Driving for Dollars Pro Guide: Everything You Need

Driving for Dollars is a popular and effective method that real estate investors use to find undervalued or off-market properties out in the field.

This strategy is hands-on, involving physically scouting neighborhoods to identify properties that indicate motivated sellers, e.g. vacant homes or those in disrepair.

This guide teaches you how to drive for dollars effectively, so you can build a pipeline of leads and grow your real estate business without relying on expensive marketing campaigns.

What is Driving for Dollars?

Driving for Dollars is the process of driving through neighborhoods looking for properties that might offer investment opportunities.

It’s considered a cost-effective, hands-on method for identifying motivated sellers.

The process is often defined by searching for houses showing signs of neglect, such as overgrown lawns, boarded-up windows, or piled-up mail.

Why is it important?

Driving for Dollars gives you a direct, unfiltered look at neighborhoods and properties.

Unlike online tools, it provides real-time, memorable insights into local markets, so you can target the best opportunities based on personal experience.

How Driving for Dollars Work and Get Deals

The process of Driving for Dollars real estate research is straightforward, but to achieve success it must be approached with preparation and strategy.

These are the typical steps you’ll need to follow:

1. Choose a target area. Research neighborhoods with high investment potential, keeping a sharp eye out for areas with older homes or those with noticeable signs of distress.
2. Drive and spot properties. As you drive, take note of properties that look neglected, searching for details like overgrown landscaping, peeling paint, or broken windows.
3. Record the address. Use tools like the REsimpli app to log the addresses and keep an organized list of properties you identify.
4. Skip trace the owner. Use skip-tracing services to find the property owner’s accurate contact information.
5. Reach out. Contact the owner with personalized materials, such as a letter, email, or phone call expressing your interest in buying their property.
6. Negotiate to close the deal. Once you establish contact, negotiate the price and close the deal.

For a more detailed breakdown of these steps, check out our REsimpli’s Step-by-Step Guide to Driving for Dollars.

Key Benefits of the Driving for Dollars Strategy

Low cost, high reward

Unlike expensive marketing methods, Driving for Dollars only requires time and gas money, making it a budget-friendly, effective lead-generation tool.

Exclusive leads

Because many properties identified through this strategy aren’t publicly listed, finding them gives you a notable competitive edge over other investors.

Real-time market insight

When you physically scout neighborhoods and get amongst the area, you gain a first-hand understanding of local conditions and property research potential.

Highly targeted approach

You can focus your efforts on specific areas at a time, ensuring you’re spending each research session in a region where it matters most.

Criteria for Driving for Dollars

As you’re driving for dollars, knowing what to look for in terms of core criteria is key to identifying the right properties.

• Signs of neglect. Overgrown grass, boarded-up windows, and broken fences (or other extremities) are clear signs of potential opportunities.
• Vacant properties. Homes that appear abandoned or vacant are prime targets for motivated sellers (they might still be paying premiums).
• Deferred maintenance. Look for peeling paint, damaged roofs, or old, dilapidated exteriors that indicate a property needs work.
• Piled-up mail or trash. Overflowing mailboxes or visible trash accumulation often indicate absentee owners or distressed sellers.
• For sale by owner signs. These properties might be open to offers, especially if they’ve been on the market for a while.

To ensure you’re targeting the right properties, use our guide on Criteria for Driving for Dollars.

Tools and resources

REsimpli App

This is our all-in-one platform, good for all things Driving for Dollars and so much more.

Our comprehensive system simplifies property tracking, data management, and lead organization while scouting neighborhoods, feeding everything back into a centralized CRM.

Property evaluation apps

Software like REsimpli includes Driving for Dollars Tools, helping to identify property owners and providing instant property data.

Route mapping tools

It’s important to know where you’re going before setting off. Apps like Google Maps or Waze ensure efficient route planning to maximize the efficacy of your time on the road.

REsimpli’s Driving for Dollars app also remembers routes you’ve covered in the past, so that you don’t waste time going over the same territory.

Check out our in-depth comparison of Free Driving for Dollars Apps or explore our guide on the Best Driving for Dollars Apps to find the perfect fit for your needs.

Benefits of using a Driving for Dollars app like REsimpli

The REsimpli app streamlines the process, allowing you to perform all the necessary steps with just a few taps and keep everything organized.

1. Look up complete property and owner information
2. Saved driving and property history
3. Add property images
4. Skip Trace within the app
5. Send a postcard with a property image from within the app
6. Fully integrated with REsimpli List Stacking and CRM
   

Look up complete property and owner information

Just by one simple tap on your smartphone with the REsimpli app, you can look up complete property information like:

• Owner’s name
• Bedrooms, Bathrooms, Sq Ft., etc.
• Estimated Value
• Last Sale Date
• Last Sale Price

Saved driving and property history

With the REsimpli app, you have a complete history of all the driving routes you have completed and the properties you added during each drive.

With REsimpli driving route tracking, you can keep track of streets and neighborhoods you have already driven. This will prevent you from wasting any of your precious time and effort repeating the same route.

Add property images

REsimpli’s app is fully integrated with Google Maps, so you can add Google Street View images without even pulling over and taking a picture of the property.

You also have the option of adding a different image of the property if you don’t prefer to use the Google Street View image.

