BRRR technique

[Michael Paquete]

Hello fellow investors,

For my next investment property I would like to try the BRRR technique to try and help generate equity and allow me to build my investment portfolio. I have a good network of people from brokers, lawyers, property managers and contractors that I feel comfortable enough to give it a try.

Has anyone else in Ontario used this technique to try and "force" appreciation?  This is really the only I can think of generating money to purchase more properties.

[Nick Thompson]

I have been using a local Credit Union which has a good system for the BRRRR strategy. They will complete an initial appraisal at my cost ($350) then provide a mortgage for 80% of purchase price. The bonus they do though is internally register the mortgage for a higher value than the original appraisal but hold back the extra funds. Once the renovations are finished a second appraisal is completed and the ARV determined. They can then release additional funds to me from the original mortgage and save the cost of creating a new mortgage for the refinance. It is similar to a builders loan where you receive installments except it is for fixer-uppers and the refinance funds are withheld until the completion of the second appraisal.