SMARTERLANDLORDING

ADVICE FROM EXPERIENCE

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The SmarterLandlording Podcast – Buying Properties Without Banks Using Creative Financing

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“Everyone always wants cash until you walk them through it.”

 

Sarah’s Website and Contact Info – Hassle Free Homes of Memphis

Stuff We Mentioned

Memphis Investors Group – The Memphis Investors Group (MIG) is the local REIA club here in Memphis.  MIG has been very valuable to Sarah and I over the years.  Sarah even met her longtime business partner at one of the meetings.  Perhaps you too can find a property, a lender or a partner at a future meeting.  If you are here in Memphis, look us up.  If not, check for a club in your area.

21 Tenant Red Flags – Scroll down to the end of these show notes to subscribe and get the free report.

 

Like the Intro Music?  Check out my good friends in the band Kitchens and Bathrooms (Kind of fits right!).  They write and play some awesome, original music from right here in Memphis, TN.

Use For Rent Signs To Find The Best Tenants

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I’ll bet that a lot of you, like me, gave up using “For Rent” signs a long time ago.  These signs were once the way to go and a major way to attract the attention of people looking for a place to live.  Signs however also attracted a lot of unwanted attention, mostly in the form of phone calls.  The calls from those who were just looking or who could never qualify were a huge time waster and distraction.

Because of this unwanted attention and the explosion of digital advertising over the past few years, our “For Rent” signs have been confined to the storage shed.  I thought for sure that the use of these signs would eventually be a thing of the past.  That is until I talked to a colleague the other day.  He uses “For Rent” signs to find the best tenants almost exclusively.   He has great success without all of the phone calls.

Why Is He Still Using Signs?

My colleague still uses signs because he understands that tenant turnover is a cashflow killer.  Thus, he seeks tenants for the long term.  Tenants who really want to live in that particular neighborhood.  Tenants who perhaps want their kids to go to the neighborhood school or maybe have family in the area.

To him, there is no better way to find these folks than to attract the people specifically driving around the neighborhood looking for a place to live.  Think about it.  He has in effect begun to screen his potential tenants just with his method of advertising.  First, they must be somewhat serious about a place to live or they would not be looking around.  Second, they already know the neighborhood and are thus likely familiar with the rental characteristics of that neighborhood.  Finally, they can’t find his property in any other way than by driving around and looking where they want to live.

What About The Phone Calls?

What about all of the phone calls and the wasted time dealing with them?

He has a strategy for those as well.

He does not put any contact information on his signs.  Instead, he points folks to a flyer located by the front door of the property.  That flyer, taped behind the glass of a window so it cannot be removed, contains his contact information along with the three things everyone wants to know; the rent, the number of bedrooms and number of baths.

This strategy stops nearly all of those unwanted calls and it furthers his tenant screening process.  Again, think about what he is making people do.  The prospective tenant first has to drive and find the property, then stop and get out of the car, walk up and get the information and determine if the property is right for them.  If, after doing all of that they still make a phone call then they must really want to live there and think the property will fit their needs.

Brilliant!

Once he gets that phone call, he knows that he likely has a very good prospect on his hands that will not waste his time.

Will this strategy work everywhere for every property?  Maybe not.   But the strategy comes with years of experience and lots of trial and error behind it.  It works for him and it might just work for you too.  That is why I share it.

Sometimes, even with all of the modern technology we have, the old techniques can still work the best.  Perhaps I should think about dusting off those “For Rent” signs in the shed.

How do you advertise these days and why?  Have any unique or interesting techniques that work for you? Please share with your comments.

The Hardest Part of Rehabbing

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Rehabbing properties is something that most real estate investors are going to deal with at some point.  Be it apartments or retail homes, rehabbing is a part of real estate.  Starting a major rehab and doing them is actually pretty easy and it can be fun to watch a property get demolished and then brought back.  The hardest part of rehabbing however is getting it completed.

In this post, I want to share with you why I think the final 10% of a rehab job is the hardest part and then some tips to hopefully it less difficult.

The Rehab Process

All major rehabs will generally follow the same process.  You set a budget.  You make out a list of items that need to be done.  You have contractors give estimates.  You hire one and sign a contract.  Work starts.  Work progresses.  Bumps are smoothed over.  The rehab is completed.