Skip Trace within the REsimpli app

Skip Tracing is built right within REsimpli app for you to look up the property owner’s phone number and email address with a simple tap on your phone.

Send a postcard with a property image from within the app

In addition, to Skip Tracing within the REsimpli app, you can also send a postcard to the property owners with a picture of the property in the postcard.

Fully integrated with REsimpli List Stacking and CRM

One of the most powerful features of the REsimpli app is that it is fully integrated with REsimpli List Stacking and REsimpli CRM.

With REsimpli, you will instantly know:

• Whether or not the property is already in List Stacking
• Is the property already a lead that you might be working on
• Whether or not the property is vacant per USPS
• Have you already done any marketing for this property

Having the above information helps you build a super-targeted marketing list and saves you marketing dollars by not marketing to anyone that’s already a lead or someone you have already marketed to.

Virtual Driving for Dollars

This game-changing technique allows investors to scout properties remotely by using technology to mimic the traditional method, expanding reach and saving time and gas.

With platforms like Google Street View, investors can virtually “drive” through neighborhoods, identifying distressed properties from the comfort of their laptops.

You can explore properties in distant markets, opening up new opportunities beyond your local area.

By combining virtual scouting with tools like REsimpli, investors can quickly gather property data, contact owners, and manage leads from anywhere.

Virtual Driving for Dollars also eliminates the need for driving, reducing fuel costs and your carbon footprint.

Reverse Driving for Dollars

This innovative strategy flips the traditional method. Instead of driving around neighborhoods looking for distressed or undervalued properties in person, investors start with detailed research.

They identify potential investment properties using online databases, tax records, and other sources.

Once they’ve built a targeted list, they visit these properties in person for a more in-depth evaluation.

This approach saves time and increases efficiency, allowing investors to focus on properties that show true potential from the start.

Benefits of Reverse Driving for Dollars

• Efficiency: Targets specific properties, saving time and fuel compared to driving without a plan.
• Preparedness: Investors can go into property visits with a base knowledge of the property’s history and potential issues.
• Higher potential for hidden gems: The combination of research and on-site visits improves the chances of finding off-market opportunities before competitors do.

Since reverse Driving for Dollars streamlines the investment process, it’s an essential strategy for those pressed for time when uncovering valuable investment properties.

For more insights into this approach, check out this Reverse Driving for Dollars strategy.

Building marketing lists using Driving for Dollars

One of the key outcomes of Driving for Dollars is compiling a targeted marketing list.

It follows a very simple step system:

1. Document properties. Use tools like REsimpli to log distressed properties during your drive.
2. Research property data. Access public records or property evaluation apps to gather valuable information on property owners, addresses, and potential issues.
3. Organize the data. Input all findings into a CRM like REsimpli to track the leads and their info efficiently.
4. Segment the list. Categorize leads based on urgency, location, or type of property to prioritize your marketing efforts.
5. Create marketing materials. Develop postcards, email campaigns, or direct mail to reach out to your prospects.

By following these steps, you can transform you’re Driving for Dollars findings into actionable leads.

Learn more about Building Marketing Lists with Driving for Dollars.

Essential Driving for Dollars tips

Before you set off, take a look at our top tips:

• Plan your route: Focus on specific areas or neighborhoods with high potential to avoid wasting time.
• Use technology: Use apps and tools to track your route and pin down properties efficiently.
• Keep detailed notes: Document relevant observations and important property details for easy access.
• Follow up promptly: Contact property owners quickly after identifying a promising lead.
• Stay consistent: Make driving for dollars a regular part of your schedule to build a strong list of potential deals.
• Prioritize properties with signs of distress: Look for properties with maintenance issues or signs of neglect as they could indicate an owner open to selling.

For additional insights into best practices, check out our Driving for Dollars Success Tips.

Final thoughts

Driving for Dollars is a powerful, proactive approach for real estate investors looking to uncover hidden opportunities in the market.

By understanding the core concepts, leveraging tools, and applying best practices, investors can boost their chances of finding valuable properties.

Whether traditional or the more targeted reverse Driving for Dollars, can provide a significant edge in competitive markets.

Now is the time to take action—start exploring Driving for Dollars and see how it can elevate your real estate investing strategies.

For more insight, visit our blog.

Frequently Asked Questions

What is the conversion rate for driving for dollars?

Typically, running a successful driving for dollars campaign entails receiving a response from approximately 1% of the homeowners you reach out to, which translates to about 1-in-100 conversions.

How do I find properties for Driving for Dollars?

Investors typically look for properties with visible signs of neglect or disrepair, such as overgrown lawns, boarded-up windows, peeling paint, or mail piling up.

These properties often signal that the owner might be motivated to sell.

What is the best time of year for Driving for Dollars?

Driving for dollars can be done year-round, but many investors prefer warmer months since it’s easier to spot signs of neglect (e.g., overgrown lawns).

However, in certain climates, winter months can still be effective, especially if you’re looking for homes that have been vacant for a while.

Is driving for dollars worth it?

Yes, driving for dollars can be worth it if you’re willing to invest time and effort. It’s an effective way to find off-market properties at a discount, but it can be time-consuming and there’s no guarantee of success.

Consistency and using the right tools are key to making it profitable.