DRIVING FOR DOLLARS

DRIVING FOR DOLLARSconnected investors.com: the real estate investors marketplace and community

Is your deal making at a standstill? Are youat a standstill? Then get moving!The EASIEST, FASTEST and MOST DIRECT way to get deals is driving fordollars. Yep, getting in the car and driving neighborhoods really doeswork and complements many of the other strategies we discuss.It’s easy because it requires very little ramp up time and hardly anytechnology to make it happen. And you’ve done it before – you’ll do itagain. We drive through neighborhoods all the time, just not with thesame purpose.connected investors.com: the real estate investors marketplace and community1

It’s fast. You’re going where the deals are - right now. And if you really doit right, you’re making contact with the people who have a vestedinterest in the property. Driving for dollars is a technique every real estateinvestor uses whether they realize it or not.And it’s direct - no real estate agent, no competing with other investorswho drive up the price and then waiting and hoping your offer isaccepted. You get one-on-one with the people closest to the house andget your deal going in days. It’s like creating your own FSBOs!connected investors.com: the real estate investors marketplace and community2

Driving for Dollars ismother of simplicity whenyou are looking for deals. Thekey is knowing what to look for,where to look, and what to bring.Driving for Dollars has otheradvantages too. It’s also theFASTEST way to learn amarket or neighborhood.And knowing yourmarket is a must!Plus you can drive for dollars just about anytime. Making a trip to thestore? A quick detour to drive a neighborhood is always a good idea. Ifyou’re a new investor learning your market or a seasoned investor whoseleads have dried up, Driving for Dollars can replenish your leads fast.connected investors.com: the real estate investors marketplace and community3

RESOURCES LIST:Within days, you can make deals that can net you wholesale fees, or youcan find deals with nice back end profits for rehabbing for resale orconverting to a rental. Successful real estate investors know that you makeyour money when you buy. And driving for dollars puts you directly in frontof those deals. So now that you know that you can get deals going right.Here’s what you’ll need:A carA destinationCell phone/cameraNote taking toolsOptional:Flyers & Business Cardswith your web site addressconnected investors.com: the real estate investors marketplace and community4

STEPS TO SUCCESS:Driving for Dollars is more than randomly cruising past houses, but thathas its time and place too. For the best results, you should choose adestination – a target area. You’ll save time, money and effort when youfocus on areas where your property types are located.Next you need a mode of transportation. No doubt that in most areas,DRIVING neighborhoods is the best way to go. But you can walk or rideyour bike through neighborhoods, too. If you live in an urban area,walking or riding may be your best bet anyway. Your goal while you’reout should also be getting out and talking to people- but that’s notalways possible. For those times, you need yourphone/camera for gathering info. And if you’rereally on your game and already have businesscards and flyers, take them with you to sharearound the neighborhood.So those are the basic steps, now let’s get busy andtalk more about the specifics connected investors.com: the real estate investors marketplace and community5

To put it all together, let’s start with the destination in mind.If you’re a fan of using bandit signs, you know that deal finding is strategic.You’re not marketing randomly. You’re carefully picking your target areasand focusing like a laser beam on them.And you know your end game – you know your exit strategy.You know where you want focus your efforts to do the kind deals you’relooking for.So let’s start with that end game in mind. And it usually involvespricing – where are the properties located that fit your price point?Your end game also typically involves condition. So we’re not pointing thecar in the direction of the new neighborhood with well priced starterhomes. We’re looking for the areas where we can identify distressed andabandoned properties. These kinds of properties are in every type ofneighborhood, so don’t make the mistake of eliminating areas where youTHINK there aren’t good potentials.Look at your exit strategy, look at your price point and map outyour target area and hit the road!connected investors.com: the real estate investors marketplace and community6

Before you go, remember, YOU ARE ON A MISSION. This is notsightseeing. This is deal finding. You are out there to get info, share infoand in the best case scenario talk to the people who know area and thehouse best.The key when driving for dollars is EYES WIDE OPEN. Whether you’re ona planned drive or just passing through on your way somewhere else,always keep your eyes open for potential deals.As you’re driving your target area, you’re looking for a few key indicatorsthat there could be a motivated seller.– Neglected yard, tall grass– Boarded up or broken Windows– An over flowing mailbox orpiled up newspapers– Code Enforcement or other noticesposted at the property– Deferred maintenance – a badroof, rotting wood– For Sale By Owner signsconnected investors.com: the real estate investors marketplace and community7

