BRRRR. It is cold in here - but I didn’t actually come here to talk about the weather at all.
If you want to get serious about your growth in real estate this year then you may want to consider going just a bit deeper than owning a single-income unit, and start leveraging your assets to multiply your growth. Does this sound familiar? Enter: The BRRR Strategy. Let’s break it down:
Step 1: Buy
Acquire your first property (or start with the one you already have). Ideally, it is undervalued and has some room for cost-effective improvement (think the addition of a suite, fresh fixtures or flooring).
Step 2: Renovate
You’ll have to invest some out-of-pocket capital the first time, but once you start repeating the formula the cash flow will be there to renovate and add value to the property.
Step 3: Rent
When you set your rent, be sure that it aligns both with the local market as well as the renovations you’ve completed, but don’t price yourself out. You’ll want to aim for cash-flow positive at the end of all your costs of ownership.
Step 4: Refinance
This is probably the most powerful step in the process in terms of growth. Refinance your property at its new, post-renovation value to pull equity out in the form of cash - the cash that you will use to start your next project when you…
Head back to step 1 and invest your newly liquid cash into a new property, while still collecting rental income on your first!
This strategy is powerful for many reasons, but one of the main ones is that you are able to generate income while holding properties long-term. By refinancing and holding, you are able to capture the benefits of longer-term appreciation while having multiple assets to leverage. If you are hoping to invest in real estate this year then this strategy could be perfect for you.
Let’s connect and discuss your options! I want to help make this your year!!