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Updated over 5 years ago on . Most recent reply

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16
Posts
6
Votes
Shubho Ghosh
  • Addison, TX
6
Votes |
16
Posts

All my potential properties show negative cash flow on BRRRR calc

Shubho Ghosh
  • Addison, TX
Posted

So I've been networking around and I've gotten in touch with a lot of real estate agents and Wholesalers who have been sending me a bunch of potential deals. I'm also in touch with a couple of Hard money lenders so my network is coming along pretty well. 

I'm pretty set on Using BRRRR for my deals as opposed to flipping.

With that being said, none of the deals that I'm getting are making sense when I put them in the BRRRR calculator.

Not sure if I'm doing something wrong but no matter what the discount is on the property almost all of the properties that I put in are coming out cash flowing negatively. 

Has anyone experienced this with the BRRRR calculator?

Most Popular Reply

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2,465
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3,858
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Patricia Steiner
  • Real Estate Broker
  • Hyde Park Tampa, FL
3,858
Votes |
2,465
Posts
Patricia Steiner
  • Real Estate Broker
  • Hyde Park Tampa, FL
Replied

It's not the calculator...you need to find one realtor who works with investors - successful investors - and have that person guide you through the process. What I find more times than not is that many wholesalers and general realtors will pitch properties that work for them; those that pay higher commissions or that they have under their charge.  You also need to look at your cost of borrowing and determine if you have the best resource.  The fact that none of the deals are "calculating" is actually good news:  you're doing the work - analyzing the deals and realizing they're not good deals.  Kudos to you.  Please consider regrouping and having a more targeted/focused approach to markets and properties.  You will continue to find that the best deals take time.  And, it will be worth it.

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