3 Key Fundamentals of BRRRR
Categories: Blog Posts
The top 3 fundamentals to keep in mind when learning BRRRR.
“BRRRR” stands for “buy, rehab, rent, refinance, repeat.” It’s a process for capturing equity and creating cash flow on rental properties.
We’ve helped investors through this process for over 15 years.
Here are the 3 key fundamentals of BRRRR we’ve seen make these transactions successful.
Key Fundamental #1: Building a BRRRR Team
Firstly, you have to find off-market properties.
The really good under-market BRRRR properties won’t just jump into your lap. These properties require a little digging, and – more importantly – a team to help you.
You’ll need to know wholesalers, real estate agents, other investors, and anyone else who can help you locate good undermarket properties.
(It’s also an advantage to keep lenders on your team so you can close fast on these great properties once you find them.)
Key Fundamental #2: The Money Side
“It takes money to make money.”
If you can learn the basics about the costs of your BRRRR projects, then you can squeeze more money out of each project.
We always say that there’s money in the money. Do the research to learn about real estate before your first investment, and you’ll be miles ahead of other investors.
Key Fundamental #3: Using the Right Leverage
Yes, it takes money to make money, but it doesn’t have to be your money.
Plan for and understand the entire BRRRR process, and leverage can work to 10x your net worth.
For More on BRRRR
Overall, this only brushes the surface of BRRRR. Over the coming weeks, we’ll visit each of these topics in much more detail. Why do you use two loans? How can you do this with zero money down? How do you go about a refinance?
If you have a deal now you’d like us to look at for you, send us an email at Info@TheCashFlowCompany.com.
Read the full article here.
Watch the video here:
