Investor · Collierville, TN 38017 · Member since 2017 · 589 posts · 444 votes
3w
Jake, no experience with that specific team, so I can't review them - and be careful with anyone who "reviews" a provider they haven't paid money to. What I can give you is the diligence list I'd run on any done-for-you BRRRR provider. I operate one in Memphis, so I know exactly where the bodies get buried in this business model. Five questions, in order of how fast they expose problems:
"What did you pay for this property, and when?" Public record, so they can't dodge it. If they own it and are selling it to you, their margin is inside your basis and you're entitled to see the spread.
"Show me the sales comps behind the ARV - addresses, dates, condition." Then pull them yourself and check whether they sold renovated or as-is, and whether they're in your actual pocket or a nicer one two streets over. Slow or vague answer = information.
"Who physically does the rehab?" Their own crews on payroll, or subs quarterbacked remotely? This one question predicts your timeline better than any promise. When a permit stalls or a sub walks, an operator with local crews fixes it Tuesday morning; a remote quarterback waits. Someone I corresponded with recently did an Alabama BRRRR where a 30-day rehab became 3.5 months exactly this way.
"What do you hand the refi appraiser?" The right answer is a packet - scope of work, invoices, before/after photos, their comp case. If the answer is nothing, expect the appraisal to anchor on your purchase price and come in short.
"Give me two references from deals that went WRONG." Every operator has misses. The ones who'll show you a miss and how they made it right are the ones you can trust with a six-figure project. The ones who claim no deal has ever gone sideways are lying or new.
If they clear all five quickly, the model can work well. Vague on two or more - walk, whatever the pro formas say.