Getting Started BRRRR in Kansas City

2 Replies

Hey Everyone,

I'm looking for a little guidance on how to move forward. I'm an out-of-state investor in Kansas City and have spent a year being a landlord (10 doors total). My realtor found me solid cash-flow deals on multi-family properties and I'm at about an average of 10% ROI. So far I'm pretty satisfied, but people I know are recommending I pause and consider BRRRR for either larger ROI or even just buying/rehabbing/reselling (aka: flip) to generate another stream of income as I try to slowly get my foot out the door with my current day job.

Right now I'm entirely invested in my day job. My day job has allowed me to be a cash buyer and is the reason I have 10 doors in under a year, so I can't and don't want to forego my day job. This leads me to think I need a middleman? Someone to find the deals, do the rehabbing, and maybe take a cut of the profit as incentive? 

The realtor I normally use mentioned that he does rehabs (mostly for his own investments) and he's got a solid work ethic, knowledge of the area, and crew, but he only does a small handful per year. We've spoken about it at length, but I'm assuming this is the part where I grow my network and perhaps try to find enough people who can help me as my budget grows and perhaps my demand for business grows?

I don't exactly know who would be the right people to speak with, what the right incentive would be, and who to trust/stay away from. Should I try working with my Property Management company on this? 

If I could I would honestly try to do it all by myself, but I simply don't have the time as my business stays pretty busy throughout the year. 

@Rob Bianco There are a few “hybrid” turnkey providers in the KC area that will help you source deals, do the rehab, lease them, and manage them for you. We completed over 100 of these last year. Feel free to DM me and I’ll pass your information along to a few. 

@Rob Bianco that is a tall order. I replied on your other post but I am RE broker but primarily a flipper. We are on track to do 40 flips this year, this is the start of our third year.  

My personal opinion is that someone who has access to deal flow, the crews, knowledge, etc... would never accept a "cut of the profits." We have spent thousands and thousands of hours mastering this niche and lost thousands and thousands in mistakes.  What does that mean to you?  Look for someone newish/starting off. Maybe they have done four or five flips and have a good head on their shoulders and all doing this full time. They are going to make mistakes but you are in it together. (Money is easy to come by - so offer that plus your other skills and then be willing to accept a 40/60 or 50/50 split) 

You aren't doing enough volume to afford to pay someone to do what you are looking for full time and honestly that is too broad of a skill set for most people to have. 

Best of luck to you though! PM me if you have any follow up questions.