Join Tarl Yarber, experienced real estate investor on a follow up episode to tour and analyze this BRRRR real estate investment property!
Пікірлер: 351
@biggerpockets4 жыл бұрын
What do you think about this BRRRR investment? Let us know below!
@jacethornton39234 жыл бұрын
I love the down to earth way tarl explains stuff. I love the Brrrr idea as well. Love the fact that you can make 28% on 20k
@TravelTrainTogether4 жыл бұрын
BiggerPockets this was a great video containing a lot of good information. Please consider adding more content like this. Maybe in Florida/Jacksonville area.
@BigBoss-qo7yx4 жыл бұрын
Do a video on the house design software
@ramtinmalek31654 жыл бұрын
I didn’t see that you had considered for any maintenance cost and any utility cost in your cashflow calculation. In best case, the property will do $250 cashflow. This property will make 8-12% cashflow which is great, but 28% is misleading and I don’t think it is true. Great content though!
@LifeCoach444 жыл бұрын
I love the transformation, but I am concerned about cashflow being calculated as rent above debt service. There are definitely going to be operating expenses that need to be accounted for.
@BensonGitau4 жыл бұрын
I love buying and holding instead of flipping. That was a great transformation. I love your work. I just got my first rental property and I made a video about it. I can’t wait to scale up. Thanks for the inspiration
@pj00172 жыл бұрын
Buying and holding is like buying a dividend stock instead of a growth stock that makes you a 30% return in a year 🤡 selling when you can and buying a new property with more cash in your pocket makes way more sense
@juanlee5764 Жыл бұрын
@@pj0017 it's called passive income
@MoneyJourneyWithSonny4 жыл бұрын
Don't forget, you have to hire someone to manage your property and hold back maintenance cost as well. Unless you are going to manage the property yourself. Here in Texas, it'll cost you 1/2 of the first month rent and 10% monthly management fee. So, your ROI will be reduced by at least 50% of your numbers to include maintenance fund as well.
@jeromewilson8817 Жыл бұрын
Question: do you own any rental properties in texas anymore?
@ionisfoutaka64254 жыл бұрын
Great great great video, we need more of these deal analysis scenarios, really helps understanding the whole process.
@LanceCastillo4 жыл бұрын
Wow. Such a huge job. I remember watching some of your first videos on this property, Tarl, when I started my first BRRRR project back in March. I was thankfully able to get my rehab done in two months and I just refinanced out at 3.875% on Friday. I've got a paying tenant which gives me a 25% ROI. Could not be happier. Now I'm looking for my next deal. Trying for a duplex or triplex if I can find it.
@tarlyarber4 жыл бұрын
Awesome job! Keep crushing it
@farmermike92623 жыл бұрын
How did you find your first brrr? And how are you looking for the multi?
@IsaiahTucker99083 жыл бұрын
This video was OUTSTANDING!! He explained everything perfectly and when he used terminologies he explained what they were rather than expecting us to know. I LOVED how he went into detail on everything. Overall an outstanding video!!!
@dawens31994 жыл бұрын
I find these videos to be way more informative and engaging than anything else on Bigger Pockets. Keep them coming, Tarl.
@propertypointers4 жыл бұрын
Showing us how to do a floor plan would be a great video. Please do make a video of your process and walkthrough of how it's done on the computer program.
@nikolay.advolodkin3 жыл бұрын
I love these types of videos! They are so informative. Please keep doing walkthroughs and analysis afterwards.
@JessieOpportunityCostInvesting4 жыл бұрын
Using trees to block noise was a great idea! It's also environmentally friendly :)
@mahbtiu4 жыл бұрын
Yes and not much costly as other options. I am doing the same for my investment house!
@Iliyas5054 жыл бұрын
There are also noise canceling fences fyi
@KB_theauthentic4 жыл бұрын
I'm only 3 minutes in and I'm smiling….good stuff...
@afitechnicalities35414 жыл бұрын
24 years old and just started out just got my 1st now working on my 2nd thank you for all of the knowledge you guys teach me you and Rich Dad poor you guys are changing my life
@tarlyarber4 жыл бұрын
Thanks! This is Tarl
@kyleblinkhorn45324 жыл бұрын
Same rich Dad poor Dad gave a new resolution. I'm working on getting my first deal right now. Will be doing an addition too! I love this shit
@xxrdotxx25 күн бұрын
Man! It would be nice to see these projects like this more often. More of these BRRRR or flip projects on biggerpockets would be great to see. Kind of like a continuation of the discussions they have now. A series would be great, talking about the issues they had to overcome, some pointers, and then go over the numbers.
