BRRRR METHOD FOR INVESTMENT REAL ESTATE

THE BRRRR METHOD

BRRRR INVESTMENT REAL ESTATE FOR PASSIVE INCOME

UP TO 90% OF PURCHASE 100% OF REHAB LOAN

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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 Real Estate Rental Investment Business model.

 

Investors that use this method focus on

 

1.Buying properties that need work.
2.Rehab the property,
3.Rent them out to cover their mortgage,
4.Refinance and use their profit to 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 discount price.

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

 

 

The bottom line, the better you buy, the bigger 

your upside and the more money you will make. 


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 reasonable budget. Understand what those buying in your neighborhood are looking for. # of bedrooms, bathroom, etc..
•Know your exact cost as well as how long it will take to complete the work. For a sample rehab form go to www.CambridgeHomeLoan.com/brrrrmethod. 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 return. This typically means updating the kitchen, bedroom and bathrooms.
•
•For your first investment property try to keep rehabs as light as possible or only cosmetic. These would be paint, carpet, 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 rental rates are in the community are. Utilizing this plus looking at the comparable properties set a monthly rent that will cover your mortgage, taxes, insurance and any HOA or other expenses.

•Reach out to local management companies to get an idea of what they will rent your property for. They sometimes have 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 it 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 now equity in your property or do you need to wait while your equity builds.

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. 

 

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.

 

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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