I have done many rehabs over the past 15 years and have followed the above process time and time again.  And without a doubt, the hardest part in that process is getting the thing competed.  It is not cost over runs, those are expected.  Writing checks is not too hard as they were budgeted for (as are most of the over runs).  Getting started is easy.  Nor is it not hiring contractors.  It is the final 10% of any rehab project that, at least in my experience, is the hardest part to complete.

It is the final painting touches.  It is getting those last pieces of molding in place.  It is making sure all the appliances are hooked up and running correctly.  It is making sure all of the fixtures are in place.  In sum, it is making sure everything you wanted done is done.

Three Reasons It Is Hard

Why is the last 10% of a rehab so hard?  For three reasons I think

1.  Coordination

There are often many different contractors that have specific jobs to do in a major rehab.  These jobs often require coordination.  One contractor has to finish their job before another can complete theirs.  For example, you do not want to put carpet in until the painters have finished.  Coordinating all of this and being able to do it properly is a special, learned skill.  Not everyone has it and one mess up can set everyone else back.

2.  The Little Details

Now is the time when the little details matter.  The details are what are going to be seen by your final customer, be they a tenant or a buyer.  They will touch the door knobs and the faucet handles.  They will see the missing molding and switch plates.  They will notice stickers on light and plumbing fixtures.  It is these little details that make your project stand out above the rest and must be done.  The thing is, they can be easily missed or passed over.

3.  Everyone Is Tired Of the Project

The initial excitement of starting a project, felt by both you and your contractors is gone.  Everyone is now ready to move on.  In fact, many of your contractors have likely already moved on to the next job.  And getting them to pull their crew off another big job to finish that last little bit for yours can be like pulling teeth.

So What To Do?

Here are a few ideas to ensure that last 10% gets finished without becoming too much of a pain.

  • Start With A Good Contract – A good contract at the front end helps greatly. Spell out everything you expect to be done and when you expect it to be done.
  • Hold A Significant Final Payment – Never pay in total for any job until a job is completed. In fact, hold back as much as you can get your contractor to agree to.  That lure of money is often the only thing you have to get folks moving and finishing the job.
  • Develop A Final Punch List – Make that last payment contingent upon a final punch list. Go through your rehab as it is nearing completion and make a list of all of the little things that need to be done to get that last payment.  This will help both you and your contractor see the light at the end of the tunnel.
  • Add a Bonus – Money talks.
  • Add a Penalty – Maybe. But what happens if they run past the deadline anyway (which they often do)?  What incentive will you then have to keep them going?  I have not found penalties to be very useful.

The Final Analysis

I think that in the final analysis, getting that last bit of the job completed with minimal difficulty comes down to spelling out details on the front end and management.  What you want has to be spelled out on the front end, in writing.  Then, you or your contractor has to manage the job closely, especially towards the end.  Someone has to be available to answer questions, make decisions, smooth out the bumps and even yell at folks if necessary.  Someone has to keep the ball rolling and handle problems quickly.  That someone is often you whether you like it or not, it is just part of the life of a real estate investor.

They say that the devil is in the details.  The last 10% of any rehab job is nothing but details, hence the difficulty.  But knowing where the devil is going to be is half the battle and will help you get past him.

What do you think?  Is the last part of a rehab project the hardest?  Let me know with your comments.

Setting Tenant Expectations: Defining Emergency Versus Repair

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I recently wrote a post about setting tenant expectations.  In this post I want to go into a bit of detail regarding one of those expectations, defining the difference between an emergency and a repair.  Which situations require your immediate attention and which ones do not?

You might think common sense would dictate to everyone the difference between an emergency situation and a repair.  Honestly, in most cases it does.  But like I said in my last post, you cannot assume anything.  You cannot assume that your tenant has any common sense, that they will use it at the right time or that they actually know what a true emergency is.  To some tenants, everything and anything is an emergency.

This is why it is a best practice for landlords to set expectations and a) define what an emergency is, b) define what a repair is, c) discuss how both should be treated by the tenant, d) discuss your response to emergencies and repairs.  By doing this, you can save yourself much confusion, angry phone calls and perhaps even your property.

What Is An Emergency

An emergency is a situation that is life threatening and/or requires immediate attention to prevent massive property damage.  Fire requires immediate attention.  A strong smell of natural gas requires immediate attention.  Sparks shooting out of an outlet requires immediate attention.  Gushing (not dripping) water requires immediate attention.