@carolyngraybeal4514 жыл бұрын
A video on the pro/cons of hiring an architect, draftsman, or using a combo of home design software and contractor would be great. When it is better to hire a professional vs "doing it yourself", when and how to use building professionals (engineers, architects, inspectors) most effectively, etc. Also, when in the design phase do you start estimating building cost? Do you have a budget beforehand you know you want to stay under or do you come up with several floor plans, get cost estimates for each plan and then adjust accordingly? For the project in this video, did you have to submit the floor plan to the county? Maybe this varies from state to state or single family home vs multifamily?
@ryanwood80754 жыл бұрын
Fellow PNW dude here!!! Man let me tell you this is the 1st time stumbling onto your KZbin videos and absolutely think your one of the most detailed and informative guys on KZbin. I am a huge fan of BP as well, but this is the 1st time Ive seen one of your videos. Thank you Tarl and I am too starting to invest in the PNW but over in the Columbia Gorge, you have helped me out a bunch with this man!
@thabolebusha3573 жыл бұрын
realty enjoy Tarl's property walk around. I learn so much every time. i am in South Africa BTW
@realsoulrealestate78834 жыл бұрын
I enjoyed the explanation. Tarl explained how and why he made the decisions he did for this BRRRR. It was very helpful to understand how he calculated his ROI for this project.
@tbserrano24 жыл бұрын
I remember watching the first walkthrough Tarl did of this property! Such an awesome transformation.
@taylormeador2484 жыл бұрын
Expenses? 🤷♂️ Rent: $2,500 Vacancy: 5% - $125 Management: 5% - $125 Repairs: 1% - $25 Cap Ex: 1% - $25 Expenses = $300 Bringing cash flow to: $175p/mo / $2,100p/yr. Yielding a 10.5% return. I don’t know the market where you are but I feel my percentages are conservative.
@ExtraServingsBTS4 жыл бұрын
27:00
@bigperm50274 жыл бұрын
Excellent, Excellent, Excellent video!!! Really love the format. Show property before and afters then detail though the numbers. Keep up it up.
@paulnelson97154 жыл бұрын
Your videos are amazing, brother. Your real-life examples are incredibly valuable. Thanks so much for sharing what you do. You’re helping a lot of people.
@CaseyBurnsInvesting4 жыл бұрын
Some serious sweat equity here. Big project
@charlesreid51374 жыл бұрын
Landlordism is satanism.
@sullivancrowe91954 жыл бұрын
@@charlesreid5137 you're right. They should have just left this place trashed, falling apart, rat infested and overall uninhabitable.
@KayFabe873 жыл бұрын
Charles Reid : perhaps the government should take over all property ownership and management. Surely that will lead us closer to "utopia". Before you endorse this idea; have a look at government owned and government run residential housing in urban areas, otherwise known as "the projects " and ask yourself if that is a model that you would like to see spread across the country on a larger scale. It would be like the Soviet Union, where everyone has "equal" housing so everyone can be poor and miserable together without having to worry about someone else having a nicer house than they do.
@matthewknotts70033 жыл бұрын
@@charlesreid5137 lmao what? Tell me you’re a liberal with out telling me you’re a liberal.
@charlesreid51373 жыл бұрын
@@matthewknotts7003 lol
@mikefeir4 жыл бұрын
Definitely need a video on how to use designer pro
@paulnelson97154 жыл бұрын
Agreed!!
@SterlingWhiteRealEstate3 жыл бұрын
An important thing to look at is the value added versus the cost to produce that value. Being able to come up with the best ratio is a factor for resale's and for rental's value.
@TravelTrainTogether4 жыл бұрын
Great video. Very informative and detailed. Thank you for sharing. BiggerPockets, please add more content like this.
@Mashcroft884 жыл бұрын
I freaking love these videos, keep em coming!
@stanleybrown11514 жыл бұрын
Tarl, you always bring the good stuff brother. Thanks, you're one of my favorites.
@tarlyarber4 жыл бұрын
Awe shucks! Thanks Stanley 😊
@oDahaka4 жыл бұрын
6:00 "It's like HGTV but real!" You clownin them hahaha
@jwanaplayer40933 жыл бұрын
Thanks for sharing! Especially the part about why you didn’t add a second bathroom but instead made sure the one bathroom was large!
