Going Broke Buying Good Deals

[Martin Neal]

I heard the expression that you can go broke buying good deals. I didn’t understand that expression until I was in that exact situation. I mean, good deals make you money right?? Yes but not quite.

I'm a firm believer in the BRRRR method. In fact, every deal I've done to date has been a BRRRR. I've brought deals that made 20%, 30%, or 50% cash on cash return. I've created systems, structures, and lots of documents to optimize my BRRRR process.

By most people standards, I’ve been kicking butt and taking names but after you do enough deals, the well starts to run dry. $13,000 in this deal, $5,000 in that one, $20,000 in the next one. It all starts to add up. Eventually, you run out of cash to invest and have to wait for those investments produce positive returns.

So while buying good deals may be good starting off, the goal now is to buy great deals moving forward. I can buy a good deal once a week in my market but until I collection of private money investors, I have to be a lot more selective. Do you agree?? I would love to hear your thoughts.

[Tyrone Osilesi]

Congratulations on your successes thus far! I'm just closing on my third SFH rental using a traditional buying strategy and will be all BRRRR going forward.

If doing BRRRR deals, aren't you essentially recycling your capital again and again therefore minimizing new expenditure?

If you’re looking for a potential partner, send me a DM!