{"id":127515,"date":"2020-07-11T05:00:45","date_gmt":"2020-07-11T11:00:45","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=127515"},"modified":"2022-08-09T09:29:48","modified_gmt":"2022-08-09T15:29:48","slug":"brrrr-origin-story","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/brrrr-origin-story","title":{"rendered":"The BRRRR Origin Story: How I Discovered This Amazing\u2014No Money\u2014Real Estate Strategy"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/2K2IMyna_bU\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p class=\"p1\"><span class=\"s1\">Here are two lessons from my very first deal that I just did over and over and over throughout the next decade.<\/span><\/p>\n<h2>The Power of Partnerships<\/h2>\n<p class=\"p1\"><span class=\"s1\">Number one, I added a partner to the deal. Now, that partner was my father. He didn&#8217;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, &#8220;Well, can I just add you to the title?&#8221;<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And we refinance it. I talk to a local bank and they\u2019re like, \u201cYeah, that\u2019s fine, as long as he&#8217;s on the loan. We don&#8217;t care that you don\u2019t have a job as long he has a job.\u201d <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Great! He didn\u2019t have to put any money in; he just had his name on the loan. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">I discovered two things that day. Number one, the power of partnerships\u2014because at the end of the day, you don&#8217;t have everything you need to put together a real estate deal, chances are. But somebody does.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-117510 size-main-slider\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/10\/handshake-702x336.jpg\" alt=\"handshake-partners\" width=\"702\" height=\"336\" title=\"\"><\/p>\n<p>And the second thing? It&#8217;s called&#8230;<\/p>\n<h3>The Deal Delta<\/h3>\n<p class=\"p1\"><span class=\"s1\">Today, I teach about the deal delta. There are three things every deal needs, right? <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">First, you have to have knowledge of what you&#8217;re doing. Somebody has to know what they&#8217;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.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">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\u2014just the hustle involved. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">And then third, you have to have the money. Somebody has to have the money.<\/span><\/p>\n<p><em><strong>Related:<\/strong> <a href=\"https:\/\/www.biggerpockets.com\/blog\/brrrr-strategy-real-estate-investing\" target=\"_blank\" rel=\"noopener noreferrer\">BRRRR Investing: The Ultimate Guide to the Buy-Rehab-Rent-Refinance-Repeat Strategy, Made Simple!<\/a><\/em><\/p>\n<p class=\"p1\"><span class=\"s1\">So, it&#8217;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&#8217;t. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">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. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Now, some people are really good at the money. They can raise money really well, but maybe they don&#8217;t have the knowledge or the hustle or the ability\u2014maybe they don\u2019t have something else. The key was my dad had the \u201cmoney.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">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.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-74820\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2015\/09\/win-win-partnership.jpg\" alt=\"win-win-partnership\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2015\/09\/win-win-partnership.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2015\/09\/win-win-partnership-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h2>The Importance of the Process<\/h2>\n<p class=\"p1\"><span class=\"s1\">So, I bought that property. I then rehabbed that property. Full transparency, it was a really nice property\u2014it hardly needed any repairs at all. I think I fixed it four times over the next decade. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">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&#8217;d used to buy and rehab the property. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Now it&#8217;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&#8217;s money was freed up. Also, now he trusted me. He\u2019s like, \u201cWow, Brandon did all this.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So, I borrowed more money from him again, and I repeated the process.<\/span><\/p>\n<p><em><strong>Related:<\/strong> <a href=\"https:\/\/www.biggerpockets.com\/blog\/brrrr-pros-and-cons\" target=\"_blank\" rel=\"noopener noreferrer\">The Pros &amp; Cons of the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) Strategy<\/a><\/em><\/p>\n<p class=\"p1\"><span class=\"s1\">And so looking back on that, a few years later, I was like, \u201cI bought, rehabbed, rented, refinanced, repeated.\u201d <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">I was writing a blog post for BiggerPockets like seven years ago and had a thought, \u201cHow can we make that whole process\u2014which was really cool and a lot of people do it\u2014how do we put a name to it?\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">I was like, &#8220;Let&#8217;s call it BRRRR investing.&#8221; And when I told that story, I said I basically did a BRRRR. And that&#8217;s where the term BRRRR came from! I had discovered the power of the BRRRR strategy.<\/span><\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/store\/wealth-magazine-one-year\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-123232 size-full\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-700x120-v2.jpg\" alt=\"Blog ad for Wealth magazine\" width=\"700\" height=\"120\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-700x120-v2.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-700x120-v2-300x51.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em>How did you get into the BRRRR strategy?<\/em><\/p>\n<p><strong>Share your experiences in the comments.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>BRRRR is a real estate strategy involving buying, rehabbing, renting, refinancing, and repeating. Here&#8217;s the backstory of this now well-known process.<\/p>\n","protected":false},"author":710,"featured_media":122304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7355],"tags":[],"class_list":["post-127515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brrrr-method"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/127515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/710"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=127515"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/127515\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/122304"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=127515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=127515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=127515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}