Can we come up with something to replace BRRR?

Question

Every time a see or hear BRRR (Buy, Rent, Rehab, Refinance), I just...I don't know...I just bristle.  It is cumbersome, awkward to pronounce, and can't be said without then saying what it stands for.  Sorry @Brandon Turner!

Here's an idea.  Buy is a given, is it not?  I think we all know its about buying a property.  Rent is implied by the Refi part.  We wouldn't refi if we weren't holding.  And we wouldn't hold an empty property.

How about just Rehab, Refi?  Anybody else have a better idea?

Ro Maga · Answer

Well, one could PuRRR instead (Purchase, Rehab, Refinance, Repeat).  Maybe not as hardcore sounding as BRRR, but sure playful!

Landon Thomas · Answer

@Larry T. Agreed! I've found myself avoiding it, the same way I avoid "deal". I started typing B4R, ha! I like Rehab-Refi, but a little clunky still.

How about Rehabefi?

Bill Gulley · Answer

You can do the same thing by renting and refinancing.

What's the extent of the rehab side? Paint and carpet, hang a new front door? Or are we adding a master suite and blowing out a dinning room for a great room?

Don't you "rehab" to some extent to increase value?

Some value add to get more rents?

It's still part of the old buy and hold.

Don't you refi to get at unused equity to leverage another property? You don't really have to refinance it, just use it as additional collateral. That can be cheaper to do.

"A Rose by any other name would smell as sweet" William Shakespear, Romeo and Juliet.

Younger people getting into real estate who haven't learned real estate and won't, have a hard time with conceptual-logic, maybe computer games cause that, I don't know, they don't seem to be mastering the game of chess either. They need a name to identify a step by step approach so they can grasp a process. Checkers, not chess.

Seems that if it doesn't have a name, it's not a strategy, at least one that can be conveyed.

It doesn't matter what it's called, by any other name it can be the same concept.

(Why do you think I named a tenants in common method TIC, TAC, TOE? It's simple and stands for 3 aspects used, not much thinking to it.....LOL)

BRRRRRRRRRRRR or BRRRR (buy, rehab, rent, refinance, repeat, repeat, repeat....)

I have to say, Brandon could make watching grass grow sound exciting!

I have similar feelings saying "lease-options" which is an option to lease after the initial term. "Lease-Option to Buy" is what they mean.

We have conflicting definitions used by investors, it's part of information engineering to describe concepts to be recognized by those that can't recognize the underlying functions of a process. Another example, "creative financing" and "seller financing or a Sub-To" all lumped together as being creative. Nothing "creative" about those tactics.

Why not just call it the "Brandon Deal"? The method has been around for a hundred years, probably much longer, but it's the sizzle and puff that seems to excite. :)

Jay Hinrichs · Answer

@Larry T.  having partaken in my share of this strategy.. difference was I was the HML putting the investor into title.. we just call it rate term refi... that model died a humungous death in oct of 2008... to only be revived about 2 years ago.

and now you have lenders putting 75 to 80% debt on low value rentals all over again.

and I predict in 3 to 5 years there will be another wave of foreclosures as burnt out landlord symptoms take root...

what was really great for the industry and economy was the 2008 to 2012  were so much was being bought for cash... if folks start ripping cash out again.. you now take a asset that could never be foreclosed on and now it can be.. so law of averages.

James Gorman IV · Answer

Good post, I like both BRRR & RRR. I somewhat favor RRR (Rehab, Rent, Refi)

since the R! R! R! since this reminds me of something a pirate might say in an old movie.

Merry Christmas All :-)

Account Closed · Answer

I dislike the BRRR as well.   Sometimes it has 4 Rs and I don't even know what the other R is for.  I feel the same way about "flipping" and rarely use it.  I use Rehab Resale.  Flipping was the term that HUD used 15 years ago when they went after investors and appraisers and lenders in collusion to inflate prices, and created anti flipping regs. Why would I want to be connected that?  Have to say it makes me feel old school, since the "flipping" world of reality tv and blogs and seminars wasn't yet a thing 15 years ago.

Rehab Refi works for me.  Or even Rental Refi....since the level of rehab varies, it's really about getting in and getting as much out with the best terms in order to do it again.

Larry Turowski · Answer

Good point.  Awkward and funny enough to stick.  I met somebody almost 10 years ago who gave me an absurd mnemonic to remember his name.  It had to do with Michael Jordan playing basketball with an appliance.  I thought it was silly, but I still remember this stranger's name to this day.

Brandon Turner · Answer

Lol ... good luck! ;)  BRRRR is awkward and funny but it might be here to stay unless anyone has something else catchy! Some call it "Fix-and-Rent" but that's not quite as catchy, lol!

Can we come up with something to replace BRRR?

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