The BRRRR method is all the rage in modern real estate investing. Unfortunately, many people fail to realize what the BRRRR method truly is, and how it can help you to achieve your financial goals over the next decade (and even much sooner). To help you out, we’ve put together this handy guide for understanding the BRRRR method in 2023. If you’ve been wanting to make tons of cash, your time is now!
Table of Contents
What is the BRRRR Method?
For those who want an innovative and highly profitable way of getting into real estate investing, few modern methods are as widely beloved (and effective) as the BRRRR method. Simply put, the BRRRR method requires you to buy, rehab, rent, refinance, and repeat your real estate investment efforts. So, let’s break each of those steps down to make the process that much clearer for everyone reading.
First, let’s begin with the “buy” step. You’ll need to find a property that needs some work, but that will not require full-on rehabilitation to do well on the market. You want to find a property that’s cheap to purchase, but not ridiculous to shape up quickly for the market.
Secondly, you’ll need to actually perform the “rehab” step of the method. Doing so will require you to do some extensive work in some cases, but your efforts will be well worth it. If you can afford to hire help for this step, you’ll have the ability to be even faster and more profitable with the BRRRR method.
Thirdly, you’ll need to work on the “rent” step. You’ll need to find a renter that can afford a rental price that will make your investment worth the time and effort you’ve put in. Finding the right rate can be difficult, but with the right guidance, such as this resource on Visio’s BRRRR Method guide, you can nail this important step.
Fourthly, you need to nail the “refinance” step. This will involve doing a cash-out refinance on the property you’ve invested in and rehabbed. These cash-out refinances can be done quickly and easily in today’s marketplace. Basically, you’ll be converting your built-up equity into useful cash. The bigger the mortgage that you’ve signed up for, the more money you can make during the refinance step of the BRRRR method. This cash can help you reach other financial goals, or help you with the all-important next step that we’ll be discussing…
The “repeat” step. If you want to make tons of real estate money in today’s market, you need to be constantly flipping properties. The simplicity, and repeatability of the BRRRR method make it perfect for this alternative style of flipping. Those who’ve perfected the BRRRR method have achieved many of their wildest financial dreams.
How Can the BRRRR Method Benefit My Investing?
Many modern real estate investors make the mistake of thinking that simply making their portfolio of investments large is the way to go. However, this could not be further from the truth. By focusing on flipping using the BRRRR method, you can consistently build up new value and boost your bank account without being completely tied down to a multitude of properties in an often uncertain marketplace. The more effort you put into the BRRRR method, the more money you’ll make in 2023 (and beyond).
The 3 Main Pros of Using the BRRRR Method
1. It Works Over and Over Again
The insanely repeatable nature of using and implementing the BRRRR method is hard to overstate. If it were not as repeatable as it is, the method would not be as widely celebrated and used as it is currently. If you’re looking to avoid multiple mortgages, but want to get into the flipping game, this is the way to go.
2. It’s Great for Portfolio Building
Even if you’re looking to keep your portfolio fairly small, the way you build your portfolio ends up mattering a lot. For those who do not want to be bogged down by multiple mortgages, the BRRRR method is hard to beat. Especially if you’re starting with just enough money for one property buy-up and rehab session, the BRRRR method has you covered.
3. It’s Straightforward
When you’re first thinking of getting into the real estate game, the process behind it can seem overwhelming. Thankfully, the BRRRR method has provided an easy-to-understand way to finally dip your feet into the American economy’s most profitable investment pool. If you want to achieve your financial dreams and invest in your own dream home on the side, the BRRRR method will be a godsend.