## Agentless

 

Close your eyes for a moment and imagine a world where real estate is as liquid as shares of publicly traded companies. 
This is the future we are building towards, and, just as there are no brokers involved when you place your buy and sell orders for shares of stock, there will be no brokers or agents involved when you buy or sell whole or fractional interests in real estate. This applies to all forms of real estate including residential (primary residence, investment), commercial and land.

 

## Technology is the future

 

To be clear, we have nothing against agents. Most agents are hard working, ethical people who look out for the best interests of their clients and customers. Many buyers and sellers prefer agents, and this shift to an agentless real estate market is going to be slow. The market forces of technological innovation, consumer preference, and legislative reform are taking hold and all agents need be aware of this transformation and proactively adapt. One way the most forward-thinking agents are adapting is through increased exposure to off-market listings. On this note, we invite all agents to [subscribe to off-market listings](https://www.offermarket.us/subscribe/deal-flow) to add more value to their buyers.

 

## How will technology benefit Real Estate buyers and sellers?

 

Safe agentless transactions can benefit the consumer (buyer, seller). 6% is a lot in any transaction, let alone a transaction for such an expensive asset. On this note, percentage-based fee structures seem unfair to buyers and sellers transacting higher value properties.

 

When you look carefully at the traditional real estate transaction, you can't help but to feel as though perhaps we've lost sight of the two parties that matter most: *buyer* and *seller*

 

We need to demystify, simplify and standardize the real estate transaction and empower buyers and sellers to transact safely without unnecessary costs, delays and frustration. 

 

## Real Estate technology will reshape deals

 

The traditional real estate transaction flow is remarkably inefficient and chaotic. A radically simplified transaction flow powered by thoughtfully designed technology is going to change that. Consumers, buyers and sellers, will benefit.

 

What do you think, is the future of real estate agentless?

 

**Written by:** Daniel Sperling-Horowitz, CEO of OfferMarket

In the future, real estate transactions will not involve agents.

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The Future Of Real Estate: Agentless - OfferMarket Blog

The Future Of Real Estate: Agentless

The acronym stands for Buy, Rehab, Rent, Refinance. The BRRRR method involves purchasing a distressed property, rehabilitating it, renting it out, and then refinancing it to extract equity or cash out. This strategy has the potential to generate high returns and create passive income streams for investors however the successful repeatability of this strategy lies in the precise execution of each of the step, a challenging feat even for most experienced operators. In this article, we will take a closer look at the BRRRR method and explore its rewards, its risks, and its 

 

## BRRRR Method Steps

 

The BRRRR method is a comprehensive real estate investment strategy that involves four distinct steps: Buy, Rehab, Rent, and Refinance. Each of these steps has its own set of risks and challenges that must be carefully considered. In the Buy phase, investors must be able to identify distressed properties that are undervalued and have the potential to be rehabilitated. The Rehab phase requires a solid understanding of construction, renovation, and design, along with a comprehensive plan and budget for the project. The Rent phase requires effective marketing and advertising to find tenants, and then proper property management to ensure a steady flow of rental income. Finally, the Refinance phase requires knowledge of financing and banking to secure a favorable mortgage and extract equity or cash out.

 

### Buy

 

The first step of the BRRRR method is crucial, as identifying a distressed property that is below market value can lead to substantial profits for the investor.

 

Distressed properties are those that have been neglected, are in need of repair, or are facing financial difficulties such as foreclosure or short sale. These properties can often be purchased below market value, presenting a unique opportunity for investors to acquire assets that have the potential for appreciation.

 

However, in today's competitive real estate market, the increased demand for distressed properties has led to wholesalers sending out thousands of mailers and making low-ball offers to potential sellers of these properties. This has created a situation where even distressed property owners are aware of the demand for their properties and have increased their asking prices, making it more challenging to find a property that is truly below market value.

 

Despite these challenges, it is still possible to find distressed properties that are priced below market value. To do so, investors must be vigilant and thorough in their search, utilizing various resources such as online listings, real estate agents, and networking within the real estate community. It is also essential to conduct thorough due diligence to ensure that the property has the potential for rehabilitation and appreciation before making a purchase.

