Anyone doing BRRRR strategy in Texas? I would love to hear who are you using to refinance your deals. I'm working on my first one, is a small house ARV 95k. I have a couple options but they haven't come clear about interest rates and fees. Any information is very appreciated.
Thank you very much!!
@Laura Casillas thanks for posting! Always great to hear from a fellow Texan. Bigger Pockets does have some good state specific forums and Texas is their most active forum. Feel free to post there if you ever need some more "local" advice about things.
Texas is one of the most popular states to do BRRRR strategies in. We do tons. Properties are a bit hard to find right now....and Austin is going to be even HARDER to find. Generally speaking you will need several things to successfully complete a BRRRR here:
- ARV - being able to calculate the Value on a property is a bit harder here in Texas since the price of properties is private. So being able to do this on your own (meaning, without the wholesaler telling you the value) is really important.
- Repairs - You will likely need to know how to budget the repairs as well. Getting a contractor can be extremely frustrating especially if you need to make an offer without even looking at the property. How do you calculate repairs without a contractor? You may need to lean on other local real estate investors in the beginning. Or maybe even just focus on properties with a very light rehab?
- Lenders - You will need a lender on your BUY step and on your REFINANCE step. And I would HIGHLY recommend to read this article I wrote for Bigger Pockets on how to find good lenders that you can find HERE. If they are good, they should be absolutely definitive on rate, terms, costs, etc. Trust me, many lenders will tell you they can do this...but it's very rare to find. When I first started BRRRR'ing my properties lenders would tell me "That's illegal"....it's not, then just didn't know anything about it.
- Finding Properties - and this is the absolute hardest step of anything right now. So network like crazy and find some good resources. It's going to be hard...but if it were easy then anyone could do it.
Hope this helps!
Hey Andrew! Thank you very much for your recommendations, I will read the article that you mentioned and follow all the advise. I’m glad to hear that you have done this several times, hope I will follow you up. Where are you located?
@Laura Casillas I am located in Fort Worth.
Great article! Thanks for all of the information.
@Kyle Mccaw thank you very much!