The BRRR Method—What is it and How can it Help You?

The BRRR method, or buy, rehab, rent, refinance, repeats as its often called, is a great way to quickly build equity in a property. It’s a strategy that’s been used by savvy investors for years and one that can be extremely profitable if done correctly. Here’s a quick overview of how the BRRR method works.

The first step is to find a fixer-upper that you can buy below market value. Once you have the property, you’ll need to put some money into fixing it up (the “rehab” part). Once the rehab is complete, you’ll then need to find tenants to rent the property (the “rent” part). And finally, once you have stable tenants in place, you can then refinance the property and pull out your initial investment plus any additional cash you may have put into the property (the “refinance” part). Rinse and repeat this process with other properties and you can see how your equity can grow very quickly!

There are two main benefits of using the BRRR method. The first benefit is that you can use other people’s money (OPM) to finance your deals. This is possible because you can get a loan for the purchase price of the property plus the cost of repairs. So, if you use OPM to finance your deals, your only out-of-pocket costs will be your time and effort. 

The second benefit of using the BRRR method is that it builds equity very quickly. By using OPM to finance your deals and leveraging your tenants’ rent payments to pay down your mortgage, you can build up a large amount of equity in a relatively short period of time. And because you’re building equity with each deal, your returns on future deals will be even higher!

The BRRR method is a great way to quickly build equity in a property. It’s a strategy that’s been used by savvy investors for years and one that can be extremely profitable if done correctly. If you’re thinking about trying this method, be sure to do your homework first and consult with a qualified real estate professional who can help guide you through the process.