How can I be useful to YOU? New BRRRR learner.

Question

Hey all, I read David Greene's BRRRR book and am really interested in implementing that strategy. I work full time in the film business in Los Angeles but my schedule is flexible. I own a very hands-off SFH rental in North Carolina. I also just bought my first primary residence (with rental ADU) in LA. That's where I'm at today. My goal is to continue using my career to finance my real estate portfolio. BRRRR seems to be the best bang-for-my-buck (if done right) since you can essentially recycle your capital over and over. I would like to do this investing outside of my state where houses cost less and laws are more landlord friendly.

So while I'm saving up cash for my first BRRRR I want to do anything to get ready for my first deal. I need to make valuable connections with professionals who can help me later. I will need that team in order to get anything done. I understand from my career experience that being useful to other people is the best way to get help for myself. It's also a good way to learn and see someone else's process up close.

So if anybody has ideas or advice for me, I am here to listen and learn and take action. If you were once in my shoes, what did you do to help PM's / investors / realtors / contractors / lenders to get on their radar? What moves did you make early on that set you up for success later?

Thanks!

-Drew in LA

Jeremy Horton · Answer

PMs - I use their services repeatedly if I like them

Investors - generally just talk strategy, deals etc. I have a few investor friends

Realtors - found most of them suck so I became a RE agent

Contractors - I pay them on time. repeatedly use them

Lenders - I repeatedly use their services

Look, I'm not begging to "take someone for coffee to pick their brain" - no one has time for that shit. Maybe build a genuine connection/friendship with someone and see where it goes from there. It needs to be authentic and real not forced. I've gotten to where I use a lot of the same people because they know my expectations, know I will come to them for work, and we catch up from time to time through working relationships.

Nate Sanow · Answer

“Most of them Suck so I became one”

Lmao I totally get that. Great quote.

Robert Reynolds · Answer

Like everyone else has said, just keep going. I would try and Brrrr single family residences in LA like you are doing. I’m also building an ADU at my house and could easily BRRRR my house when finished, I’m sure yours is similar.

Drew Valenti · Answer

Yeah it's not an easy goal to achieve I agree. What do you think is a more realistic budget for this type of method? Do you have any deals you've done that you can use as an example? Thanks!

Drew Valenti · Answer

Yes I like that idea of house-hacking every year. I am highly considering renting my primary residence out after a year or two. The dilemma I face with a 5% downpayment on future projects is that the mortgage would be high, and when it comes time to rent that thing a year later, it will not cover it's own cost (which is scary to me).

Nicholas L. · Answer

@Drew Valenti

It's going to be tough to BRRRR anywhere based on the budget you've outlined.  Yes, there are some markets in the midwest where it might be possible, but typically you're going to need a bigger rehab budget than that to double the value.  And on a purchase price of 50K all the fees associated are going to add up - closing costs on the buy, holding costs, financing costs, and then usually robust fees on the refi.

Nate Sanow · Answer

Man that’s exciting. Love the honesty with where you are at coupled with plans for action.

I really am a big believer in building relationships for their own sake. Eventually your reputation grows and referrals are sent to you that meet almost every need you have. I really believe in doing things that way especially in regards to the finding of contractors… make It a focus to find them via references from others.

And if you get time, add a profile picture here, and make a ton of connections here and on all social platforms.

Drew Valenti · Answer

Thanks Robert — my challenge with properly BRRRRing in LA is that the real estate is too expensive for me to buy cash! I’m trying to buy for like $50k, rehab for $25k, and hopefully refi at $100k (As a rough outline). Really hard to find anything in that price range near me in Los Angeles. Also I could be wrong but the competition seems fierce.

How can I be useful to YOU? New BRRRR learner.

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