As someone who's worked in audio for years, I figured I'd just throw this out there in case you hadn't thought of this before: The majority of the condenser mics like the ones you guys are using are 'side address', meaning you speak into the side of the mic, not the top of the mic like a typical dynamic mic. To confirm, just look into the grill, you should be speaking perpendicular to the capsule (looks like a gold disc). There are some exceptions to this trend. Great Podcast.
Wow, David Greene is awesome. He really knows his stuff and confidently responded to every question Brandon threw at him! Impressive. Needless to say I'm going to be reading his books.
Thanks Brandon: BRRRR is the game changer I have done 5 BRRRR's so far working on BRRRRING 17unit building now. this wouldn't be possible without bigger pockets🙏🙏
Haha and thank you Aditya for teaching BRRRR to me, I can’t thank you how much motivation I get from you and your video. I want to appreciate you here too. Thank you 😊
Just bought the Kindle book! Have about 50K, can't wait to get started on a small scale. I'm Dave Ramsey brainwashed so feeling a little nervous LOL, but at my age I don't have years to get it done.
Dave Ramsey is smart, if you have 200 years to grow your wealth or make mad income. For the normal person buying houses in full will take a decade a pop.
What he is explaining around the 1-hour mark is Monopoly; "buy four little green houses and then trade them in on one big red hotel". Which is exactly how Rich Dad taught Robert Kiyosaki.
Thanks Brandon and David for once again providing awesome content! You guys are doing a great job of carrying the Josh Dorkin Bigger Pockets baton and are a great mix of knowledge, humor and charisma. Awesome video full of gold nuggets. 58:18 (quick summary of the key benefits for each step of the BRRRR process) and 58:40 (David summarizing his systems flow) are two of my favorite parts of the video for their simple, yet effective messages. Keep up the great work!
BiggerPockets is an amazing educational, down to earth channel. I was tempted to write 1 millions comments every time the gentlemen touched on a subject, instead I decided to take notes😉. My partner and I have been doing rentals going to 7 yrs and seriously looking into flipping ( well we are upgrading to BRRRR investing). Thank you guys!!🎆🎉
Leipzig Escobar have you tried this method yet? I have one rental and purchased it at a GREAT price. I just fixed it up nice and now went up on my rent. I was thinking of flipping it but I love the residual income this rent property gives me.
@@alfonsoh3 hey bro I'm still patiently waiting for my 2nd rental deal. I'm deciding weather to buy a really cheap house cash and then heloc it or, I might put 5% down on a conventional loan if I can find the right multifamily unit cash flowing
This is a fantastic idea. And I’ve use the brrr to buy my first for rental properties and I didn’t even know I was doing a brrr. The only thing is that when you are getting a home equity line of credit you are using your own money. Buying a house is like putting your money in the savings account. The home equity line of credit is pretty much putting a lien on that house to have access to that money. You still have to pay it back. With interest. No I definitely agree as long as you’re buying a property and getting the deal that you need on it and you’re renovating it within your budget. As long as the percent you’re getting back yearly has much greater than the percent of the loan then you’re making out and a pays for itself.! Looking forward to watching more of your videos.
Thanks Brandon and David for another exciting podcast. David I ordered your new book on BRRRR and was waiting patiently until today to receive it into my Kindle. I am already part way into Chapter 1 and looking forward to reading it and then implementing the strategy with my next investment. Cheers!
I want to start a real estate portfolio and recently came across bigger pockets whilst doing my research. I am compelled to compliment you guys on how well you explain each and every thing and identify pitfalls so others don't fall in them. Ended up saving so many more of your videos in my offline playlist. Thank you. Wish me luck for the future.
This video changed my life. Thank you guys. Also - David, if you ever want a free snowboarding lesson and in you're in Colorado, hit me up. You'll master it by the end of the day. Guaranteed.
David's advice to lower capital expenditure, perform the rehab first before getting the appraisal. This pumps up the property's value and you can get more money back. A good advice for those looking to maximize profits. At 27:08.
Brandon I just want to point out The advice you gave on putting laminate floor instad of carpet.On average laminate flooring cost about $1,000 per standard 10x15 roomjust for the flooring alone ,no installation cost included.Your average carpeted room at the same sizewith installation is around 5 to 600 if you use Berber carpeting that isn't mono colored.The laminate flooring Unless covered with a rug is susceptible to cracking breaking splintering shreddingand shedding because of the nature of the click lock installation and the thinness of the pieces where they overlay . dealing with this right now in a 10 bedroom house that's over 120 years old with extremely uneven sub-flooring and joist issues. A great suggestion for houses built within the last 20 years that have no sagging or structural issues. The new laminate and flooring Install was done last year with normal office/gamer chair wear and tear . Rolling back and forth causes significant cracking and splintering of those aforementioned areas. with deposits typically equaling first month's rent and that being a couple hundred dollars under the typical $1,000 replacement of the flooring itself It is actually a loss to put in laminate flooring that's just going to be damaged within a year or two when carpet lasts at least 5 years with proper cleaning and care assuming you rent to a clean person.
