As a real estate investor, you are always on the hunt for good deals. Many times you would hear wholesalers mention they drive for dollars. This is a tried and true method that has produced some great results and I'm here to tell you exactly how we go about getting it done.
Step 1: Define Your Area
When you are ready to begin your search, you would benefit from knowing what specific neighborhood you want to check into. Some things to consider are the things that are most important to your buyers or potential buyers. Things like:
Tax assessed value
House age
ZIP codes
Crime rates
After you have defined your area, it may help for you to make a list of the neighborhoods and subdivisions that you want to visit.
Step 2: Always Be Prepared During the Drive
In this step, you may want to develop a system that will help you recall the places that you have visited and the notes you have gathered along the way. It is important to make note of the following:
The property addresses
Notes—like "boarded-up windows", "tall grass" or "code enforcement on window"
Photo information (so you know which photos belongs to which properties).
Step 3: Pay Attention to Your Surroundings
Safety is the best policy. When driving for dollars in various areas and neighborhoods, you must be vigilant and observant at all times. Theoretically, the best time to drive is during weekdays while people are at work so that it is easier to take your time driving through the subdivision.
Driving through subdivisions during holidays and seasons when people are more likely to decorate their homes is an ideal time to go searching for deals because vacant properties become more apparent. There are also times throughout the week like trash day pick up. Chances are, vacant properties won't have any debris on the side of the road for pick up.
Step 4: Watch for Tell-Tell Signs
When driving for dollars, there are several red flags to note. For example:
Tall grass
Boarded up or broken windows
Full Mailboxes
Code enforcement taped to the door or windows
Piled up newspapers
Step 5: Do Your Research
Once your drive is complete you can refer back to your notes and photos taken from the drive. During this process you will be able to filter out the properties that don't match the criteria of your buyers. After you've gone through the process and matched properties that meet the criteria, you are ready to begin with the research phase of the wholesaling process.
Some investors tend to look at the assessor's office for information like the following:
Owner information, including name and address
Prior owner details
Legal description
Tax information
Phase 2
Once you have finalized your list, it is time to get in contact with the owner. Often times this process takes a couple of months but remember, the key to success is consistency and persistence. Typically, you yield the best results with repeat mailings.
What if you don't get in touch with the owner?
Your chances are better when you experience difficulty locating the owner because you will have less competition. However, there will be times when you will not have an available address for the listed owner.
In this instance, you could try using the Deed of Trust and public records. When you find basic information from the Deed of Trust and public records, you can try plugging that information into Google search engines. Google generally leads you to systems that produce:
Landlines or cell phone numbers
Current addresses
Websites they own
Company PDF contact sheets
Social media accounts
In these efforts, if you are still unsuccessful in finding information, you can go back to the property and
tape a note to the property’s front door and/or garage in case the owner returns. be sure to include your updated contact information because chances are if the owner finds a note taped to their property, they are going to read it.
Another beneficial method is to talk with the neighbors. Since vacant properties affect property values, often times, the neighbors are willing to provide helpful information.
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If all else fails, you can consider hiring a tracing service.