New Book... Learn to BRRRR Your Way to Financial Freedom!

134 Replies

Mine just arrived today. I'm nearly finished with How To Invest In Real Estate The Beginners Guide and am excited to dive into the BRRRR book.

if you just want the book and not the bonus contents, i bought mine on amazon... paper back on amazon is only $17.8, while on BP its $29.99! 

any idea on when this will hit audible?

The book so far is a great read. This book will serve as a guide for me to build a business system and process. BRRRR seems to be the best concept to grow as person and investor. We also can develop and grow our own team and expands external partners and vendors. I'm on page 79 and I already wrote down a lot of ideas for action and applications!

@Andrew Frishman

All great points. I have the same concerns as a wanna be newbie investor. I think a possible solution is to partner with someone who is near the area you would like to invest in. Maybe not a partner, but hired help. Someone you can trust to be your boots on the ground. It might cost you a few more dollars, but would help you sleep at night.

Anyone that has done BRRR, can you give me some insight as to what closing costs, fees are associated with a cash out refinance? Are those costs typically added to your 30 year or new loan, or are they closing costs that your are expected to pay as if you were purchasing the property? Just trying to calulate what percentage or cost I should expect for the refi portion of the calculator.

Thanks!

Originally posted by @Pete Sanchez :

After doing brrrr has anyone created a seller financed note instead of renting it out. Avoids dealing with tenants. 

 I don't know if anyone responded to this, and I may be wrong, but I am under the impression that the purpose of brrrr is that you can pull your initial funds out of the project to do it again on another project by renting it out and refinancing (and getting some cash flow in the process). If you seller finance the property after you've rehabbed it you would get the cash flow, but you wouldn't be able to pull your money out and reuse it on another investment. 

@robert Im talking about after refinance say you have it at 75% LTV.

You than do seller finance note (wrap around) at 100% of value instead of tenants who dont value your rentals.

To be the bank versus landlord.

Hey Everyone, I am brand new to the BP community and am a newbie buy and hold real estate investor in the research phase before making my first deal. I live in Southern California so I am exploring the option of buying out of state. Buying from a turnkey company is an option I am looking in to. Forgive my inexperience but is it possible to use the BRRRR strategy on a turnkey property?

Originally posted by @Nick Dragovich :

Hey Everyone, I am brand new to the BP community and am a newbie buy and hold real estate investor in the research phase before making my first deal. I live in Southern California so I am exploring the option of buying out of state. Buying from a turnkey company is an option I am looking in to. Forgive my inexperience but is it possible to use the BRRRR strategy on a turnkey property?

 No, turnkey companies do BRRSR (Buy Rehab Rent Sell Repeat). They may Sell before Rent though. 

@Kevin Yi Ya I guess now that I'm thinking about it more, when you buy a turnkey property, they have already done all the rehab so you are paying full price for your property.  This doesn't leave much equity to refinance until years down the road potentially.

Originally posted by @David Braut :

@Kenny M. Lewis But to be clear the hard money should be used as the original "purchase money" loan to buy the property in the first part of the "brrrr" strategy- "buy".  Then after you rehab and rent you should refinance into a traditional loan or private money loan.  Hard money loans are best used for short term or transactional financing because of their high costs.

Yes I agree with you. Its a quick learner process for me. Looking for the right deal where the numbers work.

I'm a painting contractor interested in flipping properties. 

I've been working with a friend, only painting for them, who have been doing this for about 10 years.  They buy and hold. They reached a snag in financing purchases after like 15 properties. I found out they were with a local bank who financed I think the first 10. The next five has been family money. Their at 50 percent loan to value, at least. So no conventional money. 

So looking at the experience of my friends, I believe this brrrr is the way to do it. No clue though about the financing when starting from zero.

Originally posted by @Hen Ley :

Anyone have any suggestions as to how to refinance if you don't have a conventional job?  This has been a consistent hurdle and any insights would be appreciated-

Same here. I've been self-employed nearly 20 years. Banks will not seriously look at me without at least 50 percent down payment. So somehow I need to come up with 60 thousand as my best guess to be in the suburbs for Lancaster county, PA.

Originally posted by @Adam Wigdorski :

@Tony Boullosa

Find a portfolio lender. I haven’t hit the point yet but they said I can keep going under a couple of conditions

Must cash flow positive at purchase

I must have sufficient reserves for all properties

They will let me get loans until I hit 6 million loan balance total. After 6 million they would just have to sell some of them off and let me go again.

As of today I’m up to 4 loans and ~ 1 million in loan balances. I bought and cash out refi’d with the same bank on each property. So far I’ve been able to recoup the initial down payment, refi closing cost, and 100% rehab on each property if tackled. Big banks in my area wouldn’t touch it. Try credit unions also.

Good news here! Thanks!

Looking forward to reading that one! im currently halfway through the UBG!

Originally posted by @Pete Sanchez :

After doing brrrr has anyone created a seller financed note instead of renting it out. Avoids dealing with tenants. 

I was thinking about the same thing seems like it might be a good idea so you wouldn't have to deal with the landlord issues and expenses. 

When will BRRRR be out on Audible? I've been through 4 books in the last week and half. If I actually had to read them I probably wouldn't have made it through one. Just don't have the attention span.

Originally posted by @Michael Kiley :
Originally posted by @Andrew Frishman:

Im inspired by stories of Brrring ….outside of David Green and Brandon Turner...have any BPr's BRRRd a property?

Please share...

Sure. It's done all the time. The last one I did was in Old Brooklyn, a neighborhood of Cleveland. Got it for 35k. Spent 25k on the rehab. It appraised for 100k. Refinanced and got all my money back out and have $584 monthly cash flow. 

 Wow... that's great. You are cash flowing $584 even after the refi?  Kudos 

Originally posted by @Mike Deguzman :
Originally posted by @Hen Ley:

Anyone have any suggestions as to how to refinance if you don't have a conventional job?  This has been a consistent hurdle and any insights would be appreciated-

Same here. I've been self-employed nearly 20 years. Banks will not seriously look at me without at least 50 percent down payment. So somehow I need to come up with 60 thousand as my best guess to be in the suburbs for Lancaster county, PA.

We're those loans for rental property or your primary residence? 

The book is amazing. A strong road map to success.

Does anyone have any experience with a "BRRR" bank in the northeast, preferably NJ? My next question would be can I Cash Out REFI my primary residence the same way and use that money to get started? I bought a foreclosure rehabbed it fell in love with Real Estate and now I need either some private cap or use the equity I have in my home.

Originally posted by @Corey Kenney :

Does anyone have any experience with a "BRRR" bank in the northeast, preferably NJ? My next question would be can I Cash Out REFI my primary residence the same way and use that money to get started? I bought a foreclosure rehabbed it fell in love with Real Estate and now I need either some private cap or use the equity I have in my home.

Instead of a cash out REFI on your primary, it would probably be better to get a HELOC (Home Equity Line Of Credit). Should be able to get a HELOC with no fees/costs, unlike a REFI.

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