Posted on: December 24, 2020
WI 587 | Driving For Dollars

 

Here’s a mind-blowing fact not many people are aware of—a staggering 80% of brand new real estate wholesalers get their first wholesaling deal through driving for dollars!

If you’re considering driving for dollars, today’s guest can help get your efforts off to an amazing start. DealMachine’s very own Matt Kemp is on the show and he’ll break down all you need to know so you can snag your first ever driving for dollars deal!

DealMachine is the highest-rated real estate investor software for lead generation on the Google Play and Apple App, and with good reason. It is the first integrated and mobile-first real estate investor software platform for lead generation.

If you are considering driving for dollars, the app can help you build your own unique list of properties. If you want to close one driving for dollars deal after another, consider this episode a must-hear!

Why Driving for Dollars is Still One of the Fastest and Cheapest Ways to Get Started in Wholesaling

Episode Transcription

Let’s start this episode with a fact. Here’s a fact around the country. This is from East Coast to West Coast, from North to South. The fact is 80% of brand-new real estate wholesalers get their first wholesale deals from driving for dollars. We don’t have to overcomplicate this business. There are ugly properties on the streets. We need to go out and we need to find them. We need to have a quality conversation with that property owner and see if they would consider an offer.

I’m excited about this because we’re going to get nitty-gritty. We’re going to ask some tough questions. More importantly, we’re going to find out what makes the best driving for dollars methodology, strategy or whatever it is. I’m excited to introduce you from DealMachine, the number one real estate app out there, Mr. Matt Camp. Matt, say hello.

Thanks, Brent. I appreciate you having me on. I’m excited to chat.

I’m excited to have you on here because things in this space seem to be exploding. The technology and the information that we can get seem like any property that’s out there that is in distress, we can not only know about but have the means to communicate with them. I have been standing on top of mountains and rooftops screaming out DealMachine for years, and the reason is my team uses it.

I do a lot of business from DealMachine, using the app, pulling out the properties that we find to drive for dollars, and then reaching out. I wanted to bring you on here and help everybody out there that’s reading this understand how to use this app most effectively. It’s one of the most important tools that we have in our toolbelt.

I appreciate the kind words there. Everything that we’re doing is to help people like you. The goal is like, “You guys are real estate investors that are ready to take action.” Our technology is very much focused on those people who want to get out there, talk to people, and get in touch with people, whether it be a phone call, mail, text or whatever the marketing channel might be.

The first step is to build that list and get in front of people that are not getting bombarded with marketing ideas. You can stand out in front of other investors and not have to compete for the property owners’ eyeballs, but rather try to find properties that no one else is targeting. That’s why we believe that driving for dollars is the number one way to find leads like that.

WI 587 | Driving For Dollars

Driving For Dollars: 80% of brand new real estate wholesalers get their first wholesale deals from driving for dollars.

 

The fact is this isn’t a crazy business and rocket science. There are distressed properties out there, and we can find them every single day if we’re willing to go out there. If you get out there and you’re not competing against a bunch of different offers, you make more on those deals. This goes back to your point of saying you’re building a custom list here. You’re going out there with your efforts and finding these properties that you can’t download online. You have to put a little work behind this.

That’s another reason we love teaming up with you, Brent. It’s something where you are preaching to the choir where it’s like, “You’ve got to get out there, take action, and talk to people.” This is a technology that people who are going to find the most value from this are the ones who are listening to people like you giving world-class knowledge. They’re educating themselves on real estate investing where technology is not going to do the hard work of them having those conversations, but were going to help enable them to be as effective as possible, save as much time as possible, and have the best ROI. It means saving the most marketing dollars possible while doing it.

We talked and I said, “Matt, I want to go over the top five reasons why people should be driving for dollars. What are the top five reasons?” I want to get into the methodology of it before we get into, “Go use this app.” I didn’t want to do that. If you’re reading this, I want you to use whatever app or technology you want to use, but I’m telling you that it is important to build your driving for dollars list.

I and my team prefer DealMachine because it is the easiest and the best to use. Besides building a custom list, let’s give the people a couple of other reasons to go out there and bravely driving around in some rougher neighborhoods, orient, or do this virtually. Let’s talk about the advantage of driving for dollars.

