A bunch of guys I know want to me join their investment group whose focus on real estate rental investments.

They use something called the BRRRR method - Buy, Renovate, Rent, Refinance, Repeat

The basic idea is to buy a distressed property (preferably with bank or hard money), renovate it, than rent it out. After you renovate it, the value of the property should be worth a lot more The final piece of the equation is 6 months to 1 year after you rent it you refinance the property and pull out 75% of the equity. Than you repeat the whole thing.

My biggest concern is the renter/eviction moratorium. I have read that landlords are owed $57 BILLION in back rent and you cant evict them if they dont pay. So now what?

As a landlord you are the hook for a mortgage + maintenance. And you still have to pay if the renter does not pay.

Obviously

Bad time.
I am waiting a little.
All my friends even with class A rental properties are not getting rent and are getting killed.
The "end" keeps getting extended.

BTW most of the people are making the same or more money and still not paying.

Considering First Secretary Xiden just extended the eviction moratorium AGAIN, unless your target clientele is going to be 100% able to pay their bills and you're willing to bet your savings account on that fact, JFL @ trying to get into the rental game rn brah.

Keep in mind the Democratic People's Party has mid-terms coming up next year and we're still cucking to the "Delta variant" (JFL), I doubt there's going to be massive change in the winds anytime soon.

It's not a bad because of the timing, it's a bad idea period, IMO (compared to other things you could do with your money).

All those words you typed just describe flipping houses, and most successful house "flippers" make money by investing their own sweat equity. Adding more investors decreases the amount of sweat equity to a point where it's not worth the return.

There are no bargain properties just sitting there being overlooked. If it's been on the market for a long time, there is a reason. If it hits the market and only needs a few cosmetic fixes, then it's going to have other people bidding.

OP your partners are talking about BRRRR - buy rehab rent refinance repeat and is a good strategy as it's done all the time almost everywhere but from your post i get a weird vibe, that these guys want you to join and you dont even know they call it a BRRRR, no offense but start reading up on it quick - not just on BRRRR but other real estate books that go in to syndication, flipping, wholesailing, etc i mean fuk you have a lot of work to do in terms of reading about the business of BRRRR as some use hard money to fund reno's and some use credit cards with high limits and you also need to be asking about the investor's price points, who their banks are, what their exit strategies are, in what geographic area, how they are going to lead gen, what their lead funnel looks like and what the process is for that and maybe even if they have their subs picked out yet. from the sounds of it these fools just want someone to throw money at them. treat it like an interview - make them explain to you why they deserve your money.

-did a flip crew
-gonna buy a second property to house hack crew

not bad for diversification but you could just invest in REIT etf or like blackrock lol

if you put all your money + time into that and it pays off, good, but might not have a massive reward / risk ratio, esp the risk involving regulatory changes (the eviction sht) and credit markets

It's a con, but hey it's your money

By the way, are you interested in a timeshare?

Thanks for the comments. Keep it coming.

I am not rentcell and my house is almost paid off.

Thanks for the offers on timeshares, I will pass. Though I do have some swamp land in FL you may be interested in.

brb friends try to rip you off

A rule to owning rental property that is financed is to be sure you can pay the mortgage even if your tenant doesn't pay rent because there will be gaps between tenants and all kinds of expenses that are going to come up. Sure, some people wing it, and hope for the best, but that isn't the best idea as you can see right now.

Based on your post the only value you'd provide to the venture is cash. Best case scenario you get a very small return on your investment. Most likely without the benefits of business/real estate tax deductions/write offs. Worse case scenario you take a L in this crazy time to be a landlord.

If I were you I'd want to see their entire portfolio. How much they cash-flow. A breakdown of what kind of return you can expect with your money. Etc.


Real estate can be lucrative in certain markets. If they know what they are doing they should be able to give a pretty accurate break down of what kind of return you'll get on your money.