older homes, neighborhoods with consistent property values, and locations where you’ve previously completed successful deals. Avoid war zones or extremely depressed areas.