The “Buy, Rehab, Rent, Refinance, Repeat” (BRRRR) Method Made Simple | BP Podcast 327

It’s here-THE book on BRRRR! And who better to write it than the leading authority on this strategy: our co-host David Greene.
In this episode, he breaks down exactly how to “Buy, Rehab, Rent, Refinance, and Repeat” your way to wealth.
David reveals how BRRRR allows him to force equity, leverage the talents of others, and recycle his capital so he didn’t have to keep working 100-hour weeks as a police officer.
You’ll learn about the velocity of money, the “core four” players every BRRRR investor needs on his or her team, and the way to eliminate fear by taking a cold, hard look at the numbers.
David also explains how this strategy can reduce capital expenditures and how to come to the bargaining table with a cash offer that puts you in the driver’s seat.
He also addresses some common objections, including the notion that it’s difficult to influence the appraised value of your rehabbed property. Plus, you won’t want to miss the “Deal Deep Dive” where David goes into detail about one of his recent real-life BRRRR deals.
Whether you’re brand new to this method of investing or are looking to fine-tune your BRRRR skills, this episode will provide you with a ton of value. Still, we only cover part of what’s in David’s book, so check it out on the BiggerPockets Bookstore.
Check the full show notes here: www.biggerpockets.com/blog/bi...

[@ScottWalshWoodworking]

As someone who's worked in audio for years, I figured I'd just throw this out there in case you hadn't thought of this before: The majority of the condenser mics like the ones you guys are using are 'side address', meaning you speak into the side of the mic, not the top of the mic like a typical dynamic mic. To confirm, just look into the grill, you should be speaking perpendicular to the capsule (looks like a gold disc). There are some exceptions to this trend. Great Podcast.

[@victorgenao2936]

Thank you! First thing i noticed. Ive heard built in camera mics more decent than this so its kinda annoying but good content overall

[@conorm2524]

This audio sounds like it's coming through AM radio. They look like decent mics, where did they pull the audio from?

[@WooaWooters]

Thanks for that man, I know nothing of mics like this and I've been looking at getting something like one of these

[@1x0x]

ever since i got my own mic and learned this it annoys me so much lol

[@AdityaKumarSoma]

Thanks Brandon: BRRRR is the game changer I have done 5 BRRRR's so far working on BRRRRING 17unit building now. this wouldn't be possible without bigger pockets🙏🙏

[@klausspi8137]

Hello aditya…karan would like to get more insights on this if you have some time?

[@whatsindoon2661]

Haha and thank you Aditya for teaching BRRRR to me, I can’t thank you how much motivation I get from you and your video. I want to appreciate you here too. Thank you 😊

[@ewlinitis]

When you Refinance, what do you use ? HELOC ?

[@kiarathebabyrottweiler4279]

Wow, David Greene is awesome. He really knows his stuff and confidently responded to every question Brandon threw at him! Impressive. Needless to say I'm going to be reading his books.

[@fl3082]

What he is explaining around the 1-hour mark is Monopoly; "buy four little green houses and then trade them in on one big red hotel". Which is exactly how Rich Dad taught Robert Kiyosaki.

[@fixingstufff]

And by trading ... is to get a blanket loan .

[@lucrtrvl]

Exchange 1031!

[@Keephopealive2013]

Wealth of knowledge. So freely given. Thank you

[@zerohero6602]

Ndubuisi Egwim yeah man it’s crazy how much you can learn from watching KZbin

[@CarlosPerez-ut5ze]

@@zerohero6602 not every youtuber gives this much free GREAT knowledge

[@happygrass5]

And it's actual functional information instead of motivational garbage

[@breathuvfreshair76]

Thanks Brandon and David for once again providing awesome content! You guys are doing a great job of carrying the Josh Dorkin Bigger Pockets baton and are a great mix of knowledge, humor and charisma. Awesome video full of gold nuggets. 58:18 (quick summary of the key benefits for each step of the BRRRR process) and 58:40 (David summarizing his systems flow) are two of my favorite parts of the video for their simple, yet effective messages. Keep up the great work!

[@edcarrington]

I was today years old when I became a lifelong fan of David Greene... David is dropping MAJOR gems in the podcast

[@kirthiroberts645]

Thanks Brandon and David for another exciting podcast. David I ordered your new book on BRRRR and was waiting patiently until today to receive it into my Kindle. I am already part way into Chapter 1 and looking forward to reading it and then implementing the strategy with my next investment. Cheers!

