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Updated over 5 years ago on . Most recent reply
BRRRR Method - Does anyone have a visual money flow chart?
Hello,
I'm extremely dumb and am having trouble grasping the concept of the BRRRR strategy. Specifically where the money flows through each step and how it continues flowing after your first property. I don't mean 'cash flow'. I mean where does your initial monies go after making your first purchase and how does it get recycled and paid off.
Is there a flow chart or some sort that I can look at that details this?
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@Kevin Sha I recommend you read the book BRRRR by David Greene. You buy using borrowed money, rehab the property, rent it out, refinance after 6 months and repeat the process. In a successful BRRRR, your refinance allows you to pull out at least all the money you borrowed so you can pay it back. Sometimes you are able to pull out more than you borrowed which means you're actually paid for doing the BRRRR.
Note: Delayed financing is also an option