New investor in KCMO introduction

[Stefan D.]

Hey Kansas City,  

I'm a remote investor looking to enter Kansas City and start doing some BRRRR's! If you're a contractor, real estate agent or are doing something similar, I'd love to connect.

I'm looking at Raytown and Independence right now, ARV's of around 90k to 120k.

Looking forward to working with / chatting with you all!

Stefan

[Mike D'Arrigo]

@Stefan D. If my comments didn't seem to be constructive it's because they were directed towards @Nicholas Parish who I was agreeing with that it is a challenge. I wasn't directing it toward you. I wish I could offer you more encouragement and advice but the Kansas City market is extremely competitive right now making it very difficult for an out of state investor yo use the BRRRR strategy. Inventory is down 13% and prices are up 7%. The challenges you will have are that good properties sell so fast that not being local and not knowing the areas well enough, it will be difficult to evaluate a deal before it is sold. You won't find deals on the MLS. You'll need a network of wholesalers and agents to bring you off market deals. The problem with that is that those deals sell literally within 30 minutes sometimes. You have to be able to immediately recognize a good deal and be ready to make an offer. Most out of state investors can't do that. Buying right and knowing values is key to making BRRRR work. How will you quickly know what the ARV is? How will you quickly estimate your rehab costs? Get either of these two things wrong and there goes your equity which means you can't refinance out of it. Experienced turn key companies that know their markets and can control their costs lose money on some deals. With higher acquisition costs, there is very little margin for error. If you're going to make it work, you'll need experienced boots on the ground that you can trust.