First steps to start?!!

[Elliot Runkle]

Hey I’m 20 years old and I’m trying to get into investing into real estate the right way. My father in law does flips and rentals but does everything in cash. It would be very slow and hard to scale for me to try this especially in today’s economy. I’ve heard all kinds of conflicting advice about how to get started building capital and scaling after I buy my first property. How would I get started with building lots of capital quickly ($30-60k) and how would I scale without getting stuck on one property at a time? I know brrrs is one way to do that but I would really like to not be so highly leveraged in the beginning. 

[Elliot Runkle]

Quote from @Kevin Sobilo:

@Elliot Runkle, think more about BRRRR.

When you refinance out your BRRRR deal, you may look "highly leveraged" if you just look at the deal you just refinanced, BUT you also have a pile of CASH in the bank. So, are you really over-leveraged in any way.

Once you start the next project, you have purchased and are rehabbing the next property. Your cash has dissipated BUT you are building lots of equity fast in that next deal!

So, while you are leveraging the properties when you cash-out refi, you are not as much at risk as you may feel because you always either have a pile of cash on hand or a bunch of equity in the next deal. So, when looking at the whole picture you are not over-leveraged at all.

 Ok! That makes sense. Do the high rates have any affect on brrrr since you are perpetually financed?