[@richardjordau]

Just get started immediately next time. We really don't give a shit about anything but real estate and learning

[@curtisj24]

Fixed up from the Bricks up!

[@rdot980]

Ha!!

[@WhiteBoardFinance]

David Greene = American Dream 👍

[@lourdesmartinez3869]

OMG Marco,I'm a fan of your channel too.. I must be on the right road 😁🤗

[@jayandjulied2299]

@@lourdesmartinez3869 ppppppll

[@springisthenewyear]

Thank you so much for sharing this information. I just bought David’s BRRRR book and Brandon’s REI book. Excited to finally get this started.

[@dcshewrn]

Just bought the Kindle book! Have about 50K, can't wait to get started on a small scale. I'm Dave Ramsey brainwashed so feeling a little nervous LOL, but at my age I don't have years to get it done.

[@dcshewrn]

well hells bells, I bought from Amazon rt before you said you sell it

[@dcshewrn]

I checked the links 1st, there was nothing on David's book, so I naturally went to Amazon :(

[@elperrocovero]

Hi.Did you buy anuthing yet?

[@adolpholiverbush5867]

Dave Ramsey is smart, if you have 200 years to grow your wealth or make mad income. For the normal person buying houses in full will take a decade a pop.

[@GWUJO]

MotorcityGal dron

[@max.1q84]

9:30 How Brandon discovered BRRRR 11:28 Benefits of BRRRR

[@lovelylanibk]

Best podcast I’ve listened to without the hype just straight information 👏🏾👏🏾👏🏾👏🏾👏🏾

[@lindseynoble1]

I nearly peed myself when he said, "God is great, god is good, let us thank him for this Randy."

[@mikedrewrealtor1228]

Listened to the book twice already and it is very well written with a lot of great information! Thanks for the great podcast Brandon and Dave!

[@vaughanmoody]

I’m halfway through listening to this on the podcast and am loving it. Thanks Brandon & David!

[@jasonsschatzberg]

These guys are really good in explaining.

[@shawnj908]

I am so happy I listened to this podcast....thank you guys for this info and I will definately be refrencing this video and book...Great work guys!

[@iBuyAnyCom]

Black belt investor: definition. master of real estate investing. Good analogy.

[@dfigenscher]

One thing I’m not seeing mentioned in any BRRRR content is the fact that there are fees associated with a refinance. These fees can be wrapped into the loan with most banks, however the balance still cannot exceed 70/75/80 percent of the ARV (whatever the bank offers). I think this is important to note because that’s either 5-8% in fees that either need to be paid out of pocket, or your “all in” figure has to compensate for these fees.

[@onealr]

Do you have to take the full LTV amount? Let's say I only need to take out a LTV of 45% to repay lenders, because I'd rather have a smaller monthly mortgage for greater cash flow. Is that possible, or is it always the full LTV at cashout refi?

[@aaronschultz7510]

@@onealr any LTV is doable. But keep in mind the lower you go with the loan amount, (if under 100,000 or so. Your rate will go up. Lenders like larger loans, especially on a 30yr. Also if you did take out the full ltv, you could use the cash for a different property and maybe get two properties to brrrr. Or a larger more profitable property. Just some food for thought

[@skyblue9991]

@muttr He explains it in the first 8 mins of the podcast... Watch the podcast. 😑

[@ThePatriots1993]

@muttr After Repair Value; Loan To Value

[@jaynorman7557]

Thank you! Great tip!!

[@cglendenning]

David and Brandon, you guys are so awesome. Each of you have the heart of a teacher...people have really good B.S. detectors, and your authenticity of your enthusiasm shines through. There is a really cool theme with these Acronyms. BRRRR & FEEL both align well with the "OODA Loop" - Observe, Orient, Decide, Act. I believe the OODA origin is from the U.S. Air Force but generally, the idea is to focus on the process. You "Fail Forward Fast" by working in this tight loop of activity. I love it!

[@caseybonas3385]

This is how Ben Mallah built his empire. Also using 1031 filing to stay ahead of the IRS.

[@dancabrera465]

where is josh dorkin? do you know?

[@rb7454]

What is 1031?

