NEW investor, looking to get started "Turn Key" or "BRRRR"??

19 Replies

* Living in Colorado Springs were the market is red hot. We sold our first house made good equity and rolled it into another house and have built solid equity. Been digging into real estate investing through podcasts and books but I need to take action.  

Thinking of starting "Turn Key" out of state (maybe midwest), heard great things about Rent to Retirement also looking into Morris Invest. 

Thinking also about doing a BRRRR in state (if I can find a good deal) or in ATL. I have connections to contractors and property management in both states. Georgia seems to be heating up like Colorado was 4 years ago. This is my first post on here and hoping to find people who have been through the process. Thank you for your time! Im excited to dig in and get started. \

Originally posted by @Nicolas Bowers :

* Living in Colorado Springs were the market is red hot. We sold our first house made good equity and rolled it into another house and have built solid equity. Been digging into real estate investing through podcasts and books but I need to take action.  

Thinking of starting "Turn Key" out of state (maybe midwest), heard great things about Rent to Retirement also looking into Morris Invest. 

Thinking also about doing a BRRRR in state (if I can find a good deal) or in ATL. I have connections to contractors and property management in both states. Georgia seems to be heating up like Colorado was 4 years ago. This is my first post on here and hoping to find people who have been through the process. Thank you for your time! Im excited to dig in and get started. \

Hi Nicolas, I haven't heard of Rent to Retirement, I know of Morris invest, there are some threads about them that do not speak too kindly of them. I would look into that. Turn-key sounds nice, I wonder though if you were trying to be completely hands off, if investing in something like a syndication might suit you better, just something to think about.

Forrest Faulconer


@Nicolas Bowers

One thing you might want to explore is TK new builds in FL that have immediate equity you can likely refi the majority of capital back out to reinvest.  This is a slightly different take on the whole brrr model (Build, rent, refi, redo).  I think this is a great option to be able to get into a brand new build, in an A class area that has strong appreciation, cash flow & immediate equity.  We are doing a ton of these with our clients every month.  Feel free to reach out with any questions you have.

@Zach Lemaster  "One thing you might want to explore is TK new builds in FL that have immediate equity you can likely refi the majority of capital back out to reinvest." 

  1. Is this due to the builder selling for under market value and/or projected appreciation while you wait for the new build to complete? 
  2. If you are purchasing prior to project completion, how are the builders coping with any rising material costs?
  3. What kind of wait lists are you experiencing?

@Steve W.

See below, and feel free to reach out with any more questions.

  • Is this due to the builder selling for under market value and/or projected appreciation while you wait for the new build to complete? --Yes, both being sold below current market value, and of course the build appreciating more during the construction process in a market that has extreme housing demand.  I am referring to our new builds to answer these questions.
  • If you are purchasing prior to project completion, how are the builders coping with any rising material costs?  --Anticipated cost increases are already accounted for in the current pricing.  There is also a 10% escalation clause, but has not been executed yet on any builds.  That protects us on dramatic increases, but it would be unlikely that much would happen during a 4-6 month build time.

  • What kind of wait lists are you experiencing?
  • --No wait list.  First step is getting financing lined up, then choosing build model & lot location.
  • --Feel free to reach out with any further questions.

Both of these strategies work when done correctly. They do produce different results. The most important factor in deciding between the two is you. Does one fit your goals, skills, and assets better than the other?

Originally posted by @Zach Lemaster :

@Nicolas Bowers

One thing you might want to explore is TK new builds in FL that have immediate equity you can likely refi the majority of capital back out to reinvest.  This is a slightly different take on the whole brrr model (Build, rent, refi, redo).  I think this is a great option to be able to get into a brand new build, in an A class area that has strong appreciation, cash flow & immediate equity.  We are doing a ton of these with our clients every month.  Feel free to reach out with any questions you have.

Thank you for the info, Im hesitant with TK, I've always wanted to control business situations but I understand that isn't ideal with investing, especially when new. I love the idea of starting turn key, Refi'ing to invest in more properties throughout the process. I also want to learn as much as I can about real estate investing while I'm actively investing. What area of Fla are they in and is there a wait on the new builds? 

 

Originally posted by @Taylor L. :

Both of these strategies work when done correctly. They do produce different results. The most important factor in deciding between the two is you. Does one fit your goals, skills, and assets better than the other?

We have two year old twins and I'm self employed, so time is limited to say the least! My idea is to start slow and build a portfolio until our kids go to school and I can be more hands on. 

 

@Nicolas Bowers

You asked about wait list originally, and there is no waitlist.  We build mainly in SW FL.  Feel free to reach out with any specific questions.  TK can be a great way to get started, especially in a market that you are not local to, or unfamiliar with.  The main point is to get started.  You have plenty of time to take on your own projects over time, but simply owning rental RE is one of the best things you can do to learn over time.  First hand knowledge!

Hey @Nicolas Bowers !

Welcome to BiggerPockets! You have hit the JACKPOT of resources for real estate investors. You can literally find answers to all of your questions within the confines of this site. What’s the best way to get started using BiggerPockets?

