Drive for Dollars: How to Build a Repeatable Sourcing System
How to create a predictable process for finding off-market properties by driving neighborhoods.
Austin Beverigde
Tennessee
, Goliath Teammate
If you're struggling to find profitable real estate deals, you're not alone. Many investors feel overwhelmed by the prospect of sourcing properties, especially when it comes to off-market opportunities. The good news is that by implementing a systematic approach to "Drive for Dollars," you can streamline your sourcing process and uncover hidden gems in your market.
Quick Answer
To build a repeatable sourcing system for Drive for Dollars, start by defining your target area and criteria for properties. Use a combination of driving through neighborhoods, taking notes of potential deals, and utilizing technology like mapping apps to track your findings. Create a follow-up system for contacting property owners, and continuously refine your approach based on what works best.
Understanding Drive for Dollars
Drive for Dollars is a real estate investing strategy where you physically drive through neighborhoods to find distressed properties that may be available for sale. This method allows you to discover off-market deals that aren't listed on traditional platforms. By establishing a repeatable system, you can consistently find and evaluate these opportunities.
Steps to Build Your Sourcing System
1. Define Your Target Area
Start by identifying neighborhoods that fit your investment criteria. Consider factors like property values, rental demand, and potential for appreciation. Take the time to drive through these areas regularly.
2. Create a Property Evaluation Checklist
Develop a checklist to evaluate properties as you find them. Include criteria such as:
Condition of the property
Estimated repair costs
Potential resale or rental value
Neighborhood trends
3. Utilize Technology
Use mapping apps to mark properties of interest. This can help you keep track of your findings and streamline your follow-up process. Consider using CRM software to manage your leads and follow-ups efficiently.
4. Follow Up with Property Owners
Once you've identified potential deals, reach out to property owners. This could be through direct mail, phone calls, or door knocking. Be prepared to discuss their property and express your interest in purchasing.
5. Refine Your Approach
As you gain experience, refine your criteria and processes based on what works best. Track your success rates and adjust your strategies accordingly.
Costs Involved
Building a Drive for Dollars system can involve various costs, including:
Fuel and vehicle maintenance
Technology subscriptions (apps, CRM)
Marketing materials for outreach
These costs can vary widely based on your approach and the tools you choose to use.
Tools to Consider
Here are some tools that can enhance your Drive for Dollars strategy:
Mapping apps (Google Maps, Waze)
CRM software for lead management
Property valuation tools
Direct mail services for outreach
Realistic Examples
Imagine you drive through a neighborhood and spot a house with overgrown grass and boarded-up windows. Using your checklist, you note the property’s condition and estimated repairs. After reaching out to the owner, you negotiate a deal and purchase the property for a great price. This scenario illustrates how a systematic approach can lead to successful investments.
Checklist for Immediate Action
Define your target neighborhoods.
Create a property evaluation checklist.
Download mapping and CRM apps.
Plan your driving routes.
Prepare your outreach materials.
Common Mistakes to Avoid
When building your sourcing system, avoid these common pitfalls:
Not defining clear criteria for properties, which can lead to wasted time.
Failing to follow up with property owners, missing out on potential deals.
Neglecting to track your progress and refine your approach.
FAQs
What is Drive for Dollars?
Drive for Dollars is a real estate strategy where investors drive through neighborhoods to identify distressed properties that may be available for sale. This approach focuses on finding off-market deals that are not listed on traditional real estate platforms.
How do I find the best neighborhoods for Drive for Dollars?
Research neighborhoods based on property values, rental demand, and growth potential. Look for areas with signs of distress, such as vacant homes or properties in disrepair, to identify potential opportunities.
What tools do I need for Drive for Dollars?
Essential tools include mapping apps to track properties, CRM software for managing leads, and property valuation tools to assess potential investments. Marketing materials for outreach can also be helpful.
How much time should I dedicate to Drive for Dollars?
Dedicate a few hours each week to drive through your target neighborhoods. Consistency is key; regular drives will increase your chances of finding good deals.
Can I do Drive for Dollars part-time?
Yes, many investors successfully implement Drive for Dollars as a part-time strategy. With a structured approach and regular commitment, you can identify opportunities without dedicating all your time to it.
