What is the best marketing strategy to find BRRRR deals
I am just starting out my journey as an investor, Used FHA to get my first house which was a triplex.
2 unit is paying my mortgage plus 400$ is cash flow every month. what I want to know is how do I go about finding deals what is the process?
I really love the idea of brrrr but I am having hard time just getting the ropes and starting, not sure if I should cold call or do bandit signs, or how to even find properties with a discount everyone I do call all wants top dollar for their house.
any information would be very appreciated and Thank you all in advance.
Hi @Ashek Elahi, the easiest method is to use wholesalers. They do the bandit signs and cold calling and all those things.
If you want to do those things to get a deeper discount, by all means, go for it. However, if your goal is simply to get started in BRRRRs, I would get on wholesalers' lists in your area.
@Ashek Elahi, how did you go about acquiring the house hack deal? Was the triplex listed on market? You're correct, with current market conditions, sourcing brrrr deals are difficult to come by since sellers know they can receive top dollar. Whatever marketing strategy you decide to implement in your business be consistent in that area. Too many stories are told of individuals giving up after a month of trying only to end up blaming external circumstances. Recognize the fact that it's going to take time to acquire a solid brrrr deal. I would look into a platform called PropStream to help you compile a list of properties to target or go about using a wholesaler as Andrew suggested. Hope this helps!
@Andrew Garcia I have reach out to a few wholesalers as well but the market being as is most of the comps doesn't make any sense with the price they ask for, no money to be made. Do you have any recommendation as to how to go about finding a good wholesaler(been using facebook wholesale page). Thank you in advance all advice is appreciated.
@Michael Dumler the triplex was off market, wholesaler from FB connected me and the seller which was his friend and we were able to make a deal come through.
I used PropStream awhile back however all the leads I generated via PropStream was all on the market (I am sure I might have pulled the wrong search) I am just searching for the best solution my goal is to acquire 8 unit per year and to do that I have to have a good wholesaler or have to figure out how to find leads on my own.
Also Thank you for taking the time out and replying, really appreciate it.
Quote from @Ashek Elahi:
@Andrew Garcia I have reach out to a few wholesalers as well but the market being as is most of the comps doesn't make any sense with the price they ask for, no money to be made. Do you have any recommendation as to how to go about finding a good wholesaler(been using facebook wholesale page). Thank you in advance all advice is appreciated.
@Ashek Elahi yes. You can go into the Bigger Pockets wholesalers forum and type in your city. You should be able to connect with a lot of them there. You can also talk to other fix and flippers and BRRRRers in your market to ask who they use. You can also go into Facebook and type in "real estate wholesaling" then type in your city and state and a bunch will pop up. Then, just search the group to connect. Hope this helps!
Quote from @Andrew Garcia:
Quote from @Ashek Elahi:
@Andrew Garcia I have reach out to a few wholesalers as well but the market being as is most of the comps doesn't make any sense with the price they ask for, no money to be made. Do you have any recommendation as to how to go about finding a good wholesaler(been using facebook wholesale page). Thank you in advance all advice is appreciated.@Ashek Elahi yes. You can go into the Bigger Pockets wholesalers forum and type in your city. You should be able to connect with a lot of them there. You can also talk to other fix and flippers and BRRRRers in your market to ask who they use. You can also go into Facebook and type in "real estate wholesaling" then type in your city and state and a bunch will pop up. Then, just search the group to connect. Hope this helps!
@Andrew Garcia Thank you!
@Andrew Garciaundefined
Quote from @Andrew Garcia:
Hi @Ashek Elahi, the easiest method is to use wholesalers. They do the bandit signs and cold calling and all those things.
If you want to do those things to get a deeper discount, by all means, go for it. However, if your goal is simply to get started in BRRRRs, I would get on wholesalers' lists in your area.
Use those hard-working wholesalers to your benefit whenever possible. They already doing all the cold calling and leg work, and want your business. A win-win for all parties.
Sounds like you already found yourself a pretty good deal, just do that again!
I agree- wholesalers are a good source, though the quality of what you'll see will be mostly garbage, so it's important to have a really good handle on your market.
Don't dismiss the MLS, I know tons of people still making a killing with flips and BRRRR on the MLS, there are always deals to be had if you have your eyes open.
Good luck!
Good recommendation on using wholesalers, but please don't rule out the MLS and a good investor agent. I know the market is tough when trying to get something off the MLS. But there are ways of finding deals such as going after properties that have been on the market for more than 30 days. If a property doesn't take a deposit in less than 30 days, most likely it's overpriced. If the seller is motivated, and the listing agent as well, a reasonable lower offer may get the ball moving. Try it and good luck!
Cold calling and door knocking still work. All the big dogs still do it.
I'd recommend all of the above, at once! Get yourself setup with a good, flexible excel model (message me if you need assistance, or a starting place, I can send you mine!) that can be used to underwrite deals quickly using conservative numbers.
The more deals you see, you'll get a better understanding of what's available, and what is feasible in terms of an investment. So, get on all the wholesaler lists, connect with a solid investor-friendly agent in all the markets you're interested in, and search redfin, Zillow, foreclosure sites, and even local tax sales, and keep running the numbers.
I'm also new, and looking for my first property, but this has been effective for me in sourcing plenty of opportunities... now just time to execute (find a GC or CM)!
I like the idea of using the BRRRR strategy because it allows you to progress gradually. However, due to its riskiness, I wouldn't use it for a business that I run myself. At the initial stage, I would definitely attract someone who already has experience with BRRRR. I think such people understand the value of galls law in work. Perhaps such a move would be able to minimize the risk a little. When you have enough experience, you can do it yourself. But this is just my opinion because I'm a very careful investor :)
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Finding the deal is a true hustle. There are a million and one ways to go about it, I cold call, door knock, and network my butt off
Congrats on acquiring a cash flowing asset! I think it would be beneficial to connect with local realtors as well as wholesalers who will be a good source for locating off market distressed properties - talking with lenders and investors in your community is always helpful as well
Quote from @Andrew Garcia:
Hi @Ashek Elahi, the easiest method is to use wholesalers. They do the bandit signs and cold calling and all those things.
If you want to do those things to get a deeper discount, by all means, go for it. However, if your goal is simply to get started in BRRRRs, I would get on wholesalers' lists in your area.
Have you ever used a Wholeseller? Personally, I get contacted by Whole Sellers quite often and what they are trying to sell is not usually avwholesale price ….a lot of them are trying to sell trash properties for top dollar.
Quote from @Joe S.:
Quote from @Andrew Garcia:
Hi @Ashek Elahi, the easiest method is to use wholesalers. They do the bandit signs and cold calling and all those things.
If you want to do those things to get a deeper discount, by all means, go for it. However, if your goal is simply to get started in BRRRRs, I would get on wholesalers' lists in your area.Have you ever used a Wholeseller? Personally, I get contacted by Whole Sellers quite often and what they are trying to sell is not usually avwholesale price ….a lot of them are trying to sell trash properties for top dollar.
never hurts to make an offer that works for you, especially one with repair costs laid out..makes it tough to dispute