Current market scares when assessing a BRRRR

[Cody N.]

What is BP's take on the current market for BRRRR?? I haven't read too much into the current media but I've seen mentions on signs of a crash. Also some states are seeing signs of real estate depreciation (from what I've read). Yes markets are volitile throughout the US but, does anyone see the BRRRR strategy being effected? Or have doubts that their rehab will yield current market value since some media claim "the housing market is going to crash". Yes I am a beginner investor so I cannot read the market like most. That's why I am creating this post. I seek knowledge! I reside in (a few miles east) of Houston, Texas. All opinions are welcome especially in different areas of the US.

[Luciano A.]

I have heard many people keep saying that the market is too hot to find deals. And the market will crash soon and once it does that is when they will get in and start buying. Like @Cody L. said... back when houses/multi were cheap it took effort to get a bank to lend. Now it is easy to get money if you have a really good deal. Too many investors sitting on sidelines waiting. I have no crystal ball but I know how to look at numbers and buy good deals. BRRRR only works with good deals. If market gets correction the only people who can get loans and get deals will be those already in the market and connected with banks. Too many newbies think they will get in when the next crash hits. I can assure you when the news keeps reporting the sky is falling the newbies will be on the sideline wondering if they should get in now or wait a little longer.

I bought a property and 3 months later did BRRRR and got all my money out and some. Still producing positive cashflow. A newbie will more than likely not buy a property like the one I bought because it is scary. To think you can buy a house and slap some paint and carpet and call it a day to get all your money out is false. IN 2008-2013 you could buy great deals in safe areas like Katy, Cypress, Spring. Now you have to adventure to areas that once was not safe to see that active investors are in those markets (Fifth Ward, Sunnyside, East Houston) and making a killing while newbies still waiting for prices to come down in Katy.

If you are new and try doing BRRRR and only get 50-80% of your money out that is still good. We all have to realize investing means putting your money into a deal to make money. Once you get really good at it then you can do deals in which all your money is taken out.

The fairy tale to come in and be a newbie and have home run on first deal is just that...a fairy tale. 

Why are hedge fund managers making more than the average stock investor. Experience, knowledge and connection. Same plays out in Real Estate.