The BRRRR Strategy UK EXPOSED | The Truth about BRRRR

What makes this BRRRR strategy so potentially profitable?
BRRRR stands for “Buy, Refurbish, Rent, Refinance, Repeat”. It can enable you to both benefit from cash flow and gain a lot of capital growth over time. What is there not to like about this strategy?
However, many people make some basic mistakes when using this property investment method. I also share the 5 biggest mistakes I have seen investors making with this BRRRR strategy in the UK.
Watch my video about Buy to Let mortgages below:
• Buy to Let mortgages i...
Timestamps:
0:00 - Intro
0:17 - What does BRRRR stand for?
1:52 - First part of the BRRRR property investing strategy - acquiring the property
3:35 - Second part of the BRRRR property investing strategy - refurbishing the property
4:32 - Third part of the BRRRR property investing strategy - renting out the property
5:32 - Fourth part of the BRRRR property investing strategy - refinance
11:49 - Fifth part of the BRRRR property investing strategy - repeat
12:44 - 5 biggest mistakes to avoid when applying the BRRRR property investing strategy
#BRRRR #BRRRRstrategy #BRRRRstrategyUK
Follow Me On Social Media:
Facebook: / thesajhussain
LinkedIn: / sajhussain
Instagram: / thesajhussain
Twitter: h / thesajhussain
KZbin: kzbin.info...
Website: www.SajHussain.com/Networking
If you have a question you want me to answer then please put it in the comments section. If you enjoyed this video please do subscribe so that you are notified of more videos just like this.
Get Mentored By Saj:
If you want to achieve your property goals with the support of an experienced property mentor then my Inner Circle Mentoring programme is just what you need. Find out more here: www.sajhussain.com/let-me-men...
Thank you for watching my name is Saj Hussain AKA The Property Joint Venture Expert and Your Partner for Wealth Creation Through Property.

[@avipatable]

Thank you, great video. :)

[@akumar7366]

Love your presentation style, makes learning do much easier to the layperson.

[@TheSajHussain]

Thank you

[@mogheesmir]

Another great video, one I was looking forward to! Explained really well thank you!

[@TheSajHussain]

Glad you enjoyed it! If you are enjoying these videos, then please do share them with your friends.

[@mogheesmir]

My brother and I are looking to start our property venture in the new year so we are sharing your content between us. Hope you have a great new year!

[@zedhussain2046]

Hi Saj a great easy explanation of this strategy I am sure it will help alot of people. Your videos are a great tool to free valued expertise. Thankyou for taking time out to helping and educating people.

[@TheSajHussain]

My pleasure! If you are enjoying these videos, then please do share them with your friends.

[@dalsingh2748]

Great video explained it really well. 👌🏽

[@TheSajHussain]

Thanks Dal. If you’re enjoying this content then please do share it with your friends.

[@IT-lk6uy]

Very grateful for your videos. 🙏

[@TheSajHussain]

You are very welcome

[@williamcarter5840]

Great video Saj, I've been watching and learning about this strategy from another experienced property investor, and really like your presentation style and tone as well. Not a fan of the in your face hard push/sale of some others on KZbin (too american). Keep up the good work and good health 👍

[@TheSajHussain]

Thanks for the support William, if you are enjoying these videos, then please do share them with your friends.

[@chrismorgan6057]

Thanks one of the clearest explanations I've heard of this strategy. I've used myself but using a mortgage and re-mortgaging after the 2 year fix rate it helped me build up my little portfolio and is a great strategy assuming you get the knowledge and know your market.

[@TheSajHussain]

Thank you Chris. Glad it was helpful!

[@ibrahimafsar5151]

Very clear and informative 👍

[@TheSajHussain]

Thank you Ibrahim. If you are enjoying these videos, then please do share them with your friends.

[@gillcook5382]

Brilliant example thank you!

[@DeepakSingh-pf7sy]

Great video Saj… I appreciated your style of explanation. I had one question. How did you get to the £7,500 of your own cash left in the deal? Thank you.

[@bartmaslon6016]

Saj, most informative video I've seen on subject to date, Thank You. I do however still have one "missing puzzle" and can't find the answer... Based on example in this vid, You've spent £120K cash on property, it's now valuated @ £150K. Mortgage broker offers You £112500 mortgage. Now, would the broker require 25% deposit to release the mortgage ? Or how do You cross this bridge.

[@umairahmad4711]

Fantastic video 👍

[@TheSajHussain]

Thank you Umair. Much appreciated.