[@AlexChavez-il1hj]

@@rb7454 google it bro.. google is your bestfriend

[@deandray77]

Maybe “Fixed Up from The Sticks Up”

[@waleedabdulrab8779]

Griffith Group Mine is better. 😁

[@theocedillo7515]

Maybe "Bricks up"

[@juniorgermaine6756]

from the ground up*

[@billiebarnett7827]

Are you trying to rob a rehabber?

[@veronicavelasco8456]

love this video, I bought all the books including BRRRR book. I'm very excited, thank you both for the great information. Blessings!

[@marcush219]

Did David take credit for "Tore up from the floor up"? LOL that's old 90's slang.

[@jazziedazzle]

I know right! It's funny how "certain" slang pops up decades later like it's brand new Lol

[@shanda01114]

Kmsl. I am watching this on my smart TV and pulled out my phone to make sure to comment regarding that. Lol. Like that is one of the most popular phrases from the 90s. I'm surprised Brandon didn't know that.

[@monteblackwell4652]

@@jazziedazzle It's brand new to millennials.

[@browneyes39]

Yes he did. I was listening to the podcast and came to you tube just to comment on him trying to take credit for “tore up from the floor up”. Sad.

[@shanda01114]

@@browneyes39 happy I'm not the only one who had to come and comment

[@tonymartinez5946]

David and Brandon... excellent Video! I often frown when I see 1 hour plus but this is tome very well spent! It was like a good book. I’m at min 1:04, ran a couple errands, doing busy work at home (😒 Laundry) and I’m totally bummed because I realized I’m almost done with this one. Glad I chose to listen to the whole interview. I replayed several parts as I’m slightly distracted. Good Stuff gentleman! Ordering your book tonight.

[@abdullahshaykh]

I want to start a real estate portfolio and recently came across bigger pockets whilst doing my research. I am compelled to compliment you guys on how well you explain each and every thing and identify pitfalls so others don't fall in them. Ended up saving so many more of your videos in my offline playlist. Thank you. Wish me luck for the future.

[@leipzigescobar4085]

BiggerPockets is an amazing educational, down to earth channel. I was tempted to write 1 millions comments every time the gentlemen touched on a subject, instead I decided to take notes😉. My partner and I have been doing rentals going to 7 yrs and seriously looking into flipping ( well we are upgrading to BRRRR investing). Thank you guys!!🎆🎉

[@PennsylvaniaHomesforSale]

How did you do and or finance your 1st 7 deals?.. we just did our 1st rental looking to do a 2nd rental

[@alfonsoh3]

Leipzig Escobar have you tried this method yet? I have one rental and purchased it at a GREAT price. I just fixed it up nice and now went up on my rent. I was thinking of flipping it but I love the residual income this rent property gives me.

[@alfonsoh3]

B Muss how’s it going, did you get your 2nd rental yet?

[@PennsylvaniaHomesforSale]

@@alfonsoh3 hey bro I'm still patiently waiting for my 2nd rental deal. I'm deciding weather to buy a really cheap house cash and then heloc it or, I might put 5% down on a conventional loan if I can find the right multifamily unit cash flowing

[@PennsylvaniaHomesforSale]

Any update from you?

[@dpimprovements9905]

I haven't hand written this many notes since I have been out of school 😂 I've paused and played back idk how many times and I still have 25 min. to go! You guys have much respect from me and thank you.

[@misunderstoodkj]

Tore Up from the Floor Up by: Sheneneh from the TV show "Martin".

[@d.miller6062]

Ha ha they don't know about that!

[@promisestarxd9487]

misunderstoodkj thank you!!!!!!!! I knew it was from a show but I couldn’t remember which show

[@MrMarkmill]

Facts

[@victorassessing7]

@Timothy Graham and if they don't know now they know

[@chalongehart3134]

" What is black culture?" For $500

[@SA-ho1mu]

Gucci Mane has entered the chat. Gucci Mane: Brrrrrr!

[@sunofman2008]

S A or bird man

[@shelleygreyrealtor]

😂😂😂😂

[@mack_valenzuela]

Aanual too haha

[@bigwob33]

1017

[@kennethwill246]

Thinking the same thing

[@ArtistWizardry]

Thank you for doing the audiobook for it too. Hard enough to get the Honey fully on board and hoping hearing from you will peak that interest.

