The BRRRR method has been revolutionizing the way most people approach real estate investing. While the BRRRR method is similar to “flipping” houses in many ways, it also has its own unique elements that separate the method from the pack. Those who’ve been looking for a fun, active, and surefire way to make money in the real estate market simply must educate themselves about the BRRRR method in 2023. If you fail to do so, you’ll have a hard time staying afloat in the continuity more aggressive and difficult atmosphere of modern real estate investing.
Understanding the BRRRR Method
Most people reading this article will have one massive question on their mind: what is the BRRRR method? If you’ve been looking to up your real estate game, BRRRR is a must-know method that needs to be on your radar. Simply put, BRRRR is a guide to the steps you need to take if you want to make money in the real estate sphere (a method that we will break down in extreme detail later on). The amount of discounts, cash benefits, investment buffs, and other core advantages that are associated with the BRRRR method has made it a key to any successful real estate tycoon’s game plan in 2023, after all. For those who’ve been ready to boost their bank account, and ensure their family’s future, using the BRRRR method can be a true godsend, and change your life for the better.
Breaking Down the BRRRR in BRRRR
Now that you’re ready to embrace the BRRRR method, it’s crucial that you truly understand each step in the BRRRR process. Each of the steps involved in the BRRRR method relies on the other steps, so never try to cheat your way out of any of these crucial five steps in the BRRRR formula. There are five core aspects of this method that you need to know about before getting started:
B is for Buy
If you’re using the BRRRR method, you have to be especially careful about the investment properties that you buy. You’ll want to aim for real estate properties that have tons of potential, but that need clear workshopping as well. You can even use less common forms of currency to complete this step. If you can find a great deal on a property thanks to its maintenance needs, you’ll have the perfect building block to craft your winning BRRRR strategy in 2023.
R is for Rehab
Now that you’ve bought a quality property with tons of built-in potential, you’ll need to move onto the first ‘R’ in the BRRRR method: rehab. The rehab process will involve you doing the needed maintenance that will make the property shine (or hiring a group of workers to do this shape-up job for you). Focus on the home renovations that will provide the highest ROI, and you’ll find yourself making more money in the real estate game than ever before in no time at all.
R is for Rent
As soon as the property you’ve invested in is livable, you need to put it on the marketplace and begin generating rental income. If you’ve got enough monthly income from the property to cover both your mortgage and any further repairs that are needed, you’ll know that you’re implementing the BRRRR method properly. Passive income is king in the real estate game, after all, so knowing when to begin renting your investment properties will always be a key skill of successful real estate investors (in 2023 and beyond).
R is for Refinance
As you’re using passive rental income to keep your investment solid, you’ll want to continuously do little projects and upkeep tasks to ensure you’re maximizing your investment property’s equity. The more equity you pack into the property, the more you’ll gain from the refinancing process later on. When using the BRRRR method, you’ll need to rely on gaining money from refinancing that will not only pay off your initial investments but will make you a ton of income on top of the money you’re already brought in. Once you master this step of the BRRRR method, you’ll be ready to massively expand the amount of money you can make in the real estate sphere.
R is for Repeat
To truly master the BRRRR method, you need to be prepared to move onto a new property after you’ve refinanced your current property. As you continue to use this lucrative method to purchase properties in need of repairs and turn that raw potential into piles of cash, you can quickly become a giant in your local real estate community. People have been using the BRRRR method more than ever in 2023, so it’s time that you took the plunge and maximize your income now.