[@seangallagher1726]

Thank you very much for this. Really helpful. When you are getting you are first getting your mortgage on the property I take it you don't tell the broker your plan to remortgage the property using this method?

[@TheSajHussain]

I suggest being transparent with the broker as they are there to help you get the best products.

[@keithstewart511]

good stuff. the mistakes was a good addition.

[@TheSajHussain]

Thank you

[@cheznidominique6998]

great video!

[@TheSajHussain]

Glad you enjoyed it

[@SegunA887]

Very informative Saj, but my problem with bridging is that the cost of bridging might eat deep into the initial equity of bmv.

[@TheSajHussain]

Yes, can be. Lots of hidden/other costs involved. I would estimate bridging at 14% pa (gross) into the deal.

[@officialjayee9688]

@@TheSajHussain llo 😊hl😢l😊lo😅

[@Sam-xt1kr]

Hi Saj great video as always. Are there many lenders that allow you remortgage BTL before 6 months? If you bought it originally cash. I thought most lenders want you to have owned it for 6 months. Many thanks

[@TheSajHussain]

There are a small number of lenders that will allow a re-mortgage within 6 months. They also tend to have higher interest rates. A good mortgage broker should be able to help you with this.

[@tahir2061]

Thanks for the great explanation- one question, have you had much experience of using Islamic finance eg Al Rayan or Gatehouse bank?

[@TheSajHussain]

Salaam Tahir, yes I've had some experience with them in the past.

[@juliegeorge8533]

Do you add in the purchase costs such as survey and solicitor fees?

[@barefootofficial3156]

Hello Saj, Your videos are so refreshing and informative! If I am using a private investor to purchase and refurbish my property using the BRRR method, how do they get their money back? I am a bit unclear as to how I can use OPM with BRRR so that it is a worthy investment for them whilst continuing to grow my portfolio with the cash pulled out of the deal? Thanks a lot and have a lovely rest of your week. Abigail

[@TheSajHussain]

You probably need to get an uplift of more than 25% in order to pull out enough to repay your investor.

[@06niaiaaaa]

Hi Saj, how can someone overcome mistake #4? Ensure you own your own home before even considering this strategy? Thanks

[@spw_investing648]

Hi Saj, love the content, keep it up! I’m 22 and hoping to buy my first property next Summer using the BRRRR strategy, would this be sensible given it’d be my first property? Should I just play it safe with a vanilla BTL?

[@TheSajHussain]

Depend on your end goal. If you are getting started in property, then these 2 videos will help you: kzbin.info/www/bejne/onWapapmmaxjY8U kzbin.info/www/bejne/opackoeHqMeCpdk Let me know how you get on with them.

[@spw_investing648]

Saj Hussain cheers Saj, I’ll check these out!

[@Mortizul]

Hi Saj, what is the link you mentioned to the video about Buy to Let Mortgages?

[@TheSajHussain]

Here you go. kzbin.info/www/bejne/e3XckmqlhstshNU

[@bouwah85]

Good guide. How will the lender lend if this is the only property and rent you have ie in a ltd, what affordability criteria would they look at? Thx Saj

[@TheSajHussain]

If it's your only property then a little more difficult for the first one but not impossible.

[@manjoat6638]

Thank you very much for this videos. One question I wanted to ask is whether you would use a bridging loan for this strategy, if yes wouldn't the bridging loan payments would be higher than the rent you receive from tenants since they tend to have higher interest rates. Does this mean you would be running on a negative cash flow until you would be able to refinance it for a better deal?

[@TheSajHussain]

In theory they could be. However, I would look to re-mortgage as soon as the tenants are in. Alternatively the bridging loan interest payments could be rolled up.

[@manjoat6638]

@@TheSajHussain Thank you

[@Kyle-rf5mb]

This is an open question to anybody especially experienced investors, aswelll as Saj. If you had a house paid off worth about 75k say what would be your next step, i can also do 90% of the work on a refurbish because of my trade. Remortgage against the property to buy a 25% down on say a 100k property, then save up enough cash so another 25k to buy a third property with the same again of 25% down BTL mortgage? In the process of finding a mortgage advisor who can help but just if anybody has already done it and can shine a bit of light on it.

[@TheSajHussain]

If you are getting started in property, then these 2 videos will help you. kzbin.info/www/bejne/onWapapmmaxjY8U kzbin.info/www/bejne/opackoeHqMeCpdk Let me know how you get on with them.

[@user-zw7dk5lk3v]

When giving the worked example at 8:10, is this an interest only mortgage or repayment? Thanks.

