Have you had success using the BRRRR method in Utah recently?
I've listened to a lot of BP podcasts and they constantly say that deals can be found in every market. I don't doubt it, but I know that home values here are going up rapidly and prices are sky high for even "starter homes". After hearing about a few different investing strategies, I think I'd like to pursue the BRRRR method. My question is, have any of you found much success here in Utah using this method and if so, what areas have you found with homes that you can add value to?
I think you can find them anywhere you just have to watch closely, be patient and make a great deal. I have done 2 BRRRR in the last 2 years here in the Salt Lake valley. One in west valley and one in Kearns. Working on another in millcreek right now. Have a client that is in the process of rezoning his 2 homes on one lot in Murray to duplex and will pull money from it as well
@Cherie Orellana Thanks for your response. Did you find them on the MLS or through a relationship? And if you don't mind me asking, who did you use to refinance them?
I found them on the MLS.
My favorite lender of all time is Paul Margetts. He is very creative and has relationships with bankers, private portfolio lenders, hard money refferals. If he can’t make something happen he knows someone who can.
@Cherie Orellana
Who is Paul with?
Contact info?
I have done a few BRRRR properties in the Midvale/Murray/Cottonwood Heights areas. They are certainly harder to find right now than they have been in the past, but they are out there. However, it is like flipping houses. If you think we are headed toward a recession, you need to buy right and time it right. It may be harder to get your refinance value upon completion of the rehab if the economy is soft.
As far as who to use, I LOVE using Wesley Barlow for my mortgage loans. He is with Bank of Utah. He both really understand the real estate investment realm. You will have the highest success with the BRRRR if you have held the property for 6 months or longer. Before the 6 month mark the lenders almost all go off of the purchase price of the property. After the 6 month mark, they almost all flip to the appraised value of the property. Knowing that time frame requirement may help you to make more efficient business cash flow projections.
Also, if you can be creative to find a solution for people, you can often find great values that are not on the market. I have purchased homes from people in financial distress at good prices by helping the people to find another place to live at a price that works for them. I have had much more success with that strategy than I have with properties on the MLS. However, if you find the great realtors, they will sometimes have good pocket deals.
Good luck
@Beckie Reynosa Thanks for your insight. I'm not trying to pretend I know how to time anything but seeing all the economic growth that Utah is experiencing it seems unlikely that the upward trend is going to stop anytime soon so I don't think it wise to sit on the sidelines until it does. And thank you for your referral. I will look into that as an option.
@David Fairall
100% agree on NOT sitting on the sidelines! I bought my last house at the end of 2016 and was sure I bought at the top of the market, but three years later and it is up 40% and now (obviously) I wish I would have just done SOMETHING. The BRRR method or a long-term seller financing deal is about the only long-term strategy I personally feel comfortable with in SLC right now though.
Good luck!
I did 3 BRRRs last year. Figuring out the right team to have for purchase financing, the deal, repairs and refi-financing is the key. It's also about being patient. I see too many folks with "deal-itis".