Adam Craig’s success in real estate investing using the BRRRR strategy has been well-documented, but when it comes to new investors, he advises against it. The risks associated with major rehabs and the potential for unforeseen expenses make it a challenging starting point, especially in today’s competitive market.
With home prices soaring and affordability dropping, finding lucrative deals has become increasingly difficult. Craig notes that the landscape has shifted since he began investing in the aftermath of the mid-2000s housing crisis. Foreclosures were more common, providing ample opportunities that are scarce today.
In light of these challenges, Craig recommends alternative approaches for novice investors. House hacking, investing in turnkey properties, and opting for light renovations are all viable options that carry less risk and require less expertise than the BRRRR strategy.
As the real estate market continues to evolve, it’s crucial for investors to adapt their strategies to align with current conditions. By exploring different routes to building wealth through real estate, newcomers can navigate the complexities of the market with greater confidence and success.
