Driving for Dollars...What's Next

[Josh Rorie]

I just started building a "driving for dollars" list and am off to a decent start, but I'm not sure of what I should be focusing on while I'm still building the list. Should I be mailing properties immediately or wait until the list reaches a certain point? Should I focus on analyzing the comparable sales in the different areas before even contacting the property owners to determine if it's actually a deal? Should I send a variety of mailings (yellow, postcards etc) or just stick to one in the beginning? Help!!

[Alex Capozzolo]

A bit depends on your end goal >>> Wholesaling, Buy/Hold, Flipping, etc. 

I haven't done too much driving for dollars but there are gems to be found! I would send letters out immediately. The quick you get them out, the quicker you'll find a deal. And remember, others are looking to so there may only be a small window of time to lock down a property. The skill of analyzing local comps will come with time, I wouldn't worry about that too much until you start getting calls back. However, doesn't hurt to analyze a few deals a week to keep you up to speed with market rates in your area.

Lastly, everyone has different mailer techniques. I switch up everything (i.e. the color of the envelop, the size of the envelop, the color of the letter, what the letter says). The point is to catch someone's eye and hope they don't throw it in the trash (which is what 95% will do). I print out my own to save $ instead of ordering them, takes a bit but increases margins. Anything handwritten (or looks handwritten) will increase return

Good luck!