Hi BP Family!
I got some questions about the BRRRR method and wholesaling. Is it possible to combine these two strategies together?
Here is my story.
My wife’s father passed away about 2 months ago and he owns a 3 family. As of now there is a tenant renting on the 2nd floor and a relative sort of renting on the 3rd. The first floor is being occupied by my wife’s sister who is basically squatting but we are currently in the process of hopefully evicting her the legal way.
My wife’s dad was in the hospital and his care was basically taken care of by the state, so once we sell his 3 family, the state will need to be paid off. Not sure how much they want, he was only in the hospital for 5 or 6 months, roughly.
First question, would it be feasible if I was to try and wholesale it for myself then turn around and purchase it or would that be some sort of conflict if interest??
Second question, if I did manage to buy it at a wholesale price could I use the BRRRR method to fix it up and then refinance it 6 months later?
Anyone have any thoughts on my situation?
@Victor Rolon I think you’re misunderstanding what wholesaling is. In a nutshell, it’s finding a good deal and brokering it to someone else for a ‘finders fee’.
If you’re just going to buy it yourself anyway, you’re just the one finding the good deal - no need to pay yourself a finders fee!
From a BRRRR perspective, it doesn't matter if you find the good deal on the MLS, through a friend, or through a wholesaler. If this property is a good opportunity and the numbers work out, move forward!
@Mike McCarthy thank you for the advice!
If this works out for me this will be my first deal. This is still all new to me so I’m learning. Thanks again!