FIRST BRRR Complete! Details + Pictures!

305 Replies

@James Gates

Hello James,

Great story, very inspiring for a newbie investor like myself. I am just beginning my real estate education and am very interested in the BRRRR method. I am a little confused on the first beginning steps though. To buy the townhome In Alabama did you use your own saved up money or did you find a lender? If you could explain the beginning process of BRRRR I would appreciate it greatly. Also, are there any articles or books that you read when you were getting started ?

Originally posted by @Rosemary Novak :

@James Gates

Hello James,

Great story, very inspiring for a newbie investor like myself. I am just beginning my real estate education and am very interested in the BRRRR method. I am a little confused on the first beginning steps though. To buy the townhome In Alabama did you use your own saved up money or did you find a lender? If you could explain the beginning process of BRRRR I would appreciate it greatly. Also, are there any articles or books that you read when you were getting started ?

 Hey Rosemary,

To originally purchase the home, I used a combination of my own money (HELOC -- pulled out equity ("cash") from my primary home) and a partnership. The lender comes into play after six months when we do a cash-out refinance to pull our money out of the rental property.


I would highly recommend checking out David Green's (BiggerPockets Podcast co-host) book on Out of State Rental Property Investing as well as his BRRRR book! They are both fantastic.

@James Gates thanks for the great article. I also live in California and looking to start BRRR soon (hopefully in 2020) through a HELOC. Unfortunately I have no partners (at least not yet). My dad and my sister are very interested in this also but they wont be able to jump on board until 2021 as my dad wants to pay off his mortgage before starting a new adventure (only a year left). what do you think I should do? jump the gun and go in it by myself or wait one more year (save more money) and then partner with my other family members so we can have a much bigger investing fund? (my dad's home is worth over $800k and will be fully paid by mid 2021, my condo is worth $550 with a $260k loan on it)

Originally posted by @Carlo Mantovani :

@James Gates thanks for the great article. I also live in California and looking to start BRRR soon (hopefully in 2020) through a HELOC. Unfortunately I have no partners (at least not yet). My dad and my sister are very interested in this also but they wont be able to jump on board until 2021 as my dad wants to pay off his mortgage before starting a new adventure (only a year left). what do you think I should do? jump the gun and go in it by myself or wait one more year (save more money) and then partner with my other family members so we can have a much bigger investing fund? (my dad's home is worth over $800k and will be fully paid by mid 2021, my condo is worth $550 with a $260k loan on it)

@Carlo I'm no expert but it sounds like you have more than enough equity to get started right now if you wanted to. Just make sure your numbers are good on any deal you find and that you have enough cashflow to handle any additional debt you take on, good luck!

 

This is an amazing story, I am so thankful that you shared it. I am currently looking at getting into real estate investing, like you I have been absorbing BP, Forums, and books for the past year. I found a partner and we are looking at investing out of state. Just trying to find the best out of state area, currently looking at Austin, TX and San Antonio, TX. Reading this has motivated me to do a BRRR for our first property.

That amazing, congrats!! @James Gates ! I'm also in CA and am getting my feet wet in Florida (Jacksonville) with the BRRRR method. I realized that it will take me a long time to reach my goals by myself even though I have around $150k to invest. I'm looking for a partner who can support with funds and knowledge at this point, but I'm not sure how to structure the partnerships. If you only have one partner it might be straightforward, but what if you have more, how do you split things? How do you agree on what to invest? It seems to me as it would be a pain to quickly move as you would have to be on one page with each investment etc. Any advice would be highly appreciated. Thank you!

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