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BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated 12 days ago, 11/09/2024

User Stats

2
Posts
10
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William Pichardo
  • Bloomfield, NJ
10
Votes |
2
Posts

BRRR Strategy - 1st Time Buyer

William Pichardo
  • Bloomfield, NJ
Posted

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!

User Stats

62
Posts
33
Votes
Thomas Magill
Pro Member
  • Investor
  • Charlotte, NC
33
Votes |
62
Posts
Thomas Magill
Pro Member
  • Investor
  • Charlotte, NC
Replied

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. 

  • Thomas Magill
  • User Stats

    438
    Posts
    303
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    Greg Kasmer
    • Rental Property Investor
    • Philadelphia
    303
    Votes |
    438
    Posts
    Greg Kasmer
    • Rental Property Investor
    • Philadelphia
    Replied

    @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!

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    User Stats

    80
    Posts
    21
    Votes
    Ben Trageser
    Pro Member
    • Accountant
    • Montclair, NJ
    21
    Votes |
    80
    Posts
    Ben Trageser
    Pro Member
    • Accountant
    • Montclair, NJ
    Replied

    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. 

  • Ben Trageser
  • [email protected]
  • User Stats

    2,723
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    1,917
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    Alecia Loveless
    Pro Member
    1,917
    Votes |
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    Alecia Loveless
    Pro Member
    Replied

    @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.

  • Alecia Loveless
  • User Stats

    161
    Posts
    105
    Votes
    Jake Handler
    • Real Estate Agent
    • Morristown, NJ
    105
    Votes |
    161
    Posts
    Jake Handler
    • Real Estate Agent
    • Morristown, NJ
    Replied

    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.

    User Stats

    61
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    26
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    Logan Lambert
    Pro Member
    • Lender
    • Kingsville, MD
    26
    Votes |
    61
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    Logan Lambert
    Pro Member
    • Lender
    • Kingsville, MD
    Replied
    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?

  • Logan Lambert
  • [email protected]
  • 443-226-5365
  • User Stats

    176
    Posts
    45
    Votes
    Anderson S.
    Lender
    • Lender
    • Brooklyn, NY
    45
    Votes |
    176
    Posts
    Anderson S.
    Lender
    • Lender
    • Brooklyn, NY
    Replied
    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!

    business profile image
    Brooklyn Funding Group
    5.0 stars
    7 Reviews

    User Stats

    13
    Posts
    5
    Votes
    Jamel Romans
    • Lender
    • Woodbury, NY
    5
    Votes |
    13
    Posts
    Jamel Romans
    • Lender
    • Woodbury, NY
    Replied

    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

    User Stats

    4
    Posts
    3
    Votes
    Terrance Brewer
    • Real Estate Agent
    • NJ
    3
    Votes |
    4
    Posts
    Terrance Brewer
    • Real Estate Agent
    • NJ
    Replied

    Hi William, 

    Happy to help. Which locations were you looking at?