New to BRRRR Strategy!

[Jose Vasquez Dickson]

Hello everyone! I am new to this great community and a new real estate investor and wholesaler that started around 3 months ago. I've been studying the BRRRR strategy for some time now and I want to take action soon to complete my goal to get my first property by this year.

I've been looking around for HML to further understand their terms and procedure and I am planning on meeting with them and I've talked on the phone with others. Do you know any do's and dont's for a new investor like me?

Please let me know if you need any more information from me, if needed.

[Andrew Postell]

@Jose Vasquez Dickson yeah, if you found a deal today....what would you need? You would need a way to BUY the property...so maybe a HML. Then you would need a way to REHAB the property....so a contractor. But how do you even know what your offer should be?

Generally speaking you will need several things to successfully complete a BRRRR:

1. ARV - being able to calculate the Value on your own (meaning, without the wholesaler telling you the value) is really important.
2. Repairs - You will likely need to know how to budget the repairs as well. Getting a contractor can be extremely frustrating especially if you need to make an offer without even looking at the property. How do you calculate repairs without a contractor? You may need to lean on other local real estate investors in the beginning. Or maybe even just focus on properties with a very light rehab?
3. Lenders - You will need a lender on your BUY step and on your REFINANCE step. And I would HIGHLY recommend to read this article I wrote for Bigger Pockets on how to find good lenders that you can find HERE. If they are good, they should be absolutely definitive on rate, terms, costs, etc. Trust me, many lenders will tell you they can do this...but it's very rare to find. When I first started BRRRR'ing my properties lenders would tell me "That's illegal"....it's not, they just didn't know anything about it.
4. Finding Properties - and this is the absolute hardest step of anything right now. So network like crazy and find some good resources. It's going to be hard...but if it were easy then anyone could do it.