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

[@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

[@edcarrington]

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

[@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.

[@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

[@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

[@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!

[@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!

[@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!

[@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

[@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.

[@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?

[@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!

[@SterlingWhiteRealEstate]

David's advice to lower capital expenditure, perform the rehab first before getting the appraisal. This pumps up the property's value and you can get more money back. A good advice for those looking to maximize profits. At 27:08.

[@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?

[@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!

[@lovelylanibk]

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

[@curtisj24]

Fixed up from the Bricks up!

[@rdot980]

Ha!!

[@iBuyAnyCom]

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

[@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.

[@NineyOne]

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

[@veronicavelasco8456]

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

[@Ambrosha385]

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

[@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

[@max.1q84]

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

[@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.

[@jasonsschatzberg]

These guys are really good in explaining.

[@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.

[@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.

[@Marie34694]

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

[@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.

[@carlairons3573]

I didn’t know you were a LEO. I’m an officer in Jupiter, Florida and retiring in 10 months. I love listening to your podcast and KZbin videos. I too want to build a successful real estate portfolio.

[@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

[@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.

[@richardjordau]

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

[@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.

[@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!

[@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.

[@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

[@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!!

[@vaughanmoody]

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

[@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

[@Jason_Amada]

My favorite new channel. Just discovered these guys.

[@mikeynyc6857]

After you buy it and fix it , how long do you have to wait before you appraise/refinance and pull your money back out ?

[@lindseynoble1]

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

[@trojan7933]

David Greene is very smart and humble

[@justinb1606]

Im brrrr ing two deals right now. LOVE IT! This is my very first.... and guess second deal. Purchase and Rehab was 100% financed working on a refi now and expecting a few $k in my pocket. Oh yeah, and cash flows!!!

[@3dinterview528]

Justin B Did you use a hard money lender when you say “purchase and rehab was 100% financed”?

[@justinb1606]

@@3dinterview528 yes, I used a hard money loan on each of them. I just refinanced this past Tuesday.

[@goodlife3437]

So Justin...I'm struggling to get started but gone DO THIS!...So let me ask did you find the properties yourself or did you use a realtor? I called a realtor that I knew, in fact the second one and they both just don't seem interested in those of us wanting to buy properties for fix and flip or buy and hold. I've found a property that I wanted to go check out but the first thing they both ask is do you have a pre-qual letter....help me out what am I missing...open for any tips...thank you

[@justinb1606]

@@goodlife3437 In my opinion its very difficult to find great deals with realtors. And when you do the price is drivin up by the competition. I found my two rental properties by driving around. (Driving for dollars) I was looking for distressed homes in a good neighborhood. These homes never hit the market. I would also try and contact owners of rental properties sometimes you get lucky and find someone that's out of state and ready to call it quits. Or you find out that they passed away and the family will be inheriting a property they don't want. Its kinda how I pick these two up.

[@goodlife3437]

@@justinb1606 Thanks for your quick response Justin. I actually found a property that's listed gone try to offer 20% less of what they're asking since it's definitely gone need some work and see how that pans out. I noticed 2 properties on the next street over from it were rehabbed and currently asking 118K vs this property listed at 79K that I'm considering. Another question, where/how were you able to find your HM Lenders to do 100%? As you can tell I'm like new to this :-) I'm hoping to build a portfolio of 25 homes with a net CF of $200 per month over the next 3 yrs...not sure if that's too lofty or what. Thanks man for your feedback and response.

[@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!!

[@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!

[@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.

[@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

[@chasitysmith6509]

Is there a checklist of the questions that your property manager's admin assistant has? That would be a great resource!

[@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?

[@nico_gg_8863]

Question: does the brrrr strategy still work if I live in the property as the renter, and then I refinance? Also, how long do I have to wait until I can refinance the property on average?

[@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

[@TheWisendorf]

I have been listening for weeks about the different ways to buy,fixup,rent,or sale . Profits . Passive income the whole bit. For me it gets down to this. I am a senior citizen retired on a fixed income. Maybe we save 100 dollars a month if nothing breaks or falls apart. A real mess! But it is MY mess. And it is up to ME if to change that if I really want to go forward. I was so depressed over this but where there is a will there is a way. Face it folks to do any damn thing in this country you got to first get off your butt. I started searching and low and behold I found a dish washing job at Applebees . Pay is 18,000 a year. This will be additional income that I can save every bit of it. Not a hard job to do unless you feel washing dishes is beneath you. I started brain storming myself and guess what. I got stuff around the farm here that is only collecting dust. An old tractor with front loader. And several pieces of equipment collecting rust etc. etc. It will take a while but in the mean time I can still keep educating myself.. This is a wonderful country folks.

