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WHAT IS THE BRRRR STRATEGY?

Apr 27, 2022

The BRRRR method is an incredible real estate investing strategy that has brought many investors success. Knowing how to properly finance properties is the quickest way to scale your portfolio and grow your wealth.

Buy: Buy a property where you can renovate and gain some instant equity

Rehab: Have a renovation team come and fix up property to get it “rental ready”

Rent: Find a qualified tenant to rent the property

Refinance: Pull out 80% of the appraisal value (ex. Total investment after renovations $80,000; value of home $100,000 you are able to pull out $80,000 in a 30 year fixed rate loan)

Repeat: Use the same initial investment to buy another property

This investment strategy allows you to use the same money to buy multiple properties in a short amount of time.

The necessary points when using this method are buying properties for the right price and correctly estimating the rehab costs.

If done correctly, you should be able to pull out all of the capitol you invested into each deal while collecting the monthly cash flow and principal paydown.

Once a significant amount of equity has been raised; leverage that in the form of a HELOC to downpay on another property and maximizing your returns.

-Ryan Greenberg

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