Financing & Driving for Dollar Properties

[Erica Quarles]

What is the next step after you have found a home by driving by dollars? How do you get it financed? I have read some examples of letters that some people send that say I will pay cash for your property. What if you do not have cash to pay for the property? Is driving for dollars out of the question? What are the financing options when driving for dollars and how do you get started with those options because you are doing it all by yourself without a realtor to help? I have been looking for articles on the site. If you know a video or a post that talks about how someone made an offer on a driving for dollar property and financed it please include the link.

Thanks,

Erica

[Jeff Kehl]

@Erica Quarles

You don't necessarily have to purchase a house you found 'driving for dollars' for cash. Send them a letter/call them/talk to them in person. You don't have to say you purchase for cash, just highlight why buying from you is advantageous to them like no realtors fees or inspections or whatever.  

If it's a good deal, sign a contract with them first and then line up financing. There are many options to do so from a conventional lender to partnering with a private investor to hard money to wholesaling. If it's a good deal you won't have trouble getting it financed. 

On the other hand don't assume it's a good deal just because it looks distressed. Sometimes the exact problem causing it to be distressed is the seller's unreasonable expectations on price. 

Do your homework, find good comps for it. Also make sure you know the problems with the physical structure and what they will cost to correct.  Especially if you skip the physical inspection.

'Driving for dollars' sounds great in theory but it's maybe not as easy as the name sounds. There is still plenty of work to do after you locate a prospective house.