 

### Rehab 

 

After purchasing a distressed property that has the potential to be rehabilitated and increased in value, the next step in the BRRRR method is to renovate and upgrade it. This step is critical in achieving the goal of making the property attractive to renters and increasing its rental income potential.

 

However, this step also carries a significant amount of risk, as many factors can impact the success of the rehabilitation process. One of the most significant risks is underestimating the cost of rehab from the beginning, which can happen due to various factors such as unexpected costs of materials or higher labor costs in the local market.

 

Another risk is finding reliable and competent contractors to take on the job, and issues that may arise with contractors during the job. This can include delays, substandard work, or unexpected expenses, which can increase the overall cost of the rehabilitation process.

 

In addition to contractor-related risks, there are also potential issues with permits and communication with the city, as well as financing and draw issues if an investor is using a lender for the rehab. These risks can create significant challenges during the rehabilitation process, potentially delaying the project and increasing costs to the point of making a deal unprofitable even if it was purchased at significant discount to prevailing market values. 

 

To mitigate these risks, investors should conduct thorough due diligence on contractors, obtain all necessary permits and approvals, and maintain effective communication with city officials throughout the rehab process. Additionally, it is important to budget for unexpected expenses and to work with experienced lenders who can provide guidance on the financing process. By taking these steps, investors can minimize the risks associated with rehabilitating a distressed property and increase the chances of a successful outcome.

 

### Rent

 

Once the property has been rehabilitated, the next step in the BRRRR method is to find tenants and start generating rental income. This is arguably the most important phase of the process, as the rental income will help to cover the expenses of the property, including the mortgage payment, property taxes, insurance, and maintenance costs. In addition, spread from the rental income can provide a passive income stream for the investor, making it an attractive investment option.

 

To ensure that the property generates optimal rental income, it is essential to conduct thorough research on the local market and market rents. This involves analyzing comparable properties in the area and their rental rates, as well as understanding the local rental market trends and factors that can impact rental rates, such as vacancy rates, location, amenities, and demand.

 

By researching the local market, investors can determine the optimal rental rate for the property that will attract tenants while also ensuring profitability. Setting the rental rate too high can result in longer vacancy periods, while setting it too low can result in lower cash flow and reduced profitability. Therefore, it is important to strike a balance between attracting tenants and generating sufficient rental income to cover expenses and provide a return on investment.

 

Once the optimal rental rate has been determined, investors should focus on marketing the property to attract tenants. This can involve creating online listings, advertising through social media, and working with local real estate agents. It is also essential to conduct thorough tenant screening to ensure that tenants have a good credit history, stable income, and a reliable rental history.

 

After tenants have been secured, investors should focus on maintaining the property and managing the rental process. This involves regular maintenance and repairs to keep the property in good condition, responding promptly to tenant requests and issues, and managing rental payments and leases.

 

In conclusion, finding tenants and generating rental income is a critical phase of the BRRRR method, and it requires careful research, effective marketing, and diligent management. By following these steps and maintaining a focus on profitability, investors can achieve long-term success in real estate investing.

 

### Refinance

 

Refinancing at the end of the BRRRR method is a crucial step that "completes the loop" and turns this approach into a *repeatable* method. By refinancing, investors can take advantage of the increased equity in the property at a higher after repair value (ARV) and potentially lower interest rates, reducing their monthly mortgage payments and freeing up cash flow. This involves obtaining a new mortgage with better terms at higher property value. The new mortgage will be based on the increased value of the property, allowing the investor to extract equity or cash out. Refinancing is a critical step for BRRRR investors because it allows them to pull out their initial investment and repeat the process again. Without refinancing, the investor's cash would be locked into the property, making it difficult to continue to invest in other properties.

 

To successfully refinance the property, investors should first ensure that the property is in good condition and has been rented out for a sufficient period to establish a stable rental history. This will help to demonstrate to lenders that the property is a reliable source of income and a good investment.

