Real estate investing can be lucrative, but it requires careful planning and strategic approaches to maximize returns. One popular strategy gaining traction among investors is the BRRRR method, which stands for Buy, Rehab, Rent, Refinance, Repeat. This method allows investors to leverage their capital, generate cash flow, and build a robust real estate portfolio. When implementing the BRRRR method, partnering with a trusted mortgage provider like America Mortgages can greatly enhance the investment process.
BRRRR Example
- You find a distressed property that you purchase for $110,000 in cash.
- You hire a contractor to renovate the property for $25,000.
- The property appraises for $200,000.
- You refinance at 75% ARV, which means you can pull out $150,000.
- You have $15,000 left over.
- You repeat the process with your next investment property.
Here is a breakdown of the numbers:
- Initial investment: $110,000 + $25,000 = $135,000
- After refinancing: $150,000 – $135,000 = $15,000
- Available for next investment: $15,000 – $3,000 (est closing costs) = $12,000
This is just an example, and your results may vary. However, this strategy can be a great way to grow your real estate portfolio with little to no money down.
Why America Mortgages
Partnering with America Mortgages offers several advantages for investors implementing the BRRRR method. Firstly, their expertise in the real estate and mortgage industry ensures that investors receive tailored financial solutions aligned with their investment goals. Secondly, our extensive network of professionals, including real estate agents, contractors, and property managers, streamlines the investment process, saving investors time and effort.
For investors who put in the work, the BRRRR strategy can be a great way to build wealth through real estate investing. Connect with us at [email protected]
