Brrr

[Ryan Keenan]

hello BP friends, I've been trying to do more research on the brrr strategy.  I'm still alittle confused on the acquisition part. Is the only way of obtaining the property either  hml or private money if you DO NOT have the funds avaliable? I thought I was reading small banks or portfolio lenders will lend? Will they lend even if the property is in ruff shape and will not meet conventional guide lines? Furthermore and this is  probably a stupid question but confused on what or how to determine what a small bank is?

I've been reading and listening to people who have 60 or more units and started with around 20k and are or are on the verge of retireing. Is this really reality? just really trying to figure this out.  I'm working 3 jobs and have 4 units. Rehabbing the fourth to rent. Just looking for an easier method of doing things. 

Thank you for and advice

Ryan

[John Kesner]

@Ryan Keenan

I like to look at brrrr more as a concept than the literal meaning. The key to brrrr is adding value. That doesn't necessarily mean you have to buy home in rough condition (can be hard to get a loan) and fix it up. You could buy a fairly nice house (easy to get a regular loan on) that has a bad floor plan and fix that. You could buy a house that has a big unused attic or basement, that if finished could add value. You could convert some garage space into living space. You could turn a 2bd 1 bath into a 3/2. 

There are many ways to add value, the trick is adding enough value to be able to refi and pull out most or all of your cash investment, and still have a property that will cashflow. You are not stuck with hard money or private money loans, you just need to see where you can add value. Thinking outside the box will allow you to see opportunity where others do not.

Good luck, its a great strategy!