I have been listening for weeks about the different ways to buy,fixup,rent,or sale . Profits . Passive income the whole bit. For me it gets down to this. I am a senior citizen retired on a fixed income. Maybe we save 100 dollars a month if nothing breaks or falls apart. A real mess! But it is MY mess. And it is up to ME if to change that if I really want to go forward. I was so depressed over this but where there is a will there is a way. Face it folks to do any damn thing in this country you got to first get off your butt. I started searching and low and behold I found a dish washing job at Applebees . Pay is 18,000 a year. This will be additional income that I can save every bit of it. Not a hard job to do unless you feel washing dishes is beneath you. I started brain storming myself and guess what. I got stuff around the farm here that is only collecting dust. An old tractor with front loader. And several pieces of equipment collecting rust etc. etc. It will take a while but in the mean time I can still keep educating myself.. This is a wonderful country folks.
David and Brandon, you guys are so awesome. Each of you have the heart of a teacher...people have really good B.S. detectors, and your authenticity of your enthusiasm shines through. There is a really cool theme with these Acronyms. BRRRR & FEEL both align well with the "OODA Loop" - Observe, Orient, Decide, Act. I believe the OODA origin is from the U.S. Air Force but generally, the idea is to focus on the process. You "Fail Forward Fast" by working in this tight loop of activity. I love it!
I haven't hand written this many notes since I have been out of school 😂 I've paused and played back idk how many times and I still have 25 min. to go! You guys have much respect from me and thank you.
One thing I’m not seeing mentioned in any BRRRR content is the fact that there are fees associated with a refinance. These fees can be wrapped into the loan with most banks, however the balance still cannot exceed 70/75/80 percent of the ARV (whatever the bank offers). I think this is important to note because that’s either 5-8% in fees that either need to be paid out of pocket, or your “all in” figure has to compensate for these fees.
Do you have to take the full LTV amount? Let's say I only need to take out a LTV of 45% to repay lenders, because I'd rather have a smaller monthly mortgage for greater cash flow. Is that possible, or is it always the full LTV at cashout refi?
@@onealr any LTV is doable. But keep in mind the lower you go with the loan amount, (if under 100,000 or so. Your rate will go up. Lenders like larger loans, especially on a 30yr. Also if you did take out the full ltv, you could use the cash for a different property and maybe get two properties to brrrr. Or a larger more profitable property. Just some food for thought
This is one of my favorite BP podcasts thus far and I’ve probably seen 75% of them. David is brilliant! Thanks for all the great info. I’m BRRRR’ing my first duplex right now myself.
I feel like you guys should already own the planet... like how is this not already a thing? I want to get my first rental BRRRR, so more research is needed, but this is a good start.
I didn’t know you were a LEO. I’m an officer in Jupiter, Florida and retiring in 10 months. I love listening to your podcast and RUclips videos. I too want to build a successful real estate portfolio.
Im brrrr ing two deals right now. LOVE IT! This is my very first.... and guess second deal. Purchase and Rehab was 100% financed working on a refi now and expecting a few $k in my pocket. Oh yeah, and cash flows!!!
So Justin...I'm struggling to get started but gone DO THIS!...So let me ask did you find the properties yourself or did you use a realtor? I called a realtor that I knew, in fact the second one and they both just don't seem interested in those of us wanting to buy properties for fix and flip or buy and hold. I've found a property that I wanted to go check out but the first thing they both ask is do you have a pre-qual letter....help me out what am I missing...open for any tips...thank you
@@goodlife3437 In my opinion its very difficult to find great deals with realtors. And when you do the price is drivin up by the competition. I found my two rental properties by driving around. (Driving for dollars) I was looking for distressed homes in a good neighborhood. These homes never hit the market. I would also try and contact owners of rental properties sometimes you get lucky and find someone that's out of state and ready to call it quits. Or you find out that they passed away and the family will be inheriting a property they don't want. Its kinda how I pick these two up.
