BRRRR Real Estate Strategy

60 Replies to “BRRRR Real Estate Strategy

  1. would you consider not being able to pull the money out because the equity is at 20% so the bank won't allow a cash out but another bank will do a HELOC to be a BRRRR

  2. Hi Clayton, i understand the concept of the Brrrr method, but i have a question regarding the refinance aspect of pulling out cash. Suppose you have a house in which you rent for $1000 (after repair value), then you pay PITI along with property mgmt. $700 which leaves you $300 positive cash flow. Afterwards you refinance the house and pull out the equity for the purchase of another property. Then the $300 positive cash flow you once had is gone because the house payment is now higher since you pulled out cash. Correct me if i'm wrong, it is possible that you'll either be break even or negative on cash flow on the first house?

  3. Hey Clayton I love your channel. I have a quick question: A few months ago I saw you on a FOX new video speaking about using a HELOC to pay off your home early. Well after a little research I choose a company to teach me the process and in December replaced my traditional mortgage with a HELCO. My HELOC is working even better than expected, so I guess my question is how can I used this to purchase turnkey real estate and practice the BRRRR method. I am seeing incredible results with my HELOC and soon I would ready to purchase my first Turnkey property.

  4. Hi Clayton amazing videos love checking your channel out overtime a new video is posted. got a question. How do you know how much rent you can get from a property? do you look at the property and the neighbourhood and make a rough estimate? or do you ask the local real estate agents what the rental income is, on certain properties? looking forward to hearing your answer. Thank you in advance for your time

  5. Hey Clayton, I'm DeVaughn. i really enjoyed the video! I'm a hungry new investor ready to try my hand at rental properties and this video just confirmed to me that this is the business for me!!! Do you do mentorship to help build ones portfolio?

  6. i have an interesting question, am i able to buy a duplex with you guys and i live on one side and rent the other. Its like having you guys help me find a great property and a new home at the same time. in a few years i plan to save up to $50,000 before i look into buying my first home, and i thought the smartest way for me to move out of my parents house is to buy a duplex (turn key real estate)

  7. Hi Clayton, great video! Do you have a rule of thumb for the maximum about of debt you carry relative to the net worth of your portfolio and/or how fast you like to pay off HELOC loans?

  8. I thought you couldn't refinance as an LLC. Am I mistaken on that?
    And it's best to own rental property through an LLC. So…. how do you get around that dilemma?

  9. thank u so much mr.morris. geezus ur giving bigger pockets some competitiin for wisdom!! Pls make a video on ABE!! wow. if there was any source of motivation besides urself… it should be abe.. i want that goal! and im in englewood nj too!

  10. Hi Clayton,

    Awesome content you create Clayton. Question: Provided the BRRRR is followed, will the credit union ever check you? What I mean to ask is say you have 5 properties with the BRRR idea, will the (investor friendly) bank give the green light to 500 properties or is there another factor that comes into play that can check the process? i.e. DTI ratio etc

  11. Hello your friend refinanced and that money reinvirtio back into that property so re finance again and then buy two houses? Or just once refinanced? excellent videos..

  12. If you have a property refinanced already, will banks keep on refinancing properties for you, is their a limit? Thanks

  13. Clayton, you're the real deal. I'm really happy I just find your blog. I really appreciate all the work you've done and continuing to do so. I'm new to real estate investing with a crazy amount of questions, and all of the sudden you got the answers to most of them. God bless you

  14. Can you show us your 'expense sheet' on one of these properties you BRRR?
    I'm curious to know how much is usually spent on the "key areas" and how long it takes to have a tenant in.
    Also, what's your Cash-on-cash return for your average property in percentage?

  15. What a great video, I truly did learn a lot. But my only concern is, where should I go to find properties that are below market value?

  16. Only issue with this is you still have a loan on the first property. How do banks keep loaning you money to keep getting more and more properties? Debt would be too great versus income.

  17. Great episode, question. When you refinance to take the equity out. If the house is worth 200K(market value) and you bought it for 180K does the bank gives you 20K in this particular situation?

  18. Would it be easy to refinance a turn key property bought from you? As opposed to one that you found yourself under market value and rehabbed

  19. My overall question is: where do you initially get the money to start the brrrr cycle? Hard money lending or a certain type of loan ( without house hacking)?

  20. Morris Invest how r u supposed to get a loan from banks if houses appreciate at 40-50k. no banks or small locals will give you 70%-80% LTV for houses that are not worth or over 80-100k. Please help !!!

