Finding BRRRR Deals

[Mark Tomaszewski]

BRRRR investors: curious to hear how you guys are finding deals and in this market. We are looking in the Chicagoland area and working with a great realtor but can't find any properties on the MLS that give us the returns we need. We've talked to some wholesalers as well but that hasn't produced anything either. For anyone willing to share - I would love to hear some of the creative methods that have worked for you. TIA!

[Deneuve Brutus]

I had that problem as well. I started by crafting my criteria "MFR under 12 units that cash-flows at least $150/unit that I can purchase, add value, refinance, repeat within a 15 mile radius of where I lived" only to find my market didn't support the criteria. So, I shifted to providing owner-finance SFR bump the cash-flow to $300+ because the goal is cash-flow in markets out of my area/state so I can sleep well at night and ensure my team members are well compensated for their efforts. I also focus on providing affordable homes to low-income families which is a business model that has already been proven to work.

You can have the information free, here are somethings I've done:

Join a REIA meetup -> build relationships -> ask the organizer and members for wholesaler recommendations.

Post on BP asking for wholesaler recommendations

Get creative: Find a two story rambler with a walk-out basement, rent each floor to two tenants, making sure you are not in violation of city code. I.E, ceiling height for the basement, windows for emergency exits, parking etc.

Monitor posts when individuals ask for recommendations provide value

Join FB REI groups in your state, county, city whichever is available -> ask for wholesaler recommendations

Keep an eye on the BP marketplace see who is wholesaling in your area, if there aren't any, contact the ones who post most consistently ask if they know someone who knows someone in your area.

Check out your county's/city's cash-buyers list, -> build a relationship -> ask for wholesaler recommendations (and possibly money)

Contact active RE Agents/Property Managers in your area -> build a relationship -> ask for recommendations

There are YouTube channels about REI DM/post comments -> ask for recommendations

Create FB ads " I buy ugly homes in XXX area"

Get comfortable with the idea you may have to invest out of your area/state.

Hound the auction webpages to the individual cities/counties your interested in (not the well known auction sites)

Read publications about legacy cities with high vacancy/home abandoned rates due to industrial HQ moves or what I call industrial to IT changes or the 2008 Housing Crisis ( Baltimore, MD. Eerie, PA. Philadelphia, PA. Detroit, MI. Cleveland, OH. ) a great read is
The Empty House Next Door: Understanding and Reducing Vacancy and Hypervacancy in the United States by Lincoln Institute of Land Policy. Not only are some of these cities offering investors tax credits and other community development incentives. There are ample supply for rehabs. You should surely find wholesalers and off-market homes there. As with everything, due diligence!

My next step is to find reputable lenders, they are out there just like the homes ready to BRRRR.

Good luck, let me know if you have any questions.