Everything we talked about can be tied back to that idea of like, “You’re going to be out there finding distressed properties.” You’re finding properties that, for one reason or another, aren’t being taken care of. You can offer those people a solution where you can say, “I’m a local investor. I live down the street. I drove by. Here’s why I reached out. Here’s what I saw.” You can get specific. That’s going to help you stand out, help you build a rapport with them, help you become liked, known, and trusted by them because they know that you are offering a way to help and saying, “Here’s why I thought I should reach out.”

See if they’re in a situation where being able to purchase that property will be a win-win, something that’s going to be helpful to them and also a great investment in the end. No matter what, the number one reason is you’re getting in front of properties that no one else knows about, and you can do it in a way that is very detailed. You can make your outreach data-driven, focused, and saying, “Here’s why I’m reaching out.”

To your point, this is our inventory. If we’re at a store, these houses are our inventory. We should know what’s out there. We should become obsessed with some of the worst properties in our neighborhoods because those are the best deals. The beautiful thing is the worst properties that are in the neighborhoods that surround all of us is that, at some point, they’ve got to make the decision. One is they’ve got to sink a ton of money, capital, finances to go in and fix up that property if they want to make it livable, if they want to sell it for top dollar, or whatever it is. What’s more likely is that 95% of the time, they sell it to a cash buyer.

Always pitch ideas to potential clients as if you are a family or a close friend.

If you know where these properties are and you become obsessed with it, not only is it on your radar but you’ve got different ways to try to get a hold of the owner and build that relationship. You can get their phone number. You can skip trace them, call them, and ask them if they would consider an offer. You can go to the door, mail them, handwrite them, leave a handwritten message at their door, or you could talk to their neighbors.

You can be obsessed with what I would call your stalker list of properties that you know to need the most love in your community. After you get the deal done and that property has a dumpster in front of it, the whole neighborhood applauds you for finally fixing up that blemish that has been on the streets. Get nitty-gritty in your community. Get out there building a custom list. Let’s get some more. What about hiring people? What about scaling this? What about getting other people to build this list for you?

In terms of why you should be thinking about driving for dollars, it’s the scalability of it. From a driving perspective, I would highly recommend you get out there, do it yourself and be able to scale the strategy. One of the top reasons people should be thinking about driving for dollars is not only it is going to give you this great list, but then this is something that, as you get used to driving yourself, you can easily pull other people and pitch them the idea of like, “This could be a pretty nice side income for quite a few people.”

If they’re looking to get into real estate investing, pitch them on the idea of even mentoring them. If they’re a close family member, a friend or somebody else who has talked to you about real estate investing before and they’ve seen you do it and get into it, you can say, “If you drive for me any lead that you bring me, I’m going to pay you to drive. I’m going to pay you hourly.” Typically, we say $10 to $15 an hour to get them out there driving for you. I’ll pay a per qualified lead that I market to so you can offer them that as well.

Even with that overall pitch, you can say, “If you bring somebody to me that gets into a negotiation with me, I’ll bring you in on that process. I’ll show you how I’m analyzing the property, how I’m having those conversations, why I’m making that offer, and why it’s an attractive investment.” Pitch it as a mentorship opportunity, too. You can use this both to drive around yourself and start to build that amazing list and then to scale that idea. Our goal was to make technology and to make that as easy as possible. If you’re on our enterprise-level plan, you can manage up to 300 drivers. You can have an entire army out there driving for you.

By the way, you have people around the country that are doing that. You’re building these giant fleets of cars out there, other people that are essentially bird dogs for them. That’s an old-school term but it’s a real term, people going out there and finding opportunities for you. Instead of the old school days where they’re like, “Here’s a piece of paper and an address. Go after this one because it needs some work.” All of a sudden, they’re putting it into the app in real-time. You’re tracking where they’re going in real-time. You know who added that property to this.

I’ve had up to six people here locally in Phoenix. They would come in for an hour a week. I would give them free real estate wholesaling training an hour a week to go and drive for me. Every single week, they had to drive for me five hours a week. They would go and add all the properties to it. All of a sudden, after a few months, I’ve got every ugly property in the whole market. It’s beautiful. By the way, for the ones that got us the deals that we closed, we could find out which driver got that deal for us, which is just one click in the app. We’ve got to reward them either by lunch, by praise or whatever else. It’s bananas. It’s incredible.

WI 587 | Driving For Dollars

Driving For Dollars: If you get out there and you’re not competing against a bunch of different offers, you make more on distressed property deals.