Emergencies should be dealt with immediately and you need to inform your tenant of what they need to do, including calling 911, in case one occurs.  Yes, you need to tell them to call 911 first and not you in case of a fire.  If a tenant smells gas, you or your staff needs to find out the problem immediately.  It is the same with sparks and gushing water.  These items can lead to serious injury or property damage quickly.  They need your attention.  Immediately!

What About Repairs?

Almost everything else is not an emergency situation.  Rather, it is a repair.  Repairs require attention, but not immediate attention.  Repairs need to be fixed, but they can be fixed in due time.  The heat or air conditioning going out may seem and feel like an emergency, but the tenant will likely survive for 24 hours while calls are made and crews are scheduled to address the problem.  That dripping water may seem like an emergency, but a bucket will catch it and the plumber will get over tomorrow.

Repairs get triaged.  That means they get ranked in order of either severity or when the call came in.  You need to make it clear to your tenants that repairs will be handled as quickly as is possible, but not on an immediate basis.  Communicate with them how repairs will be handled.  Tell them that heating and air will usually be looked at with in 24 hours, but that loose cabinet door may take a couple of days.  Tenants can also help you with some repairs.  We show our tenants how to turn off water valves and breakers.  Many tenants have done their part to prevent further property damage by simply knowing how to turn off a valve or shut off a breaker.

From Day One

Be sure to set this expectation with your tenants on day one.  Do not let them hold on to the erroneous belief that every little repair is an emergency that will be handled immediately.  Explain how repairs will be repaired.  Let them know the timeline and then do your best to keep to it.  Tenants also often have the weird idea in their heads that they should call you first no matter what is going on.  I do not know why as there is little I can do about a fire.  So be sure to inform them what to do and who to call if a true emergency arises.

By setting this expectation on emergencies and repairs you will go a long ways towards making the landlord/tenant relationship a good one.  Plus, you might just save a life and your property.

Setting Tenant Expectations

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Think back to the first day of any class you took while in school.  What did the teacher do?  Most likely he or she went over what the course would cover and what you needed to do to earn a passing grade.  In other words, the teacher set student expectations.  Landlords should do the very same thing with tenants.  Setting tenant expectations on day one is a must.

Setting out tenant expectations is one of the keys to getting the landlord tenant relationship started off on the right foot.  It must be done clearly and it must be done at the very beginning.  If not, you will essentially be leaving things open to interpretation.  Leaving things open top interpretation will lead to confusion and conflict.  Confusion and conflict is not something you want in your business.

What are expectations?  They can be varied and many.   They should be based on your unique management and business style.  At the very least, I would suggest some form of the following:

  • An expectation of when the rent is due
  • An expectation of how your property must be treated.
  • An expectation of how you (and your staff) must be treated.
  • An expectation of how the tenant will be treated.

Tell Them Your Expectations

Setting out your expectations is simple.  You tell your tenants what they are.

You do this during a portion of your lease signing meeting.  It is as important as going over the lease itself.  It is at this time that you can define the landlord/tenant relationship, remove uncertainty and stress how the next year is going to go.   Sit across the table and tell them:

  • That the rent is due on the first of the month.
  • That eviction will be filed if rent is not paid.
  • The difference between normal wear and tear and tenant damage.
  • How an emergency is defined.
  • How repairs will be handled.
  • How tenants can get their security deposit back.
  • That communication is the key to any successful relationship.
  • That they will be left alone if they meet your expectations.

Do Not Assume

How do you tell them these things?  That is of course up to you.  But I would caution you that you should not assume anything.  Do not assume that they know that they cannot call in a repair at 5 PM on Friday afternoon and expect the problem resolved that evening.  Do not assume that they know that no matter what life throws at them, the rent is still due on the first.  Do not assume that they know what clean means.  Do not assume that they will take all of their stuff with them when they move out.

The above may sound a bit silly and you might be thinking that these things should not have to be explained.  While those two statements may be true, I am here to tell you that they do need to be explained.  You cannot assume that your tenant knows or understands anything.

Expectations Work

Setting expectations works.  You passed most of your classes in school right?  You knew what you had to do because your teacher laid it out for you.  Your tenants can have the same experience.  By setting expectations, you can get the majority of your tenants pay their rent in full and on time.  You can get them to communicate with you if there is a problem.  You can get many of your properties back almost in as good of shape as you provided them to the tenant.  You just need to spell everything out on the front end.  You need to tell them how to earn the passing grade.

