Hey BiggerPockets, I have been debating back and forth of whether I should BRRRR myself or if I should be a Cash Provider?
I have seen posts of people saying it is some what difficult to BRRRR successfully if you are busy all the time and looking to invest out of state.
Would it make more sense to become a cash provider if I work a full time job, have a good amount of cash saved up and have an excellent credit score with minimal debt?
I personally do not recommend renovating from afar if you also have a 9-5. It is extremely difficult and risky. You definitely would want to go to the property and meet the contractor and also have someone else managing it for you with boots on the ground. While it can be done and many do it, it’s not easy, stressful and risky. If you have the cash to be a private lender I would do that all day long.
Just my 2 cents and opinions will vary of course based on individual needs and experience
You can do both but I agree with @Chris Seveney it can be stressful. You’ll need a great contractor you can trust. You’ll still need to keep on top of things to insure your on budget and the quality of work is acceptable to you. I have done both of these. Private lending is totally passive, buy you still need to analyze the deal to make sure it works. I have been a private lender as well. Analyze and protect your interest. Your investing in your investor as much as the investment. It requires trust.
Attend REIA meetings and meetups to meet people. You can find them on BP as well, but you'll need to vet them. You'll need to build a relationship with people to feel you have a trustworthy individual. It also depends on if your looking at doing short term lending or long term. SFH for flips or BRRRR projects are short term. Investing in syndications is long term up to 5 years typically.
@Kenneth Garrett Understood! Thanks for your help!
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