Whether your strategy is fix and flip or buy and hold, finding the right property is an important part of building a successful investment. Investors commonly search listings, auctions, probate sales, and foreclosure opportunities, but another straightforward approach is known as “driving for dollars.”

What Is Driving for Dollars?

Driving for dollars involves identifying properties that may be vacant, neglected, or in need of renovation while traveling through selected neighborhoods. Investors record the addresses and later use lawful public records or real estate data services to research the properties and their owners.

Potential signs of a distressed or vacant property may include:

• Boarded or damaged windows
• A tarp or visible damage on the roof
• Overgrown landscaping
• Accumulated mail, newspapers, or advertisements
• Unmaintained exterior features
• Long-term code enforcement or public nuisance notices
• Vehicles that appear to have remained in place for an extended period
• General neglect compared with nearby properties

These conditions do not necessarily mean that a property is vacant, distressed, or available for sale. Investors should verify the facts before contacting an owner.

Researching a Potential Property

After identifying a property, review available public information to determine:

• The legal owner and mailing address
• Property tax status
• Recorded liens or other title issues
• Zoning and permitted use
• Recent sales history
• Estimated property value
• Potential renovation requirements
• Comparable rents or resale prices

County assessor and recorder records can be useful starting points. Investors may also work with a title company, real estate agent, attorney, or reputable property-data provider.

Contacting the Owner

Owner outreach may include a letter, phone call, or other legally permitted communication. Keep the message professional, accurately represent your intentions, and respect requests not to make further contact.

Investors should also comply with federal, state, and local solicitation, privacy, telemarketing, and do-not-call requirements.

Evaluate the Entire Investment

Finding a distressed property does not automatically make it a good investment. Before moving forward, consider the acquisition price, repair budget, financing costs, holding expenses, property condition, projected income, resale value, and exit strategy.

Never enter private property, inspect posted documents, look inside mailboxes, or photograph occupants without permission. Drive safely, follow local laws, and conduct all research from public areas and lawful sources.

CoreVest provides business-purpose financing for residential real estate investors, with solutions for acquisitions, renovations, construction, and stabilized rental properties.

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This article is provided for informational purposes only and does not constitute legal, tax, investment, financial, or lending advice. Investors are responsible for conducting independent due diligence and complying with all applicable laws. All loans are subject to underwriting, credit approval, eligibility requirements, and applicable terms and conditions.

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