What is Driving for Dollars?

  • Great post! I actually do this and was able to fond a heck of a find one time! Driving through my grandparents former neighborhood doing this practice I noticed their house which was bulit by my great granpa and granspa was vacant. I called the town to learn that it was foreclosed on 4 years earlier and had been vacant the whole time. Of course it needed work, but we purchased with plans of using for a rental. Instead, we are now using our current home as a rental and have moved into my grandparents 🙂

  • Hi Mark,
    Thanks so much for this great post! A question, if I could: all the articles I’ve read on driving for dollars end at the point of locating & reaching out to the owner, but what happens afterwards? I’ve located a couple properties in my area & their owners, but have NO idea what to do if they actually wanted to sell to me. How do you determine an initial offer? How low is too low? I don’t want to insult anyone with my offer. 🙂

    Concrete example: one of the homes (3 br, 1 bath, very small at 918 sq ft, built in 1900) has a tax assessment of $53k. Annual taxes on it are $741. The home is in need of significant exterior and interior repair, and there is no way I would pay $53k for it, even though a similar size but far better kept home two doors down just sold for $128k. I suspect the home is currently rented (at most for $600/mo, and that’s a very generous guess). Assuming the owner does absolutely nothing except collect cash, the home is worth $6486/yr ($600 x 12, minus property tax) to the owner. I would consider paying two to three years’ worth of that value to the owner ($12-20k), but no more. But does this make any sense to offer? Totally insulting?

    • Mark Ferguson says:

      It depends on the owner and the property. What is the home worth now in it’s current condition?

  • Hi Mark,

    Quick question about driving for dollars. How do I organize my prospecting? Where to go, where I have already been etc…

    • Mark Ferguson says:

      I just try to take a different route every day. But I am not relying just on driving for dollars. DO you have a gps on your phone you can turn on to track your routes?

  • Hi Mark!
    Thanks for this insightful article! While driving for dollars isn’t the main strategy that I use to find deals, it certainly is a great strategy that works! I wanted to know if you have any experience using the driving for dollars app?
    Yesterday in an investors meeting someone mentioned it but I didn’t get a chance to talk to this person so I haven’t used it for myself yet. But the writing down addresses and then putting them into a sheet can get very time consuming so I am interested if you have any other tricks of the trade that might be able to speed up the process. Thanks!

    • Mark Ferguson says:

      I have not used it yet, but I have heard it is great.