All Forum Posts by: Justin McCord

For BRRR projects I'd focus on cheaper markets. Assuming your refinancing into a DSCR loan the higher priced markets make this difficult depending on the market rents. A great market for Fix and Flips is Gastonia NC which is a secondary market to Charlotte. Central Florida, and Atlanta GA have shown us 20%+ returns.

Good luck!!

I live in Phoenix and have been fixing and flipping/buying and holding in Milwaukee since 2012. Since that time I've hired/fired 5 general contractors and sued one of them for 120K (and only got 10K back).

Needless to say, I got sick of all this drama so I hired a project manager instead, and now I pay for my own materials and pay the sub-contractors directly. The project manager gets paid for scheduling and keeping the project moving forward. This gives me a lot more control over the timeline/budget.

The project manager also helps me find new trades because they constantly come and go. It's like being the GM of an NFL team, once players get really good they want more money and become unaffordable.

You can build a reliable rehab team in another market, but it will take time (and require you go there at least 1-2 times a month on your first couple of flips). By doing this you build trust (not just with contractors but anyone else you need on your team like Realtors, title reps, home inspectors).

As @Patricia Steiner pointed out, it's unlikely a pro is going to hand over their best contacts to you if they're already running a successful business.

Good luck Justin!

This isn't the market research I would want you to use in determining where to invest and to secure crews.  While BP is a good source of expertise and information, let's face it - this is stranger danger stuff.  If an area was so hot and had competent low-priced crews on standby waiting for business, a real deal investor wouldn't be sharing that information.  Those folks are running businesses and you don't share your secrets to success with anyone.  

You can do better...consider a few things first:

1. Where do you want to invest:  just because you're going to hire crews, doesn't mean you don't have to oversee and manage the project.  Choose a location that you can get to easily/enjoy going there, has property and rent price appreciation, and an increasing population pool.  The later ensures that flips sell fast and that quality tenants are available.

2.  What price point is your preference:  some great markets come with great price tags and low/no inventory.  

And, know that there are many ways to find crews once you find the right market. Finding the crews won't be the problem; managing them and having solid construction processes in place will be the critical issues.

I hope you'll let this dart throw approach go by the way side and consider a more analytical approach for investing.  Trust your own judgement and research.

Best...