Driving for Dollars Is the Best Lead Generation Method Explained
Why this classic strategy still beats paid ads for off-market deal flow.
Austin Beverigde
Tennessee
, Goliath Teammate
If you're struggling to find quality real estate leads, you're not alone. Many investors feel overwhelmed by the competition and the sheer volume of information available. The good news is that there's a straightforward method called "Driving for Dollars" that can help you uncover hidden opportunities in your market.
Quick Answer
Driving for Dollars involves driving through neighborhoods to identify distressed properties that may be ripe for investment. Look for signs of neglect, such as overgrown lawns or boarded-up windows. Once you spot a potential lead, gather the property address and use online tools to find the owner's contact information. This method is effective because it allows you to find off-market deals that others may overlook.
What is Driving for Dollars?
Driving for Dollars is a lead generation strategy where real estate investors drive through neighborhoods to find properties that show signs of distress. This method is particularly effective because it allows you to identify properties that may not be listed for sale but could be available for the right offer.
How to Get Started with Driving for Dollars
Step 1: Choose Your Target Area
Select neighborhoods that you are familiar with or that show signs of growth. Look for areas with older homes or those undergoing revitalization.
Step 2: Look for Distressed Properties
As you drive, keep an eye out for properties that appear neglected. Signs of distress include:
Overgrown lawns
Boarded-up windows
Peeling paint
Roof damage
Step 3: Collect Property Information
Note down the addresses of the properties you identify. You can use a smartphone app or a notepad to keep track of your leads.
Step 4: Research Property Owners
Once you have a list of addresses, use online databases to find the owners' contact information. Websites that provide property records can be helpful for this step.
Step 5: Reach Out
Contact the property owners via mail, phone, or email. Be polite and express your interest in purchasing their property.
Costs Involved in Driving for Dollars
The costs associated with Driving for Dollars can vary based on your approach. Here are some potential expenses:
Gas for your vehicle
Tools for tracking leads (apps or notepads)
Postage for mailings
Tools to Enhance Your Driving for Dollars Strategy
Using the right tools can streamline your process:
Mapping apps to plan your route
Property record websites for owner information
Lead tracking software to organize your findings
Timeline for Driving for Dollars
The timeline for seeing results from Driving for Dollars can vary. Here’s a general breakdown:
Initial driving and lead collection: 1-2 days
Researching property owners: 1-2 days
Outreach and follow-up: Ongoing
Alternatives to Driving for Dollars
If Driving for Dollars doesn’t fit your style, consider these alternatives:
Networking with real estate agents
Online lead generation platforms
Direct mail campaigns to targeted neighborhoods
Checklist for Driving for Dollars
Choose your target neighborhoods
Drive through the area and take notes
Identify distressed properties
Research property owners
Contact property owners
Common Mistakes to Avoid
Here are some pitfalls to watch out for when Driving for Dollars:
Not being consistent: Regularly driving through your target area increases your chances of finding leads.
Ignoring follow-ups: Many property owners may not respond immediately, so follow up regularly.
Failing to track your leads: Use a system to keep your leads organized and accessible.
FAQs
What is the best time to drive for dollars?
The best time to drive for dollars is typically during daylight hours when visibility is good. Weekends may also be ideal as neighborhoods are often quieter, allowing for easier observation of properties.
How do I know if a property is worth pursuing?
Look for properties that show signs of neglect but are located in desirable neighborhoods. Research recent sales in the area to gauge potential value and determine if the property could be a good investment.
Can I do Driving for Dollars in any neighborhood?
While you can technically drive in any neighborhood, it's best to focus on areas where you have some knowledge or where you see potential for growth. Avoid areas with high crime rates or extreme economic decline.
How many leads should I aim to collect?
There’s no set number, but aim for at least 10-20 leads per driving session. The more leads you gather, the higher your chances of finding a viable investment opportunity.
Is Driving for Dollars legal?
Yes, Driving for Dollars is completely legal as long as you adhere to local laws regarding solicitation and property contact. Always ensure your outreach methods comply with regulations.