[@skyblue9991]

Come back here every now and again to reset. So much great information in one podcast.

[@BrianHKiely]

Thanks for the great episode! I’ve been listening to the audio book on my daily dog walks and drives. Great info. I will absolutely get into my first deals this year. 3+ in 2022!!

[@flashpb04]

Oh dear lord this is the episode I’ve been waiting for. Can’t wait for the book!

[@the_reel_uh_tour]

I look forward to more books from Bigger Pockets. And a book on BRRRR would be fantastic to read.

[@vcatdog832]

Absolutely hands down the best episode of BP

[@the_reel_uh_tour]

@@vcatdog832 It is definitely a great episode! 😄

[@REIJames]

The BRRRR book is out and is good.

[@michaelsockwell7602]

This podcast is so awesome and insightful. I’m watching it back again. I hit the 👍 and I’m planning on getting the book. Buying my first Brrrr this year. Tha is for all you guys do

[@the_reel_uh_tour]

I agree this podcast was very awesome and insightful. I also look forward to reading the book. All of the other books that I have by Bigger Pockets have all been great.

[@DudeRealEstate]

Another great episode. Thanks for the details...can’t wait to read the book! 🙌

[@waleedabdulrab8779]

"Fixed up from the sink up" I got you David.

[@ricardorivera7208]

David Greene got me taking notes. Looking forward to read bigger pockets library.

[@Jason_Amada]

My favorite new channel. Just discovered these guys.

[@brandongrennan7602]

The way David broke down that BRRRR deal with the property that appraised for 105K was fire!!!! Broke it down Barney style quickly and concise.

[@KD-sj4di]

Thank you for the wealth of knowledge and making me smile, needed to see this!!! 😇

[@Planetgreenzen]

Thanks Wonder Twins David is so wise and has great advice with every word he speaks.

[@kadorkian]

Y'all crack me up, & you're informative.

[@spaceshipmoon69]

Truly superb content on just the career change i'm making! Thanks!

[@trojan7933]

David Greene is very smart and humble

[@auctionman707]

If your a real estate agent, you have access to see expired listings. When these deals are expired you can deal with just you and the owner.

[@luzareizaga2141]

@muttr I agree , you would still have to get broker involve if you learned of the listing because of the broker listing

[@Rsn.Slippinfoot]

The real question is where are you finding these houses at $30-60k

[@fluffycomedian]

Fam... thats a down payment

[@Rsn.Slippinfoot]

@@fluffycomedian no m8 that's the purchase price.

[@chicagorealtormike]

You basically gotta go to some backwater towns to find those prices

[@tonybestworld]

I need a master i live by florida but could be in texas too .. 😊

[@HiroNguy]

In the sticks where there are no paying jobs, and in the inner city where there are more hoods than neighbors. Ya pays yer money n takes yer chances.

[@jakea6837]

Fantastic podcast, I really learned a lot. Thanks guys.

[@robertbush8777]

This is a fantastic idea. And I’ve use the brrr to buy my first for rental properties and I didn’t even know I was doing a brrr. The only thing is that when you are getting a home equity line of credit you are using your own money. Buying a house is like putting your money in the savings account. The home equity line of credit is pretty much putting a lien on that house to have access to that money. You still have to pay it back. With interest. No I definitely agree as long as you’re buying a property and getting the deal that you need on it and you’re renovating it within your budget. As long as the percent you’re getting back yearly has much greater than the percent of the loan then you’re making out and a pays for itself.! Looking forward to watching more of your videos.

[@cypressprowash2424]

How much cash out of pocket did you need to buy it?

[@Ambrosha385]

58:30 is where you can start if you want to skip to the actual method

[@jamesbarnes1847]

That “system” bit was pure gold. Are the “systems” you use in the book? Tips on setting up the systems and network?

[@CarlosPerez-ut5ze]

Ofcourse

[@Marie34694]

“Tore up from the floor up” has been used by the Urban youth since the 80’s, as many other amazing creations.

[@SethWilcock]

This video changed my life. Thank you guys. Also - David, if you ever want a free snowboarding lesson and in you're in Colorado, hit me up. You'll master it by the end of the day. Guaranteed.

[@kmilton8546]

Lol at him taking credit for Tore up from the floor up when that has been around since the 90s . Martin Lawrence!

