Why has David Greene moved on from BRRRRing?

Buying & Selling Real Estate
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Why has David Greene moved on from BRRRRing?

Jacob P.
Investor · Brooklyn, NY · Member since 2014 · 49 posts · 7 votes

I've been investing for 8+ years now. Just read David Greene's BRRRR book. It really has me sold on a shift in mindset (to date I have been saving up, putting down 25% to buy properties at retail. It's been a slow process, and the book really opened my eyes to how I can speed things up).

In fact, the book has me sold SO much on the process, that I'm curious why David's not doing it anymore. Maybe I'm missing something, but listening to most of the recent podcast episodes and looking at his profile, it seems his focus has really shifted to being an agent + his mortgage company + Bigger Pockets.

Not trying to troll here, but I guess you could say I've drank the koolaid and am true believer in how wonderful BRRRRing could be, and I wonder why the guy who literally wrote the book on it is focussing in other areas. Or maybe he has it so systematized that it's running for him in the background and there's not much for him to think about/mention on his profile and the podcast?

I can't seem to tag @davidgreen, but I'm sure he'd have some great thoughts on this. And of course, also curious what others think as well!

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y

of course no first hand knowledge.

but I think i recall some of the props his team worked on or the realtor team he suggested was in Jacksonville FLA and they were working low end rentals. 

So he might have just like many before him realize low end rentals are a lot of work ?? maybe thats the case and like other said moved up in asset class. 

But do keep in mind even a very well run BRRR is going to usually take at least 6 months to go full circle so if your have capital to do just one.. your going scale at 1 to maybe 2 units per year.. and choosing the asset class is critical.. Even if you have no cash into these things that means your pretty much fully leveraged and maybe making 200 a month cash flow .. so any way you slice it rental game is a long long game unless you can start out in MF and roll up like what was suggested above.

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  • Mark Fries
    Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes
    5y

    @Arsen Atanasovski

    I just always try to tell the truth. If you make the Kool Aid seem great then people are gonna drink it... And I think he is really good at that..

    I was hired by one of his property managers and I did 3 of his turnovers on D class properties here in Jacksonville Florida about a year and a 1/2 ago... And as I was doing the work on these homes that's when I realized that there is just no way on Earth that you are going to make ANY money following that method on C or D class properties... And that's what these homes were.. To be honest you're just going to lose money and massive amounts of it. You've got tenants that are maybe staying 10 months and they are causing catastrophic damage and each one of the turnovers was at least $5000 or more...one was like 7k..

    Mathematically it is impossible to make a profit paying those kinds of repairs and having a mortgage. But that doesn't mean you can't make it sound great...

    BRRRR does work on A class or B class, some short term term rentals...but that's it...

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  • Mark Fries
    Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes
    5y

    @Mark Fries

    And I don't wanna sound like I'm bashing the man because I've never met with him... I'm just simply stating the fact that it doesn't work.

    And if it does work it's so incredibly hard to make it work by the time you put a dollar amount on your "time" it's going to be negative

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  • Megan Brooks
    Rental Property Investor · Fort Lee, NJ · Member since 2019 · 82 posts · 22 votes
    5y

    @Mark Fries how have you found success in C neighborhoods besides the BRRRR method?

    0Reply
  • Mark Fries
    Contractor · Jacksonville, FL · Member since 2017 · 1k+ posts · 2k+ votes
    5y

    @Megan Brooks

    Buy them cash. I know that seems easy to say but I really think that's the only way to find longterm success in C, D and F class.

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