How To Buy Your First Rental Property (BRRRR Strategy)

[@Porkchop2021]

I love this video! Moral of the video? Dont get greedy!!! SCALE SCALE SCALE! most people will do this deal and immediately cash out refinance allll that equity pay off the hard money lender take out your initial investment and spend the rest of the money on new cars, luxurious vacations etc… but like thach said… you dont need all that money … leave the equity in and pile up the cash flow for your next deal

[@cityparkproperties7001]

I have never used the BRRR, but I have bought under market properties and did a rehab in order to get maximum rental income from the property.

[@Wowvod]

What’s your IG or Facebook? I got a few questions to ask regarding real estate, pls hit me back, thx.

[@elleseller3348]

How was your approach different than brrrr? I'm studying this stuff right now and could use the different perspective

[@dalton1981]

@@elleseller3348I’m guessing they just left the forced equity in there instead of refinancing to get the capital back out.

[@MrCleanKing]

@@dalton1981yes, that is what I do.

[@thangvo2118]

Thach, you are my hero! I got started 2.5 years ago because of you and listening to Bigger Pockets. I current have 10 SFH including the one I am living it. I did the BRRRR strategy on 4 homes, but coming up against refinancing limitations due to 10 properties. Can you do a video and go in depth with the Refinance portion of the BRRRR strategy? I understand 620 score and work history but can you do an example of how to qualify using rental income, W2, etc? My DTI is at a max now. Thanks!

[@jamescc2010]

Can you share problems, challenges, and tips? How does it impact your FICO buying 10 properties? Congrats to success.

[@cyrahoneofakind]

I’m guessing that’s why most investors recommend starting an LLC and going through the commercial lending side, but I’m not to sure.

[@Salute_vet22]

Hi Thang, how did you start. Did you do fha, hard money or cash? I have about $60k cash and not sure where to start.

[@m.b5777]

he leaves out risk from his equation.Many people who were doing Brrrr went bankrupt in 2008

[@KaayJaay]

So 10 mortgages is the max allowed for an individual?

[@BenjaminMaciel21000]

Great video. While building your business, I would recommend subbing out the leasing & management initially, and asking them all kinds of questions so you can learn from the pro's in your area vs making mistakes and then manage in-house in the future lol... Trust me, having a bad tenant for 12 months suckeddd after not properly vetting my tenant (since I didn't know)

[@chrisyambo]

Amazing video. Explained things in much better detail than anyone else

[@mikejohn3265]

He explained the risks and exceptions up front. I like that.

[@BRINLEYTOYS]

amazing!! but question = if you gave all the money back to the bank, that means you dont have morgage anymore. so you have 3850$ in 1 month,,,

[@deljay1840]

longer than 60 seconds! I like it.

[@isaacrangel-mq3lk]

can u make a video about all the permits one has to go thru for doing the brr strategy to make sure the city knows exactly what ur doing and whats okay to add and demo

[@Ihave10billionsubs]

If you find a good contractor they should be able to pull all the necessary permits for you. You may not even need permits if you aren't making any major structural changes.

[@SKOKMKJK]

Thank you so much Thach, I learned a lot from scratch.

[@Isaiahreap]

What is the average interest amount charged by hard money lenders when using this strategy? That has to be factored in too right?

[@jorgeruiz8888]

Thanks for sharing. I'm learning a lot through your videos.

[@anthonybui7473]

Great coverage. Do you have any content that covers the systems/programs that you use to invoice and collect rent for all of your rental property?

[@zelialadeira756]

Mind-blowing information. Thank you

[@feyzalbedani655]

Thach Great video, loved the details on how you explained the complete strategy from hard money lenders to the bank 👌🏽👌🏽

[@vdrtkrato1115]

Really helpful I just start watching you on KZbin. You give out very helpful information thanks bro.

[@chanxiaoqi2011]

thats clear concept, thanks Thach, just really curious how the house looks before and after the rehab to get a better idea!

[@keilongeorge6027]

Blessings Thach happy you posted this. 🙏

[@sayonjohnson3238]

I love your videos Mr. Nguyen. Inspirational

[@edwinreyes8779]

I have my house paid for and have been nervous to implement this. I didn't know where to start. I am located in Houston tx.

[@umienh916]

Are you a hard money lender? Where can I find them and how much they charge in interest or fees?

[@dynamoxander]

All this is great, but where and how can one find such deals ? If there isn't a product then none of this matters. Living in NYC house prices are so saturated as to where you'd be lucky to find a decent deal and that's is even on fixer uppers; I can't find nothing to flip here.

[@Pesimelaki29]

Thankyou for explaining it , so much clearer what a brrrr is.

