The real estate market has seen a huge increase in value over the last few years. And with the entrance of big corporate investors like iBuyers and hedge funds, staying ahead of the competition is harder than ever.
If you're an investor who is looking for more properties to add to your portfolio, and if you want to find the inventory that big corporate players aren't pursuing yet, then driving for dollars may be a strategy you'll want to consider.
Driving for dollars is a strategy that involves driving around neighborhoods and looking for properties that may be in need of repair.
Once you've found a property that appears to be in disrepair, you can research the owner of the property and see if they're interested in selling. In this case, you are ahead of the competitors who are only looking online!
There are both pros and cons to using this strategy. On the plus side, driving for dollars is a great way to find properties that may not be listed on the market yet. Even more importantly, D4D can help you find properties that aren't even on so called motivated seller lists yet. Remember, when a home owner falls behind on their taxes or misses a mortgage payment that information is recorded and accessible via public records. But there's a lag between the missed payments and the time that some list company finds out about the situation and builds a marketing list from it. If you can get to the homeowner before marketing companies turn these addresses into tidy lists, it gives you the opportunity to beat the competition to the punch!
On the other hand, driving for dollars can be time-consuming, and you may not always find what you're looking for. In addition, some people may not be interested in selling their property, even if it is in need of repair.
If you're a seasoned investor and want to add more assets to your portfolio, driving for dollars may be a viable option. You can even build a team of drivers to scour your target neighborhoods for you. This will let you be very strategic and targeted in your search. But setting up an operation like that takes time. If, however, you're just starting out in the world of real estate investing, or if you have more money than time, you may want to consider other strategies first.
Have you ever tried driving for dollars? What was your experience like? Share your story in the comments below!
Now that we've gone over what driving for dollars is, let's discuss some tips to help you make the most out of this strategy. It takes practice and experience to pinpoint the best investments, so don't be discouraged if you have difficulties.
The first and foremost tip you should keep in mind is to use the right tool for the job. The REIRail Drive app is the best D4D app on the market today. And also the most reasonably priced The app is available for both Android users and Apple.With this app, you can track your route so that you know exactly where you or your team went. As you look at your route, you can refine your search with property filters.
For example, if you're looking for pre-foreclosures or absentee owners you can have the app show you just the houses that fit that criteria. Then you can drop a pin on that specific location.
One of the best features of this app is that it offers a Deal Desk. This is a service that will help you and your team analyze the different properties, compare them to similar houses, and allow you to develop effective exit strategies for the property you're considering. Knowing what to do once you come across a good potential property is often the toughest part. So this additional service makes the app very valuable, especially for newer investors.
One of the challenges of driving for dollars is that homeowners will likely reject you. This is because many people are not interested in selling their property, even if it requires repair.
It's important to be prepared for rejection and not take it personally.Remember that you only need one yes to make a deal, so don't get discouraged if you hear many no's.
You'll want to look for problem signs when you're driving for dollars. These are signs that the property may require repair or that the owner is interested in selling. Some common problem signs include:
By looking for these problem signs, you'll be able to quickly identify properties that may be a good fit for your investment strategy.
Once you've found a property that you're interested in, it's important to take notes. This way, you can remember the address and other important details about the property. You'll also want to research the owner of the property so that you can contact them at a later time.
By taking notes, you'll be able to keep track of the properties you're interested in and follow up with the owners later.
You can also take pictures of the property, the area, and any amenities that may be nearby. This will help you remember the property and what it looks like. If you're driving for dollars with a partner, make sure to have one person take notes while the other drives. This way, you can cover more ground and not miss any properties that may be a good fit for your investment strategy. However, don't forget that you can use the REIRail app to assist you in the notes! Simply fill them out in the property filters, and you'll have all the information at the click of a button!
Once you've found a property you're interested in, it's important to do your research. This way, you can learn more about the property and see if it fits your investment strategy well. You'll want to research the following:
By researching the property, you'll be able to make an informed decision about whether or not to invest in it.
Luckily, REISkip, while integrated with REIRail, will provide all of this information! (See tip 6!)
Another tool that can be helpful when driving for dollars is skip tracing. This is a process of finding a property owner using public records.
You can use REISkip to help with this process. At REISkip, we help you search for a property owner using the address. However, that is not the only information we provide!
While using our app, you will have access to information such as:
The most valuable information is likely the social media handles we provide. As the world is moving away from phone calls and embraces social media, it is important to have the social media handles of the homeowner so that you can connect with them faster.
Now that you know what driving for dollars is and how to do it, it's time to step up your game. If you're serious about finding investment properties, then you'll need to use skip tracing.
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