Saving the day with creative deals in any market

BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Saving the day with creative deals in any market

David Martoyan
New to Real Estate · Los Angeles, CA · Member since 2023 · 67 posts · 44 votes

Hey everyone,

In today’s market, it feels like making deals pencil out is tougher than ever. Rising interest rates, slim margins, and unexpected costs can kill a deal fast. But the one thing that you can control is your creativity and how far are you willing to go with risk .

I’m curious, what’s the most creative or unconventional strategy you've used to structure a BRRRR or Fix-and-Flip deal?

Examples could include:

  • Partnering with other investors to share risk.
  • Using seller financing or lease options.
  • Leveraging creative rehab techniques to save on costs.
  • Negotiating with contractors in a unique way to reduce expenses.
  • I’d love to hear any stories, tips, or approaches that helped you pull off a deal others might have instantly passed on. I am really inspired by people who a take something that 95% of other investors would pass on and make it work exclusively for them through sheer will and creativity even with bad market conditions.
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Ryan IrwinPro Member
Investor · Ankeny, IA · Member since 2022 · 158 posts · 129 votes
1y

Great question @David Martoyan.  One that I'm getting close (hopefully) to the end of, was a flip that was a public nuisance property with two lots on either side full of junk (like 10 dumpsters worth..)

There was great opportunity with the house, but we bought the other lots as well and cleaned them up (as no one would ever buy the house with those lots filled with junk).  The lots will be great to develop (either by us or another builder) and that's where the big payback will be on this project.  So we are doing a double flip with both the house and the land.  

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  • Ryan IrwinPro Member
    Investor · Ankeny, IA · Member since 2022 · 158 posts · 129 votes
    1y

    Great question @David Martoyan.  One that I'm getting close (hopefully) to the end of, was a flip that was a public nuisance property with two lots on either side full of junk (like 10 dumpsters worth..)

    There was great opportunity with the house, but we bought the other lots as well and cleaned them up (as no one would ever buy the house with those lots filled with junk).  The lots will be great to develop (either by us or another builder) and that's where the big payback will be on this project.  So we are doing a double flip with both the house and the land.  

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  • David Martoyan
    OP
    New to Real Estate · Los Angeles, CA · Member since 2023 · 67 posts · 44 votes
    1y

    @Ryan Irwin 

    Hey Ryan, That’s an impressive project, turning a nuisance property into a double flip is no small feat! Cleaning up the lots to unlock their development potential was a smart move. Are you planning to sell the lots as-is or take on the development yourself? Would love to hear more about your strategy for maximizing the payback! It’s great to see the creative approach that you took with those deals which seemed no good for a lot of investors keep up the great work! 

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  • Ryan IrwinPro Member
    Investor · Ankeny, IA · Member since 2022 · 158 posts · 129 votes
    1y

    Appreciate that @David Martoyan!  

    We're exploring both options.  At a minimum, having viable plans in place for development will make these lots more marketable and valuable to potential builders when we have conversations.  However, we also recognize the time value of money, so while it might pencil out to turn a profit, but we get an immediate payback versus a six to nine month holding time, it might make more sense to sell them both as bare land.  

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  • Jake BakerBusiness Member
    Flipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 694 votes
    1y

    @David Martoyan

    We still use the BRRRR strategy in Jacksonville, FL. It isn't easy to make things pencil, and I don't see it getting much better over the next 12 months.

    I have changed my rental strategy to Co-Living (rent by the room). I don't use padsplit (weekly rentals); I rent on long-term leases in B Class neighborhoods. This plays into the affordability issues for tenants by allowing them to live in nicer neighborhoods for less money, yet I get monthly revenue comparable to short-term rentals.

    [email protected]
    BookkeepingRE - Bookkeeping for Real Estate & Service-Based Businesses58 Reviews
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  • David Martoyan
    OP
    New to Real Estate · Los Angeles, CA · Member since 2023 · 67 posts · 44 votes
    1y

    Hey @Ryan Irwin 

    thanks for the reply, would love to know how this deal plays out in your local market. You are right about the risk that comes with the holding period but in my opinion sometimes you have to take the risk and make sure the profit that you generate is higher than the costs that you paid by holding the deal for a specific amount of time. Love to know what do you think. 

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  • David Martoyan
    OP
    New to Real Estate · Los Angeles, CA · Member since 2023 · 67 posts · 44 votes
    1y

     @Jake Baker Love that strategy by being to attract tenants with affordability and getting the stable monthly cash flow compared to weekly rentals which may have a higher profit but a much higher risk making them not really viable in today's market. 

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