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Driving for Dollars Explained (& An Alternative That is Cheaper, Faster, and More Accurate)  

Jerry Norton

Jan 31, 2024

white and brown concrete house

Let’s be honest: your success as a real estate investor comes down to your ability to get real estate leads systematically and affordably. There are several ways to do this, including Driving for Dollars.

If you didn't already know, Driving for Dollars consists of driving around specific areas looking for properties that are in need of repair or vacant.

There’s no doubt that it’s a proven and effective real estate lead generation strategy — and a way for a real estate investor like yourself to learn more about the community and its people. 

In this article, we’ll break down everything you need to know about Driving for Dollars, including an alternative that is cheaper, faster and more accurate. 

If you’re ready to enhance your real estate lead generation strategy, let’s get started! 

What is Driving For Dollars? 

Driving for Dollars is a real estate lead generation method where investors drive around specific neighborhoods or areas in search of distressed properties or potential real estate deals.

Driving for Dollars involves physically visiting these locations to spot opportunities that might not be apparent through traditional methods of property scouting.

By immersing yourself in the neighborhood and being physically present, you as an investor can observe the unique characteristics of each neighborhood and talk with homeowners.

Driving for Dollars can be effective because you are physically present in the areas you are targeting. This allows you to spot distressed properties, such as those with:

  • overgrown lawns
  • boarded-up windows 
  • a full mailbox
  • absence of vehicles 
  • broken windows
  • no Relator or bank-owned property signs
  • a foreclosure notice
  • or other signs of neglect 

Additionally, you can gauge the overall condition of the neighborhood, which can give you insights into the potential value appreciation of a property.

It also allows you to build relationships with local property owners. When you come across a distressed property, you can reach out to the owner directly, offering to be a solution to their current problem. This personal touch can go a long way, and potentially lead to more favorable negotiations.

Driving for Dollars is not just about searching for distressed properties; it's also a way to connect with the community. You may come across local events, businesses, and landmarks that can provide valuable insights into the area's desirability — and potential growth in the future.

How to Drive for Dollars in 7 Simple Steps

So, if you want to Drive for Dollars as a part of your real estate lead generation strategy, how can you do so?

Here’s a simple 7 step process to get started. 

Step 1: Choose Your Area

Before you begin Driving for Dollars, it’s important to choose the specific area you’re interested in — otherwise you might drive aimlessly without any success. 

You want to choose an up and coming area that is growing thanks to local employers that families may be looking to move to. 

Another important factor to consider is the number of properties you can realistically visit. Driving for dollars can be time-consuming, so it's essential to set realistic expectations.

Take into account the distance between properties, the time it takes to document each one, and any potential detours or unexpected delays.

Step 2: Drive 

Once you have your area chosen, the next is simple: drive and scout the area.

You will want to go during daylight hours so that you can see the full extent of the property. 

Also, consider the traffic patterns during different times of the day. Avoiding rush hour or congested areas can help you navigate easily while maximizing your time on the road.

Here’s a tip: consider going on trash collection day so that you can identify houses without trash cans at the curb. If the house is already in need of repair, this could be a surefire sign that it’s vacant. 

Step 3: Take Notes and Photos 

As you drive, you’ll likely come across a handful of properties — likely too many to remember.

Take notes on paper or your phone and be sure to include the following details:

  • The address of the property
  • Damage that is evident on the property
  • Include a photo of the house for later reference

You'll want to take notes on the neighborhood as well. 

Is it well-maintained with thriving businesses and amenities nearby? Is it near schools, parks, and public transportation?

These amenities can greatly enhance the desirability of a neighborhood — and increase the value of properties within it.

Additionally, take note of any signs of revitalization or gentrification in the area.

Are there new developments, trendy shops, or restaurants popping up? 

These small signs can indicate that the neighborhood is undergoing positive changes, which can lead to increasing property values in the future.

Step 4: Skip Trace

After you finish driving, go over notes and identify the property you’re interested in and determine the property’s worth, which will include utilizing formulas such as after repair value. 

The next step is to then find the property owner’s contact info using a skip trace service. 

Step 5: Contact the Owner 

Once you have the owner’s contact information, the next step is to contact them and explain that you would like to purchase their property. 

Step 6: Make An Offer 

Once you know the specific amount you’d like to offer the property owner, you make an offer and wait for negotiation. 

Step 7: Close the Deal 

Once the property owner agrees to the price, you close the deal and complete the transaction. 

Legal Considerations in Driving for Dollars

While driving around neighborhoods, keep in mind to respect privacy and avoid trespassing on private property. 

Stick to public streets and sidewalks unless you have explicit permission from the property owner to visit.

An Alternative To Driving For Dollars: Propwire

There is a cheaper, faster, and more accurate real estate lead generation strategy than Driving for Dollars: using Propwire. 

With Propwire, you can search 157+ million MLS & off-market properties. Best of all, you can do this 100% free!

By utilizing Propwire’s up to date database, you can explore 21 valuable lead types, including:

Whereas Driving for Dollars costs you gas money and time, with Propwire, you can find a distressed, in need of repair, or vacant property all from the comfort of your own home. 

With Propwire, you can also:

  • Analyze any property in the U.S and get property & homeowner Information, mortgage & transaction history, comparable sales, & more.
  • Download property records that you can import into your favorite marketing service or CRM.
  • Automate your real estate lead generation process by getting lead alerts via email or SMS when new properties that meet your criteria hit the MLS.

Another way that Propwire is more efficient than Driving for Dollars is that Propwire has a robust skip trace feature where you can find and contact the owner of the property with the click of a button and a cost of 10 cents. 

With Propwire, there’s no navigating traffic and burning gas money — you can level up your real estate lead generation on your own schedule and from where ever you work. 

The Bottom Line: Driving For Dollars

Driving For Dollars can be an effective part of your real estate lead generation strategy. By driving neighborhoods, you can identify potential investments and get a pulse on the potential of the neighborhood. 

But Propwire offers many of the same capabilities of Driving for Dollars — and more. Plus, with Propwire, there’s no time spent driving around neighborhoods.

You can search for a property specific to your lead type, and once you’ve found a property you’re interested in, you can skip trace to contact the owner of the property — all with the click of a button. 

Best of all, you can get started today for free.