Questions about Offers/Contracts

[Aaron Freeman]

Embarrassing question time!

I am embarrassed to say I have purchased 3 primary residences in my life, and don't have a clue how my agent handled offers.  

1) When reading about the BRRRR strategy it seems that it's common to make lots of offers before you are able get to the next stage. Are those offers simply verbal agent-to-agent conversations or is your agent actually writing a contract on each and every offer you want to make?

2) If you are making lots of "lowball" offers (probably a bad word but it's what comes to mind), doesn't that drive your agent crazy if they have to write up a contract on each and every offer and it's always a "lowball"?

3) Are contracts sent by email in this day and age?  

4) I believe in my state (Kansas) the seller's agent is obligated to present every offer made to the seller.  Is that true in all states?

[Andrew Postell]

@Aaron Freeman some things to consider here:

1. We rarely, if ever, use a realtor to purchase properties using the BRRRR Method.

2. We rarely, if ever, buy properties off the MLS.

I mean, I guess somewhere out there you COULD use an agent...but the best deals are "Off Market".  Now, your next question might be....how do I find "off market properties?" - which is what we all ask continually.

BRRRR SKILLS NEEDED

Generally speaking you will need several things to successfully complete a BRRRR:

1. ARV - being able to calculate the Value on your own (meaning, without the wholesaler telling you the value) is really important.
2. Repairs - You will likely need to know how to budget the repairs as well. Getting a contractor can be extremely frustrating especially if you need to make an offer without even looking at the property. How do you calculate repairs without a contractor? You may need to lean on other local real estate investors in the beginning. Or maybe even just focus on properties with a very light rehab?
3. Lenders - You will need a lender on your BUY step and on your REFINANCE step. And I would HIGHLY recommend to read this article I wrote for Bigger Pockets on how to find good lenders that you can find HERE. If they are good, they should be absolutely definitive on rate, terms, costs, etc. Trust me, many lenders will tell you they can do this...but it's very rare to find. When I first started BRRRR'ing my properties lenders would tell me "That's illegal"....it's not, they just didn't know anything about it.
4. Finding Properties - and this is the absolute hardest step of anything right now. So, network like crazy and find some good resources. It's going to be hard...but if it were easy then anyone could do it.

Hope all of that makes sense.