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Updated over 5 years ago on . Most recent reply
Im stuck with the BRRR strategy(repeating)
Hi all,
Im a Dutch high school student that is currently exploring the world of investing.
I've been reading and watching video's about the BRRRR strategy.
There's just one thing i don't know..
For Example.
Someone will lend me 50k for the house and 40k for the rehab. That's 90k in total. (let's say after that the house is worth 120k)
Then when it's finally done and i've refinanced it for 90k.
I pay back the 90k to the lender.
And then what? I can't repeat it because the 90k is gone right?
Sure i have cash flow coming in from that house but not enough to do it again.
Please help me and let me know what i'm missing in this picture!
Kind Regards,
Azziden Koppelrath
Most Popular Reply
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This is a slow build process, not a rapid scale up.... You can just borrow the same funds again and get another unit. With every project you are increasing your net worth by 30K, and also gaining a monthly income from the rent. Let's say you could do 10 of these but always had to borrow the money to do it. When you were finished you would have 300K in equity, and however much cash flow per month.