[@thomasgentil4907]

where can we find an Excel spreadsheet with the BRRR calculations? that would really help.

[@frogger2513]

Listening to this for the third time in 3 days

[@johnnymata523]

You guys have any videos were you guys educate on the financial side of brrrr ? Like how to work with the banks and what do they look at how much money you need to have or if they have any guidelines to qualify to refinance a brrrr project. Thank you

[@gersonbueno1502]

The, Bruce Lee quote is so powerful

[@lisvetmatos7434]

You guys are the best in the real estate industry !!!

[@selinabanda8789]

Thank you for sharing your knowledge

[@tkmartin5549]

I love David perspective 👌🏾😎

[@smartmoneycafe1057]

One of your best videos so far. Strategies and reasons are clearly mapped out.. Thanks a million. I am getting the book

[@flashpb04]

Best show yet. Great job fellas. And I’ve listened to nearly every single one of them. This is good stuff here

[@danj7290]

Me to iv only got 50 left. How many do you have?

[@petebeat1510]

This is some great info, so much information in a small video! Thank you

[@matthewkramer8613]

A lot of gold nuggets in this episode! I think when multi-family become more of the portfolio, single family deals may become less of of a focus. However, the speed to closings might be faster on single family. After acquiring so many SFRs, consolidation to multi makes sense. following the principles or Monopoly, four green houses for one Apartment.

[@hungrybarber]

Sounds like the main key to BRRRR is the purchase price...this makes or breaks the strategy it seems.

[@wirecoaching477]

Buying right is always the key to any good deal

[@jf8474]

Absolutely! It's pointless, if i can make 30k anyways, i don' need brrrrrrrr, but he doesnt tell you how to get a house that cheap

[@zackschumacher4825]

This is one of My faviorte podcasts ever on god

[@basednwhitepilld]

On God 💯

[@four716]

On god 🤝

[@destinhook3826]

On God 🗣

[@nursereesey2495]

I just bought this book. We have 2 properties right now. The second property was a cash buy and we want to use the Brrrr method to upscale so we can gain financial freedom faster.

[@darinladick6666]

Great stuff guys! Love it! Thank you 👍

[@devonniegos625]

This is one of my favorite BP podcasts thus far and I’ve probably seen 75% of them. David is brilliant! Thanks for all the great info. I’m BRRRR’ing my first duplex right now myself.

[@shackletonfinance1767]

Congrats on your refinance. Best of luck on securing your next property!

[@BrinAmberlee]

I’ve been watching a lot of real estate videos because I want to start investing this year. This is by far the best one. Thank you so so much 🙏🏼

[@shackletonfinance1767]

Good luck on your investment journey!

[@garciavashchino1]

I feel like you guys should already own the planet... like how is this not already a thing? I want to get my first rental BRRRR, so more research is needed, but this is a good start.

[@ashlymcglasson7764]

This was a great show guys!

[@darkrangerl]

Quick summary: • The velosity of money: the quicker I can send out my money to come back with a bump. The higher my net equity is. 2x a month, 1x a month, 1x every 3month's. Etc.

[@3d1k3]

Tore up from the floor up circa def comedy jam 1992 lol

[@j_boogie_483]

How can you not have ever heard that expression?? May point to the fact that he has no friends or acquaintances of color.

[@3d1k3]

@@j_boogie_483 well that's not nice lol.he gives us free content and we give him undue criticism. That's messed up lol.

[@oz1miller]

@@3d1k3 He gets to promote his book, and I am sure they get paid for views on their KZbin channel.

[@3d1k3]

@@oz1miller that's probably true but, I didn't pay for anything and heard everything he had to say for free.

[@syvallia24]

@@3d1k3 it still needs to be said, he didn't pull that phrase out of thin air lol

[@jestjokeking]

Thank you very much for this BRRRR tutorial.

[@ohgod2trill94]

LOVED THIS EPISODE!

[@groneass2006]

Great info and strategies. Thanks guys.

[@livingingreenvillenc6904]

Great video! Is there a seasoning period when you pay cash?

[@beccasophiascott]

David is just insanely smart and inspiring! Thanks for all this great information. Can’t wait to be at the point of having too many single family homes and turning them into one big one!

[@amacmazing]

You guys have great chemistry. So funny. Love the content thanks!

