What is a “BRRRR” Strategy

And how can it build your real estate portfolio with no money.

“BRRRR” Stands for:

• Buy
• Renovate
• Rent
• Refinance
• Repeat

Buy

The first step of the BRRRR Strategy is to find a property that you can rehab and the after repair value, or “ARV” target is 20% more than the purchase price + the renovation costs. Financing these deals with traditional banks can be difficult. That is where we come in.

At Kenwood mortgage we make obtaining hard money loans in Arizona fast, simple, and streamlined to not only finance the purchase but the renovation of the property as well. The best part is that as a private money lender we can fund quickly and your offer can be written as a cash offer, which often times wins you the deal over another buyer.

Renovate

There are 2 things to focus one when you are rehabbing a home within the BRRRR strategy.

• Make sure your financing is in order. We fun renovations of all kinds. Make sure that you work with us up front to get the cash you need for your renovation.
• Shoot to keep your purchase + renovation cost total to 80% of the after repair value. That way you have equity available when you refinance into a long term mortgage loan.

Rent

When you’re done with the renovations, get the property rented, preferably into a 12 month or longer lease agreement.

Refinance

After you have a lease agreement in place you can apply for long term financing on the property so that you can get any cash you may have into the deal out and turn your short term loan with Kenwood Mortgage into a long term mortgage loan.

Repeat

Once you’ve done this cycle, repeat it over and over. Using this you can quickly build your real estate portfolio and wealth.