I've been riding my bike around town trying to develop an eye for distressed properties.
I've been seeing some worn out roofs, holes in the wood right under the gutter, and general lack of maintenance/outdate style.
In addition these things, what do people look for when driving for dollars?
Also, what are some RED ALERTS that you should stay away from the property?
If you go into the File Share on this site I uploaded an ebook I wrote all about Driving for Dollars. Its a short but good read with a call script for when talking to owners.
Let me know what you think.
Wow the bike will help the cardio but it's going to take some time to cover a lot of area.
When I was DFD I would look for worn roofs, over grown grass/landscaping (not normal for the area), papers or mail piled up, cars that look like they haven't moved in years, trash or boxes (hoarder) and flyers or paper stuck to the front door. Also write down any FSBO, fire damage and private for rent signs. Make note of dumpsters it could be a rehab in progress or a clean out of some sort.
There are a few treads on the subject if you search for them.
Hope this helps
Look for code violation notices on windows and doors
I look for Opportunity. That could be vacant properties, Distressed properties, or even Properties being rehabbed. Stop at rehabs and talk to whoever is there. you will likely meet a contractor or the rehabber himself. both are valuable contacts.
Specifically I look for overgrown lawns, piked up newspapers, phone books, trash and obviuosly boarded properties.
When I was DFD I was looking for properties that I could wholesale. By checking into the ones that had dumpsters I could find a potential buyer.
If the property is vacant, ie no curtains, tall grass, notice on the windows, it is probably a foreclosure that has not been put on the market yet. Check the tax records for who owns it. Talk to the neighbors and they will give you a complete history of the property and maybe a phone number of the owner. Wholesale it to the guy who rented the dumpster for his rehab.
Driving for Dollars is not just something you do separately. This is an activity that should be second nature to you to do all the time no matter what else your doing. I can't tell you the number of times over the years I have been in a car with another investor or broker and noticed something that flashed a this maybe a lead and I followed up later. Now that other investor had driven by that same property at least a dozen times before I was in the car with him/her, but they were not in the driving for dollars mode. Get in the mode, your driving down the street anyway. They missed the deal and a prospecting source I made a habit found me the deal.
Wow guys, thanks for the awesome advice!
piles of newspapers,
mail hanging out of mailbox,
signs of neglect and deferred maintenance
legal notices on the doors like sheriff sale, tax sale, code violations
unlicensed vehicles in driveway and yard
trash, junk, hoarding
the worst house on the street
blue tarp on roof (any color)
broken windows especially in winter
overgrown trees and shrubs
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