What is your criteria when driving for dollars?

Question

I just finished watching the Driving for dollars video. I'm working on determining my criteria and wondering what others currently use. What's your criteria and why?

Also, what's the reasoning for looking for "hoarders"? What's their incentive for wanting to sell?

Jerryll Noorden · Answer

No!

When you do anything you always need to understand what and why you are doing it.

Everyone will tell you "look for distressed properties".

You are not looking for distressed properties. You are looking for distressed sellers. There is a big difference. Not because a property is distressed does it mean that the owner not only wants to sell but sell at a discount!

I have now 8 properties that are distressed sitting there, waiting for me to flip them. Ask me if I want to sell them. No.

A distressed property is not the same as a distressed owner. The biggest deals I am doing do not come from distressed properties. They come from normal properties, where the owner is simply motivated. Motivated simply means this... the more motivated a seller is the LESS they care about the money.

People simply don't get this.

This is why driving for dollars or using any list simply is luck... with a horrible conversion rate.

If you want reliable deals, get a great website going, make it credible, and start thinking about Facebook and Youtube paid marketing.

This kind of marketing actually grows your business (I am not talking about getting deals here). Even if you do not get deals, this actually grows your business. brand awareness, credibility, and reputation. Anything else is more likely to hurt your business. How many people do you piss off cold calling or sending mailers to get one deal?

People think small.

They risk ruining their reputation to get ONE deal.  But in fact, it is the other way around. I will happily ruin one deal, to grow my reputation, brand awareness, and credibility.

All these really old-school marketing strategies do an incredible amount of damage to you in the long run and to most, this is masked by the sheer desperation to get ONE deal.

Don't be one of those people. Always use intelligence, and common sense and use analysis to justify every action you take.

Good luck

Steve Vaughan · Answer

Personally I like tired plexes.  Faded paint, high grass, any sign of distress.

Plexes have a much higher chance of being absentee/ landlord owned = higher chance of motivation to get rid of it @Javier Romero. More bang for your buck.

Eliott Elias · Answer

Anything, and everything that looks distressed. I don’t rule anything out. Whether the exterior looks like it needs work, or there are four RVs in the driveway. Write down the address.