Can a new investor BRRRR for their first property?

Question

Hey, team!

I'm a new investor and excited to get started in real estate! I just finished David Greene's book on the BRRRR method, and want to use this method on my path to financial freedom. I am currently an active duty service member stationed in the DC area, which has caused me to look at the areas around and in Virginia Beach to invest in. As far as I can see, this has some distinct challenges that I need help overcoming:

1) Investing in a market that is a 3 hour drive from where I live

2) Networking and building a good team at a distance

3) Identifying good deals remotely

4) Securing funding

5) Doing all of this with no experience in real estate and a lot of lessons to learn(Of note, I have already read Long Distance Investing by David)

I'm looking for any advice, recommendations, contacts, or lessons learned from those who have gone before me, particularly those in the VB area.

Thanks in advance for any help and time you can give me!

Erick Pinzon · Answer

VB local here. MLS is crazy hot down here. Everything is under contract with above asking price offers within 12 hours. I can recommend a great real estate agent we have used and an awesome loan officer if you need one. Don't have any referrals other than that. I lived in Rockville and owned two SFH's and turning them over was the worst. Having a good handyman was key and saved a few trips. Can use a property manager if the numbers allow it and you find a good one. Happy to chat more. Good luck!

Austin Dickey · Answer

@Tom S.

I’m glad it can be done! Looks like it’ll take some creativity and hustle to make up for lack of capital, but that just jives with everything I’ve read so far. Thanks!

Tom S. · Answer

@Austin Dickey Welcome to BP and thank you for your service!

One of my first BRRRR deals was an owner financed deal for $80k, 10% down. So $8800 out of pocket including closing costs. I rehabbed it for $50k, using a combination of friends money, credit cards, and having the contractors waiting for the final payment (some were high school buddies that knew me and wanted the work).

It appraised at $185k after rehab, I refinanced through a standard bank and paid off the seller, the rehab costs, and got back my original $8800 plus about another $20k, which I then used for the next place.

So it can be done. Good luck!

- Tom

Can a new investor BRRRR for their first property?

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