@@justinb1606 Thanks for your quick response Justin. I actually found a property that's listed gone try to offer 20% less of what they're asking since it's definitely gone need some work and see how that pans out. I noticed 2 properties on the next street over from it were rehabbed and currently asking 118K vs this property listed at 79K that I'm considering. Another question, where/how were you able to find your HM Lenders to do 100%? As you can tell I'm like new to this :-) I'm hoping to build a portfolio of 25 homes with a net CF of $200 per month over the next 3 yrs...not sure if that's too lofty or what. Thanks man for your feedback and response.
You guys have any videos were you guys educate on the financial side of brrrr ? Like how to work with the banks and what do they look at how much money you need to have or if they have any guidelines to qualify to refinance a brrrr project. Thank you
Just to tag on too this I'm going for my GC license aswell this year. But having my real estate license helps negotiate a lower price by throwing up your commission as a price drop point or using it like a closing cost coverage like I did in my last property saved me $3,500 representing my self. As well as the network of real estate knowledge and MLS access pros and cons to being active tho costs me average of 2,500 to maintain an active license in NC.
Hey Brandon love your FEEL approach. With respect I added two more words based on you’re explanation of the concept. F.E.E.L.E.R Focus Educate Execute Learn Evaluate Repeat
I think these podcasts are fantastic. I would love for Bigger Pockets to create a segment that goes really deep into how to structure deals. As deep as you can possibly go, into very fine specifics for people who have deep grasps on all of these concepts!
Wait... If you refi 90k you then have to pay off the 60k existing mortgage, then you can get back your 30k, you don't have 90k to go out and do it again and again. You basically just have the same 30k except now you have equity that just sits there until you sell.
If you are looking for one resource to learn how to do Real Estate investing this would be it. There’s also a book that goes along with it that has valuable bonuses. These guys are excellent teachers and fun to listen to.
Thanks for the great episode! I’ve been listening to the audio book on my daily dog walks and drives. Great info. I will absolutely get into my first deals this year. 3+ in 2022!!
This podcast is so awesome and insightful. I’m watching it back again. I hit the 👍 and I’m planning on getting the book. Buying my first Brrrr this year. Tha is for all you guys do
I agree this podcast was very awesome and insightful. I also look forward to reading the book. All of the other books that I have by Bigger Pockets have all been great.
I’ve had 100% respect for you both. I’m a long time listener and this is my 3-4th time watching this. You’ve inspired me to BRRRR a house. I’m in the middle of rehab right now. All of the advice on here is amazing. However, I have to say, the “rather eat randy” recommendation was horrible. 😂 Would not recomend.
I just bought this book. We have 2 properties right now. The second property was a cash buy and we want to use the Brrrr method to upscale so we can gain financial freedom faster.
David and Brandon... excellent Video! I often frown when I see 1 hour plus but this is tome very well spent! It was like a good book. I’m at min 1:04, ran a couple errands, doing busy work at home (😒 Laundry) and I’m totally bummed because I realized I’m almost done with this one. Glad I chose to listen to the whole interview. I replayed several parts as I’m slightly distracted. Good Stuff gentleman! Ordering your book tonight.
or, where they came from...Lifestyles Unlimited. I'll take the older guys who are not getting off to just hearing tore up from the floor up. Youth still make to many mistakes. And this process is not new. It has been around since the advent of real estate.
Quick summary: • The velosity of money: the quicker I can send out my money to come back with a bump. The higher my net equity is. 2x a month, 1x a month, 1x every 3month's. Etc.
David is just insanely smart and inspiring! Thanks for all this great information. Can’t wait to be at the point of having too many single family homes and turning them into one big one!
I LISTENED TO YOU GUYS AND 80'S DISCO CRYSTAL BALL APPEARED , LIGHTS AND LET'S DANCE .... DAMN INFORMATIVE. THIS VIDEO IS A SIGNIFICANT EDUCATION THANK YOU.
Kmsl. I am watching this on my smart TV and pulled out my phone to make sure to comment regarding that. Lol. Like that is one of the most popular phrases from the 90s. I'm surprised Brandon didn't know that.
