BRRRR, COLD hard facts about a HOT strategy!

As an agent, the BRRRR is the most talked about strategy that my clients are seeking to perform, right now. Why not, right? You get the best of both worlds: the excitement of a rehab and then the passive income of a buy and hold, all the while, in a perfect world pulling out 100% of your initial cash invested upon refi to deploy into another investment and continue to build your portfolio. Yesterday I sat on an investor panel and presented how I analyze a BRRRR and broke it down. I am going to do the same for you right here!

New to the BRRRR strategy! Catch up quick or refresh your memory with the slides below:

So here we are, you're interested in the BRRRR strategy. Where do you start? In my opinion, we start with the most important step, the big OLE B! BUY!

Within the B of the BUY, I follow a 2 step process for analyzing BRRRR deals for my clients. 

Step 1:

Here is my example of Step 1:

Step 2:

Here is my example of Step 2:

If you perform the BUY correctly and diligently all that remains is....

Lessons learned from a, in my opinion, successful BRRRR:

• Don't be afraid to leave a little cash in the deal. Usually even if you have to leave some cash in the deal to get it done your cash on cash returns are still excellent.
• 
  
• Identify that refinance lender ahead of time, you can identify how ever many you want and gather their terms, pitch them your deals, etc.....just plain identify. **This is where I went wrong, I thought I knew who I would use, but I did not have a preliminary conversation and I didn't know that they wouldn't fund a loan for the amount I needed (<100k). It was tough to find a lender that was willing to fund such a small loan.
• 
  
• This process isn't meant to be repeated into infinity. Check in with yourself and your investing goals during the execution of the Repeat. After you gather a few, it might be time to figure out where to go from there, i.e. pay them down, pay them off, continue to gather, sell some owner finance, etc.

Go out there and BRRRR yourself a kickass portfolio!