E001 What is the BRRRR Method of Real Estate Investing? - Andrew Hines Audio Real Estate Podcast

Описание: E001 What is the BRRRR Method of Real Estate Investing? - Andrew Hines Audio Real Estate Podcast

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In this video I discuss the BRRR method to buying real estate and keeping it for the long run. BRRRR means Buy, Renovate, Rent, Refinance, Repeat and is something that i've been doing for quite a few years despite not being familiar with that terminology.

Watching this episode will give you a basic understanding of why you should be using the BRRRR method and what it is. I dig into each element within reason while acknowledging we will certainly be digging deeper in future episodes to avoid this being a 10 hour episode!

I'm a firm believer that buy and hold real estate investments are the way to go for the average person. Most people with a job and reasonable credit can qualify for a mortgage and those who can't can partner with someone who can. There really is no excuse so let's just dig into it and take action!

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Music Credits go to the following:

Track: High
Artist: JPB
Licensed By
AEI (on behalf of NCS); Peermusic, Featherstone Music (publishing), ASCAP, and 2 Music Rights Societies


Some stuff for google and youtube
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Real estate investing is something that almost anyone can do. With all the creative financing, creative buying creative selling strategies out there there really is no excuse. I do understand that there is a certain amount of fear that people have about being a landlord but this is something that can be worked through (and one step at a time).

Initially I used a property manager but I eventually switched to self management so that I could have a better handle on what was really happening with my properties. I noticed that when I took over my own management, I no longer had trouble with tenants paying on time etc. The key with this is just setting the expectations with your tenants.

I gave them a very detailed email of a bunch of what if's. eg. what if the toilet backs up? answer: "Call Plumber ABC at 555-5555 and tell them the address and whats going on. this plumber has my credit card on file and will come out 24 hours a day." I have a different procedure for non-emergency items and everything gets addressed in due course.

The key to being a landlord and enjoying life is being able to implement processes. Don't rely on doing everything yourself. Set out a framework for how things should be done and be willing to pay good help to assist you in the process.

So back to BRRR. Finding a good buy is a topic for another day and ultimately so is renovating. These subjects are just too intricate to fully cover on todays podcast but I promise I will cover them soon! Once you're done renovating a property, it's time to get onto refinancing. In order to refinance your property you're going to need to have a good contact at your bank. As discussed in my podcast, I recommend finding out who in your area has recently purchased a similar property and asking them who they used for financing. The key is working with someone who has DONE deals before and knows how to get deals done. There are many mortgage professionals out there that just lack the experience in this specific area so it definitely helps to work with someone who has actually completed deals in your areas.

For me this was especially important because I deal in student rentals and banks really seem to despise them at a surface level. In all fairness I can understand their position. There are many run-down student rentals out there and when they look this way, students tend to treat them badly.

When I wanted to start financing student rentals, I called every person I knew who was in the area doing student rentals (some were cold calls) and I just asked them who helped. Buyers of similar properties would say something like "the realtor that helped me had a guy named..." and that was really all I needed. I recommend you do the same.

Once you've got a good mortgage guy, the rest of the process, including appraisals, seems to take care of itself. I go in depth about appraisers in the video so feel free to watch! Happy listening and watching.