Setting expectations just makes sense.  Yes, it takes a little time and effort on your part, but it is good business and good for both you and your tenants.  Take some time to put your expectations into words and then share those words with your tenants.  Every time and on day one.

What expectations do you discuss with your tenants, please share with your comments.

Landlords! Use House Rules

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Every landlord, well almost every landlord, knows they need a written lease.  What they may not be aware of is that they need a set of house rules as well.  House rules do just what their title suggests.  They set out the rules for living in my house and every landlord should have a set of their own house rules.

We have our house rules set up so they are an addendum to our lease.  In that way, they have full legal force and effect, just like the lease proper.  Break my house rules and you are breaking the terms of our lease, which could very well result in eviction.

Our house rules are usually about a page long and contain all manner of things.  Some you would think need not be explained, such as taking your trash out every week or paying your rent on time.  Other rules are set by our own design and experiences, like our no smoking inside rule because of that time a tenant caught our house on fire by smoking.  Still others are general “catch alls” such as telling everyone to be quiet after 10 PM.

You can design your house rules however you like them (within legal bounds of course), because after all, it is your house.

Three Reasons To Use A Set Of House Rules

You could of course put everything in your lease, but we like to use a separate set house rules for three main reasons.

First, because the house rules are listed in a separate document, the stand out and can be emphasized.  It is easier to specifically point to the document and say, “These are the rules that you must follow to live here.”  Your prospective tenants will have an easier time focusing on and understanding the rules because they are a separate document.

Second, house rules can be tailored to each house or property.  This aspect is helpful since each property is different and thus has different rules.  Some have balconies (do not grill on them), some do not.  Others have yards to keep up with (cut the grass) while others do not.  Some have common areas (don’t put your stuff here), some have shared parking and on and on and on.  Could you have a lease for each property?  I guess so, but I find that using a tailored house rule document attached to our standard lease is just easier.

Third, a house rules document is easier for everyone to understand.  A lease often has to contain legal words and phrases.  These words and phrases may not always have a clear meaning to someone who is not familiar with them.  House rules however can get right to the point, in clear language.  For example, here are a few rules we use.

  • You will not disconnect the smoke detector and you will replace the batteries in the smoke detector as needed.
  • Do not light candles or fires in the rental unit.
  • Don’t wait until Friday at 6pm to tell us your need a repair, because it won’t be done until the next week.

These rules are simply stated and straightforward.  They are not full of legalese and everyone can understand what they mean.

Make Sure Your Tenant Understands The House Rules

During the lease signing process, we read every word of our lease and house rules to the tenant.  Every word!  Sometimes that goes quickly.  Sometimes it takes a while as questions are raised and stories are told.  I cannot tell you how many times someone will say “You really had a tenant do that?”  Yes, that is why it is in the rules that I am reading to you now.

Then, upon signing, documents are scanned and copies e-mailed to the tenants.  In this way, when they break the rules (and they will), they cannot say they were not aware of the rules or did not have a copy.  You can point towards the lease signing process along with the e-mail and when it was delivered.

Most Tenants Follow The House Rules

Most of your tenants will follow your house rules.  They understand the need for them and why they are there.  Some will push the limits for sure, but you need to decide how much of a cop you want to be.  How much time you want to spend playing cop, judge and jury is up to you and your particular situation.  In any event, having a set of house rules will make your landlording life a bit easier.

What are in your house rules?  Got an interesting story about why that rule is there?  Please share with your comments.

 

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Why Are Landlords So Jaded?

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Landlords are a unique bunch.  The business is like no other.  It gives landlords a perspective, an often jaded perspective that very few others hold.  Why?  Because, we learn to wear many different hats as we strike out on our landlording journey and we see into people’s lives a lot more than most.  These two things, the doing and seeing, are going to mold our perspective.  But I think it is the seeing which affects a landlord more than anything.

Landlords see what humanity is made of.  Not the façade that is put on for the public, but the reality of people’s everyday lives.  How do we do this?  We do it by getting involved in a person’s most private space, their home.  Most of the stuff we see is normal and everyday run of the mill.  Sometimes it is interesting.  Sometimes it is humorous.  Other times though, it is heartbreaking, infuriating and can be downright scary.  It is always however an eye opening experience to witness how people truly live.

