Putting a contract on a BRRRR?

2 Replies

So I'm listening to BP Podcast 327 and Brandon gives an example of someone putting $20k down on a $100k house and him putting it under contract for $50k and investing $30k of work into it.  Why and how can you put it under contract for $50k???  I know that this is an off-the-cuff example, and the numbers may be exaggerated, but he was pretty specific about it!  

Here's the link to the podcast (example is around 24:40):

BP Podcast 327

@Tiberiu Gurau greetings,

I haven't heard that particular episode......but I'm assuming he meant the ARV (after repair value) was 100k. He can buy it for 50k because it needs work, or it is distressed. Hence the 30k in repairs.

Hope this helps!

Originally posted by @Eric H. :

@Tiberiu Gurau greetings,

I haven't heard that particular episode......but I'm assuming he meant the ARV (after repair value) was 100k. He can buy it for 50k because it needs work, or it is distressed. Hence the 30k in repairs.

Hope this helps!

 I could see that.  Thanks!