Ever see an investment opportunity that’s so good that it gives you a chill? That’s the spark of BRRRR getting into your head. BRRRR; that’s Buy, Rehab, Rent, Refinance, Repeat. The BRRRR method has been utilized by real estate investors for the last few decades in order to not only power their motion through investment opportunities, but maximise their profits in the process. Is the BRRRR method right for you? Let’s take a look at who is most likely to benefit from BRRRR:\
- Investors without massive financial backing – Not every real estate investor has the capital to fly through deals as a cash buyer; the BRRRR method was developed in order for small investors to generate income like an investment business. The key component that makes BRRRR a good option for smaller investors is the Rent component wherein, after rehabbing a property, you take some time generating direct income by acting as a landlord over the property. The rental process helps to build a wallet that can be utilized to qualify you for the Refinancing step of the process – where you restructure your short-term loan with a private lender into a long-term loan via traditional financing methods.
- Investors looking for a way into the market – Part of the appeal of the BRRRR method is its simplicity. There are few investment strategies available to a new investor that spell out the entirety of the strategy in just the title. While every step of the method requires its own unique finesse, you know exactly what it is that you’re getting into before the process begins.
- Local investors – A lot of real estate investors like to dream about controlling an empire of properties spanning near and far – the BRRRR method helps those who dream realistically and day by day. As any investment expert would recommend, starting local is the key to success. It’s nigh impossible to navigate an area’s market without experience in the market. Because of the Rent and Refinance components of the method, you have a chance to start growing your empire by making connections with other investors, financing institutions, and potential partners in your immediate area – and eventually beyond.
- Investors seeking consistency – Once you work one project on the BRRRR method, you’ll want to work them all with BRRRR. Thankfully, that’s a part of the process – Repeat! With the built in profit generation of BRRRR, fueling your next project is as simple as finishing your current one. With a potentially limitless timeframe thanks to the rental stage, keeping steady income flowing for years (and projects!) at a time is made easy. Because of the highly static nature of rental income and clear-cut repayment plans you’ll commit to throughout the process, you will always have a clear picture of your financial power as you navigate investment opportunities.
Do you think that the BRRRR method is right for you? We would love to help you get started with that crucial first step – Buy, and to leverage the second step – Rehab. EMCAP Lending specializes in helping real estate investors like you get their BRRRR projects started from the ground up. As a hard money lender who works directly with investors in markets which we know, our experts can both fund your projects and discuss the fastest ways to optimize your profit too.
To learn more about EMCAP Lending and how we can help you, contact us today.