My First BRRRR - Any Advice?

[Tyler Watson]

I am interested in doing my first BRRRR. Here in Utah the market is priced pretty high. I would love to do one in a lower priced market in the Midwest but don't want to deal with coordinating with contractors for rehab, flying out to look at properties, etc, so far away. I realize there are probably still deals you can get here I just don't know where to go to find them. So a few questions:

1) What are your opinions as far as doing it here or in another location out of state?

2) Does anyone know where I could find good wholesale deals in Utah?

3) Any other info you think would be helpful when doing this for the first time?

[Chad Duncan]

Housing is not overpriced. This is near how real estate has performed for a long time. The years between 2010 to 2018 was a one time thing (hopefully), and as such created a huge opportunity for those that could seize it. That isn’t the norm anymore, and the rules of thumb that were built in this environment are outdated at best, and misleading at worst.

If you’re new to investing, stick to where you are as the chances of you making a bad deal out of state are really high. In most circumstances, places that are cheaper, also don’t appreciate as much. The chances of you knowing your market better than one in a different state is going to be a competitive advantage. Remember, you are competing with other investors for good deals, and why would you tie one hand behind your back and look at places you don’t even live in?

[Marc Rice]

1) What are your opinions as far as doing it here or in another location out of state?

You can invest in BRRRRs in most markets. You'll need a strong contracting/sub team to really be successful at it though so be careful. The perks of doing it locally is that you can be on site as needed and make sure its all going smoothly. The perks of doing it out of state is that you'll be able to outsource it and not be continually distracted by visiting the property, but there is more risk here.

2) Does anyone know where I could find good wholesale deals in Utah?

Find a good investor friendly agent.

3) Any other info you think would be helpful when doing this for the first time?

You should read the BRRRR book by David Greene.

[Noah Chappell]

@Tyler Watson welcome. 

I would definitely do your first BRRRR in your local market, maybe 30-45min outside of the city or in a C area. I think without any hands on experience the risk of investing out of state just far outweighs the benefit.. remember has has been stated you'd be competing from a distance with expert local investors which would be tough to do.

For wholesaler, I'd join every local meetup, FB group and go through the listings on FB marketplace and CL daily. Reach out to every wholesaler you can find and get on their mailing lists. Have conversations with them and communicate clear criteria. Let them know you're ready to go with a hard money lender you've spoken to, and get an inspector to be ready to walk any prospective property with you (since wholesalers won't allow inspections.) If you do that I guarantee within 3-6mon you'll have something under contract. 

For other advice, start with something small and safe - maybe a 1200sq ft 2/1 in a C area. Just prove the concept. 

Good luck! 

[Tyler Watson]

@Chad Duncan

Thanks for the advice!

[Tyler Watson]

@Marc Rice

Great thoughts! Thank you!

[Tyler Watson]

@Noah Chappell

This is good stuff! Thank you! I really appreciate the help!