Biggest problems doing a BRRRR virtually?

5 Replies

Hello BP members. Currently I am on the hunt to find and BRRRR a property 100% virtually. This is my first virtual deal and I just want to know from other investors what are your BIGGEST problems you face when going virtual? What things should I look for and put more focus onto? Any advice and skills will be highly appreciated so please let me know. Thank you

Miguel - I've done about a dozen or so BRRRs and I think their are two big variables to watch out for in general - and are likely exaggerated more so virtually. They are the 1) ARV (After Repair Value) of similar/same homes, and 2) Renovation Project/Budget. Market comparables are important as we all know, but they can vary based on finishes and quality of work - so rather than just take the market estimate stated by zillow (as an example), I would ask a local realtor to provide a range of comps and then make sure as you renovating you're actually renovating with a house or two in mind. With that mindset you're thinking about what finishes, etc... you need to put in order to achieve the ARV. Secondly, I think having someone to help manage the renovation project would be key. Although you always have a plan, the project typically costs more than expected due to unanticipated costs (terminate in joists, mold in drywall, plumbing lines that are too old, etc...). I think having an honest/upfront contractor goes a long way as well as "virtual check-ins" (sharing a video on progress, etc..) via phone can help out. However, I would also hire someone (project manager, realtor, etc...) to just "pop in" several times throughout the project to see the progress of the work - almost like a consultant to you so you have "boots on the ground". Hopefully you're also reading the BRRRR by Davide Greene in Bigger Pockets - Good Luck!

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Originally posted by @Miguel Hernandez :

@Greg Kasmer Hey Greg thank you for that response! I’m still looking for a great contractor to work with at the moment, Thank you!

Contractor/handyman will be your biggest challenge. 

Originally posted by @Miguel Hernandez :

@Joe S. I agree, it’s pretty tough especially since everything is virtual. Would you recommend finding a contractor before I purchase a property and put it up for bids?

I don’t see where it would hurt to find a contractor ahead of time. I’m not seeing it would be easy to either. It’s hard to tell the contractor go give you a bid on a house that you don’t even own.