[@sebastienking7423]

Awesome video! What I’m curious about is the interest charged with the hard money loan and the monthly payments during that 6 month process to park in a traditional loan. If there are monthly payments, the total invested would be DP + 6 months payments + refinance fees. Let me know. I’m interested in knowing actual numbers liked what you showed. Awesome video!

[@joninwm]

Thatch, could you please make a video describing in more detail what you actually need a property manager to do and what services they try to upsell you on that you don't need. Thank you. 😊

[@e.l.8128]

Thank you for BRRRR !!! Really great strategy 👍 👏

[@rubyhaq7569]

I love your videos. I am sorry to let you know that in Seattle, WA, a year ago, when this video was made, you could not buy a single-family house for $365k. You had to pay $595k for a fixer with a lot of work. (2023) After the rehab, it will be worth $900k. For the sake of explanation, these numbers are fine.

[@NghiaNguyen-qq7yx]

I just saw you at lam seafood! Nice to meet you!

[@ChaseTran]

Thanks for the informative video sir! How much interest did you pay during the 6+ month rehab before you get a tenant? Also what is the refinance fee? I assume those will deduct from the profits

[@christhetrend]

So, this deal seems almost too good to be true ! Are there any hidden fees? Lender fees?… etc?? Also, how long did this whole things take? From start to finish?

[@toufang-hmongwealthbuilders]

Great video. Thanks for always sharing ur knowledge. Brrrr is awesome.

[@vernonstripling4242]

How well does this work in urban areas. Asking because I'm new to this whole thing and want to get involved.

[@Billy00Brayan]

You are the man ! God Bless my brother 💪🏾

[@MrCleanKing]

I’ve done a few times so far and want to become an expert like you

[@toydealsusa]

Great video. Please explain: Since this is a numbers game , how can i know if it is something i can add and enforce value to it or if it is a pass because TOO MUCH money will be necessary to bring that up to rent it out? In other words, what would be the break point to stick with it or let it pass? Thanks Thach

[@jamescc2010]

If anything goes wrong in any steps, you might not be able to get all down payment money back, but you will have another rental hopefully with good cashflow. Margin for sure have to be big and hopefully market will not go down fast in a few months.

[@WeegeeXCV]

THANK YOU FOR THIS INFORMATION!!

[@vivianabalbuena]

You’re great! And I’m happy you and your wife are a power couple😊.

[@tritonh5683]

I need to learn how to find these houses. Every rehab house near my area are listed like this: Listing price: 450k Rehab cost: 80-100k Similar Houses that are already rehabbed cost 550k…:( This is why so far in our market we only buy rehabbed and ready to move in houses. I understand finding deals like this is not suppose to be easy. I just want to learn how to find it.

[@bennybinnu7635]

Questions: when does the bank appraise the house ? Before or after you have fixed the house?

[@danielpacheco4275]

After you fixed up the house, and after you put tenants in it

[@olajidemichaelade]

Great video... How do you lock down location though?

[@johnnymckissick2735]

Does brrrr only work if you have %100 of the original purchase price in cash?

[@zhangtiger9651]

Rent out separately do you need two separate meter like gas and electric. Landlord paid utilities? Or upstairs paid all utilities for the house ?

[@hawaiiliving4953]

Mahalo thatch for all the knowledge !

[@victorray_415]

Dammnnnnn!!!!😂😂😂 I love this guy! Thank you thach!!

[@umienh916]

How much do hard money charge typically bc its not free money??

[@luisrivera5314]

Amazing, Thanks a lot

[@joshuawhitely8984]

Great video

[@jpra923]

Nice kicks Thach!

[@bertbennick]

Great as always

[@Iamtherodlight1453.]

Thank you sir.

[@oliverross8788]

God bless you brother!!

[@adrianmarshall397]

I don’t think you had explained the part where the hard money lender also charge interest on the money that he/she loaned to you. If your all in number is $450,000 and you only Refinance for that amount then you would also need to pay back what the hard money lender lent you with interest. And also when refinancing I’m assuming you would have fees that would have to be paid.

[@sounddepth]

Yea, the “holding cost” plus 2 point origination fee of the loan. Also closing cost/transfer taxes when refinancing. Also money for utilities every month you were rehabbing the house.

[@zerovalue5106]

They always leave the hard part out. Once they tell you it’s not a magic wand people just give up and walk away but it sucks for people that actually want to know what the fuck it actually takes to start.

[@vicbuyshouses]

They always make it seem so easy. I agree though there are a ton of other fees with doing these rehabs. Also forgot the mention the hard money lender inspection and draw fees. When it comes down to it he’s in it for more then just 90k.

