BRRRR is a mythical creature that happens once a year.

[Chi Ta]

So, after discovering the BRRRR method it all made sense to me that it's just a flip but instead of selling for instant profit you'll refi the property and hold it for long term gains. Great sounds like a deal, however, there's just so many things wrong with this scenario.

How often do these magical deals even show up. Unless you're actively marketing distressed homeowners how can you ever find these deals as a newbie?

I mean you'll literally need to most likely buy at 50% ARV, spend 25% arv to rehab to make it happen. If it's 50 cent on the dollar I'm sure everyone would jump on those deals.

I just don't see it being real. Can someone shed some hope and bring this dream back to life.

[Robby Hogle]

@chi ta It definitely isn't easy to find a deal. But they do exist! There are two primary ways to identify a BRRRR deal:

1. Buy a distressed property. Find something that needs heavy rehab. These properties comes with lots of issues so most people stay away. If you can get comfortable with issues that send most people running (e.g., need roof replacement, foundation issues, etc.) you can compete in a less competitive part of the market. As long as you have a realistic understanding of the total rehab budget needed, than you should be able to get comfortable making an offer. But there is risk in tackling large rehabs which is why not everyone jumps on these deals. (not to say that there isn't any competition...just depends on the area)

2. Buy from a distressed person. If you can provide an all cash offer and close inside of a week, that might be really attractive to someone in need of cash. And that distressed person is willing to accept an offer well below "market value".

3. Buy during distressed market. This is the third bonus one. Lots of great deals in 2008. But obviously you can't control this type of distress, and we definitely aren't in a distressed market at the moment!

I got my first deal by submitting a low ball bid that i assumed would get rejected. The seller was motivated and agreed to a number that was very close to my first offer. Don't be afraid to get rejected when sending low ball offers.

You can also work with wholesalers. Their job is to find really good deals, but often times they don't have the capital to complete the sale. You just have to be careful and make sure you verify everything they tell you (i.e., don't assume their estimated rehab budget or estimated ARV is correct)

It definitely works. People have done it. People are doing it. And people will continue to do it. I found a good BRRRR opportunity and i'm still a novice.

Hope this helps! Best of luck finding your first deal!