 

Additionally, investors should work with a lender who specializes in refinancing investment properties and understands the unique challenges and opportunities of real estate investing. The lender can help to identify the best loan options and terms for the investor's specific needs and goals, such as cash-out refinancing or rate term refinance.

 

It is also important to have a solid understanding of the refinancing process, including the costs and fees associated with refinancing, such as appraisal fees, title search fees, and loan origination fees. These costs should be factored into the overall financial analysis of the investment to ensure that refinancing is a financially viable option.

 

By refinancing, investors can access the equity they have built up in the property and use it to purchase additional cash-flowing properties, essentially leveraging their investment to grow their portfolio. This is particularly important for investors who want to scale their real estate investing business and build long-term wealth.

### Repeat

The final R, of BRRRR Method. Once you get your cash out and refinance, time to repeat the whole process from the start. Time to start scouring the market for the next Buy!

 

## Why isn't everyone using this method to accumulate property?

 

While the BRRRR method has the potential to generate high returns, it is not without its risks. One of the main challenges of the BRRRR method is finding the right property at the right price. It can be difficult to find a distressed property that is below market value and has the potential to be rehabilitated. Due to current market conditions, competition between retail buyers has spilled over to wholesalers which has made many dilapidated properties to be 'in demand'. Some homeowners report receiving tenths of mailers a month regarding their home. Due to this demand the margin for run down homes has compressed. Its vital to have an edge during property acquisition to get the best deals. Most experienced investors, when lacking an edge in a deal such as being the only bidder when giving direct offers, just use a cash offer as a tool to close expediently, hence accumulating a large cash pile and waiting for an incredible opportunity might be a boring yet winning strategy. 

 

One of the biggest challenges of the BRRRR method is the rehabilitation process. While the buy and rent phases require a certain level of market knowledge and management expertise, the rehab phase requires specific technical knowledge and expertise in construction, renovation, and design. In many cases, the cost of repairs, upgrades, and renovations can sink a deal with even the most attractive purchase terms. If the investor underestimates these costs, it can result in losing the deal to the lender at the least and filing for personal bankruptcy at the most. 

 

To stay safe and succeed with the BRRRR method, investors need to have a deep understanding of their renovation costs. There are several strategies that can be used to better understand these costs even if the investor is not a general contractor or construction professional. One strategy is to work with a trusted contractor or construction professional who can provide an accurate estimate of the cost of repairs and renovations. Another strategy is to use online tools and resources to estimate the cost of materials and labor for specific projects. Some popular tools include HomeAdvisor, Thumbtack, and Angie's List.

 

Investors can also consult with local building codes and regulations to ensure that their renovation plans are compliant with the law and avoid costly fines and delays. In addition, it's essential to conduct a thorough inspection of the property to identify any hidden issues or structural problems that may require extensive repairs. Sometime investors that can identify costly problems during the inspection phase can use it as a negotiation tool to amend their offer price.

 

Finally, it's critical to have a comprehensive renovation plan and budget in place before starting the rehab phase. The plan should outline all necessary repairs and upgrades, along with estimated costs and timelines. A detailed budget will help investors stay on track and avoid unexpected expenses that can derail the project. While this step seems like the least 'hand-on', its the most vital one to complete. Lets say you start a project without a complete paper trail, then at which point do you know that something is going 'off-rails'. Is it when it completely stalls? Is it when your bank account runs dry? An explicit plan with clear criteria for success at each step will allow you to control the project add transparency (for your benefit) and hold your contractors accountable. Additionally, its incredibly effective to unite a completion of a rehab step with a payout of a portion of funds to your contractor after an inspection. This is an incredible mechanism for aligning incentives and is used by leading capital providers in the US real estate. 

 

But without question, the largest risk of a rehab project is the 'contractor-you-choose-risk'. In the end this is your project and successful outcome is your responsibility. You need to vet your contractors to the highest degree to understand if they are correct fit for the job at hand. Its your duty to evaluate whomever you hire to ensure successful completion of the job, on time and on budget. 

