I looked at their website after seeing one of their billboards and they have like 100+ locations listed. They must be making bank but what exactly is their business model?
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Super easy actually. It’s called Wholesaleing.
Basically you find dilapidated properties, your offer on the property is the ARV (after repair value) minus cost of repairs, minus assignment fees.
So you get the current owner to sign a contract to sell you the home with 60 day close (or however you set it up).
Then you take your contract and market it to contractors and people who buy houses fix then and sell/rent them.
So let’s say I find a house with 200k ARV it needs a roof, new flooring, some drywall work. The repair cost is 50k (example). I’d offer to buy the house for 120k
Then market it to contractor for 130k.
They agree then I assign my contract to the new buyer. Meet at a closing agent and close both deals. Walk away with 10k
Edit: obviously this is a very simplified outline. Takes 100s of leads to find one willing to sell for a profitable amount.
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