[@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?

[@acadam06]

As an agent that specializes in working with investors I find myself on a very regular basis telling them to get on BP. This is a GREAT concept!

[@AnklespankinV2]

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

[@fluffycomedian]

Fam... thats a down payment

[@AnklespankinV2]

@@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.

[@jerrodcowlishaw]

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

[@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?

[@spaceshipmoon69]

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

[@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.

[@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

[@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 ??

[@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!

[@smartmoneycafe1057]

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

[@robchesley4591]

Around 52:40, is the hypothetical appraisal you pay for is having an appraiser give you an appraisal based on the property as if the upgrades had been done correct?

[@Pops_Grillin_Q]

Hi David and Branden, Are you buying these properties with a LLC and if so how are you refinancing and getting the money outThanks for your expertise

[@mauleguizamo]

Mark Fortier I was thinking the same thing! Bc refinancing from a LLC with a regular bank is not easy

[@macortez35]

@@mauleguizamo agreed! Was this addressed yet any one of their Podcasts? Leaving equity in a property is inevitable if refinancing an investment property. Granted you get your money back there is still equity locked up if refinanced as a rental...unless I'm missing something. Looking for some responses on this.

[@robertmelendez3132]

With BRRR the equity you are leaving in the home is equity you created through the rehab. It's basically fabricated networth. You leave it there, and do the same thing again with your initial investment. Raising your networth again.

[@warrensing508]

Hi Brandon & David, are the banks giving you 100% Rental Offset when you refinance? We can get 80% LTV here in Canada, but usually only 50% Rental Offset. I'm trying to understand how to realize the new 80% LTV on the Re-Fi of the newly improved property. They're not giving it to us without also qualifying for the mortgage via income. Thanks

[@flashpb04]

I think these podcasts are fantastic. I would love for Bigger Pockets to create a segment that goes really deep into how to structure deals. As deep as you can possibly go, into very fine specifics for people who have deep grasps on all of these concepts!

[@HjCrawford]

Yes!!! 🤗

[@nxadragon]

Wait... If you refi 90k you then have to pay off the 60k existing mortgage, then you can get back your 30k, you don't have 90k to go out and do it again and again. You basically just have the same 30k except now you have equity that just sits there until you sell.

[@ymichelle34]

@@nxadragon The point being you pay your lender back quickly, they're likely to turn around and loan to you for the next one...

[@lisvetmatos7434]

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

[@RERK8]

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

[@skyblue9991]

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

[@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.

[@srutherford72502]

So to BRRRR properly do you have to pay for the house 100% in cash and 100% pay cash for rehab? Can you do 20% down payment and 100% cash rehab. Then pull out your down payment and and rehab when you refinance.

[@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!

[@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.

[@ricardorivera7208]

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

[@Logan-limitless]

If I haven't mentioned it before, Brandon Turner and David Greene, you guys are awesome

[@Shawk95]

Brandon Re the refinance, when one goes to the bank, don't one need to have a high FICO score and strong financial statements to qualify for the mortgage? What can one do if one does not qualify?

[@menthy]

Step 1 is to repair your credit score. There are many youtube videos about this subject. Real estate investing isn't as much worth it when you dont' have good credit. I think anyone who REALLY wants to invest in real estate needs to improve their credit first.

[@Shawk95]

@@menthy Absolutely correct. Wish the teachers of BRRR method forcefully clarify and emphasize this aspect for their viewers and RE newbies. But surprisingly, they don't. In fact, they make the whole process sound much easier and much more fun than it is.

[@the_reel_uh_tour]

Private Money or Hard Money refinance and work on fixing your credit.

[@Shawk95]

@@the_reel_uh_tour Fixing credit requires months if not years. In the meantime, 'subject to' and 'wholesaling' are better and viable options because one dons't have to submit any credit history.

[@the_reel_uh_tour]

@@Shawk95 that's a great option as well.

[@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!

