BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated about 1 month ago, 11/09/2024
BRRR Strategy - 1st Time Buyer
Hi Everyone,
I've been saving up and now have over $150k in liquid funds. I'm looking to get into the BRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy but want to build a strong team and could use some guidance. Any tips or advice would be greatly appreciated!
William,
The best thing I did was drive around the area I was looking to invest and started talking with contractors. I exchanged information with them and would stop by their projects for the next month to see their progress. Speak to their references. Then, find 3-5 contractors to bid on your work, assuming you have a project to work on. This is exactly what I did and it worked out very well for me.
@William Pichardo - I agree with Thomas's points. I would focus on your contractors and agents at this point. Go to meetups, REIA meetings, etc... to find recommendations for contractors. You'll want to talk to them, see their work, and get a gauge for how much they cost. At the same time, I would speak/interview 3-5 agents and explain what you're looking for in your properties to see if they can keep an eye out for your ideal project. It's a numbers game for certain so the more you see the quicker you'll be able to identify a good deal. Just for your own sake I would pick just a few zip codes to focus in on first and committ to reviewing/analyzing 50-75 properties on those zip codes. Good Luck!
Happy to connect as I am an accountant right down the road! I applied this strategy a couple years ago so happy to provide guidance of who I worked with and what seems to work/not.
#5 Investor Mindset Contributor
@William Pichardo I recommend finding a great agent. They don’t have to be an investor themselves (although if they are it might help) and really just need to be super attentive to your needs.
My realtor retired from Banking Management about 30 years ago. I’ve known him about 28 years so we connected when he was just starting out.
His typical sale is probably for about $1,000,000 which is way more than I typically pay for my investment properties. But he always takes the time to show me things I want to see and promptly sends me the expanded MLS listings when I find a property I'm interested in.
When you first start out you will likely be less sophisticated regarding deals that you will actually pursue so my best advice is to not become a tire kicker who looks at everything and then never closes deals.
As a potential repeat buyer you can provide great benefits to the right Realtor.
Your liquidity is a nice start, but also not a direct advantage while exploring the BRRRR strategy. When I've used hard money, I put down 20% of the purchase price. The way more challenging part is #1 finding the deal of course, #2 finding great contractors that would take on this type of project with payments to them working through installments, #3 finding great terms on your refi.
My advice would be to look aggressively for #2 and #3, so if you do come across the golden ticket of #1, you are ready to pounce. Also my advice would be to not think it's a loss if you don't pull out 100% of your funds on the refi. That is an extremely difficult accomplishment in the near-term.
Quote from @William Pichardo:
Hi Everyone,
I've been saving up and now have over $150k in liquid funds. I'm looking to get into the BRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy but want to build a strong team and could use some guidance. Any tips or advice would be greatly appreciated!
Hey,
Would love to connect with you William. What area are you investing?
Quote from @William Pichardo:
Hi Everyone,
I've been saving up and now have over $150k in liquid funds. I'm looking to get into the BRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy but want to build a strong team and could use some guidance. Any tips or advice would be greatly appreciated!
Hi William, we're right across the water in Brooklyn! We'd love to connect with you!
- Anderson S.
- [email protected]
- 1-917-830-7144
Hi William,
I am a mortgage lender in your area with United Mortgage Corp. I have helped finance some of these style loans. I am also a BRRRR strategy investor in Brooklyn NY. Heres a great video that help me throughout my process last year.
Best,
Jamael Romans
United Mortgage Corp Lender
Hi William,
Happy to help. Which locations were you looking at?