  21. Hi Clayton,

    Is your personal credit used when trying to do this strategy? I have a low credit score and wondering if that will disqualify me for a refinance. Thank you and your wife for your knowledge, it is greatly appreciated!

  22. This is a great strategy for real estate investors to use in order to obtain rental properties. I have an example of one that i did on my channel, thank you for sharing this very effective strategy.

  23. Well I'm back after a major sidetrack looking into multi family. Maybe later….Would it be better to have an appraisal done immediately after the rehab before the tenants move in so it's fresh and new? Second question when it is time to refinance with the bank will they use the income from the property to balance out my personal debt to income ratio or will they require my income and reserves to be high enough to cover a vacancy? Thanks Clayton and Natali! Btw thanks for your book on how to payoff your mortgage were doing it!!!

  24. Jared Kushner's grandfather invented this method some 50 years ago,when he came to US as an immigrant and holocaust survivor from Europe with only shirt on his back just to retire with close to 50 000 properties.

  25. Hey Clayton, I really enjoy your videos. It shows that you were a news anchor. You are captivating. I have one question for you. Is there a limit to how many times you can use the BRRRR strategy? Thanks

  26. Hi Clayton, new investor here. I will be using a HELOC for my next purchase. Is it possible to BRRR and still cash flow? I will have a mortgage once I refinance correct? Which will effect my bottom line. I'm concerned about my cash flow.

  27. Hello Clayton so I was wondering, lets say I get a loan from a local bank or lender for 100,000 for a brrrr investment. During the rehab phase when the property is not being rented yet, how will paying the lender work? if there is no cashflow for a few months until the property is tenant ready, how can a lender get paid monthly on lets say a 12 month loan? also 2nd question, Once the 12 month loan is over, how will a refinance be likely to happen? is it best to go with a bank, or are there other options to get approved easier?

  28. Stellar method. We bought 4 last year using this method. Didn't know it was a system that others used but knew that it worked and we ran with it.

  29. Regarding Refi-Cash Out…does the loan after Refi count towards the "10 Mortgage limit" for conventional Freddie and Fanny mortgages or does this look different to the lender?

  30. Regarding Refi-Cash Out…does the loan after Refi count towards the "10 Mortgage limit" for conventional Freddie and Fanny mortgages or does this look different to the lender?

  31. Love what you're both doing . Love when Natalie picks on you ๐Ÿ™‚ great team!! thanks for making the dream possible , can't wait to do our first deal through Morris Invest!

  32. Hi Clayton, Great video! Question.. after the first Refi , does the debt to income ratio will cause problems for the second property?

  33. Once again, absolutely phenomenal explanation on things. Great to see someone so close to me in NJ succeeding in real estate, where I want to be.

  34. I wish I can implement this strategy! You mentioned in finding a below market property is not by calling a local realtor, so who do I call? Also, the challenge is to find a good contractor for the rehab. We just purchased our first rental and we did shop around for lenders both locally and national, the big banks were able to give us a better rate. What is the time frame before you apply for a refi? Again, thanks for all the great content!

  35. Hi, I was wondering what the point of doing the cash-out refinance is. I get you use it to pay off the previous existing mortgage payments and to cover the money you spent on rehabing the property, but doesn't that mean that you have to pay more interest because the cash-out refinance is going to be a larger value than the previous mortgage?

  36. Sir morris what is the best strategy in your opinion and experience ? Should i do this method and buy a house under market value and pull it out and re invest then i basically have 2 properties paying off 1 mortgage ? So i can pay it off within 5-7 years from the cashflow and then rinse and repeat ? But the second time it will be quicker because then you have 3 properties paying off 1 mortgage then 4 then 5 ect. Is this a good strategy ??? I really want to start investing but i want to do it right

  37. If your buying a property in your company name how will you refinance it? Banks Iโ€™ve spoken to donโ€™t allow refi or Heloc when its owned by a Corp.

  38. I'm still not understanding why the bank will refinance your home and will give you some money…

  39. Still doesn't make sense. Say you buy a property at 40k, then fix it up and now it's worth 100k. So you refinance and pay the first loan off and left with 60k. So in the end you are refinancing the same property for a higher mortgage to pay every month. Why would you want to do that? I understand to use the extra money to buy another property but your still gonna pay a higher mortgage on the first property every month.

  40. My first and only home is almost paid off. Is it possible to buy my next property (for a rental investment) with just a standard loan without putting up my current home as collateral?

  41. Top shelf content as always! With regard to the BRRRR method, at what point do you recommend registering your LLC?

  42. Is your income use with this strategy? What I mean is does the HML use your income and when you go to refinance the property, do they use your income?

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