1.Subscribe to the BiggerPockets Money and Rookie Podcasts

2.Attend the FREE WEBINARS

3.Attend a Meetup in Your Area / virtual meet ups

4.Purchase the Beginner Books: How to Invest in Real Estate, Set for Life, The House Hacking Strategy

5.Peruse the forums! Ask questions! Answer Questions! If you are consistent with learning real estate over the next 4-6 months, you’ll be ready to purchase your first (or next) property in NO TIME!

Good luck,

dOriginally posted by @Chad Rocke :

Hey @Nicolas Bowers!

Welcome to BiggerPockets! You have hit the JACKPOT of resources for real estate investors. You can literally find answers to all of your questions within the confines of this site. What’s the best way to get started using BiggerPockets?

1.Subscribe to the BiggerPockets Money and Rookie Podcasts

2.Attend the FREE WEBINARS

3.Attend a Meetup in Your Area / virtual meet ups

4.Purchase the Beginner Books: How to Invest in Real Estate, Set for Life, The House Hacking Strategy

5.Peruse the forums! Ask questions! Answer Questions! If you are consistent with learning real estate over the next 4-6 months, you’ll be ready to purchase your first (or next) property in NO TIME!

Good luck,

Absolutely! obsessed with learning as much as I can. 

Read: Rich dad Poor Dad, Millionaire Fast lane, Bluefishing, David Greene's BRRRR

I frequent a ton of podcasts from BP, the amount of content is amazing and feedback on this forum is outstanding. 

Ill get those books and focus on meet ups next 

 

@Nicolas Bowers

I also forgot to mention that I personally own property in CO Springs, so I'm happy to answer any questions you have about investing in that area.  Numbers are tight though for sure, but likely strong appreciation for many years.  More affordable than Denver!

Originally posted by @Zach Lemaster :

@Nicolas Bowers

I also forgot to mention that I personally own property in CO Springs, so I'm happy to answer any questions you have about investing in that area.  Numbers are tight though for sure, but likely strong appreciation for many years.  More affordable than Denver!

I have a couple of friends who recently invested in the springs, wish I would have bought 5 properties 5 years ago here when we bought our first house! Always on the look out for multi family/duplex around here. Incredible the building they are doing around our area, its non stop!  

Originally posted by @Nicolas Bowers :

* Living in Colorado Springs were the market is red hot. We sold our first house made good equity and rolled it into another house and have built solid equity. Been digging into real estate investing through podcasts and books but I need to take action.  

Thinking of starting "Turn Key" out of state (maybe midwest), heard great things about Rent to Retirement also looking into Morris Invest. 

Thinking also about doing a BRRRR in state (if I can find a good deal) or in ATL. I have connections to contractors and property management in both states. Georgia seems to be heating up like Colorado was 4 years ago. This is my first post on here and hoping to find people who have been through the process. Thank you for your time! Im excited to dig in and get started. \

Nicolas, great to have you!

 

@Nicolas Bowers Even though Colorado Springs has gotten more expensive, our market data shows no signs of slowing down. The Front Range population is expected to double by 2050. Right now, we have less than 2 weeks of inventory.

Maybe you can get into other market for less, but will you experience the same appreciation as here in CO? Do you want more to be more hands-on with your investments? 5 years from now will you again be wishing you had purchased property here? Just some questions for you to consider as you begin the REI journey.

Here's another thought: Have you heard of NOMADing? You turn your current SFH into a rental when you buy a new home. For investors with families, it's a great way to take advantage of the low down payment, low interest rate, owner-occupied home loans.

To The COS agents and investors, in your opinion what's the likelihood of getting an off market BRRRR? Since the market is so hot and the inventory so low, from what I've heard so far it's pretty slim pickins'

Originally posted by @Chris Freeburg :

@Nicolas Bowers Even though Colorado Springs has gotten more expensive, our market data shows no signs of slowing down. The Front Range population is expected to double by 2050. Right now, we have less than 2 weeks of inventory.

Maybe you can get into other market for less, but will you experience the same appreciation as here in CO? Do you want more to be more hands-on with your investments? 5 years from now will you again be wishing you had purchased property here? Just some questions for you to consider as you begin the REI journey.

Here's another thought: Have you heard of NOMADing? You turn your current SFH into a rental when you buy a new home. For investors with families, it's a great way to take advantage of the low down payment, low interest rate, owner-occupied home loans.

I have not heard of NOMADing, I do enjoy the thought of renting our current SFH. The issue I have is paying such an inflated price for a new SFH in the springs. We are working with a cash out refi (potenially) that would limit our choices here. Moving a family of 4 sounds daunting BUT I do like the idea of it. I'm focusing on TK with the thought of building a portfolio out of state, I don't have a team in place so I like the idea of a well established company with the track record of Rent to Retirement. Hearing the growth numbers of the springs and Colorado is incredible though. We have military, a desirable place to live and great schools. What a recipe for growth!

 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you