@mikewillinvest85163 жыл бұрын
Amazing video! Thorough walkthrough and doing the numbers manually. Keep this content coming! Thank you.
@BeauKnowsMultifamily4 жыл бұрын
Nice find, nice rehab. As a multifamily broker in Florida, opportunities are few but a well thought out remodel always pays handsomely.
@hendraw1918 Жыл бұрын
Wow, you guys did excellent in explaining the ROI, whether it was a good deal, etc., Thank you!! Subscribed and liked!
@nappiral4 жыл бұрын
That post supporting the roof over the kitchen door is really something. Nice job overall
@myt1soo3203 жыл бұрын
Fantastic video on explaining your strategy and I especially appreciate the walk through! Being on site helps immensely
@jasonstevens68773 жыл бұрын
This video was very helpful to clarify the entire process. Thank you for producing such great content and being so open with your numbers.
@pipe.dreamss Жыл бұрын
Please do more videos like this! Great detailed info.
@stormshadow79284 жыл бұрын
You are amazing man! You educated me too much. Keep it up. Thanks alot
@Mynameisjoof4 жыл бұрын
Amazing content Tarl. Please let us know what it appraises for!
@HomeOwnersPH4 жыл бұрын
Very educational for a newbie...
@bros44412 жыл бұрын
Hi question here: why are expenses like capex, vacancy, and fixing the property when things break not part of the analysis? I know that isn’t a fixed expense but when I look at deals that is the part that makes them not work for me. I will analyze and leaving that out everything looks amazing but adding them in drops the ROI to low
@LaRhondaTurner4 жыл бұрын
I thoroughly enjoyed this video especially the end running the numbers! Thank you!!
@ChrisCDXX4 жыл бұрын
15:40 where the numbers start.
@jeandechoudens38744 жыл бұрын
Very good video. Like the way you broke down every detail of the rehab and the financial
@nbme-answers3 жыл бұрын
23:49 High equity? Where is the equity? He borrowed for the house, renovation & shelled out on holding/borrowing costs ($327k liability). He crosses his fingers and gets a $415k valuation from his appraiser. The bank lets him borrow 75 percent of that ($311k) to (partially) pay off his original lenders so now he has $311k liability with BANK#2 and $16k liability with BANK#1 and an asset with unknown valuation producing $475 net cash flow a month. What were the terms of the original financing? How did he pay for the renovation? Was that out-of-pocket or from the original “hard money" and “private” lenders he mentioned? What am I missing here?
@SeniorSpooky4 жыл бұрын
Awesome showing us all the details!
@MYKECHEXX4 жыл бұрын
Great content Tarl, this was super informative!
@vidmikevid3 жыл бұрын
I love Tarl’s videos. Always great info. Thanks
@FranFdez-rs9gg Жыл бұрын
What a great video. No BS, to the point, very informative. Thanks
@JessieRawji4 жыл бұрын
This was Awesome!! Easy to follow and understand. Thank you!
@timjacobs66102 жыл бұрын
Excellent video. You guys should do more like this. I'm positive you'll get more subscribers. Keep up the good work.
@mgm20084 жыл бұрын
Thank you! I always learn things from you, Tarl!
@ItsGordo23 жыл бұрын
Awesome content once again!! These videos are so packed with useful information.. Thanks again BP!
@Iamstevenyang Жыл бұрын
I would always add a 2nd bathroom, the resell value in the future is always more and you almost always get more money for rents.
@freddyboss7 Жыл бұрын
Seattle is crazy expensive. That house originally would’ve cost maybe 40-50k here in OKC. But the ARV probably would be only between 150-170k depending on what area of the city.
@l3eaver2 жыл бұрын
Lol 😂 at isolate the noise with some bushes. Good one !!! 😵💫😅
@emilelefebvre33154 жыл бұрын
Love this type of video !!! Keep going ! Thanks you for sharing all the explanations, trics, ...
@plane_dad2 жыл бұрын
Love the video, I have done a far amount of new construction, this has helped to inspire me to get back into real estate. You make it look so easy. I like the analysis. Keep doing that, look forward to watching more vids. The key to doing this is what Dave Ramsey says, "you make money on the purchase". That's vertually impossible here. To many people are buying so the purchase price does not leave the "around" 25% equity left at the end. And the hard money here is 15-20% with points and interest. And I don't have a rich uncle like some people have! 😬That's why I quit. I would like to figure out how to buy like all these very successful real estate go roos!! If you do see this I would like to get some information on that, I really like doing this kind of work.
