The BRRRR Origin Story: How I Discovered This Amazing—No Money—Real Estate Strategy

The BRRRR Origin Story: How I Discovered This Amazing—No Money—Real Estate Strategy

3 min read
Brandon Turner

Brandon Turner is an active real estate investor, entrepreneur, writer, and podcaster. He is a nationally recognized leader in the real estate education space and has taught millions of people how to find, finance, and manage real estate investments.

Experience
Brandon began buying rental properties and flipping houses at the age of 21. He started with a single family home, where he rented out the bedrooms, but quickly moved on to a duplex, where he lived in half and rented out the other half.

From there, Brandon began buying both single family and multifamily rental properties, as well as fix and flipping single family homes in Washington state. Later, he expanded to larger apartments and mobile home parks across the country.

Today, Brandon is the managing member at Open Door Capital, where he raises money to purchase and turn around large mobile home parks and apartment complexes. He owns nearly 300 units across four states.

In addition to real estate investing experience, Brandon is also a best-selling author, having published four full-length non-fiction books, two e-books, and two personal development daily success journals. He has sold more than 400,000 books worldwide. His top-selling title, The Book on Rental Property Investing, is consistently ranked in the top 50 of all business books in the world on Amazon.com, having also garnered nearly 700 five-star reviews on the Amazon platform.

In addition to books, Brandon also publishes regular audio and video content that reaches millions each year. His videos on YouTube have been watched cumulatively more than 10,000,000 times, and the podcast he hosts weekly, the BiggerPockets Podcast, is the top-ranked real estate podcast in the world, with more than 75,000,000 downloads over 350 unique episodes. The show also has over 10,000 five-star reviews in iTunes and is consistently in the top 10 of all business podcasts on iTunes.

A life-long adventurer, Brandon (along with Heather and daughter Rosie and son Wilder) spends his time surfing, snorkeling, hiking, and swimming in the ocean near his home in Maui, Hawaii.

Press
Brandon’s writing has been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media.

Follow
YouTube
Instagram @beardybrandon
Open Door Capital

Read More

Here are two lessons from my very first deal that I just did over and over and over throughout the next decade.

The Power of Partnerships

Number one, I added a partner to the deal. Now, that partner was my father. He didn’t have a lot of money, but he had a job. He was a meat cutter at a grocery store. He had a job. So I said, “Well, can I just add you to the title?”

And we refinance it. I talk to a local bank and they’re like, “Yeah, that’s fine, as long as he’s on the loan. We don’t care that you don’t have a job as long he has a job.”

Great! He didn’t have to put any money in; he just had his name on the loan.

I discovered two things that day. Number one, the power of partnerships—because at the end of the day, you don’t have everything you need to put together a real estate deal, chances are. But somebody does.

handshake-partners

And the second thing? It’s called…

The Deal Delta

Today, I teach about the deal delta. There are three things every deal needs, right?

First, you have to have knowledge of what you’re doing. Somebody has to know what they’re doing in the deal to be able to put everything together. The knowledge of how to acquire deals, how to analyze it, knowledge of how loans work, whatever.

Then, you have to have the hustle. Somebody has to do all that work, fill out the paperwork, show up, manage the contractors, manage whatever the process is, everything—just the hustle involved.

And then third, you have to have the money. Somebody has to have the money.

Related: BRRRR Investing: The Ultimate Guide to the Buy-Rehab-Rent-Refinance-Repeat Strategy, Made Simple!

So, it’s like a triangle. And you have to have all three sides in order to put together any real estate deal. I thought I had to have all three in the beginning, but then I realized I don’t.

I know this is part of your story as well, right? Like, if I had the knowledge and the hustle, I could figure out somebody else with the money.

Now, some people are really good at the money. They can raise money really well, but maybe they don’t have the knowledge or the hustle or the ability—maybe they don’t have something else. The key was my dad had the “money.”

Really, you know, the bank had the money. But my dad had the ability to get it. So, I added him on. And I realized that you can do deals with partners and amazing things happen.

win-win-partnership

The Importance of the Process

So, I bought that property. I then rehabbed that property. Full transparency, it was a really nice property—it hardly needed any repairs at all. I think I fixed it four times over the next decade.

I bought it, I rehabbed it, I rented it out. I then went to a local bank and I refinanced it, so I got all the hard money back that I’d used to buy and rehab the property.

Now it’s pretty rare to get a hard money lender to fund the rehab and the purchase price, all of it. But I got it. I paid the hard money lender back. And now the hard money lender’s money was freed up. Also, now he trusted me. He’s like, “Wow, Brandon did all this.”

So, I borrowed more money from him again, and I repeated the process.

Related: The Pros & Cons of the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) Strategy

And so looking back on that, a few years later, I was like, “I bought, rehabbed, rented, refinanced, repeated.”

I was writing a blog post for BiggerPockets like seven years ago and had a thought, “How can we make that whole process—which was really cool and a lot of people do it—how do we put a name to it?”

I was like, “Let’s call it BRRRR investing.” And when I told that story, I said I basically did a BRRRR. And that’s where the term BRRRR came from! I had discovered the power of the BRRRR strategy.

Blog ad for Wealth magazine

How did you get into the BRRRR strategy?

Share your experiences in the comments.

BRRRR is a real estate strategy involving buying, rehabbing, renting, refinancing, and repeating. Here's the backstory of this now well-known process.