I lived in Boca Raton Florida for many years .I remember it when it was a nice little fishing village. Then it started to really BOOM like overnight. So what was pushing all this? After watching this for a few years it became plain that it was huge corporations like Arvida Corp. Those were the big dogs that quietly came in with a plan that really took many years to unfold. Short story was the snow birds was the main market they was after. People from NY and others came down and many just planned to buy a nice home and retire in the sun. Houses and lane appreciation was going thru the roof. Big deals are made on golf courses. Rubbing elbows with the elites.. Story goes like this, Hey Joe I see you are looking to buy a home in this fine booming town. You buy a home here for 200,000 . One that we know you can afford and live comfortably. In a couple years you home will double in value . Then they talk you into a leverage deal for a 450,000 home because hey others here are doing it everywhere you look. And in a couple years you can sell that Home over there east of A1A and make a cool million dollars. So thousands of retired senior citizens ended up in houses they could not afford .When the big BOOM ended .They had to sell after 2 years. Some even had a balloon on there home. Those that survived ended up in a much smaller cheaper home than what they originally started to buy. Moral of this story is do not try to run with the BIG dogs when you are a small dog. There is allways a game going on somewhere . My Dad always told me to not play the game till you KNOW what the game really is.. So many thanks for this podcast that is educating people . Knowledge is powerful.
From what I understand, in South Carolina you can only have a mortgage on 4 properties at one time. Which would limit the brrrr strategy to 4 times until one gets paid off. Still an awesome strategy. I plan on doing this. I finally just saved up 100k and I’m 32 lol. It’s just hard to find a decent house around here for under 100k and still have money to fix it up
Could sell to cash out equity instead of refinance with the bank. Pay back everyone who you borrowed from and the rest is profit. No bank required. Sure its not brrrr but if you can only have 4 mortgages at least you can make some cash.
58:22 - 58:40 BRRRR method Buying is where you're gonna make your money. Rehab is where you're gonna keep your money. Renting is how you're gonna protect your money. Refinancing is how your gonna recapture your money. Repeating is how you're going to supercharge your money.
A lot of gold nuggets in this episode! I think when multi-family become more of the portfolio, single family deals may become less of of a focus. However, the speed to closings might be faster on single family. After acquiring so many SFRs, consolidation to multi makes sense. following the principles or Monopoly, four green houses for one Apartment.
I found this after buying the audiobook! So far I definitely could have gone without all that 20+ minutes of introduction. Just some constructive criticism for the show. So much non-value until the teaching of the method came up. But keep up the great work guys! Bigger and better!
I'm just getting started, can you guys point me in the right direction as to who I can ask very basic real estate questions? Such as a home rental vs a plot of land with vacation cabins..does the land value typically increase as with a home? And do bank loans on assets work with land alone... basic dummy questions
Hey wildland firefighter here that heard about this podcast from a coworker. You guys inspired and educated me enough to buy my first duplex and house hack it. Just curious what video games you play haha.
I'm doing a deeper research on this strategy. I really like it, thanks very much. I will buy your book, study and pursue it, i hope it will work with our very challenging market here in Vancouver, Canada.
One thing that must be considered on either a the BRRR or a flip are excessive costs. If it’s a rental you may be able to less expensive materials, while on a flip in a nicer neighborhood, you what to spend s little more. I’ve been shocked by what plumbers charge for replacing shower kits. One of the less expensive charges $520 for labor. It will be a little less for the sink, but we’ll end of spending no less than $2000 and this is not a full bathroom rehab. For a 2 bath house you can expect to pay $2,500 per for a total of $5,000. Good idea to just be aware of your costs. Between kitchen and three bathrooms we’ll spend over $12,000 on a $200k house in Atlanta. Total rehab will be $30,000 at least but probably closer to $40,000. With these costs, you’d really need to buy well below market prices. David is probably keeping his costs low and probably builder grade. Yet still, I wonder how expensive his plumber is. 😂
Those numbers are why I replaced my own water heaters and ran my own electrical when adding lighting. They charge like it's difficult. It's not. Same goes for working on my car. They'll charge $500 for 30 minutes worth of work and $70 in parts.
I was today years old when I became a lifelong fan of David Greene... David is dropping MAJOR gems in the podcast
As someone who's worked in audio for years, I figured I'd just throw this out there in case you hadn't thought of this before:
The majority of the condenser mics like the ones you guys are using are 'side address', meaning you speak into the side of the mic, not the top of the mic like a typical dynamic mic. To confirm, just look into the grill, you should be speaking perpendicular to the capsule (looks like a gold disc). There are some exceptions to this trend.
Great Podcast.
Thank you! First thing i noticed.
Ive heard built in camera mics more decent than this so its kinda annoying but good content overall
This audio sounds like it's coming through AM radio. They look like decent mics, where did they pull the audio from?
Thanks for that man, I know nothing of mics like this and I've been looking at getting something like one of these
Wow, David Greene is awesome. He really knows his stuff and confidently responded to every question Brandon threw at him! Impressive. Needless to say I'm going to be reading his books.
