the brrrr method


BRRRR INVESTMENT REAL ESTATE
FOR PASSIVE INCOME
* Up To 90% of Purchase
* 100% of Rehab Loan
* Up To 80% On Cash Out Refinance

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Cambridgehomeloan.com

The BRRR Investment Method

Your Path to Real Estate Success in 7 Steps

The BRRRR method is actual the acronym for the steps required to make money in a Rental Real Estate investment Business Model.

Investors that use this model focus on:
1Buying properties that need work.
2. Rehab the property,
3. Rent them out to cover their mortgage,
4. Refinance and use their profit 
5.  Repeat it all over again with another property to increase their passive cash flow. 

Lets go through the steps to change your future!

BUY

The key to your success with the BRRRR method is:

  1. Purchasing a home at a discounted price

  2. Understanding the sales comps in your area to determine what upgrades you will need to maximize profits

  3.  Know the demographics of the neighborhood. Schools Places of Prayer, Parks, Home features, etc.. 

REHAB

Determine the best method for renovating your property. Will you be doing the work yourself or hiring a contractor?

Identify the best ways to make your property livable and attractive to renters within an efficient timeline and a reasonable budget.

Understand what those buying in your neighborhood are looking for. The # of Bedrooms, bathrooms, etc. 

Know your exact cost as well as how long it will take to complete the work.

For a sample rehab form go to
https://www.cambridgehomeloan.com/brrrr”. You can lose money very fast if you don’t have a firm grasp on your rehab costs and timing. 

Focus on renovations that provide the highest investment returns.  This typically means updating the kitchen, bedroom and bathrooms.

For your first investment property try to keep the rehabs as light as possible or only cosmetic.  This would be pain, carpet, landscaping, etc.. items that do not rely on licensed contractors.

As your experience grows and your resource list of vendors grow, you can increase the scale of your rehab.

RENT

When your rehab is complete and the property is livable, rent it out as soon as possible.

Note: Your lender had an appraisal done that included a 1007, market rent report so you should know what comparable market rental rates are in the area.

Utilize this plus look at comparable properties in the area to set a realistic rental rate that will cover your mortgage, taxes, insurance and any HOA or other expenses.

Reach out to your local management companies to get an idea of what they will rent your property for.

Management companies sometimes have deals with hospitals and corporations that pay well above market rents.  In these situations, even with their fee you can make more than renting on your own.

The sooner you get your property rented out, the sooner you will be cash flowing.

REFINANCE

Once you have a renter in place, you want to review where your property stands.  Have you added enough value that there is not equity built up in your property or do you still need to wait.

If you purchased correctly you will now not only be able to refinance but cash out refinance.

The goal with the BRRRR method is to be able to cash out and refinance as soon as possible and purchase more property.

While some lenders might have a “seasoning” period. A length of time you need to wait prior to re-financing, CambridgeHomeLoan.com does not.

The sooner you cash out re-finance the, the sooner you can purchase your next asset and continue to grow your passive income.

To Refinance
 
https://www.cambridgehomeloan.com/dscr-loan-application

 

REPEAT

You have completed the tough part, your first investment property is now cash flowing, you are cash out re-financing and will have additional capital to purchase your next rental property. You are on your way to real estate wealth and passive income that will change your life forever.

BRRRR INVESTMENT REAL ESTATE FOR PASSIVE INCOME 

FINAL THOUGHTS

  • Investors using the BRRRR method shouldn’t buy just any property. It’s important to focus real estate that needs work but also be a sound investment — in other words, it needs to be a good deal.

  • Do your research, learn your market and make sure you know exactly how much work a property requires.

  • Compare what your finished property will look like to other recently sold properties. Were there recent price reductions in the market? Compare square footages, number of bedrooms and bathrooms and other amenities compared to your property to know where you have upside and that it is a good investment.

  • Create a timeline for when renovations will be completed and how soon you can start renting out the property. The faster you can turn your investment into cash flow, the more successful you will be.

  • Contact CambridgeHomeLoan.com and discuss your purchase loan options. Current programs include financing up to 90% of the purchase and 100% of the rehab. https://www.cambridgehomeloans.com/flipapplication.

  • To Re-Finance with a DSCR (Debt Service Coverage Ratio) No Income investment loan, go to https://www.cambridgehomeloan.com/dscr-rental-loan-application/


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EXPERT REAL ESTATE FINANCING INFORMATION

BRRRR INVESTMENT REAL ESTATE FOR PASSIVE INCOME