BRRRR Method Breakdown
BRRRR…. Buy, Rehab. Rent. Refinance. Repeat.
If you’re new to real estate investing then you can be forgiven for not quite understanding how the process works. So, let’s break it down into its individual components and look at why the method might just be the ideal way to enter the lucrative world of real estate investing.
BRRRR: it’s not just for the pros
- BRRRR: the method breakdown explained
- Can anyone invest in property using the BRRRR method?
BRRRR: the method breakdown explained
Building a property portfolio using the BRRRR method is one of the easiest and fastest ways to kick-start your real estate investment process.
It breaks down like this…
- B: You seek out a property that needs work to make it habitable. This could be purely cosmetic or, more likely, will need something a little more substantial. The term for such real estate is “distressed properties”, and you can find realtors who specialize in matching you with your requirements. Because of the investment needed to bring the property back up to standard, you should be able to purchase it for less than market value.
- R: Now you’re the proud owner of your property, you need to carry out the rehab work. This might include structural elements, a new kitchen and bathroom, as well as the finer details of bringing it back to an aesthetically pleasing state ready to rent to a tenant.
- R: The next step is to rent the property out. You’ll need to determine the market value for such a property, advertise it, and—finally—get your tenant to move in.
- R: Refinance… This is the part that often causes confusion. Now that your property is in a good state and providing you with a rental income, you can refinance against it. This involves taking out a larger loan, thus converting your equity into cash. This money is then used for the last stage in the BRRRR process, which is…
- R: Repeat. You then use these funds to do it all over again…
Can anyone invest in property using the BRRRR method?
In short, yes! You don’t need any former real estate investment experience, nor do you need to have a ton of money to invest in the first place. BRRRR loans are secured against the property you purchase, plus build in the rehab costs to the amount borrowed as well. The trick is managing to find the right property in the first place, something that novice investors often find the hardest part.
However, as BRRRR has become more popular (along with fix & flip), many realtors have begun to offer their services to hunt out properties with potential. Another method that’s truly hands-on is to select your area and then simply take a drive around the neighborhood. The ideal is to look out for unloved homes—those that need a little TLC. Clues include boarded-up windows, overgrown front yards, tarpaulin covering elements of the building… Basically, anything that makes it obvious that no one is living there or caring for the property. The likelihood is that the owner would be keen to sell…
There’s even a name for this method—it’s called “driving for dollars”—and, naturally, there’s an app for it of the same name…
Once you’ve found your property, then you’ll need to arrange finance. This is where a specialist lender, such as BRRRR Loans comes in…
Want to Find Out More About Funding Options? Call BRRRR Loans Today
At BRRRR Loans, we’re a leading financier serving property investors from all walks of life. From those who run a real estate portfolio in conjunction with their “real” job to the savvy investor who’s enjoying making a full-time income, we can provide the funding that turns your property dream into reality.
Head over to https://www.brrrr.com to find out more and call our friendly team today for a no-obligation discussion…
Buy, Rehab, Rent, Refinance, & Repeat. A nationwide direct lender to real estate investors. If you have a project that needs to be funded, you’ve come to the right place.