BRRRR last R?

[Thomas B.]

Ok, so I guess I have the general concept of this strategy. Basically, it goes like this: ARV-100k. (Gathered from comps) Buy-50k Rehab-25k Rent-2k Refinance-75k(pulls all my money out) Repeat- use that money to do it again, so I basically never spend my cash, just use it. My question is, how many times can I do this? How do I do this inside of an LLC or other entity. My father has been in business a long time and always recommends not to have anything in my own name. I have my own capital, but is it really this simple? Seems to Me I would have to place these properties in my own name to refi and that doesn't give me any asset protection. Furthermore, if I did go this route and put things in my own name, it seems I would run out of loans around 4.

[Bryan O.]

Hi @Thomas B. It really is that simple. You need to create your LLC so that it can own properties. I am guessing you are buying with cash, private, or hard money. This means you can buy it in the name of the entity. Your difficulty is in loans and insurance with that entity. I haven't found a bank willing to give awesome 30 year fixed APR loans to an entity. You're looking at 5-7 year balloons with 20-year amortization and such. Not as nice for the numbers.

As long as the numbers work, make it happen. Otherwise, just get a good umbrella policy.