Two integral parts of the landlording business are screening tenants and providing homes.  Each part brings its own eye opening experiences.  Screening means background checks.  It means credit reports. It means criminal records. It means talking to bosses and past landlords.  It means asking a lot of questions and investigating past lives.  Thus:

We see the unpaid bills.

We see the bankruptcies.

We see the evictions.

We see the bust because they only had a joint.

We see the DWIs.

We see the jail time because of…well…a lot of different things.

And that is just for starters.  That is only when they apply to live in one of our properties.  If they make it through the screening and decide to move in, that is when we landlords really begin to see things because we now provide a home.

Providing a home means doing maintenance and upkeep.  It means doing property inspections.  It means going inside someone’s personal space every once in a while.  Not unannounced and just to be nosy.  Going in is just part of the landlording business.

By going in:

We see the heaps of dirty clothes and dirty dishes.

We see the neat freaks too (thank you!).

We see the disorder, the chaos, the hoarding.

We see that the shower has not been used in a while.

We see the piled up, empty alcohol containers.

We see the bongs (put that away!).

We see the bondage equipment (put that away too!).

We see the pet snake.

We see that someone we do not know is living there.

We see you broke the house rules and painted the walls purple even though we told you not to.

We also unfortunately see the divorces, the layoffs, the overdoses and the cancer diagnoses.

We see all of this and sometimes wonder why we ever decided to become landlords.  But then we realize that this is humanity.  Everyone, and I mean everyone, has some kind of quirk.  Everyone also has a past.  It is just who we are.  We landlords see a lot and it is no wonder we become a little jaded at times.

Does this mean you should not become one?  Of course not as most tenants are great and the rewards outweigh the negatives.  But becoming a landlord will be an eye opening experience.  You will develop a thicker skin and a different viewpoint on the world than you had before.  Just ask any landlord.

The thing to remember is that landlording is like any other business.  You have to put food on your table and provide for your family.  And while it is not a good idea to kick someone when they are down, you cannot run a social service agency either.  Often the best a landlord can do is to try to keep the worst of it out with thorough tenant screening.  But you still have to rent to someone and everyone has some kind of quirk.  Sometimes these quirks result in an angry letter from us.  Sometimes they lead to eviction.  A lot of times, you have to just let folks live.

What have you seen?  Please share with your comments.

What Does Normal Wear and Tear Mean?

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Most landlords collect security deposits as a part of their lease to ensure that tenants do not harm their property.  When a tenant moves out, deductions can be made from a security deposit to repair harm that is above normal wear and tear.   But what does normal wear and tear mean?  How is it different from damage?

It is important for landlords to be able to distinguish between normal wear and tear and damage because it is often a point of contention.  Tenants and landlords often differ as to the amount of damage that has been caused.  Tenants will assert that damage is just normal wear and tear while landlords assert the opposite.  The line between the two however is not often clear, nor is it easily defined.

Do State Or Local Laws Provide The Answer?

Many landlord/tenant relationships are governed by state or local laws.  Here in Memphis, Tennessee, we use The Uniform Residential Landlord and Tenant Act.  But, this Act does not provide a definition of “normal wear and tear” and I suspect most other state statutes do not either.  It is just too hard to nail down.  The Act does not even use the term “wear and tear” anymore.   Instead it discusses “damage” caused by the tenant.  Does the Act define “damage” then?   Nope.  Again, it is too hard to nail down.   So, how does a landlord know what the difference is?

Getting To A Meaning

Black’s Law Dictionary provides some guidance.   It defines the terms “normal,” “wear and tear” and “damage.”   I use a law dictionary because word meanings in a court of law can be different from their common, everyday meaning.  And a court of law is where landlords have to think things (not just wear and tear cases, but everything they do) may end up someday.

Normal is defined by Black’s as:

According to, constituting, or not deviating from an established norm, rule or principle; conformed to a type, standard or regular form; performing the proper functions; regular, average, natural.

It defines “wear and tear” in part as:

…deterioration or depreciation in value by ordinary and reasonable use of the subject matter.

Damage (as opposed to damages) is defined in part as:

Loss, injury or deterioration, caused by the negligence, design or accident of one person to another, in respect of the latter’s person or property.

So What Is Normal?

With these legal definitions we get closer to an answer.  There are two types of wear and tear,  one type caused by reasonable use and another type above and beyond reasonable use somehow caused by the tenant.

How does this then translate into real life?  What is normal?  Every situation can’t be spelled out, but here are some examples.

