Went driving for dollars today

15 Replies

Hello everyone, hope all is well. Today before and after work I went driving for dollars and was able to spot more than 10 properties.  I wrote down their address to look up information. 

 My question is, what information would I be specifically looking for? I am guessing that based on what I find determines how I market to them correct? 

Thanks 

Jose,  You are looking up the property address on your county tax assessor'a website. This will tell you who the owner is and if they live there or not. If the owners address is different than the property address you can send them a mailer. A lot of times these are great leads. If the owners address is the same as the property address then you need to use a skip tracing service to try and track them down. 

What if the address belongs to a trust, or a company that appears to be another group of investors? Are those worth pursuing, or more than likely a dead end?

If it's a trust it would be worth pursuing...it could be in the probate process. If it's owned by a group of investors it will be a waste of time because it's most likely going to be rehabbed.  However it wouldn't hurt to send them a mailer because even if they don't want to sell that property they might have another one they are looking to get rid of. It's kind of confusing to know what's a waste of time or not. In the beginning of your investing career I suggest mailing to all of them and just start talking to people. This will set you up for the future where you can tell what's a waste of time and what's not. 

Let me help you get a clear picture of your objective: you are either trying to buy equity or cash flow at a discount. That's pretty much it.

You initial effort should be in creating a lead list of "suspects". Using the driving for dollars technique means collecting info in the field and sanitizing or 'scrubbing' it by eliminating obvious unqualified properties. From the ones you drive and identify, eliminate:

1) Corporate owned, including bank, investor, LLC, investment trusts

2) Recent purchase

3) Insufficient equity

Every seller needs a motivation. We call them triggers or catalysts. Something that causes them to want to sell NOW. Consider merging your list with other lists to discover "perfect storms" where people are overwhelmed with multiple problems.

A single mailing is insufficient. It is statistically extremely unlikely that you will send an owner a single letter that makes them do a backflip and want to sell their property to you at terms that you'd accept.  No one us that good at copywriting, especially when new. So, just hit them every couple of weeks with a simple letter that keeps you in the forefront of their mind.

Real estate investing can be very complicated however, there are lots and lots of people who have made tons of money despite not being wiz kids. Don't overthink the prospecting part of investing.  Just take the necessary action.

Originally posted by @Rick Harmon:

Let me help you get a clear picture of your objective: you are either trying to buy equity or cash flow at a discount. That's pretty much it.

You initial effort should be in creating a lead list of "suspects". Using the driving for dollars technique means collecting info in the field and sanitizing or 'scrubbing' it by eliminating obvious unqualified properties. From the ones you drive and identify, eliminate:

1) Corporate owned, including bank, investor, LLC, investment trusts

2) Recent purchase

3) Insufficient equity

Every seller needs a motivation. We call them triggers or catalysts. Something that causes them to want to sell NOW. Consider merging your list with other lists to discover "perfect storms" where people are overwhelmed with multiple problems.

A single mailing is insufficient. It is statistically extremely unlikely that you will send an owner a single letter that makes them do a backflip and want to sell their property to you at terms that you'd accept.  No one us that good at copywriting, especially when new. So, just hit them every couple of weeks with a simple letter that keeps you in the forefront of their mind.

Real estate investing can be very complicated however, there are lots and lots of people who have made tons of money despite not being wiz kids. Don't overthink the prospecting part of investing.  Just take the necessary action.

Good explanation. I know one property for sure is owned by an LLC because I did a prelim search on it. Would I eliminate it even if it looks abandoned and in need of repair?

The question really ought to be, 'Where to best focus your efforts and energy?'

If you think trying to track down the decision-maker at some LLC, convince them to sell you the property for a price and on terms that you can afford, then by all means, go for it.

Would I? Nope.

Originally posted by @Rick Harmon:

The question really ought to be, 'Where to best focus your efforts and energy?'

If you think trying to track down the decision-maker at some LLC, convince them to sell you the property for a price and on terms that you can afford, then by all means, go for it.

Would I? Nope.

 Understood. Once I filter down the probable. I should add them to my mail campaign right?

Originally posted by @Tim Leslie:

Jose,  You are looking up the property address on your county tax assessor'a website. This will tell you who the owner is and if they live there or not. If the owners address is different than the property address you can send them a mailer. A lot of times these are great leads. If the owners address is the same as the property address then you need to use a skip tracing service to try and track them down. 

 Would you begin with a yellow letter?

Focus on absentee owners. 

@Jose Diaz  

If I were going to drive for dollars and after research I found one which qualified I would drive back and interview the neighbors. You will be surprised how much the neighbors will tell you about the owner and reason of vacancy. 

Once I found the owners address I would  go knock on their door. 

Dont expect a letter to do what you should do. 

Originally posted by @Nathan Paisley:

Focus on absentee owners. 

 Is there a service you use or suggest?  Listsource seems to be the only one used by RE professionals.

@Rick H.  What would you consider as a recent purchase?

@Tim Leslie How do you skip trace? 

You will need to use a skip tracing service...just google it and you will find some services. Just remember the people who need to be found via skip tracing usually don't want to be found for one reason or another...you may get a lot of voicemails.

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