Build Refinance Rent Repeat strategy

[Varun Chawla]

Hey BP community,

I am considering investing in a real estate developer using the Build, Refinance, Rent & Repeat (BRRR 2.0) strategy. Instead of buying existing properties and rehabbing them, the idea is to partner with a builder who constructs new rental properties, then refinance and rent them out.

Has anyone here invested in a builder/developer under this model? If so:

1. What should I look for when evaluating the builder/developer?

2. What are the key risks or potential pitfalls in this strategy?

3. Any specific contract clauses or safeguards I should include?

4. How do these deals typically perform in terms of cash flow and equity growth?

I would love to hear from anyone with experience in this space whether you've done it yourself or know someone who has. Thanks in advance for your insights!