  • Paint fading or chipping from furniture being pushed against it. It is normal for people to have their furniture against the walls.
  • Flooring showing a trail from the paths folks use every day. It is normal for carpet to wear out after constant use.
  • Older appliances and fixtures eventually quitting. It is normal for the refrigerator to just stop working one day.
  • Plumbing starting to drip or leak. Fittings and washers wear out.  It is normal for things to leak occasionally.

You cannot charge the tenant for this type of wear and tear.  It is not their fault.  The stuff would have worn out anyway no matter who the tenant was or what they did.  However,

  • Crayon drawings all over the walls are not normal.
  • Painting the walls black is not normal.
  • Wine stains on carpet, iron burns on hardwood and cracked ceramic tiles are not normal.
  • AC coils covered in dog hair and ceiling fans pulled from the receptacle are not normal.
  • Cracked toilet tanks are not normal.
  • Doors pulled from their hinges and broken windows are not normal.

You can charge the tenant for these types of wear and tear because it is above and beyond normal.  It is damage that is the tenant’s fault.

See the difference?

Ultimately a judge or jury can define what normal wear and tear means in your particular case, but you do not want to let it get that far.  It is much easier and better for everyone to understand on the front end what normal wear and tear generally means.  Smarter landlords set the expectation with their tenants on how they expect their property to be returned to them and how tenants can expect to get their security deposit refunded at the very beginning.

Setting up those expectations is a the topic I will discuss in the near future.

Have you ever had a dispute with your tenant (or landlord) over “normal wear and tear?  Please share with your comments below.

 

Subscribe to Smarterlandlording and receive a Free Report: 21 Tenant Screening Red Flags

The SmarterLandlording Podcast – Landlords and Lawsuits

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Episode 9 of the Smarter Landlording Podcast focuses on something every landlord fears, lawsuits.  In this episode, I sit down again with attorney Joe Kirkland to delve into this interesting and sometimes troubling aspect of the landlording business.   Want to understand what getting sued can mean?  Then this episode is for you.

Links We Mentioned

The Self Directed IRA Handbook – Also see below.

21 Tenant Red Flags – Scroll down to the end of these show notes and subscribe to get the free report.

Memphis Investors Group – The Memphis Investors Group (MIG) is the local REIA club here in Memphis.  MIG has been very valuable to Joe and I over the years and we are both past presidents.  It is where I met people like Joe and where I am able to learn, share ideas, make deals and commiserate with other investors.  If you are here in Memphis, look us up.  If not, check for a club in your area.

Joe’s contact info – Closetrak Title – 901-333-1260  Joe@Closetrak.com

 

 

Like the Intro Music?  Check out my good friends in the band Kitchens and Bathrooms (Kind of fits right!).  They write and play some awesome, original music from right here in Memphis, TN.

 

Tall Grass Can Lead To Tall Dollars

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Spring has sprung here in Memphis.  Everything is green again, especially the grass.  After sitting dormant all winter, lawnmowers and weed eaters can be heard everywhere, well almost everywhere.  Some properties became vacant this winter, and now that the grass is green, growing and tall again, we can easily see that.

Why were they left vacant?  Who knows?  Why do I care?  Because I do know that a vacant property can lead to a potential deal and that tall grass is often a sign of a vacant property.  So it makes sense to take note of properties with tall grass, as there could be dollars hiding in those weeds.  Just today I went to look at a property that popped up on the MLS and while driving to and from that property I counted and wrote down the addresses of five others to check out.  All because it is spring and the grass is now growing.

This technique, called driving for dollars, is one of my favorites for finding properties.  Even with all of the technology that exists today (I use that too), physically looking around still gets results.  It’s cheap too!  All it takes is driving around an area you wish to farm and looking for signs that a property is in distress such as tall, uncut grass.  If you see signs of distress, make a note to yourself and check the property ownership details later.  It may be worth sending the owner a letter and that letter may just turn into your next real estate project.

I like to drive around areas close to where I live.  But you do not have too and you do not even have to be specifically driving around for dollars.  For example, I found one property just because I was going back and forth to the grocery store.  I found another because it was down the street from one of my other properties.  And, as I said above, I found five to check out just by going to look at another listed property.

So open your eyes as your run your errands.  Look for the tall grass and other signs of distress.  It may just net you a nice deal.

Found any great properties driving for dollars?  What do you look for when driving around?  Please share with your comments.