BRRRR this... BRRRR that.... Hold On A Second...

[Eric Gamble]

I want to remind everyone about the PRIMARY WAY to make money with real estate, as preached by @Brandon Turner, @David Greene, and many Podcast guest, is by entering the deal correctly.

I recently wrote a post demonstrating the math logic behind the BRRRR strategy (opens in new tab) , broken down into 6-Steps.

@Ryan Blake and @Brandon Sturgill point out a VERY IMPORTANT point about using a BRRRR as an exit, make certain it will work for your situation before executing it. In other words, if your primary plan is to BRRRR the property, make certain you are setup properly for that exit before you enter it.

Here are a few of the things you need to keep in mind, when entering a deal, to ensure the exit will also work:

• Purchasing entity (self, LLC, S-Corp, C-Corp)
• Initial Loan Seasoning (how long the initial loan needs to be i place before a refi can occur)
• Loan Payment Differentials (the potential change on mortgage P&I between the initial and refi loans)
• Does Refi Allow For Cash-Out (can the refi provide money greater than what was put into the property at closing)
• Is A Business Plan Required (Definable-Doable-Repeatable-Scalable)

Here is a little reading, here on BP, about these things:

• Considering the BRRRR Strategy, Things to consider
• The BRRRR
• Definable, Doable, Repeatable, and Scalable

Cheers!
-Eric

@Ryan Blake

@Brandon Sturgill