For Sale by Owner (FSBO)

For sale by owner describes a property the owner markets and sells without hiring a listing agent. FSBO sellers are a common off-market source for BRRRR investors, since the seller saves the commission and the buyer can negotiate directly on price, timing and condition.

Owners who sell themselves are often motivated by something other than top dollar: an inherited house, a move, or a property they do not want to repair. That flexibility can produce the purchase price the math needs. The classic 70% rule on the default deal allows a maximum offer of $290,000 on a $500,000 after-repair value with $60,000 of work.

Without agents, the buyer carries more of the paperwork. A title company or real estate attorney should handle the contract, earnest money and closing so the deed, payoff of any existing loan and prorations are done correctly.

Further reading: For Sale by Owner (FSBO) on Wikipedia.