using debt to invest in real estate

[Rabia Khan]

what’s an example of buying real estate for cash flow without using any of your own money? 

[Thomas McPherson]

One way to buy real estate for cash flow without using any of your own money is by using the "BRRRR" strategy (Buy, Rehab, Rent, Refinance, Repeat). Here's an example:

• Buy: Find a distressed property selling below market value, often through motivated sellers, auctions, or foreclosures. Instead of using your own money, you secure financing through a hard money lender or a private investor. These lenders typically cover the purchase and rehab costs because they’re more focused on the value of the property than your personal financials.
• Rehab: Use the borrowed funds to fix up the property, adding value by making necessary repairs or improvements. You now have a higher-value property that is ready to rent.
• Rent: Once the rehab is complete, rent out the property to generate monthly cash flow. The rental income ideally should cover your expenses, such as the mortgage, taxes, and maintenance, while also leaving you with positive cash flow.
• Refinance: After the property is stabilized and generating income, you refinance it with a traditional mortgage. The new loan will pay off the hard money lender or investor. Since the property has increased in value due to your rehab efforts, you can often refinance for more than what you originally paid, recovering your initial investment.
• Repeat: After refinancing, you've effectively used none of your own money, but now have equity in a cash-flowing property. You can repeat this process with another property, continually building your portfolio.
  
  I hope this helps!
• Best,
• Thomas