How To Buy A Rental Property With No Money | THE "NEW" BRRRR Method
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The 'BRRRR' method, which stands for buy, rehab, rent, refinance, and systemize, is a strategic approach to building long-term wealth through rental properties. This method involves purchasing distressed properties and leveraging other people's money for investment. The process begins with buying a distressed property, such as one purchased for $180,000 that required $35,000 in repairs, totaling $215,000. A private lender provided the full amount, and the property was fixed up in about 95 days. Once the property is rehabilitated, it is rented out to generate cash flow. Rental options include long-term, short-term, and midterm rentals, each with its own benefits and challenges. Long-term rentals offer stable occupancy and lower rent, while short-term rentals provide higher cash flow but require more work. Midterm rentals strike a balance between occupancy and cash flow. The next step is refinancing, typically through local community banks, which provide 80% of the appraised property value. For example, if a property is appraised at $280,000, the bank would provide $224,000, which can be used to repay the private lender. Over time, the property's equity increases, potentially doubling in value every 15 years. Despite the effectiveness of these strategies, they are not commonly taught in schools. However, free content is available on social media, and paid communities offer mentorship and coaching. Subscribing and following these resources can provide additional training and support. Systems are crucial for scaling and growing investments, and partnering with others can increase the chances of success. The author encourages sharing, subscribing, and following for more resources and support.
The 'BRRRR' method, which stands for buy, rehab, rent, refinance, and systemize, is a strategic appr