BRRRR: How do I gain confidence??

Question

I have read David Greene's book on the BRRRR strategy, listened to numerous podcasts about it, but I seem to still lack the confidence to actually do it. Any thoughts on how to overcome this hump?

Kevin Hunter · Answer

@Caleb LaBelle, set a goal date to get it done.  Write it down, put it somewhere in your house that you look at regularly, and then post it here on BP.  There are literally thousands of people that will harass you until you get moving......  Good luck!

Brady Potts · Answer

@Caleb LaBelle I'm currently BRRRing 3 units, one out of state and 2 in my local area. I was in your shoes about 6 months ago. Feel free to reach out and I would be happy to share my experience.

Brian G. · Answer

@Caleb LaBelle there are only a few things I can think of that help with confidence: 1) Education 2) Mentorship 3) A Great Team 4) Just Do It

If I’m you, I would EITHER call 5-10 investors on BP who are currently doing the BRRRR strategy successfully and ask for their advice in a phone interview type of exchange OR find a local investor doing exactly what you hope to do (this would be best). A mentor can greatly mitigate risk and speed up the learning curve. I had plenty of education, a mentor, a great team AND the first time we did a deal (Vacation Rental) it was still scary. The first time is the hardest but the best way to learn ultimately is by doing. Good luck!

Caleb LaBelle · Answer

Love this @Kevin Hunter I appreciate the great advice!!!Thanks @Brian Gerlach. I love the practicality with this! I will definitely take this all into account :)

Caleb LaBelle · Answer

Wow! Thanks everyone for all the great advice and support :) I am definitely excited to start taking some more action!

Tommy Daggett · Answer

@Caleb LaBelle Hey, something that may help you, it may seem simple, but try and reflect on "WHY" you started your journey into RE in the first place. What motivated you enough to get you to this point?

I'm looking forward to being in your position soon where i can purchase my first property.

good luck.

Michael Noto · Answer

Part of you not being confident might have to do with how the BRRRR strategy translates to your local market. Are you clear on that? The best way to get familiar is to start driving streets and areas where you have identified you want to own and take things from there. If you are planning on doing this remotely a team with a a lot of experience and a stellar track record is a must have.

Tucker Cummings · Answer

I was in the same boat when I got started. I had the education without the experience (which we could debate if that's even education in the first place) and I didn't feel confident enough to do a BRRRR deal because there are so many moving parts and people to manage in those deals.

I ended up just getting a deal off the MLS for my first deal, its not as great of returns as a BRRRR deal (still 35% CoCR) but it was the "JUST DO IT" piece that forced me to find a great agent and an amazing property manager (she just saved me $500 on a new water heater yesterday!). My property manager does all the contractor bidding for me, so I got the Core Four outlined in the book.

So while I didn't do a BRRRR on the first deal, I still got a great deal, got myself in the game, and gained the confidence to attack more complicated deals. That was December 2019, I'm now on my 3rd BRRRR deal.

Just my two cents. Hope this helps!

Aaron W. · Answer

@Caleb LaBelle That's great you read the BRRRR book!

I know how you are feeling with the hesitation to jump in. This is certainly a normal response when jumping into something new.

What do you feel the lack of confidence in? Is it the analysis, finding deals, etc.?

One thing to realize is education is a life-long process. You will always be learning something new from every deal you make to every deal you analyze to every person you talk to. Some of the best education comes from actually doing.

When I did my first deal, it was not perfect. I know now I overpaid for the property and my due diligence process was not thorough enough. I learned a lot from that first deal which took me to my second, then my third, and so on. Through doing these deals, I have been able to refine my process. I am still constantly tweaking the process to make it better.

If you are not confident, then perhaps partnering with some more experienced can help. They don't have to be someone who has hundreds or thousands of properties, but someone who is just ahead than you in the journey. Sometimes they make the best mentor/partners as they know and remember where you are at right now and can relate better than someone who has done hundreds of deals.

When partnering, make sure you find someone with complementing skills from you. This will only enhance the partnership.

Lastly, know that whatever mistakes you will make that most of the time it is mitigated over time. This is the beauty of real estate investing. You don't get that with everything.

Good luck!

Matt J. · Answer

Analyze 3 deals a day so you start to build the confidence that the numbers make sense in your mind. Have conversations with other investors who've been doing the BRRRR method. Watch some YouTube videos detailing a BRRRR from start to finish.

Overall, spend time on it consistently and the confidence will come!

BRRRR: How do I gain confidence??

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