@josellaos56764 жыл бұрын
What kind of loan are you getting on it? Is it a regular conventional loan on your personal name using your own income to qualify? Or is an investor loan with these banks that use rental income to qualify? Thank you. Great video.
@farmermike92623 жыл бұрын
Sucks you didnt get a reply.good question
@josellaos56763 жыл бұрын
Yeah I thought it was a good question too. What I’ve done so far is refinances with banks that qualify the property with their rentals under my LLC. The rates are 5.5% at 60% LTV, thought they would be lower.
@AvidFilms4 жыл бұрын
this guy reminds me of Stu off of the hangover lol
@gmandub14863 жыл бұрын
😂😂😂nah vlad tv
@OlegLozytskyi4 жыл бұрын
Thanks for motivating me to lear more and make my own content. Great to see your channel grow and read all of these positive comments. Has anyone here was able to take advantage of low interest rates?
@noheakealoha94873 ай бұрын
I appreciate the breakdown and explanation. Thank you 😊
@christopherandersen7327 Жыл бұрын
I loved this video. Thanks Tarl
@rojeet36 ай бұрын
Great video, you explained everything very well!
@Charles-uc3hb4 жыл бұрын
"Vertically challenged" 🤣
@davidr45233 жыл бұрын
If you are a new house flipper or new to BRRRR and you have to compete against someone like Tarl Yarber, it will be very difficult to win. His deep experience, inhouse team, connection to financing and wealth will make him a winner in almost house he buys.
@DL-cn6gs4 жыл бұрын
Awesome job. A lot of creativity for making a great home.
@1.5Koreans0.5American4 жыл бұрын
Cool content. Thank you for sharing 🙌 BRRRRRR!
@merbesfield4 жыл бұрын
Not being critical, but trees will not stop sound. It travels through the foliage. Only walls stop sound. Nice work on the rehab and #brrrr
@cavemanjoe79723 жыл бұрын
The way you said that about the comps and carpet made me think of you having a carpeted kitchen.😆
@bkd-newyork2256 Жыл бұрын
BRRRR made simple. Excellent...
@AmericanBorn863 жыл бұрын
You did not account for expenses (vacancy, management, Capex, utilities, etc) in your cash flow?? Seems super tight!
@nobjob113 жыл бұрын
He mentions that since everything is new that he does not factor in Cap Ex. Vacancy is also mentioned as a cost in his rehab - not sure how they factored that in tough. I agree though, seems a bit tight.
@justinyoung30684 жыл бұрын
Thank you Tarl and BiggerPockets for sharing this insightful how-to video. I am wondering how does the private money lender and/or hard money lender get paid their full investment since the LTV won't be enough to pull out 100% of the out of pocket costs? Thank you in advance.
@Deshgrame3 жыл бұрын
Thanks for the detail. I really got it how equity and other RoI adding up over time and compensating the investment. But I did not see you talking about the other monthly expenses like, 1. vacancy, 2, Mentainance + Cap Ex, 3 Management Cost 4, Selling cost if you sale, . I suppose another 25% to 35% Cost need to have in consideration or be aware of. Thanks for all the effort. Learning everday.
@luisesquijarosa99682 ай бұрын
Very cool project. Congrats
@theredbaron057 Жыл бұрын
Very helpful, thank you for sharing your knowledge
@darnelllewis59844 жыл бұрын
Great video
@bitterpiglet4 жыл бұрын
I’m assuming your PITI #’s don’t include any vacancy and property management? Fantastic ROI either way.
@morganharper44 жыл бұрын
Would appreciate a video on how to make the plans yourself.
@leverageearnings83874 жыл бұрын
That’s okay.. still not including vacancy and maintenance that need to be accounted for. Sure its 30% coc but its still 5k a year.
@chesswhite50553 жыл бұрын
Yeah but you got 10 properties like that, thats 50k
@blasdelagarza52923 жыл бұрын
Awesome video, appreciate the real world example!
@ThedudeMMXlll2 жыл бұрын
Such a gold nugget info. Thnkz appreciate. You sharing your experience. 👍💯🙏
@theaspiringinvestor89884 жыл бұрын
I am finding the Refinance and Repeat the hardest part.