 

It’s not a new idea to drive around and look for deals. What we try to do is to make you as efficient as possible and use technology to enable that where you can manage many people out there. Within the app, you can track their route and see what deals that they added like, “How can I compensate them because they’ve driven 1 hour to 1.5 hours this time, they added these many deals? I had marketed to these many deals.” It helps you manage them more properly and gives you the technology to manage and make the idea of scaling a driving team something attainable because it’s using technology to do that.

The idea of bird dogs is a proven strategy, and it’s been around forever. It’s just now we’re using technology to make that happen. It’s the same thing with mailers. The idea of direct mail is not the sexiest, newest marketing idea but it’s something that we’ve tried to make extremely automated as effective as possible by doing that in the app as well. The idea of driving for dollars and all this stuff are all proven strategies, but we want to give you the technology to scale that and do that at a much higher level than in the past.

When David founded the company, he was originally writing down addresses and doing the whole driving for dollars thing. It’s the old-school way. He would take and measure it for 20 to 25 minutes per property to find the right contact, try to call them, try to mail it, or whatever. Now, through our technology, we built it to make it 7 to 10 seconds, so you can do all that.

The first 20, 25, to 30 deals that I did were driving for dollars. I didn’t have any money. I was writing down addresses and hoping to either door knock, go to the doors, try to get the number from the neighbors or try to piece together skip tracing. Now, you’ve got it all right there. There’s no excuse not to get ahold of these properties out there that need some work because everything is already done for you.

The best part is you give the Wholesaling Inc., the Rhino Tribe, and the TTP peers out there the biggest discount available if they use the coupon code TTP. Are you plugging here? Are you affiliated? Absolutely. I love this thing. I love DealMachine. We use it. The people that sign up and join TTP and my program use it, and they get deals.

I’m pushing it because it works and it would be nonsense for me to tell you, “Don’t use driving for dollars. Don’t go after driving for dollars list.” It’s crazy. Use TTP as a discount code for DealMachine. You get 20% off, which is incredible. Instead of $49, it’s $40 or whatever it is. You’ve got to get it. Make sure you get a discount on it. We use it all the time. We use it every day. We’re using it right now probably.

I love talking to you. You were saying, “We truly get the value out of this. We’re seeing real ROI from what we’re doing here. We’re making things happen. We’re talking to people by using driving for dollars as a way to generate those leads and then start those conversations.” That’s why we love teaming up with you too, Brent. The people that you’re talking to, they’re in the right mindset. They’re out there to try to make things happen. We want to give them the technology to make what they’re doing much more effective.

Do not just add properties under your belt. As a real estate investor, it is your job to consistently follow up by making a call or sending a mailer.

I had my aunt going out driving for dollars and she was so pumped because you get those badges. You get badges when you add different things and it pops up. She was feeling great but she felt cheated one time. She didn’t get a badge. It’s crazy. I have the young kids that were driving for me and learning how to wholesale, and they were like, “This is like Pokémon Go,” because they’ve got all these other properties in this thing. Now, it’s got pre-foreclosures, tax default, and vacant properties. It’s all there in the app. You can be driving around and see, “Which properties are in distress?” You can either go to the doors or you can find some other way to talk to them. It’s incredible.

Have some fun with it. Getting back to the driving idea, being able to talk to people who are family members and get them signed up on here or whoever it is that’s going to be your driver. Our basic plan is you get one deal finder, which is a bird dog. Our pro plan, you get two. Our enterprise plan, you to get up to 300. That’s the one that is focused on creating that driving armada if you want to scale it. The deal finder, that’s the bird dog that you can add to your team within the app. You track their route and see where they are headed. You can see the ROI of what they’ve done.

If you’re on our enterprise plan, if you only have 1 or 2 drivers, you can post on Facebook and pretty quickly find somebody who’s going to be willing to be added to your team. This recruit drivers button is something where we wanted to help people build a funnel. If they’re going to scale their driving teams, we want to make it as easy as possible for them to do that. It works in the app, on your phone, or via desktop as well.

You can customize a link. This is Dealmachine.com/team/matt. If you go to that, it’s a landing page. Anybody on our enterprise plan gets to generate that custom link. When they share that out, it’s pitching the idea to people of, “Here’s why you should drive for dollars with me. Here’s how you can make a great side income.” It’s a lead capture form for you. That way, if you post that on Indeed, Craigslist, or wherever the heck you’re posting it, when people start to come in and start to show interest, you’ll be able to capture their email information and interact with them there.