In fact, you may even want to park the car and walk. Save gas, get someexercise and even better - you can get up close to each property. And ifyou time it just right, you may get the chance to talk to a neighbor or two.So, let’s talk about timing. If you want deals fast, your best bet is towork your neighborhoods during the weekend.You’ll have the best chance to talk to neighbors, gather information andleave your information with those same neighbors. (See the chapter onNetworking. The same rules apply!)People are watching these houses. Home owners in the area DO NOT LIKErun down, empty houses. And now look who just arrived – just in time tosave the day! Super Investor who wants to buy it and fix it and make it allright and good in the neighborhood.connected investors.com: the real estate investors marketplace and community8

You can’t assume that you’ll get to talk to someone, so let’s make sureyour driving for dollars is still a success.Use your cell phone to take photos. Make notes that will allow you tofollow up on the lead. There are great apps out there like EverNote totake pictures and make notes all in one.Use that info to do some follow up – locate the owner and makethe effort to contact them. This is a great strategy if you’re doing yourdriving weekdays when fewer people are out and about. But, it also takesmore time and resources. It’s also a great way to build a mailing list for amore long term deal finding strategy.We listed business materials as optional, but it could be argued thatyou’ll make the most of your driving for dollars when you leave businesscards and flyers. And it’s not a bad idea to leave a personal note on thefront door of your potential deals. While you’re out of the car, you mightas well drop of few flyers off at the surrounding houses. And if you usebandit signs, post a few aroundthe neighborhood atintersections.Leave your mark – drop offmaterials, post flyers and letthe area know you want tobuy houses in theirneighborhood.connected investors.com: the real estate investors marketplace and community9

So now you know what you need and what you need to do to start findingdeals Driving for Dollars. That’s the basics, but here are a few tips to makeyour Driving for Dollars even better. Every time you hop in your car, you should view it as anopportunity to get a lead that can ultimately result in a deal. Take adifferent route home; cut through targeted subdivisions with theintent of locating distressed and abandoned properties. Give your driving for dollars legs. Use and re-use the info yougather while out on the road start a spreadsheet or other trackingtool to create a mailing list. Direct mail works – and you’re mailingto an ideal target property so it’s an effective way to build a goodlist. Mail them several times a year. Your phone will ring! And it won’tbe uncommon to have it ring even years after you’ve sent mail. Youcan find out more about direct mail in the chapter we’ve dedicatedto that topic. One of the keys to ANY real estate investor’s success is knowingyour market. Driving for Dollars is the ideal way for new investors toget to know key investment areas. You should get to the point thatyou know your investing location so well that when a seller callsabout getting rid of their house, you know its price within a fewgrand. (This allows you to quickly jump on deals and not give a sellertime to talk with the competition.)connected investors.com: the real estate investors marketplace and community10

If you have found a great area to farm for deals, double down!Drive it and then leave materials at target houses and place banditsigns in the area. If you blanket it, they will come! When driving for dollars look for mail carriers. Approach them ontheir route, briefly introduce yourself and give them info thatexplains what you’re looking for. You’re goal is to have them act as abird dog for you. Explain that if they find a house that fits yourcriteria, and you close on it, they will collect a handsome referral fee.Mailcarriers know what’s going on in a neighborhood better than youdo, since they drive these neighborhoods every day. Get to know afew of them and you will be richly rewarded.connected investors.com: the real estate investors marketplace and community11

Finding the owners:Occasionally you will come across abandoned homes while out driving.Finding the owners of these homes can be very profitable. Many timestalking to neighbors will help you find the property owner, however if thisdoes not work, there are other options. Inside Connected Investors youcan find simple to use programs that help you find the owners ofabandoned homes. Since this is an important part of being a real estateinvestor, our community keeps an up-to-date list of these programs. Loginto Connected Investors and search for tag #find-Seller for a full list withcommunity reviews.So that’s it, the basic recipe for getting deals using Driving forDollars. You need to know your DESTINATION, your EXIT STRATEGYand your TARGET AREAS. Get out and drive the neighborhoods. Usethe technology Connected Investors provides to help you gather andfollow up on leads. Improve your chances for success using businesscards and flyers with a web address.connected investors.com: the real estate investors marketplace and community12

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can nd deals with nice back end pro ts for rehabbing for resale or converting to a rental. Successful real estate investors know that you make . Driving for Dollars is more than randomly cruising past houses, but that has its time and place too. For the best results, . gather while out on the road s