What is the BRRR real estate investing method?
Find the right kind of property. For your first investment, it is wise to find a deeply discounted single-family residence that you can quickly rehab and get rented. That is exactly the type of property we recommend for flips as well, so it is the type of property purchase we will fund with a real estate investment loan. Buying the right kind of home is the first step to BRRR success.
Renovate the property. Do Hard Money is a great help to you here. We are the rehab investment loan experts. Members of our Find-Fund-Flip System benefit from our experience here. And the fact that we provide borrowers with a seasoned construction project manager to help them keep the rehab on budget and on schedule is a plus too.
Find tenants and establish cash flow. The cash flow component is a vital part of successfully executing this investment strategy. Owning rental properties is one of the key ways you can earn what is often referred to as passive cash flow. Getting this in place will help you grow your investments and makes future funding easier to obtain.
Refinance the rehab loan. You will want to get into a longer-term loan with different terms than the short term hard money loan you’ve used to buy the property and renovate it. Once the property meets the standards required for a more traditional type of loan you want to get that financing in place. Having tenants in the home provides lenders with more security as well.