Updated over 2 years ago on . Most recent reply
Getting into RE Investing and BRRRR
Good morning BP Family. I've recently begun my journey in RE investing and am building and doing an audit of my core four sooner than later. I found an RE agent in my desired location who was recommended to me by several trusted sources, this RE agent is also a property manager for residents across several cities within the state.
My agent also has their own contracting crew, when bringing this up at my first RE investing community gathering (just a couple of weeks ago), I was highly advised against having my agent also act as my GC (for lack of better terms) and to find a different contractor to do the work. The wiser and more experienced investors didn't necessarily mention it was a conflict of interest to have an agent, also act as a GC. Still, they were hinting more at the fact that executing a BRRRR deal (or any for that matter) way was more akin to financial ignorance and perhaps negligence on my part.
I'm hoping someone in the community could expound upon this potential risk for me and why it's a poor idea.
I appreciate any and all replies.
Thanks,
-Ryan
My agent also has their own contracting crew, when bringing this up at my first RE investing community gathering (just a couple of weeks ago), I was highly advised against having my agent also act as my GC (for lack of better terms) and to find a different contractor to do the work. The wiser and more experienced investors didn't necessarily mention it was a conflict of interest to have an agent, also act as a GC. Still, they were hinting more at the fact that executing a BRRRR deal (or any for that matter) way was more akin to financial ignorance and perhaps negligence on my part.
I'm hoping someone in the community could expound upon this potential risk for me and why it's a poor idea.
I appreciate any and all replies.
Thanks,
-Ryan