[@Jordan_Warrington]

My only issue with this format is that the reduction of capital also comes with an increase in liability (refinance payment). I think this can be done but I really think people need to be careful as it can go wrong if the numbers are off. Still something to think about

[@ewlinitis]

That's how people learn, by making mistakes. So my question to you is, how would you do it ? I feel that this is for people that dont have much cash on hand

[@robchesley4591]

I'm just getting started, can you guys point me in the right direction as to who I can ask very basic real estate questions? Such as a home rental vs a plot of land with vacation cabins..does the land value typically increase as with a home? And do bank loans on assets work with land alone... basic dummy questions

[@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

[@beatnickclassics]

We bought the book package.. We are going to start in Jacksonville fl... Could use some pointers if you can look into that area... You guys are the best.. This process is changing our life...

[@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

[@dougpmays]

Is BRRRR more so for investing in Homes opposed to Multi-family where the rehab need may be limited?

[@natas0733]

You want to find a property where rehab is NECESSARY. Remember these deals theyre talking about are uncommon to say the least. The rehab part is huuuuge. This is where you negotiate for your profit margin. The offer is low based on the amount of rehab needed. Then the cost of the rehab is (ideally) 50 percent or so of the amount of value it adds to the property. The more you do this the more you will get a feel for the numbers involved here. If the property is prestine, then somebody else already made all the money possible by doing this and this deal is not for you as an investor. That deal would be for a retail buyer.

[@stevenanderson3386]

is it possible to do a brrr on a property that is owned by my LLC or would I need to own and refinance in my name?

[@melhayes204]

You would either need to take out a business loan and use the property as calaterial or transfer the property into your name and refi.

[@robertjaxon]

If you are looking for one resource to learn how to do Real Estate investing this would be it. There’s also a book that goes along with it that has valuable bonuses. These guys are excellent teachers and fun to listen to.

[@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...

[@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.

[@aspollocreed]

@biggerpockets 24:30 I got lost when during your example when you said you put it under CONTRACT for 50k and put in 30k to rehab it. Were you referring to the same 100k house or are you referring to a 50k house being rehabbed up to 100k. If anyone can answer that'd be awesome

[@SteveSmith-pp8bx]

asprulole vue I think his point was you make money on the right scenario. It has to have a strong upside. You can’t be sitting on a break even after the rehab...you can’t get your money back out.

[@katiesansone2303]

Brandon, when your contractor, home inspector and property management company reviews a deal how much does it cost to have that system in place?

[@martialshots2194]

everything works right now until your tenant pool loses there job, or there is excess supply, or neighborhood becomes dangerous, ect. then your property begins negative cash flowing on your 80% ltv. there is no risk safe way. do your due diligence and payoff your mortgages as quickly as you can.

[@jonblackwell9520]

True, everything can flip and go negative in a hard downturn.

[@mattpatterson9496]

Yep! They also don't factor in the annual salary you need to pay yourself for managing all of this. I can assure you it will be a full time job just trying to deal with all the worthless contractors out there.

[@onetwothree4148]

Your criticism makes zero sense. If the property becomes worthless you will want less equity in it, not more... The more money you have in the house, the more money you lose if the market crashes, and you can't rent it. FYI the money you "have" to pay yourself to manage your properties is called profit. And you can always pay a management company 10% to do that work for you if you don't want to work full time anymore.

[@braceyourselvesfortruth2492]

@@mattpatterson9496 "the annual salary you need to pay yourself"...how many contractors do you work with if you're only BRRRRing one house at a time?

[@maximyles]

One Two Three I’m confused, with less money in the house, if the market were to downturn wouldn’t that mean high debt ?

[@MohammadIslam-mz9ub]

On what basis bank is giving you loan when you already bought and fixed up the house? Are you doing HELOC?

[@zackschumacher4825]

This is one of My faviorte podcasts ever on god

[@basednwhitepilld]

On God 💯

[@four716]

On god 🤝

[@destinhook3826]

On God 🗣

[@davidyair67]

hey guys - here we are - june 2020 - the real estate market has not popped yet - but we are looking at another potential severe collapse. can you use brrrr with apartments now or should we wait until after the market corrects itself?

[@frostedjedi]

Hey wildland firefighter here that heard about this podcast from a coworker. You guys inspired and educated me enough to buy my first duplex and house hack it. Just curious what video games you play haha.

[@REIJames]

noah pratt congrats!

[@chuabaka]

1:07:07 whats the line of credit David's talking about here? Is that a HELOC? And do you need to have a lot of equity built up for it?

[@Mrdothedash22]

Yes, You have to have a considerable amount of equity in order use a Heloc. Ideally if most banks borrow up to 85% CLTV, you need to have at least 30% of total equity before qualifying