How to Know a BRRRR Real Estate Deal Will Make You MONEY
BRRRR real estate can make you rich. Seriously-James Dainard used the BRRRR method to go from eight rental properties to one THOUSAND rental properties in just fifteen years. Because of this, he’s become the expert on the buy, rehab, rent, refinance, repeat method, and today, he’ll walk through the basics of underwriting and analyzing a BRRRR real estate deal BEFORE you buy it, so you can “hyper-explode” your portfolio just like he did.
Before you buy your first BRRRR property, there are a few things you’ll need: after-repair value, estimated cash flow, and the ability to refinance, so you’re not forced to sell the BRRRR, turning it into just a flip. If you follow all the BRRRR steps that James outlines today, you’ll have no problem buying, rehabbing, holding, and later selling your property for even bigger gains. But, if you don’t follow these steps, you may find yourself overspending, overworking, and without much wealth to show for it.
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00:00 How to Analyze a BRRRR Deal
00:33 What is BRRRR Real Estate?
01:15 Follow These Rules
03:11 1. Calculate Your ARV
06:03 2. Build Your Scope of Rehab
06:55 3. Know Your Lending Costs
08:07 4. Use This BRRRR Formula
08:56 5. Evaluate Cash Flow
12:35 The Perfect BRRRR
Пікірлер: 23
Good video. BRRRR in my opinion is the best way for small investors. It is the only way to achieve an “Infinite Return” ( pulling all your own cash out of a deal and still getting cash flow on other people’s money). I do think however you should account for more vacancy when analyzing your deals. To me it makes sense to allow for one month out of the year to be vacant. If some one leaves the unit you are going to have 1 month at least of it being empty between cleaning and fixing things and the showing the unit for the next tenant. Also, a good tenant is going to give their previous landlord a 30 day notice before they move into your place anyway.
@ProjectRE
4 ай бұрын
Could agree more. You got to pad that proforma!
Thanks JD !!!
Outstanding video. I didn’t put together the idea of 1031’ing out at the end. That’s definitely an accelerator.
JD is the Best! Keep these Brrrr Videos Coming. 🔥
Such a simple process 🙂
Interest rates when you are done with rehab won’t be the same as before you start the project
@richarddbarran8353
4 ай бұрын
Let’s hope so
Would this strategy work with a commercial property? I bought a tow yard with a nice shop on it.
What a great summery of this strategy
@ProjectRE
4 ай бұрын
Appreciate it!
cool video
Ok JD, quick question, at the end of the video you talked about a 1031 exchange of a property using the equity. Is that the same as a HELOC ? And if not what is the difference ?
@bubbleboy821
2 ай бұрын
A 1031 exchange is when you defer capital gains tax from selling a property by buying a similar property right after
Lovely
@ProjectRE
4 ай бұрын
Thanks for watching!
What is this “1031” you referred to?
@biggerpockets
3 ай бұрын
You can learn more about a 1031 exchange here! kzread.info/dash/bejne/e4iky9OIj6zInZM.html
It absolutely kills me there's not a Spanish version of these videos.
Next video: How to find a BRRR Real Estate Deal
Falen needed this laugh more than any apology! She tried to tell her and they flipped the story and trashed her and the Porsha stans ate her up all over SM. Yup Falen is on these threads and on the floor STILL laughing! (Allegedly) 😂😂😂😂😂😅😅😅😅😅
Flesh of my flesh, blood of my blood