@johnmcguire64433 жыл бұрын
Hi Tarl. Great video. I am interested in the design program you used. I'm finding one from Chief Architect called 'Home Designer Suite'. I also found one from Virtual Architect called 'Pro Home Design'. Are either of these the one you use? Thank you for your answer.
@JeanDagobert4 жыл бұрын
Niceeee that extra bath would of been nice but it’s not necessary.
@cmetarheel4 жыл бұрын
Love these walkthrough analysis. VERY helpful. One question, how long do you plan to keep the property and what will you return look like at the end?
@chuenejack48474 жыл бұрын
Great video, thanks so much.
@badgerd3273 жыл бұрын
It seems like adding a bathroom might not pay off in the near future but would pay off hugely in the long run, and quicker rentals and maybe a little bit higher rents. No?
@brandonboogren86603 жыл бұрын
Great video! Question: do you include expenses (maintenance, cap ex, etc) in your PITI? It looked like when you were running the number you only subtracted the financing from the income (I didn’t see a line item for operating expenses). Any insight on this would be great. Thanks again for the video!
@brandonboogren86603 жыл бұрын
Never mind you answered my question later in the video 😅
@calebtryhane71393 жыл бұрын
I’m interested in knowing how much of the renovations is done in house by you guys? I am interested in doing my first BRRRR but I am not a great handyman. Wondering if this investment approach is still generally profitable if you rely on majority of contractors to do the work.
@chawk22514 жыл бұрын
This was inspiring! I’m new to investing and just got my first property cash flowing $600. I was shocked when he said he spent $85k on the rehab. Is that normal? How can you be certain you will make the rehab money back in equity or when property is sold?
@brandonlifefamily83314 жыл бұрын
MLS previously sold houses. Gives you a benchmark on prices...b
@farmermike92623 жыл бұрын
@@brandonlifefamily8331 what does MLS stand for?
@logangensens12892 жыл бұрын
@@farmermike9262 multiple listing service
@matthewsanders8236 Жыл бұрын
I have two questions. First, why do you use private lenders and hard money lenders to finance the purchase and renovation of your brrrr’s? I’m assuming you have the money to purchase the homes so it makes me wonder if maybe there is an advantage of using hard money and paying what seems to be unnecessary interest instead of using your own cash. Second, if you could go back in time at what point would you start keeping properties for cash flow and equity instead of selling? Would that point be 200k , 500k, 1 million in the bank ?
@robertmichael10624 жыл бұрын
The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich
@alexpopescue47534 жыл бұрын
I love this word!
@farrelintan31634 жыл бұрын
100% true sir👍
@dannieralvarez78814 жыл бұрын
You’re right sir, Thanks for introducing me to Mr Davis
@dannieralvarez78814 жыл бұрын
People remain out of ignorance
@alexpopescue47534 жыл бұрын
Dannier Alvarez I agree with you on that but People are scared of investing because of the high rate of scam in the business!
@freeestyleobsessed Жыл бұрын
You were using your gross income to calculate your net operating income that’s not how it works if you bring in 2500 a month in rent you got to take 30 to 40% off that for vacancy repairs expenses so of the $2500 rent you might walk away with actual $1700 in your pocket so technically you’re upside down on this property and negative cash flow each month of three to $400 per month
@MrJuandiego19884 жыл бұрын
Gettin really hyped about investing since most of my cousins can give me cheap rehab prices.
@aaronwhite14263 жыл бұрын
My question is: What does your entire team consist of as far as positions/responsibilities? You've mentioned general contractor but you've also mentioned other small jobs that get handled by other folks off screen (like building floor plans). I am trying to put a team together and I want to make sure I cover all my bases and don't overwhelm myself. Thanks.
@richie214932 жыл бұрын
Perfect explanation
@angelzee18533 жыл бұрын
I heard them knees crack Tarl! 🤣🤣
@htraygo3 жыл бұрын
Omg I just heard you on BP podcast and towards the end I heard we are into a lot of the same stuff so I followed you on Instagram and now this gets recommended. Would love to talk!
@brandongrennan76022 жыл бұрын
Amazing content. Thank you so much!!
@almostanything66654 жыл бұрын
Can you explain how a refinance works?
@AlexChavez-il1hj3 жыл бұрын
It’s to get your money back to invest it on your next property
@almostanything66653 жыл бұрын
@@AlexChavez-il1hj I understand that. I want to know the steps in refinancing a property.
@Mrcool126843 жыл бұрын
Another great vid man! What company do you get your kitchen cabinetry from? They look awesome!