How to quickly build a great real estate portfolio using buy, rehab, rent, refinance and repeat strategies

In this article, you’ll gain a complete understanding of how you can quickly build a great real estate portfolio using the buy, rehab, rent, refinance, and repeat method. This strategy was pioneered by Danill Kleyman of True Vision Analytics, who is one of the best if not the best real estate experts of all time that I have come across. I attended one of his online training courses and the above strategy just blew me away. .

Today, I am happy to share my own opinion and I also hope that you can put this method into practice as soon as possible.

If you are in the following market category and have experienced problems:

• Property,

• buying and selling,

• Buying and selling commercial properties

• Commercial building for the purpose of refinancing or selling

• House swapping for profit

• Landlord or homeowner

• new building

• rehabilitators

• And residential and commercial developments

Then this article will definitely benefit you the most and you can come back and thank me later.

From what I noticed, the strategy works with landlords, that is, if you own the property. Then sell and buy more. Buying and selling commercial property will also benefit if your overall goal is to grow your portfolio. The same goes for home lovers and homeowners who want to grow their real estate portfolio.

One great thing about this strategy is that it works in a flat market and it also works in a volatile market. The juice behind this is that you only use one fund and then recycle that fund over and over and over again until you hit your expected or portfolio intent limit or your goal. Now let’s see what the strategy really is and how to use it.

What is the buy, rehab, rent, refinance and repeat strategy?

The strategy according to Daniil is called BRRRR, which means:

• Buy Property ownership is the initial stage of every owner’s intended real estate property investor.
• rehabilitation means rehabbing the property to sell or rent for a profit.
• Rent. which means renting for capital investment returns.
• refinance. Which means recycling the financing used in the initial purchases to buy another property as a result of good returns.
• Repeat. This simply means repeating the process.

Benefits of the BRRRR strategy

• First of all, they are the most powerful money making strategies you will ever find in the real estate investing and construction industry.

• The strategy leverages the concept of “speed of money” to help you rack up the same cash deal after deal.

• It allows you to quickly build your portfolio using private money or a limited amount of cash.

• It works in a market that is not appreciating.

• The strategy allows you to build a portfolio with little or no own money tied up, but with at least a 20% equity position against debt that will protect you in a down market.

How does the BRRRR strategy work?

The first and most important rule here is to make sure you don’t get stuck on the first offer before moving on to the next one. Yeah! I myself was confused at first when he explained to me in detail, my jaw dropped, figuratively speaking.

Because these deals, when done correctly, are math-intensive, and according to Daniil, the best way to not jam your numbers is to make sure your numbers work before you buy the next deal.

In the interest of not wasting time, let me jump right into how this strategy works.

Step 1: Buy a property

This is the first and most important step in the strategy. This shows that you are ready to build your portfolio and that you are committed to making it work.

You can use various sources to obtain financing and this includes:

• Your own cash if you have savings

• Private lender. Just make sure they refinance your rehabs as well.

• Bank loan if you know how to prepare a convincing presentation.

• A line of credit from family members, friends, associates, private lenders, or even seller financing.

• To learn more about finding private money and how to structure private deals that will have lenders begging to invest with you, watch this video.

Step 2: Rehabilitation

Once you’ve secured financing and purchased your first home, you’ll need to rehab it. Always keep in mind to keep the property in tune with the market as you will be renting it out and don’t go overboard.

Aspire to create more of the highest property appreciation through larger rehabs. To achieve this, you have to do this:

• When you go in for your reappraisal, be sure to tell the bank that you just made major renovations and improvements to the property.

• Improvements such as replacing the broken furnace, electrical, HVAC, plumbing, etc. should be mentioned. These will help increase property appreciation quickly.

Make sure you get all your rehab work done now so you don’t have any maintenance calls for the next 5 years.

Step 3: Rent the property

This step requires that you begin showing the property to potential tenants before the renovation and improvement is complete. You will continue to step four faster if you already have a lease and a tenant to move in as soon as the renewal is complete.

Step 4: Refinance the property

This is a very important step to build your portfolio much faster. As long as the lease is up and the rehab is complete, go to your local community bank to discuss refinancing. This is because local community banks are often required by regulation to lend to local businesses. And they’ll lend you based on a percentage of the property’s new market value, not based on cost.

Step 5: Repeat

In this final step, you’ll repeat the entire process with the net result of Step 4. This means that you’ve paid off your short-term financing and now have a cash flow asset that makes money every month with zero cash tied up. on your own. With positive cash flow coming your way and 20% principal on paper, your balance sheet is looking good and you can go back to your local bank for another loan.

Conclusion

These five steps; buy, rehab, rent, refinance and repeat are the steps that make up the BRRRR strategy that you can apply starting today to change. This is how you can quickly build a great real estate portfolio. Again, according to Daniil, there are a couple of crucial points to keep in mind to maximize this strategy.

These are;

• You can find deals like that in almost any market.

• Investment Vs Valuation is what matters most.

• This strategy can work on a 50k deal, 100k deal, or even a 500k deal.

• Be sure to use short-term financing and a reliable refinance.

• You can also use private lenders to refinance, but make sure they have a steady flow of money or a steady job that provides income.

• Always make sure you can get a refinance before buying the deal. To avoid getting stuck.

• Avoid buying in an area where you will have a hard time renting it. Without a rental agreement, you will not be able to get refinancing from your local bank.

• The tradeoff to keep in mind is to avoid spending too much on the renovation. As this could slow down your “speed of money”.

• Always read the fine print on the loan, have a lawyer look at it just to make sure there isn’t a sudden foreclosure clause buried.

• Know your numbers first even before entering into any deal

This is the way to quickly build a great real estate portfolio using the buy, rehab, rent, refinance and repeat strategy. The most important point again is to know your numbers before entering any deal. And your ability to get short-term financing and financing to go. That you obtain financing on the net profit of your first deal. You can use the free Rehab Valuator software to calculate and master your numbers in just a few minutes. Please leave your comment or any questions below and I’ll get back to you right away.