[@gukoo4621]

yes there are other fees not included so you would have to adjust the amount that you take from the bank loan. he took 450k from what could have been up to 500k and some change. so there is some wiggle room

[@isaacrangel-mq3lk]

im confused so when i refinance i can pay the orginal loan off and pay myself back what i put in, but its the lenders money ill owe the lender more right? or how does this work how are u 0 $ in when ur gonna owe the whole money you pulled lit to “pay yourself back” and u pay the orginal loan

[@mr.hudgins1021]

Question...during the rehab process does Tach have to pay the HML or does the HML allow him to pay it in full once he re-finances the deal?

[@harmeetkhalsi9746]

how do you know how much a home is going to appreciate after renovating it?

[@ANTHONY46015]

I just fell victim to doing a refi on a Duplex. I only got 23% of my down payment back 🤦🏾‍♂️

[@JoyTothesummer]

How much does it cost to rehab a property? Is it worth it tho 🤔

[@ryanphilips4808]

*Considering the economic downfall and the rise in poverty across the globe. I ask; What’s the best way to achieve financial freedom?*

[@juliusmaribel2138]

This is the best question of the year. I pray you get the right answer here.

[@georgearthur8059]

By following this practice; *(Being frugal , Investing and staying positive),* and by working with a *financial planner,* I achieved financial independence.

[@ryanphilips4808]

If I could ask; who’s your financial Adviser and how do I gain more info?

[@georgearthur8059]

I get help from *Donald Nathan Scott.* A well known Investment Adviser who operates privately . You can research his name to get more information.

[@xaeon_thesandbox]

Do you recommend a home equity loan?

[@bambinooooooo]

What are the consequences of losing a property with this strategy? Will your credit score be affected drastically?

[@dennis44112]

Wouldn’t there also be hard money origination fee and hard money interest?

[@maxwellmorelly5486]

Thach you’re the man! Thanks for this video, it helps!

[@daryldiazramos9094]

In the brrrr method people never mention the closing cost, closing cost on that property should be close to $15k. I don’t see the closing cost on that board

[@danielpacheco4275]

True also hard money lenders typically charge 10 to 15% interest on the house depending on their experience and how good the deal is

[@ItsDoctorDoom]

You weren't listening, and some hard money will tie those fees into the original financing, or you figure it into the purchase and rehab price to cover those fees by taking more for the former, or you need to cover it yourself.

[@yuniorrivas662]

So, then you still going to owe the property for 30 years to the traditional mortgage? The purpose to generate the 1,050 cash flow.

[@Treebon]

How do you estimate the rehab cost? For a first timer?

[@bzmantyler]

Still learning here. What I'm trying to understand is why do you leave the equity and not take it out to use for your next few deals? Can't you use that $275k to do this method on multiple houses after you've made the equity?

[@danielpacheco4275]

Because the more money you take out the less cash flow you will have

[@tohndizzle475]

How much did the hard money lender make off of the brrrr deal that you did?

[@solidonfire]

It is very hard to find this kind of deals in Los Angeles and Orange county.

[@jaunbonaysmith]

Buy out of state try Cleveland

[@chrisyambo]

How do fees factor into this equation? Would any fees you end up paying be considered money “in the deal”?

[@wristdrip5846]

Hi, my name is Kyle. Im 25 from New Jersey I’m making over 6 figures a year and want to invest in my first rental property. I wanted to know if you do any private training? I would love to be able to have someone to look over a deal I find with. I understand if you don’t or don’t have the time. I figured I at least can put the time in to leave a comment to ask. Thank you!

[@chriss6154]

Thanks thach

[@rogermenjivar1438]

TALK ABOUT PERMIITTSSSS

[@froy_boyproductions8488]

Hey brother I want access to these shirts. Where can I buy them?

[@dhowto3005]

Thanks!

[@mjholla19]

Where or how do you find hard money lenders

[@varitv6785]

How do you feel about buying foreclosures??

[@isaacrangel-mq3lk]

and how to get permission really look up to you im out here in portland starting from 0

[@khaleefax9553]

*I called an electrician to hang a ceiling fan for me. He quoted $280.00. The fan cost $65.00* *We agreed on 10:00 AM on a certain day, so I planned to take off from work to meet him at my property.* *He arrived at 9:30 AM and sent me a message that he has arrived early so I need to be there. I couldn't because I was at work but I tried anyway. So, I arrived there at **9:42**. And he had left the scene, not even replying to me. He didn't even wait 15 minutes.* *HOW THE EFFFFFFFF are you going to find a crew who can work on your rehab property in this market when no one wants to work - everyone in the blue collar industry is now doing a delivery job - be your own boss. No wonder you see HIRING signs everywhere. Big stores paying good hourly rate, plus benefits - but they still can't find people to work for them.*

