I'm a newbie investor that has not yet purchased any properties. I have been doing a lot of research, attending webinars to become more knowledgeable about the business. I recently completed our very own Brandon Turners Newbie Investor 4 video Blueprint. Video 2 asked viewers to decide on what they wished to do rather it's flips , rentals, wholesaling etc. I want to do both. However, the importance for someone such as myself is to choose one and master that area. Being as though I'm doing this on my own should I start with a small project by investing in a rental property to utilize the BRRRR method or should I go into flipping a home. I won't be using my own money for either. I will have to find private investors or hard money lenders for either deal/direction I go into (flip or BRRRR). Based on this information should I do flip or BRRRR?
Thanks in advance.
Hi Alicia J: I am a newbie too, I have yet to buy my first property. I just got done reading David Greene's book, "BRRRR," and I am sold on Brrrring over flipping. I think flipping would be good if you want to make money quickly, but then there are the selling costs that come with flipping.
@Alicia Jeffery I have nothing to gain and my integrity to lose my by giving you bad advice here. If you have never renovated a house, then I don't recommend a fix and flip for your first purchase. Although you would get a very good education by doing so, it could be a costly lesson. If you had money, you could partner with someone with the right knowledge. If you had knowledge, you could partner with someone with money. If you had money and knowledge, you wouldn't need a partner. Go out and get at least one of the two. In the meantime, learn your market. Know how to determine value. What is a good ROI for your area? How much do homes rent for in certain areas? Do you know any contractors and if their estimates are high, low, or average. Would you know a good deal if you saw it? Never stop learning.
Thanks @Anthony Dooley . I’ve been becoming more knowledgeable about rentals by listening to BiggerPockets and watching firsthand from my close friend who has a couple of properties. I already know contractors and have helped them renovate certain parts of homes for Rehab. I think with my knowledge and access to people in the industry such as my close friend I can partner with someone on a flip who provides the cash to get the deal.
@Ruth P. Glad to know i'm not alone. I'm just so unsure on which direction to go. I love doing rehab and plus I would like a nice size return for those who partner w/me. With BRRRR, like Brandon always says "it's a oil pump that keeps producing over time".
A partner with knowledge sounds like a good idea too, but how to know if you can trust? I guess if they have lots of recommendations, right?