 

In summary, the rehabilitation phase is a critical component of the BRRRR method, and understanding renovation costs is essential to the success of the investment. Investors can use a combination of strategies to estimate costs, including working with trusted contractors, using online tools, consulting with building codes and regulations, and conducting a thorough inspection of the property. Additionally, having a detailed renovation plan and budget in place will help investors stay on track and avoid unexpected expenses.

 

## How can I stay safe while using BRRRR method?

 

To stay safe while using the BRRRR method, it is important to do your due diligence before investing in a property. This includes researching the neighborhood, property values, and rental rates in the area.

 

It is also important to have a solid plan in place for the rehabilitation process. This includes creating a detailed budget and timeline for repairs, upgrades, and renovations.

 

Additionally, it is important to have a good understanding of the rental market in the area and to have a plan for finding tenants and managing the property.

 

Finally, it is important to work with a team of professionals who can help guide you through the BRRRR process. This includes a real estate agent, a contractor, and a property manager.

 

## Who should start using BRRRR method?

 

The BRRRR method is a great strategy for real estate investors who are looking to generate high returns and create passive income streams. However, certain 
professions have an edge when it comes to using the BRRRR method.

 

Certain professions have an edge when it comes to the BRRRR method. Real estate professionals such as real estate agents, brokers, and property managers have a deep understanding of the market and can help identify potential investments. They also have a network of contacts in the industry that can be leveraged to find properties, contractors, and lenders. Additionally, professionals in the construction and renovation trades have the expertise to estimate costs accurately and manage the rehab phase efficiently. Finally, finance professionals and bankers have the knowledge and experience to secure favorable mortgage rates and terms.

 

Ultimately, the success of the BRRRR method depends on ensuring that all the ducks are in a row. This means having a comprehensive understanding of the market, the property, the rehab process, and the rental market. It also means having a solid team of professionals in place to manage the project from start to finish. The BRRRR method is not for everyone, and it requires a certain level of experience, knowledge, and risk tolerance. However, for those who are willing to put in the work and take on the challenges, the BRRRR method can be an effective way to generate high returns and create passive income streams.

The BRRR method, also known as Buy, Rehab, Rent, Refinance, is a popular real estate investment strategy. In this blog post, we will explore the pros and cons of the BRRR method and how OfferMarket can help each step of the way.

What is the BRRRR Method?

## There are many reasons to sell your house:

 

- Tired of being a landlord
- Tenants are not paying rent, need to evict
- Struggling to pay mortgage
- Inherited an out-of-state property
- Going through a divorce
- Going through a bankruptcy
- Facing a lien, tax sale or lawsuit
- Taking advantage of a the current seller's market
- Headache property that needs work

 

## Every seller has their own reason and every seller has options

 

## 1. On-Market

 

Fix it up and list it with an agent.

 

- Cost: high
- Frustration: high
- Buyer competition: high
- Proceeds: Moderate
- Speed: slow
- Reliability: low
- Buyer qualification: low

 

## 2. Off-Market

 

Sell to a family friend or local investor.

 

- Cost: low
- Frustration: moderate
- Buyer competition: low
- Proceeds: low
- Speed: uncertain
- Reliability: low
- Buyer qualification: low

 

## 3. OfferMarket

 

Compare AS IS offers from verified local buyers.

 

- Cost: low
- Frustration: low
- Buyer competition: moderate
- Proceeds: moderate
- Speed: Fast
- Reliability: high
- Buyer qualification: high

 

Every day at OfferMarket is Sell My House Fast, Sell My Rental Property and We Buy Houses Day.

 

## How it works:

 

1. Create your free listing
2. Compare offers
3. Close on your timeline

 

All without an agent! You have no obligation and you can reject any offer for any reason.

 

## What are the fees?

 

Use Co-Pilot (self-serve) entirely free and you can upgrade to Auto-Pilot for an actively marketed, managed service where the winning buyer pays a low service fee at closing.

