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Updated about 3 years ago on . Most recent reply

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Lior Noach
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5
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Most profitable foreclosure purchase for BRRRR method

Lior Noach
Posted

Which of the following could be the most beneficial option for the BRRRR method? And why

1. Pre Foreclosure 
2. Auction Phase
3. REO status property

Thank You

Most Popular Reply

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Kenneth Garrett
  • Investor
  • Florida Panhandle/Illinois
3,181
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3,858
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Kenneth Garrett
  • Investor
  • Florida Panhandle/Illinois
Replied

@Lior Noach

I agree with @Nicholas L. you need to analyze each potential investment and see if the math works. I've bought plenty of foreclosures, but there are are a number of them I walked away from because the numbers just didn't work. You need a decent spread from the buy number to the rehab number to the ARV number. The goal is to force the equity to get all of your money out. This in reality is not the typical outcome. I've had money stuck in, in almost every BRRRR. Thank goodness in most cases I was able to recoup all of funds within 6, 12, or 18 months. Those are still good deals.

  • Kenneth Garrett
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