At the Property Investors’ Crash Course, I don’t just show slide shows of what I have been doing; I get everyone to look for deals themselves using what I have taught them. I call it a “Doinar”. I have set challenges to find Rent2Rent and HMO leads before. This time it was the turn of BRRR deals.
Jacob and his team found the best deal and won the challenge, which was in Walsall next to some properties I own. Check out the video above to see them do it! In this article, we are going to take a look at how to find awesome BRRR leads in Wolverhampton and beyond.
Finding a BRRR property
You can start your search on RightMove or any other property portal. Some people will tell you that you need to find off-market deals but, while they can certainly be a bonus, there are many amazing deals listed with high street estate agents. The skill is finding them and negotiating a good price for the property.
You will need to look for properties that need work doing to them and compare them with otherwise like-for-like sold properties that are in good condition. You will need to have a rough idea of what things will cost to refurbish in order to know if the deal could potentially be profitable or not.
Booking a viewing
If everything looks good, you need to call the agent and make a viewing. At this point, it is worth establishing that you are a property investor and may wish to make a lower offer. You could say something like, ‘I am a property investor, so I would be looking to buy, refurbish and refinance this property. I don’t want to waste anyone’s time but I would probably only be able to offer around [amount], is it still worth me coming for a viewing?’.
In some cases the agent will simply say they can’t say what the seller would accept. In other cases they may give some indication either way. It may be the case that the seller is in no rush to sell the property and will not be open to negotiation; this is worth knowing up front.
Making an offer
You will need to have a good idea of the costs of doing the refurbishment before you make an offer. You could ask a builder to come round and give you an estimate. You can then make an offer ‘subject to survey’ and get a survey done on the property before buying it.
Making sure all your numbers are correct is extremely important. If your end valuation is wrong and your refurbishment costs are wrong, you could wipe out any potential profits. Make sure you have the skills to do this and a power team around you to give you advice.
Getting good training
It can be extremely complicated to calculate exactly what the ROI on a BRRR deal will be without the correct skills. If you have some construction experience, this will certainly help. It will also help to have experience in valuing properties and knowing the most profitable places to spend your refurbishment budget. If you don’t currently have all those skills, or if you do but need to learn to combine them correctly, you should seek professional training. This doesn’t necessarily have to be with us. Just make sure you are trained by a company with the requisite experience and expertise with a proven track record.
If you do want to train with us, you can book a free call with one of our training advisors. Or if you want to dip your toe in the water, why not check out our next free BRRR webinar.
