Driving For Dollars Is An Absolute Blast!

"Driving For Dollars" is so exciting! Perhaps it's because I'm new to the investing world, and I still have a ton of energy to go at it, or maybe it's because I've decided that I'm going to make this strategy work in a big way and can't wait to see the fruits of my labor. 

I drove around one small part of my neighborhood today (NW suburbs of Chicago) and in a 90 minute window, jotted down 43 addresses that were pretty ugly (some moreso than others, obviously). I went out yesterday and realized that I should have a blank spreadsheet available to make note of each place, and as I took a look, I realized there are only a few things that I want to look for:

1. 1. Busted up driveways
2. 2. Overgrown lawns
3. 3. Old people (sorry, it's just how it is!) 
4. 4. Old roofs
5. 5. Ugly landscaping (to the point where it looks like they REALLY don't care)
6. 6. Weathered exterior
7. 7. No garbage cans out on garbage night

I made a blank spreadsheet with columns for each of these along with the address and any notes I wanted to take (you can download a PDF copy of mine RIGHT HERE if you'd like!).

I then printed out a snapshot of each part of the neighborhood I wanted to hit so that I could mark off where I had been. 

I printed these maps before realizing that it's REALLY important, because after you start driving around a bunch of streets staring at very similar looking houses, you really have no idea what streets you've hit and which you have not. So, as I drove along, I marked over the street with a red pen to remind myself where I had been. Having the map was extremely helpful, as well, because I would not have known where to turn in a neighborhood I wasn't intimately familiar with (as I am with my own). Using this method, I can rest assured that I've hit every street in the neighborhood and don't have to worry that I might have missed a goldmine. 

My first day out was really fun! It was a gorgeous day, and I got to see a nice neighborhood and point out the sore spots that stuck out to me.

I obviously learned a few things, already as well. I realized that if I sit shotgun in a car that someone else is driving, I could be more than 2x as effective! I wouldn't have to worry about running over kids, crashing into parked cars, or missing any ugly houses that I wanted to make note of. Next time out, I'm going to go with my brother Dan to help out. 

In summary, if you're looking to go "Driving For Dollars", here's my suggested gameplan:

1. 1. Create a blank, one-page spreadsheet that you can take notes on. Include columns for the Address, any characteristics of an ugly house you want to look for, and a notes section (see my image above). 
2. 2. Print out a one-page view of the neighborhood you're driving through (see my image above). Zoom it in enough so that you're able to see all the street names; you'll need the map as you start driving around in circles! Keep it to a small area...I covered an area of about a square mile in 90 minutes...you don't have to plot out the entire city each time you go out. 
3. 3. Go with someone else that can drive, or be your co-pilot. It's safer and more effective so that someone can take better notes. 
4. 4. If you can, take a picture of each property! Be careful not to become a very suspicious looking lurker...I imagine people in the neighborhood might think you're up to something fishy (anybody ever seen Home Alone? :-) 
5. 5. Bring your list home, immediately type it out (while the properties are fresh on your mind), and save it into a spreadsheet or CRM. You'll need this list for later when you start doing your mailings. 
6. 6. Gather up about 100 address, or however many you want to include in your first mailing
7. 7. Start your direct mail campaign! I haven't started this yet, but from everything I've studied, they say you need to send 5-7 mailings to get great results. Create a followup marketing plan before you start. There's an amazing podcast by Tucker Merrihew from The Real Dealz Podcast (click here!) that explains a ton about this. I highly suggest diving into these podcasts, they're great just like the BP ones! 

I'm going to write a separate blog post about my mailing campaign once that starts up, so stay tuned for that! 

My next post is going to be about how you can clearly identify how much each ugly house you mail is worth to you...whether you end up buying it or not!! I'm so excited about this calculation, as it motivates me to continue driving for dollars if I know, for a fact, that every single address I write down will equate to ______ dollars! 

Stay tuned to my next blog post for that!