Skip to content
Welcome! Are you part of the community? Sign up now.
x

Posted almost 14 years ago

Driving for Dollars... A Real Life Story!

As I read through the various posts on BP I am struck by the number of posts from all investors, but mostly new ones, wondering what they should be doing to find properties.  It's a great question... whose answer in todays REO heavy environment often is... hit the multiple listing service. 

While I agree that, that is a sure fire strategy, for many investors they can't position themselves due to lack of experience, or cash to buy, or they can't qualify for a loan, etc.

Then what?

Let me share a recent experience I had with a client that continued to drive home the importance of the age old technique lovingly referred to as "driving for dollars."

While this story didn't start out as a "driving for dollars" approach, it is fast ending up that way.

This particular client is similar to the one I described above.  He is just starting out and lacks just about everything... but he is not letting that stop him.

So, after pointing him in the right direction he starting looking on the MLS for properties that met the criteria we had established.  Criteria like high days on market, properties within a certain price range and in a specific location.  And with that guidance and those criteria he staring looking.

And he found a promising deal!  An upstairs/downstairs duplex, gross rent potential $2100, high days on market and price within striking range.  In other words... I was excited about this deal!

And this is where the "driving for dollars' part comes in.

As I am turning down street I couldn't help but feel like Dorthy in the Wizard of OZ must have felt as she laid eyes on the great city of OZ for the first time.  Excited and filled with wonderment.  Well, I was excited, but wonderment is not what I was feeling, a fattening bank account is what had me juiced up.

This street had duplexs on both sides.   Many of the properties needed some work, there were a few vacancies... in other words a street that needed an experienced investor to move in and make a killing.

After I inspected the property with my client and established his offer price we laid out a plan for him to target that entire area with letters and to not stop sending them until he had either put the property under contract or received a solid no from every owner.  Within the next 4 weeks this client will know this street like he knows his mother... and any deal that even pokes its head up for air will be his for that taking.

Why?

Because he will have become an expert on what is going on that block, will understand the pricing, renovation costs, income potential, etc.

So... if you are standing around wondering how to get started finding deals I think I just laid out a fairly simple plan for you to follow.  Get in your car, drive to a neighborhood, once there get out of your car and observe what is happening.  Get a realtor to get you into one or more of the properties so you can learn to estimate the repairs... and then start sending letters or postcards... and don't stop.

Now... it's up to you to go out execute this plan... and if it doesn't work... be sure to have a few words with the person staring back at you the next time you look in the mirror.

Drop me a line and share your actions and results.

To Your Success...

Pete

 

If you found this post to be of value, I would be honored if you passed it on to others who may benefit.

-------------------------------------------------------------------------

Peter R, Giardini is the founder of The Club, Real Estate Mastermind a National Real Estate Investor Coaching program whose philosophy is that real estate investing coaching in a one-on-one environment. To find out more about The Club visit or send an email to .  To learn more about Pete visit www.theclubteam.com/about.asp.

You can listen in and participate in Pete's Real Estate Investors' Mastermind radio show every Thursday night at 9:00PM on BlogTalkRadio... .  To hear my weekly Current Market Update click on the green button at the upper left of this post.  To subscribe to my Real Estate Investors "Actions for Profits" Tip of the Day go to http://www.youtube.com/user/peterg123451.  Copyright 2010.  All rights reserved. 

 

 

 

 

 


Comments