Driving for dollars, explained.
Driving for dollars means driving through neighborhoods to spot run-down or empty houses, then finding and calling the owners. Here is how to do it well.
What driving for dollars is
Driving for dollars is how many wholesalers find off-market deals. You drive (or walk) through a neighborhood and look for houses that seem neglected. A neglected house often means an owner with a problem, and an owner with a problem may want to sell.
The big plus: these houses may not be on any list you can buy. You found them yourself.
What to look for
- Tall grass, overgrown bushes or a yard full of junk.
- Boarded windows, a tarp on the roof or peeling paint.
- Piled-up mail, flyers or notices on the door.
- No lights, no car, and no sign of anyone living there.
- A code violation or utility shut-off notice posted on the house.
One sign is a maybe. Two or three together is a house worth logging.
Plan the route
Pick neighborhoods with older houses, lots of rentals, or prices your cash buyers like. Drive the same area more than once. A house that looked fine in spring can look very different by fall.
Log every house
For each house, save:
- The full address.
- A photo.
- What you saw, in a few words.
- The date.
A spreadsheet works. An app works too. What matters is that nothing you log gets lost before you trace it.
Virtual driving for dollars
You can also do this from your desk with online street-level photos. Move down the street on screen and log houses the same way. It saves gas and lets you cover areas far away. The catch: the photos may be old, so check the house is still distressed before you make an offer.
From address to owner to phone
Look up each address on the county assessor or property appraiser site. Note the owner's name and the tax mailing address. If the mailing address is somewhere else, the owner does not live there, which is common with neglected houses. The absentee owners guide covers this.
Then skip trace the owner. Tracepoint gives a new account 5,000 lookups free, one time, no card. The owner phone number guide walks through the whole process.
Is driving for dollars worth it?
It takes time and gas. It is also one of the few ways to find houses no one else has on a list. It works best as one source next to your public record lists, not as your only one.
It only pays off if you trace every house you log and keep following up. When an owner is ready, run the numbers with the wholesale deal calculator. For more lead sources, read how to find motivated sellers.