Looking to BRRRR my first property

[Deane Leonard]

Hello everyone!

In 2023, my interest in real estate began to grow and led me to putting time aside to learn about the brrr method. Sitting here now in 2024, ready to take that first leap into real estate, I'm both excited and anxious moving forward.

My plan as of right now is to brrrr a property in Indiana using my own cash. I have the funds set aside and am now contacting agents in that area. Being completely honest, I believe I'm experiencing anxiety moving forward not necessarily because I'm afraid to mess up (I've accepted I'm going to screw up at some point), but because there seems to be so much I need to have prepared before I close a deal. I feel as though I know exactly what I want out of a deal but not sure where to take that first step.

Nonetheless, the emotions I'm experiencing almost ensures me that I'm moving in the right direction.

I would love to hear the communities experiences, stories, and advice.

Thanks,

Deane

[Andrew Postell]

@Deane Leonard investing out of state, first time investing, long distance rehab...there's a lot going on here.  Are you meeting with any other investors in your area to see how they are doing this?

[Hamp Lee III]

Welcome to BiggerPockets!

There will be risks in anything worth while, so continue to mitigate your risk by finding a simple property you can force appreciation (cosmetics). Run your numbers and reach out for help and support when needed.

You got this. I look forward to reading about your first successful project!

I wish you all the best.

[Gloria N Gear]

Hi Deane,

I just want to validate your hesitations and tell you that it is a good thing that you are not jumping into something that you are not prepared for.  Most of the time, fear is lack of information though.  I would be happy to help you build your team here in Indianapolis.  You just need people in the lending, insurance, property management, construction, and real estate to educate you in all of these areas so that you can make informed decisions.  Happy to have a conversation with you.

[River Sava]

Hey Deane! 

If interested, I can send over some info that I have personally found helpful when jumping into BRRRR-ing. Regardless, happy to connect!

[Deane Leonard]

Quote from @River Sava:

Hey Deane! 

If interested, I can send over some info that I have personally found helpful when jumping into BRRRR-ing. Regardless, happy to connect!

 Hi River,

I would really appreciate you sending that info. Sending a connect over!

[Deane Leonard]

Quote from @Hamp Lee III:

Welcome to BiggerPockets!

There will be risks in anything worth while, so continue to mitigate your risk by finding a simple property you can force appreciation (cosmetics). Run your numbers and reach out for help and support when needed.

You got this. I look forward to reading about your first successful project!

I wish you all the best.

 Thank you! Will do

[Deane Leonard]

Quote from @Gloria N Gear:

Hi Deane,

I just want to validate your hesitations and tell you that it is a good thing that you are not jumping into something that you are not prepared for.  Most of the time, fear is lack of information though.  I would be happy to help you build your team here in Indianapolis.  You just need people in the lending, insurance, property management, construction, and real estate to educate you in all of these areas so that you can make informed decisions.  Happy to have a conversation with you.

 Hi Gloria,

I would love to have a conversation with you and discuss steps moving forward. Some guidance would be great.

Thanks!

[Deane Leonard]

Quote from @Andrew Postell:

@Deane Leonard investing out of state, first time investing, long distance rehab...there's a lot going on here.  Are you meeting with any other investors in your area to see how they are doing this?

 I've chatted with some friends of mine but they focus on multi-family and commercial buildings. This forum is how I'm planning to learn more

[Luke Crouterfield]

Quote from @River Sava:

Hey Deane! 

If interested, I can send over some info that I have personally found helpful when jumping into BRRRR-ing. Regardless, happy to connect!

Hi, River

If you don't mind, please send my way as well! 

[River Sava]

Quote from @Luke Crouterfield:

Quote from @River Sava:

Hey Deane! 

If interested, I can send over some info that I have personally found helpful when jumping into BRRRR-ing. Regardless, happy to connect!

Hi, River

If you don't mind, please send my way as well! 

Absolutely, just sent!

[Devon Shaw]

Hey Deane - Congrats on taking your first steps towards investing! I'm an investor focused agent here in Central Indiana and we also do full service property management! We have a team that can help with every step of the process from purchase, to rehab, to renting it out and managing it. 

Happy to connect!

[Mark Munson]

Hi @Deane Leonard

The key to BRRRRing a property is purchasing deeply discounted on the front end. If you take a fix to rent loan, for example, and your loan amount is already at 70%+ of the ARV, you really have little to no room to pull cash out. In those instances, you have to look at other metrics like your cash on cash return to assess if it still fits your goals and bux box. Feel free to reach out if you need any advice.

[Jake Baker]

@Deane Leonard

We do 20 Flips/BRRRRs per year and use these tools:

Underwriting - DealCheck

Project Management - ClickUp

Bookkeeping - QuickBooks Online Plus

Your Team is everything. Make sure you have the following:

Great investor-friendly agents

Multiple contractors to run bids through

Multiple lenders and hard money lenders to quote you

A great real-estate specialized CPA (and bookkeeper)

[Sophia Buesing]

Hi Deane! Congrats on getting ready to take that first leap. I recommend talking with a hard money lender to see what you can qualify for and be able to use those number for your holding costs. Then I would start looking at properties and running the numbers. Finance cowboy has great resources. Would love to help! 

[Alecia Loveless]

@Deane Leonard Build a solid team. It’s everything. I’ve got a Realtor Ive used for over 25 years, a bank I’ve worked with for almost 30 years, a contractor that does everything and if he doesn’t do it he knows people who do that I’ve worked with for about 20 years.

These connections go back to a prior business before I was actively investing in real estate but it has worked out well now that I’m busily buying multi family properties.

A good Realtor/real estate agent should have tons of great contacts to share with you to help you get started in a new out of state environment.

Just remember it’s not the action you take that matters it’s the fact that you just take action that matters. Any action is better than no action.

[Julius Clark]

You've got this Deane!

Make sure to identify what it is that you are looking for. Once you get this figured out and get the right team in place all of the pieces will start to fall into place. Getting started is scary but its all fun from here. 

[AJ Exner]

Quote from @Deane Leonard:

Hello everyone!

In 2023, my interest in real estate began to grow and led me to putting time aside to learn about the brrr method. Sitting here now in 2024, ready to take that first leap into real estate, I'm both excited and anxious moving forward.

My plan as of right now is to brrrr a property in Indiana using my own cash. I have the funds set aside and am now contacting agents in that area. Being completely honest, I believe I'm experiencing anxiety moving forward not necessarily because I'm afraid to mess up (I've accepted I'm going to screw up at some point), but because there seems to be so much I need to have prepared before I close a deal. I feel as though I know exactly what I want out of a deal but not sure where to take that first step.

Nonetheless, the emotions I'm experiencing almost ensures me that I'm moving in the right direction.

I would love to hear the communities experiences, stories, and advice.

Thanks,

Deane

Hey Deane,

The first step is always the toughest, but you are in the right place and, if it helps, the clients I have up in Indiana are doing very well with good barrier to entry and healthy rents.

There will be lessons learned along the way, but like @Jake Baker said, build a good team around you and you will be in great shape.

Good luck! Happy to help where I can!