Investor · Atlanta, GA · Member since 2020 · 253 posts · 240 votes
Anyone out there have experience on doing long distance BRRRR's? I'm curious how you guys are managing the rehab portion of this. Currently weighing my options around doing a long distance brrrr or investing in a turnkey property. It seems like I can get a better return with BRRRR and also quickly scale, but it also seems to be a huge headache. Are you guys simply getting a general contractor and having your property managers look over the rehab?
@Duane Alexander I've done over 30 BRRRRs at a distance. My preferred method is using Property Management to manage the rehab. My second preference is using a GC or investor savvy realtor.
The way I have done it is either through an agent, property manager, friend, or GC. You have to make sure they are trustworthy, and vet them properly. I ask for pictures , documentation, receipts, etc. It can be scary but like I said, if you vet them and they have referrals with good history, you should be fine.
@Duane Alexander I've done over 30 BRRRRs at a distance. My preferred method is using Property Management to manage the rehab. My second preference is using a GC or investor savvy realtor.
@Duane Alexander I've done over 30 BRRRRs at a distance. My preferred method is using Property Management to manage the rehab. My second preference is using a GC or investor savvy realtor.
What kind of fee are property managers charging to do something like that? One company quoted me 10% of the overall project. Is that the norm? Have you had any issues with this approach or has it been pretty smooth sailing? Also, how are you finding deals that are 70% of market value from a long distance? That's another piece of the puzzle that I'm worried about.
I did one in Atlanta and vetted them myself and found good contractor. Broke down scope of work in 4 installments so i never sent him too much money at once. He sent almost daily pics or videos. It worked out so def doing it again
As others have suggested, you just need to find yourself a killer PM or REALTOR®. You can definitely have a more hands on approach and vet each contractor and try to manage them from afar but unless you luck out and find an incredible GC, who is not very busy, this will be quite tough.
A good REALTOR®, who is not super busy, would be your best bet because they're hungry for deals and being promised both the buy and sale side would be huge for them. Make sure they are familiar with the process though so you do not have to completely hold their hand every step of the way.
If you're looking to do this in Atlanta, please feel free to reach out. Our team regularly works with OOS investors throughout the flip/BRRRR process so we'd be happy to help in any way we can.
@Duane Alexander 10% on $30K rehab is $3K. If you put this in as a line item on your budget, and the numbers still work, it's a cost to pay an "employee" to do the work. I'd do that every day, all day, as it creates leverage for me to do multiple projects at a time. I've seen fees be flat fees of $2K up to $6K and a range of percentages. Ask tons of questions about their team and how they manage the team and pictures of the end product. As far as finding a deal below market, you will need to get well under 70% ARV to find something that you can get all of your money out. Here is a guide. Focus on the more hands on ways of finding deals.