BRRR book done, what's next?

Question

Hello! I'm finishing the BRRR book by David Greene. It's fantastic! It made it clear to me that this is the strategy I want to follow. It's inspiring and it fired me up (as Brandon Turner would say). I can't wait to start putting David's advice to practice. However, I feel I still need to learn more.

Can anyone who's working with BRRR guide me into the next step?

Any other book you have read?

Do you recommend I start analyzing deals?

Any help is deeply appreciated.

Can anyone who's working with BRRR guide me into the next step?

Any other book you have read?

Do you recommend I start analyzing deals?

Any help is deeply appreciated.

Carolina Servigna · Answer

@Andrew Syrios Thanks, I will check it out.

Carolina Servigna · Answer

Thanks @Eric James. Yes, that's my plan, to start locally.

Eric James · Answer

Next step is putting into practice what you read. I strongly recommend you invest locally. Much less risky.

Account Closed · Answer

Next step is to scout out potential properties and get comps for what the property would be worth once completely renovated. Then the step after that is to find a lender who is proficient in BRRRR and have a real conversation with someone who can guide you on the proper next steps and costs/risk should you decide to make an offer on the property. Most lenders have two loan products which will be needed to accomplish the BRRRR method. The first loan is the "Purchase and Rehab" loan, and the second is the refinance loan which is called a "Long Term Rental" loan. Once you establish your lender and get terms in writing for the initial purchase and rehab loan, (most Hard Money lenders only require a few bits of information such as property address, purchase price, Rehab amount,  ARV, FICO, cash on hand and experience level), request a pre-approval letter and make your offer! Also, a great next step if/when your offer gets accepted is to open an LLC if you have not done so already. Most Hard Money Lenders won't allow title to be vested in someone's personal name. If your offer gets accepted, a good lender will work with you daily to make sure all of the needed items for your loan are in before the appraisal comes back. If you've done your homework, then the appraisal should also reflect the initial "ARV" you provided, or somewhere along that line. Then you're ready to close and get to work!!!!

I am always happy to connect and help answer any other questions you have. This can be intimidating at first, but also extremely rewarding. It's so important to establish a good "tribe" of professionals (cooperative components) that you will use for each transaction. Once you get good, it really is rinse and repeat! Hope this helped :)

Carolina Servigna · Answer

Account Closed I have some money saved, so I hope I don't need a lender for the Purchase and Rehab part, just for the Refinancing, but it's good to know that those two products exist. Thanks so much for the information. It is very helpful.

Nicholas L. · Answer

@Carolina Servigna cool.  Apartments are tough to BRRRR.  You get the best bang for your buck on SFHs - because of the potential to add square footage, make major improvements, add a bedroom, etc.  It's all about the appraised value after the rehab.  If it doesn't appraise significantly higher, it might still be a solid investment - it's just not a BRRRR.  =)

Carolina Servigna · Answer

Thank you, @Joshua Noth. I have a couple of realtors that I have lined up to talk to. I need to find a lender.

Carolina Servigna · Answer

@Nicholas L. I do have some cash saved that I will use for my first deal. Based on the prices in my market (South FL), I might need to start with something small, maybe an apartment. I own a house, where I live, so house hacking is not something I'm considering at this moment, but it's not completely out of the question. I just need to convince my husband.

Joshua Noth · Answer

Look to make an offer and get under contract.  Get in touch with a Realtor in the area you are interested in (local tends to be easier), as well as a lender.  Those two should be able to help further guide on the next steps, such as where to look, what to look for, etc.

Nicholas L. · Answer

@Carolina Servigna yes, you should start analyzing deals.  Do you have enough cash to buy a house in cash?  That's the best way to do it.  Other options are more expensive, and really require you to hit a home run on the appraisal when you refinance.  Run a few scenarios with different purchase types and you will see what I mean.

Can you house hack instead?  Or BRRRR a house hack?

BRRR book done, what's next?

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