It’s a real estate method that’s helped people make extra money, and in some cases, help them retire early. We are stretching your dollar with a look at a five-step investing strategy that can help you net some serious equity.
It’s a method that’s helped many people go from minimum wage to millions.
“I went from buying two houses per year to buying two houses per month. And I became a Millionaire before I was 30-years-old,” David Greene, Author of Buy, Rehab, Rent, Refinance, Repeat.
It’s called BRRRR, and it stands for Buy, Rehab, Rent, Refinance, Repeat. Real Estate Investor David Greene practically wrote the book on this. “This is the way savvy investors have been buying houses for decades.”
The idea is to eventually acquire several rental properties that allow you to live off the monthly income. While it’s worked for many, others say beware.
“If the properties in the area that you’re investing in change in value, then you could potentially lose money or not recover your entire amount of money,” Julio Arana, Real Estate Agent.
The first step– buy. Look for a great deal on a rental that you can add value to.
Next– rehab. Fix up the home and add value to your property.
“Add a bedroom and bathroom to that space. It’s often times only a couple of thousand dollars, but I’m increasing the property value by 20 to 30-thousand,” says Greene.
“That’s where a lot of people get into trouble. They go over-budget,” Arana adds.
Thirdly– rent. Find great tenants and start making money.
Step four– refinance. This allows you to pull out your profits and use them to buy your next property.
Finally– repeat! Experts say be cautious and patient.
“You’re not gonna get rich overnight,” Arana adds.