And so it goes: rinse and repeat.
BRRRR has been a life-changing strategy for me, allowing for retiring out of my job as an engineering Manager—although I really wouldn’t call it retiring because I still work but it definitely feels like retirement! It’s also allowed me to spend time with my children while still making an impact. And—very recently—in addition, it’s allowed my husband to join the business full-time, leaving his corporate career in finance and strategy ay a Fortune 100 company.
The scaling component of the BRRRR strategy has been the most appealing and transformative for our finances.
I combined my engineering background and 17 years’ time in corporate America to build robust systems and processes, adding a deep understanding of the world of finance. This gave me an entirely new career that pays me significantly higher returns for much less work. Not to mention the amazing freedom that comes with flexibility!
In the current economic uncertainty, scaling and growing seems to be unheard of. When people in the real estate industry usually talk about growth, it is typically spoken of with high risk and irresponsibly low equity in mind. When I speak of growth, I mean low risk and financially responsible growth that comes with being parents of two young children and wanting the ability to provide for them in any circumstances.
We have been moving forward without letting the current situation impact us significantly. And because of a few key strategic moves we have made in the past few years—and most significantly, in the wake of the coronavirus pandemic—I’m sharing tips with you today. If you are on the verge of giving up, my hope is this will provide you with motivation to keep going.
3 Real Estate Repeating Tips During COVID-19
1. Invest for cash flow, not appreciation
Very early on in my journey, I invested for appreciation. I did get great returns—but it is not a very reliable strategy. I do not recommend that you invest for appreciation in the current conditions.
For the past few years, we have stopped investing in volatile, high-growth neighborhoods and instead focused on secondary markets that allow us to obtain great cash flow and building of equity without undue risks and volatility.
2. Leverage technology
If you are one of those investors who has shied away from property management software, Google Drive, banking with institutions that allow you to perform 99% of the transactions online, virtual mailboxes, and various other tools that are available—now is the time to break out of that comfort zone. Getting comfortable with technology can do wonders for your business. If there is one piece of advice I want you to take from this series, it is this one.
3. Stay nimble
As the circumstances change, staying adaptable as a person and nimble as a business is the best advice. It can change your trajectory dramatically. The advantage that the larger players—the goliaths in real estate—have is their size. However, the “Davids” of real estate will be able to stay nimble and quickly make changes as needed.
So, open that spreadsheet and call your lender. Network with other investors and make this pandemic the time you made key changes to your mindset to revamp the financial future of your family. Take calculated risks, and build wealth. Happy BRRRR-ing!
Do you have any questions about how to implement these tips?
Talk to me in comments below.