Once they sign up for your team and you have them on board, you get training videos through here too, where you can require them to go in and watch. There are 8 or 9 training videos teaching them how to use DealMachine and how to drive for dollars and the entire process. That way, you don’t have to do any of this yourself. Our technology makes it easy for you to capture the lead and then train the lead-up. From there, they’re ready to get out there and start generating leads for you and start coming to you.

It’s interesting that you guys came out and then everybody started using it and doing well with it. There are so many other people chasing you guys to put together a driving for dollars app. Some of these people are my good friends. My best friends have done it and pushed it. I still push DealMachine. Why are you guys the 500-pound gorilla in the room? Why are you guys the best? What sets you guys apart from everybody else, in your opinion?

To begin with, we’re such a customizable platform. We have something for everybody. If you’re a beginner, that’s great. Start driving around. You can walk outside your house, get in your car if you have one, start driving your neighborhood, start adding properties to your list, and start marketing those people. Especially if you’re using a discount code or going through Brent, you’re going to be able to get free stuff already and start making things happen.

WI 587 | Driving For Dollars

Driving For Dollars: When people start to come in and show interest, waste no more time and start interacting with them.

 

It’s extremely easy for the beginner to use it. It’s also customizable. That way, it’s complex enough that people who want to build a 100-person team out there driving for them. In my opinion, the usability to be able to do that through the app and easily interact with it and easily make an extremely complex piece of software but still easy to use is there. It’s customizable to cater to newbies, people who need to scale, who want to be on our enterprise level and put thousands of leads in their CRM a month.

Over time, we’ve added the leads feature because that’s a CRM and can easily follow up with people and manage your pipeline. We have our list engine, which is an easy way for you to pull a list. We want you to drive for dollars but also give you an opportunity to use our data to the fullest, pull a list in there, and market to them too. We’re customizable.

These are those distressed lists that we’re talking about. You have vacant and pre-foreclosure. Is probate in there?

Yeah. Vacant, owner of multiple properties, behind on taxes, pre-foreclosed, foreclosed, bank owned, and absentee-owned.

You’re driving around, you’re next to a house, you click on the map that’s on this app, and whether or not they live there, it pulls up their name and their mailing address. It gives you the ability to skip trace right there. You can mail these people of sale date, sale price, and improve. It’s got everything there that you’re looking for. It’s all the information.

I say this all the time if you drive by an ugly house and if there is a sign with a phone number on it, all you have to do is call that number and ask them if they would consider an offer. You get the shot to interview for the opportunity to get that deal which could pay you $5,000, $10,000, $15,000 or $25,000. If you don’t make that call, what are you doing? That’s what this is like.

To me, it’s all of those old school for-sale-by-owner signs in front of an ugly house that has a phone number on it and all you have to do is call it. That’s what it is. You guys changed it and that’s where we’re heading now. Every ugly house in the market or country has a big for-sale-by-owner sign that has the phone number on it because you guys provide the information right there on your phone, in the app. It’s incredible.

Continue to work on your follow-through with great action to market your real estate leads and make conversations happen.

This isn’t data that’s new necessarily. You could look up the county assessor records and figure out how to talk with somebody and go through that whole process. We wanted to make that technology to make it as simple, easy, efficient, and scalable.

You take the steps out of it. That’s one of those things. It’s the psychology of humans. If you don’t make that decision to make that call in five seconds, you don’t make that call. You have to do that. That’s how you start building momentum in this. That’s how you start getting the opportunities, building your lead pipeline, and finding these opportunities. It’s not difficult. There are people that have distressed properties. You get the information. There are no more hurdles.

I appreciate the endorsement, Brent. If you don’t believe in the idea of driving for dollars as a valuable strategy, we’re not going to be your best option. If you want to scale that, if you want to add a team, if you want to use an app that’s super easy to use for newbies but also complex enough that it can scale and be the best solution for somebody who’s driving at scale, that’s what we’ve been built to do.

That’s perfect. Give them some advice, Matt. If they download the app and they get it, what’s the first thing they should do?

When you set goals, it should be metrics-based. It should be something where you understand the funnel that you’re creating. There’s the top of the funnel here that you need to feed with leads. There are different conversions down that funnel and get in front of people. How many do you market to or reach out to? How many have a conversation with you? How many of those turn into a negotiation and an offer and an actual close? To get to that end bottom metric of a close, you need to think about the top of that funnel and how you feed this entire thing.