[@TheSajHussain]

Interest only mortgage

[@robertasjankauskas2055]

Thank you😊

[@TheSajHussain]

Thank you for the support Robertas.

[@robertasjankauskas2055]

@@TheSajHussain do you need any help on something I can work for free, exchange for knowledge

[@sajidgilani1386]

Hi Saj, Thanks for info on this video but am still not sure how to access details relating to btl mortgages under ltd company. i guess traditional banks dont give them ?

[@TheSajHussain]

A good mortgage broker will have no difficulty in accessing these products for you. Message me on FB or Insta if you need a broker.

[@sajidgilani1386]

​@@TheSajHussain will msg you on insta/FB thanks a lot once again :-)

[@arfanmedni7294]

11.30 boom that's what I'm talking about.

[@TheSajHussain]

Absolutely! 👌🏼

[@DonDon-df5ie]

I have a 2nd property on blt but the wife just moved jobs and in the higher tax bracket. Shitting about section 24 coming in but I do have 100k equity in my residential and 30k I can release from my blt, should I just sell or buy more.

[@TheSajHussain]

Don I'd sit down with a property tax accountant to put together a plan that is holistic rather than just these properties. If you need a recommendation message me on FB or Insta @TheSajHussain

[@kryptoniteee]

Hmmm how do we overcome that this business model is based on the interest banking model which is against my religion? Are there alternative ways to do this for people who don’t want to be involved in interest?

[@creamon4559]

Do you have the buy the property on a BTL mortgage in the first place?

[@TheSajHussain]

No, cash or bridging finance.

[@Albert-PhotonChem]

Why do you suppose such a high interest rate? Shouldn't it be closer to 1,5-2% or not for buy-to-rent?

[@TheSajHussain]

It the average over many years

[@MAN118ify]

In the process of purchasing a residential in Harrogate up north. Offer accepted at 175000. Houses around are around 200-230. How can I use this toy advantage as it is undervalue

[@TheSajHussain]

Possibly as bridge to purchase then re-mortgage at current value.

[@nassah2010]

Can i use a further advance if im in my fixed period ?

[@TheSajHussain]

Yes, if the lender offers this. Otherwise you may be able to get a second charge loan.

[@nahomiemalabuna5033]

does bridge loan covert the cost of refurbishment?

[@TheSajHussain]

Not generally, you would use a development loan to cover refurb costs.

[@SegunA887]

Did I hear you say the more the rent, the more the refinance figure for remortgaging?

[@TheSajHussain]

Yes, if doing a commercial re-mortgage on a HMO. On a regular BTL it will help in justifying the best bricks and mortar valuation.

[@ollielake7421]

@@TheSajHussain is a 6 bed hmo remortgaged under commercial or does it need more rooms? Great vids btw 👍

[@TheSajHussain]

@@ollielake7421 depends on a number of factors. E.g. if all ensuite probably yes, if Article 4 area probably yes.

[@Hallo-vt5rf]

On the example can the £112,500 be used as a mortgage e.g £110,000 out down on a property

[@TheSajHussain]

I don't understand what you mean. Can you elaborate.

[@Hallo-vt5rf]

@@TheSajHussain no it’s fine i just worked it on the fact that you could use most of that money to pay off this mortgage

[@supersarang]

In BRRRR, does an individual make profit or is it all intrest based?

[@TheSajHussain]

When you re-finance you will be taking on a loan in the form of a mortgage. There are a few Halal mortgage providers for Buy To Let.

[@supersarang]

@@TheSajHussain but is financing allowed in Islam? Isn't like taking another mortgage? I do have an Islamic mortgage, can I re finance my mortgage to pay it off?

[@TheSajHussain]

@@supersarang yes it is possible to re-mortgage with an Islamic Buy To Let mortgage.

[@anuragjain3590]

What is the difference between UK and USA Market?

[@TheSajHussain]

There are a lot of differences, too many to be able to explain in a message

[@jimboyuk1]

Finding viable beer deals in UK are becoming increasingly more challenging

[@TheSajHussain]

It is more challenging in this market. Hence, why we focus on creating and adding value instead of just buying at a discount.

[@jimboyuk1]

@@TheSajHussain It was the adding value scenario I was referring to. This past week i went to put an offer in on 2 BRRR's only to find that the vendors had received offers for well over the asking price. I feel this is in part due to the extended stamp duty holiday further fuelling demand.

[@jimboyuk1]

But if u keep doing this you are building a capital gains tax bomb

[@TheSajHussain]

Capital Gains Tax (CGT) is not paid by limited companies.