driving for dollars
Business Real Estate

Driving for Dollars: How to Scout Off-Market Deals

Driving for dollars provides real estate investors with a fairly simple and low-cost way to scout off-market deals that may otherwise be a challenge to locate using more traditional methods. And anyone can do it, even if it’s your first time investing in real estate.

What Is Driving For Dollars?

When you drive for dollars, it simply means you are cruising targeted neighborhoods for distressed or vacant properties that can be used to turn a profit once they are rehabbed.

Or you can wholesale the properties to another buyer for a quick deal or even just simply hang onto them as rental investments.

How Does It Work?

The point of this strategy is to locate properties that may be available at a deeply discounted price, which will enable you to make a hefty profit once you sell them.

However, the key to locating below market value properties is to know what to look for, including overgrown yards, broken windows, bare windows, an overflowing mailbox, as well as any other obvious signs of the need for repair or abandonment.

Once you have compiled a list of potentially profitable real estate, you can then be the first and perhaps only buyer to reach out to the owners to see if they are interested in selling, thus enabling you to purchase the properties off-market, provided they are willing.

You can also enlist the aid of an experienced real estate investor to help you with your list of properties, or you may even consider becoming a scout and earning a fee for any real estate you find that results in a sale.

Likewise, you can also hire a team to scout properties for you, in which case they will earn a share of the profits for each real estate transaction.

There are also driving for dollars apps, such as the one offered by DealMachine, that help make it easier to locate off-market properties in your chosen area or areas simply by entering the property address into the program.

How Much Do Driving For Dollars Apps Cost?

These types of apps range in price from free to hundreds of dollars for a monthly plan. However, as a general rule, the cheaper the app, the less information it typically provides. So be sure to compare app features to find the best value for you.

Steps on How to Scout Off-Market Deals

  • Choose an area where people want to live – such as one with a good school system and low crime rate, etc.
  • Map out a route – that enables you to reach every house in the chosen area.
  • Cruise the neighborhood – to identify vacant and distressed properties.
  • Record the property’s address – and take pictures to help leverage your deal.
  • Obtain the property owner’s contact information – so you can directly market to them.
  • Create a follow-up list – which will enable you to stay in contact with sellers, so you don’t miss out on the deal.
  • Determine the best price for the property – and then negotiate the cost with the motivated seller.
  • Check the preliminary title report – to ensure that it checks out, and then close the deal.

In the end, this real estate investment strategy provides a great way to find profitable off-market deals, provided you select your target neighborhoods carefully and practice patience. And keep in mind, using an app will help save time and frustration by automating many of the processes for you.