Can you BRRRR new construction or turnkey????

Question

hello BP,

I'm trying to build my rental portfolio but don't have the time, contractors or patience to go through the headache of a rehab or full construction. Is there anyway to do the BRRRR method by buying into a new construction or going through a turnkey company?

Scott M. · Answer

I am sure there are some examples of a builder who is in serious trouble and needs to get cash out ASAP and is looking to dump a new construction to solve their other financial issues. I have no doubt that exact scenario has existed before. Often, likey? No. The time you put into finding such a deal (I mean, since we are talking wild possibilities I suppose one could just fall into your lap too) would be better spent fixing up a home you bought under market value.

Some people win the lottery though, just know your odds are about the same.

Zachary Beach · Answer

@Kwame Knights yes it would work great if you are the turn key provider or the builder or if you wait 30 years for the property to appreciate to refi it.

Nathan Gesner · Answer

Very unlikely. BRRRR = Buy, Renovate, Rent, Refinance, and Repeat

Turnkey and new construction sell for market price so you can't "refinance" and cash out the gained equity unless your market explodes and property values increase dramatically in a short time.

You buy a fixer-upper below market value. When you renovate and rent it, the property gains value. That enables you to refinance and pull out the extra equity, which you can then use to purchase the next property.

James Wise · Answer

If they sold you the properties for drastically less than what they are worth, yes. However, why would they do that? I don't go around giving away money, do you?

Joe S. · Answer

If you find such an opportunity and can’t buy them all yourself let me know. 😊

Don’t announce to the world just let me know :-)

Can you BRRRR new construction or turnkey????

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