The BRRRR strategy stands for Buy, Rehab, Rent, Refinance and Repeat.
This method is a real estate investment strategy that involves flipping distressed property, renting it out, and then cash-out refinancing it in order to fund further rental property investment.
Corey Reyment is a full-time real estate investor originally from Green Bay.
Corey and his wife Carrie bought their first duplex at the end of 2016 and parlayed that into 115 doors within three years of that first purchase using the BRRRR Strategy almost exclusively creating a portfolio now worth over $8 Million dollars.
They also run Fox Cities Home Buyers and Wisconsin Discount Properties, the largest real estate wholesaling company in Wisconsin, where they did about $2 million in revenue in 2020.
They teach students across the country who are looking to get their first BRRRR Deal and run a Mastermind Group called Launch, which helps businesses go from working in their real estate business to working on their business.
For more valuable information click on this link and watch the complete episode: https://youtu.be/ZSq-AX2-1PM – “Discover the BRRRR Method with Corey Reyment and Jay Conner, The Private Money Authority”
Private Money Academy Conference:
https://jaysliveevent.com/live/?oprid=&ref=42135
Have you read Jay’s new book: Where to Get The Money Now? It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book
Free Webinar: http://bit.ly/jaymoneypodcast
Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $64,000 per deal.
What is Real Estate Investing? Live Private Money Academy Conference
YouTube Channel
https://www.youtube.com/c/RealEstateInvestingWithJayConner
iTunes:
Listen to our Podcast:
Real Estate Investing With Jay Conner
Jay Conner:
This BRRRR strategy, that’s what I want us to focus on here though. So it’s a B with four Rs strategies. So first, what does B-R-R-R-R stand for?
Corey Reyment:
So it’s an acronym. Actually, the guys on bigger pockets, I think were the ones that coined that phrase, “BRRRR”. So if you’ve ever listened to one of their podcasts, they’re really big on that strategy and that essentially, it’s a ‘Low and No Money Down’ real estate investing strategy, and they just created an acronym out of it. So the B stands for “Buy” in using the strategy. The idea is that after you go through a “Refinance” down the road, that’s one of the later Rs in it is that essentially the idea is that you’ll be able to pull all of the money that you had to use out of that deal and let somebody else fund a hundred percent of that deal. So then you can recycle that money. So say like your, I love your private money stuff.
And it’s so valuable for real estate investors to be using private money for this strategy as well. But they may only need it for a short time. Maybe it’s only a bridge loan that they need from a private investor for three to six months to refinance it. But then they have already done all the hard work of raising that private money and having that relationship with an investor. And now they can pay that investor back, maybe refinancing into some bank financing or something like that now that the property stabilized. And then they can take that private investor’s lump sum that they have and go do another deal and then pay them back in three to six months and go do another deal. And then you, you know, you’ve raised one good private lender and boom, you can create millions of dollars of real estate and of assets just by doing that strategy.
So the B is “Buy”. You have to buy in order to use this recycling strategy. You have to be able to buy it below market value. So that, that “B” is important because if you’re not buying it right, and that’s the number one rule in real estate is you have to, you make your money when you buy. If you don’t buy these properties below market value, the strategy will never work. You typically, aren’t just going to go on MLS and pick up a turnkey property and be able to do something like this. You have to pick something up typically that can get below market value and that you can add value to, in order to increase and gain some equity in the deal. So that’s “B.” The “R” is “Rehab.” So the next “R” is “Rehab.” So what you have to do is you have to add value to the property.
And typically that comes from renovations. So a lot of times the properties we’re looking for in this strategy are distressed in some way, meaning that they’re outdated, maybe the roof is bad, whatever the case is, there’s something that is going on that, you know, would prevent the seller potentially from being able to just put it on MLS and have a retail buyer move in and get a conventional loan on that property. There’s typically some type of value-add that is a reason why you’re getting that property at a discount. All right, the next “R” is “Rent.” So Buy, Rehab, Rent. And so essentially what we’re doing is we’re getting this property stabilized. So we’re going to get it fixed up. We bought it below value. We’re getting it fixed up. Then we’re going to get a good, paying tenant in there because now you have a nicely updated unit, and then that’s well stabilized.
And then we’re going to go for the “Refinance.” That’s the next “R” and that’s where we can pay back our private lenders, or if we used our own private money, our own, you know, maybe we had a home equity line of credit that we pulled and we use that. Now we can go and refinance and pay ourselves back or pay our private lenders back, or our hard money lenders or whatever we use to acquire and rehab that property. We could pay them back and make them whole with their interest and anything else that you’d agreed on to pay them. And then the final “R” that we like is “Repeat.” So then it’s just repeat the process as many times as you want and grow your portfolio as big as you want. And the key is as long as you can get the money and get the deal, you can just keep repeating this thing over and over and over again. And it literally becomes just like a rinse and repeat process. And it’s a very, very powerful strategy, especially for people who are looking to just get started and build a sizeable portfolio relatively quickly.
Comments