Where to Drive for Dollars?

Question

About to start using Deal Machine to find deals that I can either wholesale or just pass on to local investors, but I'm trying to figure out where to start. How do you pick out a neighborhood to drive around in? What are some criteria for this area? Once I have these criteria, how do I go about finding an area that fits it, assuming I don't have a crazy knowledge of the area and all the homes within? Have you guys had more success driving, walking, biking, etc.? Any help would be greatly appreciated!

Tim Cook · Answer

Chandler, good morning and welcome to the world of REI. Hope you are staying safe and healthy. As you can tell from the previous response there are several opinions to your question. Here's my two cents. Starting building a buyers list and find out what they are buying. There are many strategies for doing this. Join a local REIA to meet, network and build your list, and learn the business. Launch a wholesale property type web site. All our members of the West DFW REI Group get a free website to sell their properties on but there are many great websites to consider. Reach out if I can help. As for neighborhoods, start with neighborhoods close to where you live if you need "EASY" and are limited on time. Pick neighborhoods that are "SAFE" to drive. Pick neighborhoods that have "OLDER" homes that could likely have vacant homes. Naturally, newer developments have have vacants but less of them. Pick neighborhoods that have several garage sale signs or Estate sale signs or FSBO signs. Look for signs of being vacant i.e. boarded up windows & doors, FSBO signs, FRBO signs, tall grass, many newspapers in the driveway, no electric meter, many business cards and notes on the front door, a Notice from the City posted on the front door, No trash can on trash day and a rubber band on the mailbox handle to tell the mailman that its vacant. Once you find the deals, the above comments on building your buyers list and websites will come in handy to sell fast. Feel free to reach out if you have any questions. Hope this helps. Stay safe out there in this crazy world we live in.

Jerryll Noorden · Answer

I would honestly not drive for dollars, cold call, door knock, or put out bandit signs. In-fact what you need to do is first answer the question: "Why am I driving for dollars, and not PPC, Facebook ads or heck even that disgusting DMM?"If you can't give a solid answer it means you are not yet ready to do any marketing.The next question is... do you have a website and is it credible? If the answer is no, again you shouldn't do marketing. You are seriously making it harder for yourself to convert a potential seller into a lead.If you answer "because I don't have money"... you need to truly understand this. Despite what anyone tells you, investing with 0 money is utter Bullpoop. Can it be done? Sure, may be, no? probably, no way? Don't know don't care.You are gambling with a lot of time and effort and if you are anything like me? If I do X I need to be able EXPECT a result Y that is expected and predictable.Those is what I call "SYSTEMS". Without it you are just winging it and yeah I wouldn't do that.If you have no money dude believe me you will become successful way faster and reliably by getting a job first save enough money to match the cost/deal (you need to find the cost/deal for what ever marketing strategy you plan to do) and then go do it.I know I didn't really answer your question yet so against my hate for driving for dollars, let me try to provide some value on that area too.I never driven for any damn dollars but if I were forced to do so, I woudl do it this way...I would first determine what I want to find. Flips or wholesale deals, or buy and hold deals.Then for flips I would drive the average to slightly above average neighborhood houses so that if you do find one, and buy it and flip it you can sell it easily as the neighborhood justifies people buying "nicer" or freshly rehabbed homes.(if you flip a house in a horrible zone, and you rehab it, and the house is now worth $200K, why would anyone that can afford $200K buy in such a horrible area?).If you are after buy and hold houses, go to college towns and drive there. Those are excellent B&H properties.That is what I would do.

Adam Bartomeo · Answer

I have never had any success with driving around. It was always a waste of time and gas. I have had a decent amount of success using craigslist.

Andrew Syrios · Answer

Here's my article on how to investigate an area and pick the best places to invest (or drive for dollars): https://www.biggerpockets.com/blog/7-ways-discover-neighborhood-coming

John K. · Answer

I would first identify the type of investor I would be pursuingIf you are going to pursue B&H investors, then focus on those areas that lend themselves to that strategy. This way you won't be going after the wrong type of property.When you start to develop contacts with real buyers, they will tell you precisely what they are interested in, helping you narrow down your search. Best of Luck