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To build wealth through real estate, focus on acquiring value-add distressed properties using the 'BRRRS' method, starting with the 'BUY' step. Distressed properties, often sold by sellers in foreclosure or with urgent needs, present opportunities for significant value addition. These properties may have issues like foundation or termite damage, making them less competitive in the market. Learning to underwrite deals is crucial to ensure good purchases. Distressed properties can be wholesaled, flipped, or rented for long-term wealth building. On-market properties, listed on platforms like Zillow and MLS, are visible to everyone and often overpriced. In contrast, off-market properties, which are less visible and have less competition, offer better chances for deals. These properties are often distressed and not typically marketed by agents, making them ideal for investors. Wholesalers play a key role in locating and selling these properties to investors, who then flip or rent them. Building relationships with wholesalers and real estate agents is essential for finding distressed properties quickly. Direct mail and Facebook ads are effective methods for generating leads, with Facebook ads being cheaper and reaching more people. Using data from these methods, investors can apply the 'MAX ALLOWABLE OFFER' (MAO) formula to evaluate deals. The MAO formula involves calculating the after repair value (ARV) times 75% minus repair costs. It's important to be conservative with ARV estimates and include all costs from buying to selling or refinancing to ensure profitability. The first step in the 'BRRRRRS' method is buying distressed property, with future steps including raising money and other strategies. Subscribing to updates and videos will provide more information on these steps and methods.
To build wealth through real estate, focus on acquiring value-add distressed properties using the 'B