So I am interested in using the BRRR method to start investing in real estate but I live in LA, CA and I just don't have the money to do so around where I live. Also, I am not sure if I should go into it new with such a big loan since multiplex can average from 1.5 to 2mil.
I want to invest out of state (Texas, New Mexico and Arizona are some of the states I'm looking into) but not sure if that's a good idea since I don't have the freedom to travel and I don't plan on quitting my day job.
Any advise for someone like me? Is starting off using the BRRR method ok? and do I need to hire a lawyer to review contracts when purchasing? I am afraid of getting scammed.
Any advises or even your personal stories on how you started are appreciated.
FYI: I just started looking into real estate investment and plan on using VA loans.
You can certainly do a BRRR out of state and manage remotely. What you'll need to do is build your team wherever you decide to invest. I would recommend starting with a realtor as they will usually have good contacts for lenders, Property Managers and contractors. A good lender will be able to review your VA loan options as well.
Once you build your team, it will be much easier to analyze and make offers on deals. I've done this investing out of state and it has worked wonders and made my life easier. Hopefully this helps!
Thanks for the tip!
All of my investing has been long distance, but I started out with two properties that I bought with a conventional loan first. That definitely taught me a few things before I moved into the BRRRR strategy.
It's 100% doable for you to start with long distance BRRRR's but it would really make everything go smoother if you had either a) experience with real estate, or b) experience managing people. If you don't have either of those you might want to consider buying a property that's in good condition first - it'll give you some experience and you can start building your team that way (real estate agent, and property manager).
I have never hired a lawyer - but it can't hurt, if that makes you feel comfortable you should do it.
Living on the West Coast is super helpful - I call all my contractors first thing in the morning before I start my normal job - it's 7am for me, but 9am for them.
Read David Greene's book, "Long Distance Real Estate Investing". From there do research on areas. Interview key team members. Then take the plunge. Turn key or rent ready property for the first one would be good to start then grow from there.
Definitely can be done. I work with 20-30% out of state investors. I advise hiring ficuriaries, instead of say a real estate agent who only gets paid if you close the deal.