Can somebody give me a little more clarity on BRRR on selling wholesale deals
Buy Rehab Rent Refinance Repeat.
Buy: Purchase the property (typically on a short term loan)
Rehab: Fix up the property to raise the value
Rent: Place a tenant to start your cashflow
Refinance: This one is longer of an explanation. With a cash out refinance the bank will typically lend on 80% of the homes value. Meaning that you'll be able to get a loan for more than you put into the house because of the rise in value due to the rehab. You'll have enough money to pay back the short term loan and then some money to put into your next deal
In terms of wholesale, it's about the finding of a deal property and the marketing to an investor. Find a property that has a good potential for value appreciation due to rehab then find an investor who enjoys rehab projects and market the deal showcasing the BRRR formula.
@Aidan Mulligan a Thanks so much !