 

## What kinds of properties does OfferMarket specialize in?

 

Single family homes (detached, townhomes, 1 - 4 units).

 

- Rental properties with tenants in place
- Rental properties with non-performing tenants
- Fixer upper properties that need major renovation
- Owner-occupied homes in pre-foreclosure
- Owner-occupied homes in poor condition
- Vacant homes in poor condition

 

## In which markets does OfferMarket operate?

 

OfferMarket is available nationwide. You can create a free listing for properties anywhere in the United States and leverage our Co-Pilot guided selling experience.

 

Our Auto-Pilot managed service is available in all major metro markets, here are the markets where our network of verified buyers is most active:

 

- Baltimore County (Dundalk, Rosedale, Essex, Middle River, Towson, Parkville)
- Baltimore City (Parkside, Fells Point, Federal Hill, Locust Point)
- Harford County (Edgewood)
- Anne Arundel County (Glen Burnie, Brooklyn Park, Linthicum Heights)
- Howard County (Columbia, Ellicott City)
- Prince Georges County (Laurel)
- Gwinnett County (Norcross)
- DeKalb County (Decatur)
- Atlanta
- Indianapolis (Avon, IN)
- Columbia, SC
- Jacksonville, FL
- Tampa, FL
- St. Petersburg, FL
- Bradenton, FL
- Sarasota, FL
- Charlotte, NC
- Raleigh, NC
- Durham, NC
- Denver, CO
- Phoenix, AZ
- Tucson, AZ

You have options when you sell your house. Compare the options to see which is best for you: On-Market, Off-Market, OfferMarket

Ways To Sell Your House Baltimore County Dundalk Essex Parkville

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Ways To Sell Your House - OfferMarket Blog

Ways To Sell Your House

Grow your real estate investing business with the most competitive and transparent private lender for bridge loans (hard money, fix & flip, rehab, ground up construction), DSCR rental loans.

Private Lender for DSCR Loans and Fix & Flip Loans | OfferMarket

Private Lender for DSCR Loans and Fix & Flip Loans

If you are thinking of [buying land](https://www.landhub.com/land-news/benefits-buying-land-southern-exposure/) and building a home on it, you want to think about what direction the home is facing. There are pros and cons to having the entrance face south as opposed to other directions. Read on to learn more. 

 

## It’s All About the Location

 

Houses that get southern exposure get more sunlight on it over the course of the day. That can help a lot when you are in a state that gets a lot of snow. By having the sunlight on it, that snow has a much better chance of melting rather than one that is facing north and has a lot more shade. 

 

## Pros 

 

If you love the sunlight, then this is the direction that you want the house to be facing. That also includes a garden, since the things that you plant there will benefit from this and will likely grow. The natural light will brighten your house for much of the day, so that reduces the need for electric lights until night time. 

 

Your energy bills will likely be lower during the winter, since the light that you get will keep your place warm. That can save you from extensive heating costs and you home will also be nice and cozy. Your driveway will be warmer and melt the snow much more quickly. 

 

If you wind up selling your place, potential buyers may want to pay more for it due to the southern-facing entrance and garden. That way, you can get a lot more from your investment. 

 

## Cons

 

On the other hand, your bills will likely balance out in the summer when you have to cool the house down during those really hot days. A north facing house might be better if you are in a state that does not have seasons. You could offset that [by getting sunscreens](https://www.wcmanet.org/best-heat-control-window-film/) to put on the windows to mitigate the heat. 

 

As mentioned before, the property may also be more expensive, so you might have to shell out some money initially. If you really want to get it, then you should follow your gut, though, since the pros mostly outweigh the cons. 

 

Do your research beforehand and be sure to talk with knowledgeable people. Then you can make the most informed decision and get your southern exposed land with confidence. Then you can enjoy your new property.

Location, location, location is the most famous mantra of real estate. This article dives deeper to figure out what is valuable and important to consider when buying a property with Southern exposure.

What Are the Benefits of Investing in Southern Exposed Land

It’s All About the Location

Pros

Cons