Driving for $$$$$$$

[Mike Faulkenberry]

I hear about driving for dollars and have read plenty about how to find off market properties, but how does it actually work when you get down to it? I have never invested in a flip or investment property (besides my own home), but I have a house that I drive past every day that looks perfect for my first property. it has all the tell tail signs that I have been reading about; overgrown weeds in the yard, needs a new roof, trash never moves, never any cars in the driveway, so I looked on the county assessors site and found a couple of names that are on the deed.

Now what? Do I write a letter saying my intent of wanting to buy the house? what should the letter say? Is there a format that works better than others for getting a response? This is really just to beautify my neighborhood and make some money while I'm doing it.

Please let me know what you have used or written in the letters you have sent that get a response. I'm not even sure this is how the "driving for dollars" thing works. Ha

[Mark Douglas]

@Mike Faulkenberry  I'm also new with mailing to owners, but what I've done so far is make an excel spreadsheet of all of the addresses of interest to me (I'm looking for MFRs 10-20 units, but the process is the same).  I track the dates I sent off the initial letter, the follow up mail dates, and their response, if any. 

I try and do some due diligence on the property, such as finding out:

 - How many other properties does the owner have?  This may indicate their motivation (or lack thereof) in selling the property.

- When did they purchase it?  If they've held it for awhile, they may be tired of it.  If they just bought it two years, ago, they may not be ready to unload it yet. 

- Also, if they purchased with cash or at least 20 years ago, there's a chance it's paid off.  Obviously, if they bought it with cash, it's paid off, but you'll want to be sure any principal mortgage debt has been PIF, to avoid the due on sale clause, if applicable.

- How much did they pay for it?  Can you estimate the current market value based on comps/tax assessment rates?  You want to be sure you're in the ballpark of what's reasonable to offer on it, so when they call you back, you're prepared to make a serious offer.

Gather as much info as you can.  Personally, I handwrite each letter, and tweak it just a little, depending on the research I've done.  This is definitely not the most efficient way to go about it, but so far I've sent out four letters, and I've gotten one response.  (They weren't interested, but I'll keep at it, and keep crafting my letter, and hopefully get a deal from it.)

Their are some direct mail scripts, but from what I've heard on the BP podcast, it's best to keep it short, and to the point.  I've heard yellow letters and post cards can be effective. 

Hope this helps some!