BRRRRKey Company recommendations

[Ramon Branger]

Hello. I am a newbie investor and I am interested in BRRRR investments but in my market (Miami) deals that pencil are very hard to find. I am interested in doing this out of state but I am worried about finding the right people. I heard about companies that do BRRRR for you. Find the deals, do the rehab and property management. Anyone have any experience doing this? Any recommendations?

[Matthew Irish-Jones]

Quote from @Ramon Branger:

Hello. I am a newbie investor and I am interested in BRRRR investments but in my market (Miami) deals that pencil are very hard to find. I am interested in doing this out of state but I am worried about finding the right people. I heard about companies that do BRRRR for you. Find the deals, do the rehab and property management. Anyone have any experience doing this? Any recommendations?

There are a lot of companies that claim they can do it, but the ones that actually can will have the following.

1. Off market deal flow
2. Staffed construction team.  If they do not have W-2 workers on payroll full time they are not a true BRRR company. 
3. Property management division that is involved from the jump.  Leasing dept should have rental comps projected prior to work start.  Not only will they have rental comps, but they will have a budget for CapEx and Maintenance prior to project start and will openly show you how they have performed. 
4. Hard core tech systems that give you visibility from project start until the day you exit.  A great BRRR company during construction will have a daily updates with pictures, Gantt charts visible to the client, etc..
5. Communication - A point person that walks  you through every step from acquisition, to construction, to lease up and management. 

There are VERY few of these companies that have the above 5.  The amount of business systems, personnel, and experience it takes to build a BRRR machine is unique.  In my humble opinion, I don't believe a company can have a true BRRR machine where investors can make money without at least 30+ full time employees on staff. 

I suppose they could be a smaller knit crew that can do a great job, but I would be suspicious if they had the business systems and experience if they are under 30 full time employees.