Hello BP! Does anyone have experience outsourcing driving for dollars?
Ideally, I'd prefer to pay someone a fixed amount to canvas a handful of neighborhoods for properties in distress and take detailed notes/pics, rather than only paying this person if a deal closes.
Hi @Ethan Anderson , I know there can be an issue when you outsource driving for dollars. I'm actually in the process of adding that functionality to my software to make it easier for people to outsource this. Ideally, they would drive for dollars with the app, and when they flag a property you would see it in your portal and you would get to see every street they drove. I think that would give you the control and most people the control and comfort to go ahead and outsource this part of the process.
Ethan. This sounds like a good idea. Have you thought about posting an ad on craigslist to find someone who would do this? I see you're from MV, are you doing this locally, or out of state?
I think because D4$ is so hit and miss, it may be hard to find someone willing to spend their gas money without a guaranteed finders fee. However, if you don't dictate how they find the deals or make it mandatory to see where they have driven, then there are many bird dogs out there willing to provide deals for some type of finders fee.
@Ethan Anderson Have you considered hiring a virtual assistant to delegate these tasks to? Having someone driving for dollars throughout the week from marketing, mailers, cold calling, and other touches, this will save you a significant amount of time and energy to focus on more important tasks at hand. If this is something you are interested in learning more about, please feel free to message me directly.
Driving 4 $ is a very involved form of finding properties, but with the right skills it can yield great results. I would make sure you get someone who is very familiar with the area to allow for more successful results. Location knowledge is important especially if the "driver" knows people and networks with people there. You may want to look into a newer wholesaler that's hungry for opportunities and has some familiarity of the location you're in. You also should find a way to track your driver's progress if possible as @Nate Pummel stated.
This may be over simplified but the way I do driving for dollars is I keep zillow open as I'm driving and save all the homes that show signs of being vacant or run down. It saves them and shows you on the map the areas you have covered and gives you a lot of information right away. It would be a very simple way to teach a new D4D worker. You could always pay them based on a per lead basis and then an extra amount/percentage if one of their leads does end in a deal.
I'm now using the God4d app. It follows you along in a map in satellite view. Then you can hold on a property and see details and it pulls tax assessor info right there. It also tracks the route you drive. At the end you have an exportable list of properties you marked, owners, and mailing addresses
So the God4d app is the app to use for d4d @Natalie Kolodij
Yes- god4d is the app. It looks like a green compass. I like it a lot!
@Natalie Kolodij is this app still available? I cannot find it in apps store.
Outsourcing DFD is really up to you. I would never outsource DFD because of how much of a perfectionist I am. What I mean is that I would go through EVERY SINGLE house in the zip code & dead end areas where most people doing DFD might not go. I have also just finished DFD with an average of 20 hours per week for the past 3.5 months (Aug 13th). I made it my part time job. Hence how I have time to be here on BiggerPockets to contribute.
At the same time, your eyes distinguishing the not so obvious distress condition on the property like overflow in a mailbox, broken window, bent garage doors, tarp over car, talking with neighbors etc would require someone very devoted seeing, like I said, EVERY SINGLE property that way.
If you have the time I recommend doing it yourself because even if the numbers from your research of the areas make sense, when you're there in the area you'll clearly see that the numbers might not look like what you thought the area would look like positively and/or negatively. It can also be costly paying someone for the gas since constant braking and going with 3-point turns, u-turns, etc really does use up so much more gas than you think than driving on a highway or how most people normally would. It would eventually come down to the cost per lead as well.
I've got a solild 1-1.5% conversion ratio when calling and mailing to the homeowners. FYI
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