How did David Greene increase BRRRR Frequency?

[Michael Cross]

I have been re-listening to David Greene's BRRRR book for the umpteenth time. I am currently doing 2-3 BRRRR deals per year with the same money. We held some and sold some after a couple of years of BRRRR. I noticed how David Greene wrote he scaled to 2 per month. How did he manage this?

If i use hard money to rehab i am still 30-40k per property locked up for about 6 months to complete the rehabs +4-5 weeks for closing. That money includes the down payment + funds to front rehab costs before reimbursement. In today's market i can still find value properties on the MLS with some effort or through my agents if they are substantial renovations which is fine. If i want to do 2 per month, and say only did BRRRR no flipping i could focus on getting more efficient in the renovations and get down to maybe 4 months + tenant placement + refinance still 5 months of money locked out. Seems like i would need to increase my funds available from 70-80k --> 350k in order to maintain a steady flow of properties. I could see doing this in stages - If i tried to focus on 2 per every other month i could do 12 a year and would need about maybe 200k.

Seems like with 8-10 in progress at any given time i would also want an extra 25-50k+ for additional reserves. Doing these massive renovations there is always something unexpected once the walls get torn off even if i count of replacing all plumbing and electrical.

Does anyone know how David Greene was able to scale? In his book he mentioned saving up 90k, did he save up more than this to increase his velocity of BRRRR properties?

Would welcome any insight on this so i can work through mechanically how to increase from 2-3 a year to 10-15 a year.

Thanks in advance!

Mike

[Russell Brazil]

Originally posted by @Eric Bilderback:

@Russell Brazil

I thought David Greene was a cop when he was doing all the BRRRs.  He was making millions of dollars a year and doing BRRRs?  So at the time his access to capital would have been similar.  

I love him on the podcast and he’s a smart guy but I do feel like he does not miss an opportunity tell people he was a cop. LOL

 David has been a real estate agent for quite awhile now, far surpassing what he was making as a cop. He is selling about $100 million per year, which should yield a profit margin over $1m a year. Now he has a mortgage company as well. Add in revenue from rentals, book sales, podcasts, etc.

Im not saying this to denigrate him in anyway. Im just pointing out, its not that worthwhile to measure ourselves against others, when they may being doing X at when their means may be much greater than our own.