Hi, I’m your host Matt Jones and this is the real estate investing roadmap podcast - in this episode we’ll be talking about one of the most powerful and most popular ways to invest in real estate - The BRRRR strategy. Because of its popularity there is a solid chance that you already know that the BRRRR strategy stands for Buy, Renovate, Rent, Refinance, Repeat but what you probably don’t know is how to execute this killer option for investing in real estate. No worries, when we finish here today you’ll know exactly what you need to do in order to execute the BRRRR strategy at a high level.
Before we dive into the strategy itself I want to say a few things about the impact of doing BRRRR deals and about the positives and negatives of this strategy:
First, personally this strategy helped me start with a $70k home equity line of credit and turn it into 26 rental units. The best thing about the BRRRR strategy is that it lets you re-use your investment capital over and over again. Many people, including me, don’t start with a ton of money when they get into real estate investing and growing a real estate portfolio can eat through even a very large pile of available money if you don’t take some steps to reduce the need for down payments or find a faster way to replenish the money you have. The BRRRR strategy is about replenishing your money. Finding no or low down payment deals or loan options would be a multiplier if combined with the BRRRR strategy but for most people it’s more difficult than finding a property that you can BRRRR.
I don’t want to oversell the BRRRR strategy so I’m actually going to cover the negatives of the strategy before the positives. So, what isn’t great about the BRRRR strategy:
In a sellers market like we’ve been in the last few years it’s harder to find deals that will work for the BRRRR strategy. The first and most important part of the BRRRR strategy is the B, buy the property right and you’ve done half the work.
The BRRRR process takes time and In a rising interest rate environment you can have a hard landing if you ran your numbers at a low rate and then rates rise significantly before you can refinance. This could really eat into your cash flow or turn a marginal deal into a negative cash flow deal.
The BRRRR strategy can eat up a lot of your personal time depending on how you do it, what kind of team you have in place and how that team performs.
Ok, let's talk about each step in the BRRRR strategy more in depth.
Tune in to the video to learn more about each step of the BRRRR strategy and how to execute each at a high level!
Thanks for joining me and be sure to hit that like & subscribe button for more value loaded real estate content!
Matt Jones 850-889-0945
www.realtormattj.com
Pensacola Realtor
27 сен 2023
