I understand the driving part--what about the "for dollars" part?

Question

Hello all and thanks for taking the time to read and possibly respond to my post

I'm interested in the process of driving for dollars and what it's actually supposed to look like.

I understand the driving part-- but what about the "for dollars part?"

What do you do AFTER you locate distressed properties and possible motivated sellers?

Is the first course of action to look up the property information on your county's website? After that, how do you go about negotiating a property and making a cash offer on something you haven't seen (or would you try and get access to the home first?)

Sorry for the very vague questions-- i'm sure there's more information out there about specifically what i'm asking. Currently, I want to do SOMETHING so i'm going to scope out a deal and partner with 1 of numerous investors I've connected with in my area and driving for dollars is something I can immediately do.

Please comment below if you have any experience "Driving for dollars" and/or if you know what the procedures are and what they look like

Thank you

Zachary Curry · Answer

Wholesaling is a way for people to act as a realtor without a license. It is legal as you are technically buying the house first and reselling. If you are doing the group work and are part of a flip team then yes you are able to compensated upon the sale of the home. After speaking with a potential seller, research the comps both active as these will be your competition at resale and the sold comps indicating the range of what you should pay for the home. Have a predetermined, educated range to provide an offer and then have a list of costs a typical 3 bedroom 2 bath home to replace the popcorn ceiling with new drywall is $6k, a new bathroom mid range is $6k, a stainless steel appliance package is $2k so as you walk through the home you are tallying your flip costs and determine where in that range you should offer. When working with sellers highlight the positives, great neighborhood, its great they have a block home, great schools, then demonstrate the areas of improvement and include them in the offer process. Make sure you don't just throw numbers at people they will feel as though you aren't considering their needs. Never be afraid to ask the seller, what are they looking for, then ask why? Someone will never argue their own information and if you are able to say this is my offer/ what your home is worth (key work is) BECAUSE then explain your offer people will listen and take you seriously. Be the authority, after all you do this for a profession. Your going to do great!

Zachary Curry · Answer

In your scenario I would work with the sellers and provide an offer with a consideration or earnest money of $10 to make it legal. Why only $10 because the sellers understand your value and if they want to work with you this will be a non-starter. Construct a contract with confidence, get the contract signed then go to your partners and wholesale. When the investors buy, a double close will occur and you just made money. Remember 1% of something is more than 100% of nothing.

Frank Eimiller · Answer

Also, in regards to the "meat" of that last post @Zachary Curry, I'm currently reading J Scott's book on how he estimates rehab cost and i'm doing research specifically on how experienced "rehabers" set budgets and create their SOW. Thanks for all of the help

Frank Eimiller · Answer

You're the man Zach!!! Sorry for brushing you off yesterday-- I mentally responded but forgot to actually write back to you haha. If and when more questions pop mind do you mind if I inbox you? Thanks again

Frank Eimiller · Answer

Awesome. Thanks for the advice. To be clear, I DON'T have a real estate license and am questioning the legality of that entire process. My intentions are to find deals for my investor friends in hopes of them partnering with me on a few projects-- because like you said, a small percentage of a deal is better than 100% of no deal

I've been driving around the areas where people actually want to buy and live. I've found multiple distressed properties in these areas and want to know exactly how to proceed. I can mail to them and let them know that I (We-- the investors/myself?) specialize in buying as-is properties, etc, etc, etc..  After that I'm almost lost. After fielding the call-- do I ask to look at the property before throwing out any potential numbers? I want to be as efficient as possible as I plan to target a lot of properties in the mentioned area.

I understand the driving part--what about the "for dollars" part?

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