[@Johngoldbranson]

What are the biggest deals you guys pick up? Both in terms of price and also in terms of units? Any preference on unit mixes when closing your deal?

[@dcarreira4913]

Great episode.

[@jerrodcowlishaw]

“I’d rather eat Randy “ is fantastic 😂 I’d never heard of this song, and paused to listen and I was not disappointed

[@orlandopaez2593]

just got the book looking forward to reading it will start tonite..

[@RERK8]

As part of the International Association of Randy/i/ie/ee's, Julian Smith's video is disturbingly entertaining. You guys are hilarious!

[@EvanEvansMusic]

I found this after buying the audiobook! So far I definitely could have gone without all that 20+ minutes of introduction. Just some constructive criticism for the show. So much non-value until the teaching of the method came up. But keep up the great work guys! Bigger and better!

[@ryand.maupin3024]

You need to be a FEELR to become world class! I love it!

[@dougal722]

Brandon I just want to point out The advice you gave on putting laminate floor instad of carpet.On average laminate flooring cost about $1,000 per standard 10x15 roomjust for the flooring alone ,no installation cost included.Your average carpeted room at the same sizewith installation is around 5 to 600 if you use Berber carpeting that isn't mono colored.The laminate flooring Unless covered with a rug is susceptible to cracking breaking splintering shreddingand shedding because of the nature of the click lock installation and the thinness of the pieces where they overlay . dealing with this right now in a 10 bedroom house that's over 120 years old with extremely uneven sub-flooring and joist issues. A great suggestion for houses built within the last 20 years that have no sagging or structural issues. The new laminate and flooring Install was done last year with normal office/gamer chair wear and tear . Rolling back and forth causes significant cracking and splintering of those aforementioned areas. with deposits typically equaling first month's rent and that being a couple hundred dollars under the typical $1,000 replacement of the flooring itself It is actually a loss to put in laminate flooring that's just going to be damaged within a year or two when carpet lasts at least 5 years with proper cleaning and care assuming you rent to a clean person.

[@carolsmalltherealtor8475]

“Fixed up from the Sticks up”!

[@Jreddygo]

Question: Is there an advantage to becoming a real estate agent in doing this BRRRR method? Or does it not matter? Thank you for sharing.

[@lomparti]

It doesn’t really matter but it’s probably more advantageous to be a contractor rather than a realtor when it comes to investing.

[@FreestylingIsLike123]

Just to tag on too this I'm going for my GC license aswell this year. But having my real estate license helps negotiate a lower price by throwing up your commission as a price drop point or using it like a closing cost coverage like I did in my last property saved me $3,500 representing my self. As well as the network of real estate knowledge and MLS access pros and cons to being active tho costs me average of 2,500 to maintain an active license in NC.

[@eddytejano515]

I'm doing a deeper research on this strategy. I really like it, thanks very much. I will buy your book, study and pursue it, i hope it will work with our very challenging market here in Vancouver, Canada.

[@skyblue9991]

Check out the channels Meet Kevin and Graham Stephan for some great info on this strategy.

[@johnmarkmanuelmagalona1984]

you guys are awesome, i'm literally picking up ingots of gold from your vids.

[@davidgiles2426]

I’ve had 100% respect for you both. I’m a long time listener and this is my 3-4th time watching this. You’ve inspired me to BRRRR a house. I’m in the middle of rehab right now. All of the advice on here is amazing. However, I have to say, the “rather eat randy” recommendation was horrible. 😂 Would not recomend.

[@shackletonfinance1767]

Good luck!

[@mattwebster7852]

Update?

[@leonelromero3296]

@david giles how’d it go ??

[@carlahlers9454]

A msg for David Greene. Hey David, I’m reading your BRRRR book and agree with your 1% rule which I’ve used for years, along with it’s flexibility for more expensive properties... but I believe you have an order of magnitude mistake when you relax it to 0.08% on pages 55 and 56... I believe you mean 0.8% which is considerably closer to 1%. If it were 0.08% you meant, it just would not make sense to me...

[@matycalls]

Amazing information on this. Can’t wait to read the book

[@SDFlagg]

Hey Brandon love your FEEL approach. With respect I added two more words based on you’re explanation of the concept. F.E.E.L.E.R Focus Educate Execute Learn Evaluate Repeat