BRRRR Strategy: Explained & Upgraded?

In this video, we'll break down what is the BRRRR Strategy (or BRRRR Method) and we'll unveil an UPGRADED version of the BRRRR Strategy (we'll call it BRRRR Strategy 2.0). Here it is, BRRRR Strategy Explained...

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The BRRRR Strategy was initially introduced by the Biggerpockets community. It stands for:

1. Buy It
2. Rehab It
3. Refinance It
4. Rent it
5. Repeat

Now, this was a common practice and strategy for many real estate investors even before the name BRRRR Strategy was coined. It became very popular more recently between 2012-2016 in which many investors were making money riding the upward appreciation wave.

The BRRRR Strategy, by no means, is a perfect strategy for all situations. Strategy alone can't be profitable unless the environment (the context) and timing (the economy) allows for it. This is where you have to be careful not to be over-zealous about one strategy and ultimately end up becoming blinded by the "excitement" around the strategy. The BRRRR Strategy is like a tool... It's up to the user to make it work for the right situation. For example, no one tries to use a hammer to cut a piece of paper. That's what a scissor is for. Likewise, you must be wise about which tools (strategies) to use.

In this video, we'll explain what the BRRRR Strategy is and we'll provide some input of our own. Not only that, we'll add in some upgrades you can do to the traditional BRRRR Strategy to be adaptable for different goals you want to achieve.

Don't get us wrong, the BRRRR Strategy is a great way to build equity, (wealth), cash flow and you can scale BUT... All at the right timing in the market.

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The Kwak Brothers are millennial real estate investors who have acquired over 82 Units of Rental Units and have raised over $20,000,000 of capital for their real estate deals. They are based out of the Chicago-land area and they are dedicated to helping hard-working people become financially free real estate investors! They specialize in owner financing acquisition and raising capital. They are the creator of the FORCE Strategy (Find the deal, Owner Finance It, Raise the Capital, Cashflow It, and Expand your Financial Freedom)

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#BRRRR #BRRRRStrategy #realestateinvesting

---DISCLAIMER--- The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.

[valent_t]

This depends on the loan rate that you get from the bank. If the loan rate is high it will definitely eat into or even destroy your cash flow. Can you do the math and do an update?

[dennisrepetitonmiskowski]

I have done the bird strategy but I bought right and when you buy right after you refinance you're still at 80% so of the properties lose value you still have a cushion I hope. But this new way of doing it with A-line of Business line of credit sounds great

[dennisrepetitonmiskowski]

I love it I would like to learn a lot more it sounds great.

[archdh]

Would you recommend the brrr strategy for a future first time real estate owner? If not then what would be a better use of money.

[AberrantArt]

What are the downsides of using a business loan to buy properties?

[GordonGreenCincinnati]

So are you saying use the $50k CASH from refi or Equity to secure the $500k line of credit. You also didn’t mention LLC seasoning Which banks are not going to give you half million dollar line of credit for a brand new LLC started last month.

[Dieselprescott]

Wow incredible!! I currently use my HELOC and I do have an LLC but only have a business credit card to pay for material and holding could I pull from my HELOC to use to secure a business line of credit? Should I check with my current bank or could you recommend a bank for me? thank you much!