Real Estate Agent · Palatine, IL · Member since 2020 · 38 posts · 21 votes
As s future BRRRR investor, I'm brainstorming on how to get good deals into my funnel. The idea of finding a house flipper came up. Since I will be doing BRRRR, my price to acquire a deal can be a smidge higher than a house flipper might be able to pay- right? So if I could get a local flipper to give me his/her "almost but not quite" leftovers, I could have a good deal going. But- what can I do for a flipper in order to establish a mutually beneficial relationship?
This is a great method for sure! As a wholesaler, I always think of my deals in three categories:
1. Deep discount - fix and flipper 2. OK discount - landlord / wholetail 3. Not good enough discount for fix and flip or landlord - wholetail
So, the value to flippers or wholesalers for a buyer like you is to capitalize on more leads that come through, by wholesaling to you at a price that works for you but might not work for them, they still help the seller and make some money in the process.
@Kristi Wolfe simply find a flipper in your area who has the deals/funnel , then simply introduce yourself say what you want to do for him , ask him what problems he needs solved , then solve them for him before you expect anything in return . Don’t buy coffee, help him with his business then he will help you with yours
I might be a little confused but why would your acquisition budget be slightly higher for BRRRR vs flip? Is it because the rehab budget is possibly less for a BRRRR vs a flip? I'd recommend looking for agents (especially those that are investors themselves) that have either BRRRRd themselves or work with others who have. They'd be a great resource for finding you deals.
If you do want to approach a flipper to get the deals that they don't want to pursue then maybe you can offer them a small finders fee for each place that they pass you, or at least each one that you close on.