In this example, $20,000 is what I’m aiming for a month to bring in the top line. I’m going to guesstimate that I’m getting a $10,000 assignment fee. We’re wholesaling these deals for $10,000 per deal. I have two drivers in the app driving around. That’s the baseline metrics I’m assuming here. Thinking through that means I need to land two deals per month. The app spits that back.

We have a default setting, which is a pretty conservative ratio, a realistic goal to hit. I’d love to hear your experience if you know what your guys’ lead to close contract ratio is because it varies per market. What we’ve done here is 300 to 1. For anybody who picks up the app for the first time, that’s the magic number to aim for. You’re saying, “I need to add 300 properties that are qualified distress properties. I drove around. I saw them. I added them to my app, or I have somebody that I hired to drive around to do that for me and add it to the app. I started marketing to them.”

WI 587 | Driving For Dollars

Driving For Dollars: If you have enough quality conversations with distressed property owners, you win.

 

Every 300, usually that’s the threshold that we’ve seen people hit. There are plenty of people who add 4 or 5 properties and get their first deal. That can happen. That 300 is a good conservative amount to start with. Make that your first goal, your first 300 properties and market to each of them at least three times, three postcards, call them, text, or whatever it might be. Start there and see what happens.

This initial dashboard helps put you in that mindset and shows you that if you’ve got two people driving around for you and they’re adding twelve properties an hour, which is reasonable to add. We’ve had people do up to 60 an hour if they’re crazy at it. If you’re adding twelve properties per hour, you’ve got two people driving around, and you’re trying to hit 600 leads a month to get to those two deals a month, then that means you need to drive around seven hours a week. It’s about an hour a day for each of these drivers.

Our calculator spits all that information back and says, “In the end, the main metric you need to think about is the number of leads you’re adding per month. Here’s how many hours we recommend you drive around to get to that number, and here’s what your profit is going to look like at the end if you hit all of those metrics.”

I would say that we’re a little bit under there, maybe 260 to 275 properties to deal with. Everybody who’s reading, did you see what he did there? There are steps to this. This is a system. Follow the system. This is the plan. Go out and find ugly houses and have quality conversations with the homeowner and you win. It is impossible to lose. This is flawless.

If you have enough quality conversations with these distressed property owners, you win.
Here is the simple path. I’ve never seen it broken down that perfectly before, Matt. This is going to blow people’s minds. I’m going to hit it while it’s hot, DealMachine, coupon code TTP. Get it now. If you don’t have it, you’re being crazy.

If you’re brand new to DealMachine, that’s where you start. Think about, “How do I get to those first 300 properties?” The goal here is to go into the map feature, start driving around and start to get to that 300 number. Don’t just add the property. I see plenty of people where they’re going to fall off if they need to. Consistently take action to get to that 300 number. They need to consistently follow up on that action where they’re not just adding the properties but they’re either skip tracing, giving them a call, or sending a mailer.

There can be some fear there of like, “I’m going to have to talk to people. I’m going to get people responding to this.” Sometimes you will crash and burn. Sometimes you’ll have an awkward conversation and that’s okay. You’re getting the rep in. You’re going to get more confident the more that you do this. Every time you get a no, you’re back at the place you were before with a no. Continue to work on this and follow through with great action to add those leads and then follow through with great action to market to those leads and have conversations happen. 

Matt, thank you so much. That was incredible. Use anything that I tell you guys about or get a discount code. It’s because I use it in my business. It is the most effective. I’ve tried everything. I try it all the time. My team and I get hit up all the time to test things out. We try it because we want to use the best tools so that we can get the biggest deals in our marketplace.

The bonus part of that is I get to speak about it, share it with everybody, and make sure that they’re being successful. You can tell by the way that Matt has not only broken down what they got here, but if you play around with the app, which there is a free trial, you will see they are doing everything so that you can win. It’s incredible. Matt, thank you. I love working with you, guys. You have an incredible heart for this business. You want people to be successful. Thanks for being on the show.

Always, Brent. I appreciate the energy you bring and how much passion you have for people to get out there and make things happen. Anyone reading this, if they want to use me as a resource, it’s Matt@DealMachine.com. Feel free to reach out, and I’ll make sure you’re taken care of in terms of how to use this best and how to make sure you’re getting the full value out of that trial. Get out there and start making things happen.

That’s it for us here on this episode. I encourage you as I sign off, as I always do, for you to go out there and talk to people. Until next time, see you. Love you.

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About Brent Daniels

Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…

Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!

Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…

A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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