[@JoyTothesummer]

Preach 👏

[@CB099]

Rehabbing a house isn't exactly the same thing. You can do alot yourself or with one single handy man on your team. Few keys: Paint is your friend. Everything looks better painted. Crappy wood floor you toss a thick coat of black deck pain/high traffic sealant on. You go with window units for AC, floor straps for heat, kitchens arent as scary as people think, any one can install a counter top. You measure it, pick it up, glue it down. Anyone can get sinks and toilets and even prefab tubs/shower combos at home depot or Lowes, ace has free install on almost everything if you spend a certain amount. Same goes for floors. Get the cheapest carpet from any local shop with free or cheap install. If you need electrical and plumbing, ask a hispanic family. They know someone who can do it cheap. Mever pay in full up front. Pay at the end or as you go with pre agreed payments as the work is completed. As long as you stay away from roof, foundation, and fire issues, you should be good.

[@brightsideperspectives991]

Why would I need 20% down with the lender would have the house as collateral??

[@notrai1594]

Here’s my ad for finding a wholesaler in San Diego 3:22

[@alessandrobarajas]

How do you get the 90k back is it’s included in the new loan?

[@umienh916]

90k is out of the new loan. The big question is how much interest to the hard money lender bc they ain't lending for free

[@rydafiyah]

"first u need good credit...." ok i'm done here. 🎉

[@Africa-d8w]

With stocks you can do BRR. 1. Buy blue chip high dividend paying stocks. 2. Reinvest dividends 3. Repeat No problem tenants, vacancies, prop taxes, insurance, maint, etc..

[@danielpacheco4275]

Yes but with real estate you get a lot of tax benefits and blue chip stocks. Don’t pay a lot in dividends.

[@aztec8ch]

what if I dont work at the same place, but have worked in my trade for more than two years

[@thulieunguyen1028]

Ngoài phần chú thích Thạch Nguyễn đến mỹ và làm việc như thế nào . Anh có thể cho thích thêm những mục chính cho mỗi video, như video này chú thích những ý chính để sở hữu bất động sản cho thuê đầu Tiên mỹ hay bất cứ nước nào , thì người mua cần dùng đòn bẩy gì ? Bởi nhiều người Việt đọc dịch giỏi nhưng chưa nghe Tốt .

[@isaacrangel-mq3lk]

after you refinance tho dont u still owe the bank double

[@jakethehitman-187]

Force add +value 25/35% equity=brrrr

[@johndam7673]

Do you need a real estate license to do this?

[@Tones9341]

You’re using an example that you used on another video I’m surprised because you should have had another deal done to use on this other video with all your experience and deals BROWZY!!!!!!!!!!

[@yomanny13]

BRRRR🥶

[@thuyyuen2897]

Thank you for great information. With the BRRR, can I buy expensive properties, >$700k? My area is expensive.

[@KaayJaay]

Yes. What location?

[@Worldviewsandthoughts]

Where did the money come from to rehab???

[@JoyTothesummer]

Exactly lol

[@WizardsPath-if5oq]

How can i get property if i have under $1000 and bad credit?

[@oliversolimeno1904]

Get your money and credit up

[@kyloren2799]

it's a simple process on explaining it on video. but you for got it's not only you getting $1200 cash flow. you forgot that you have to pay your property management team etc..ya KZbinrs leave alot of other th ings out. but I get it it's a pretty picture to bring people to you.

[@danielpacheco4275]

Even then it’s still pretty good cash flow even if you only cash flowed $800 it’s still pretty good

[@rubnawazqureshi560]

What happen, if renter left house, then you will have to pay mortgage.

[@JoyTothesummer]

That's why you better vet renters. Or scramble and use Airbnb

[@arkinoy]

Did you cashout the whole takeout loan 450k without the downpayment?

[@danielpacheco4275]

There is no down payment on a cash out refinance they only let you borrow 75% of the property’s value the 15% they don’t lend out is there a collateral

[@derekf9017]

An 85k reno is giving me a laugh brother. 2000 sft is 42 sft. No volar esse. More like 150 sft minimum for that kind of return

[@fabianmeneses6840]

Why didn't you take out the equity?

[@danielpacheco4275]

Because then he wouldn’t cash flow as much the more you take out the more your monthly payment will be

[@GlorifyingX]

Thankyou for sharing

[@Tones9341]

On your other video you said driving around looking for property is not a good strategy You said to make a list, and target a zone instead of driving around Wiz up Man??????

[@bugzyjohnson9877]

Buy in Renovate Rent out Refinance Repeat