What is driving for dollars? The first thing that comes to mind is Uber or Lyft, right? You wouldn’t be wrong, but we are looking for more dollars than a few Uber fares.
I used to listen to a lot of podcasts on Bigger Pockets. Still do, actually. I’ll never forget when I heard the phrase, “driving for dollars”. They didn’t define it. Apparently this was common knowledge in the real estate investor world. I had to google the meaning of it. What is driving for dollars?
Driving for dollars is simply driving around looking for rough, dilapidated houses that look neglected or are in need of repair. As you spot these houses, you would jot down the addresses and create a list. You can also write a short note and say something like “Hi, I’m Nate and I want to buy your house. I can pay cash and close fast. Call me -555-555-5555”
Once you have a decent sized list, you can use tools like PropStream to get the mailing address or skip trace the list (get owner’s phone number) and call or text the owner. You can also send them mail. You basically hit them with as many marketing channels as you can to increase your odds of getting a response!
Driving for dollars can be tedious and time consuming but it’s free. If you are just starting out and looking for deals, this is a great way to get started. Many wholesaler’s get their first deals by doing this. It remains one of the best ways to get started as an investor and find hidden gem deals.
If you work for a wholesaler this might be one of your methods to find off-market deals. I pay my acquisitions manager a higher percentage on assignment fees if we close a deal that he found driving for dollars. We usually make a bigger spread on these deals since oftentimes they are less targeted by other investors.
So, there you have it. That’s driving for dollars in a nutshell. Now, go out and do it and get that first deal!