What Do You People Do When You Get 10 Brrrs?

Question

Starting with your own money and buying 2 units ......  all of which I have to research yet for maximum financial benefits and pitfalls....   how do you get over 10 units ?

Chris Mason · Answer

No point in worrying about this now. All the guidelines will be different by the time you reach that ceiling. Head honcho of FHFA is about to announce plans to end FNMA/FHLMC Conservatorship within the week. The infamous FNMA cap of 10 might become a cap of 30, or it might become a cap of 2. No point in worrying about what you cant control. Take it 1 or 2 deals at a time.

Will Pritchett · Answer

@Chris Mason where can we see what is decided? Is there a good page to keep an eye on regarding these rules?

Thank you,

Will

Will Pritchett · Answer

Thank you for the great info, Chris, as always.

Chris Mason · Answer

You can google search "fannie mae selling guide updates" and find where Fannie posts the latest changes to her guidelines.

James Canoy · Answer

@Larissa Pacifico

Buy, rehab, rent, refinance, repeat.

You have to find a deal where you put in a fairly low down payment or other of your own money...maybe you can pay cash. The point is that there is a house you buy low but when it’s fixed up it’ll be worth significantly more. So you fix it. Then you rent it to have someone paying the mortgage or cash flow. Then you get a bank refi off what the fixed up value of the place is so that you get all your money back. Then you do it again with another place with that money from the bank.

Bad simple example:

Assume a house you’ve bought for 20k needs 30k rehab.  So you have put in 50k total of your own money. But the house is now worth 150k on the market.

Then you rent it out.

Then you run to the bank and take out a home equity line or loan on what the house is now worth.

So 150k-50k = 100k. You’ve got your initial 50 out plus.

Then you do it again.

You’ll end up with 2 houses being paid for by tenants and at the end you’ve made money.

Larissa Pacifico · Answer

@Anthony Dooley thank you!! I’m already studying it!! Thank you!

Anthony Dooley · Answer

It stands for Buy, Rehab, Rent Out, Refinance, Repeat. I'm pretty sure there are some videos on youtube that explain it in detail. It is not a new thing, but the BP community has trademarked the term.

Larissa Pacifico · Answer

@Anthony Dooley what’s a Brrrs please?

Anthony Dooley · Answer

Refinance all 10 into one commercial loan. You could pay some off, sell some for profit, use private money, use seller financing, or use cash to purchase more property. People still accept cash these days, right?

What Do You People Do When You Get 10 Brrrs?

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