Thanks Brandon: BRRRR is the game changer I have done 5 BRRRR's so far working on BRRRRING 17unit building now. this wouldn't be possible without bigger pockets🙏🙏
Hello aditya…karan would like to get more insights on this if you have some time?
Haha and thank you Aditya for teaching BRRRR to me, I can’t thank you how much motivation I get from you and your video. I want to appreciate you here too. Thank you 😊
When you Refinance, what do you use ? HELOC ?
David Greene = American Dream 👍
OMG Marco,I'm a fan of your channel too.. I must be on the right road 😁🤗
@@lourdesmartinez3869 ppppppll
Just bought the Kindle book! Have about 50K, can't wait to get started on a small scale. I'm Dave Ramsey brainwashed so feeling a little nervous LOL, but at my age I don't have years to get it done.
well hells bells, I bought from Amazon rt before you said you sell it
I checked the links 1st, there was nothing on David's book, so I naturally went to Amazon :(
Hi.Did you buy anuthing yet?
Dave Ramsey is smart, if you have 200 years to grow your wealth or make mad income. For the normal person buying houses in full will take a decade a pop.
MotorcityGal
dron
What he is explaining around the 1-hour mark is Monopoly; "buy four little green houses and then trade them in on one big red hotel". Which is exactly how Rich Dad taught Robert Kiyosaki.
And by trading ... is to get a blanket loan .
Exchange 1031!
Thanks Brandon and David for once again providing awesome content! You guys are doing a great job of carrying the Josh Dorkin Bigger Pockets baton and are a great mix of knowledge, humor and charisma. Awesome video full of gold nuggets. 58:18 (quick summary of the key benefits for each step of the BRRRR process) and 58:40 (David summarizing his systems flow) are two of my favorite parts of the video for their simple, yet effective messages.
Keep up the great work!
BiggerPockets is an amazing educational, down to earth channel. I was tempted to write 1 millions comments every time the gentlemen touched on a subject, instead I decided to take notes😉. My partner and I have been doing rentals going to 7 yrs and seriously looking into flipping ( well we are upgrading to BRRRR investing).
Thank you guys!!🎆🎉
How did you do and or finance your 1st 7 deals?.. we just did our 1st rental looking to do a 2nd rental
Leipzig Escobar have you tried this method yet? I have one rental and purchased it at a GREAT price. I just fixed it up nice and now went up on my rent. I was thinking of flipping it but I love the residual income this rent property gives me.
B Muss how’s it going, did you get your 2nd rental yet?
@@alfonsoh3 hey bro I'm still patiently waiting for my 2nd rental deal. I'm deciding weather to buy a really cheap house cash and then heloc it or, I might put 5% down on a conventional loan if I can find the right multifamily unit cash flowing
Any update from you?
This is a fantastic idea. And I’ve use the brrr to buy my first for rental properties and I didn’t even know I was doing a brrr. The only thing is that when you are getting a home equity line of credit you are using your own money. Buying a house is like putting your money in the savings account. The home equity line of credit is pretty much putting a lien on that house to have access to that money. You still have to pay it back. With interest. No I definitely agree as long as you’re buying a property and getting the deal that you need on it and you’re renovating it within your budget. As long as the percent you’re getting back yearly has much greater than the percent of the loan then you’re making out and a pays for itself.! Looking forward to watching more of your videos.
How much cash out of pocket did you need to buy it?
Best podcast I’ve listened to without the hype just straight information 👏🏾👏🏾👏🏾👏🏾👏🏾
Thanks Brandon and David for another exciting podcast. David I ordered your new book on BRRRR and was waiting patiently until today to receive it into my Kindle. I am already part way into Chapter 1 and looking forward to reading it and then implementing the strategy with my next investment. Cheers!
Wealth of knowledge. So freely given. Thank you
Ndubuisi Egwim yeah man it’s crazy how much you can learn from watching RUclips
@@zerohero6602 not every youtuber gives this much free GREAT knowledge
And it's actual functional information instead of motivational garbage
I want to start a real estate portfolio and recently came across bigger pockets whilst doing my research. I am compelled to compliment you guys on how well you explain each and every thing and identify pitfalls so others don't fall in them. Ended up saving so many more of your videos in my offline playlist. Thank you. Wish me luck for the future.
Fixed up from the Bricks up!
Ha!!
The way David broke down that BRRRR deal with the property that appraised for 105K was fire!!!! Broke it down Barney style quickly and concise.
9:30 How Brandon discovered BRRRR
11:28 Benefits of BRRRR
This video changed my life. Thank you guys.
Also - David, if you ever want a free snowboarding lesson and in you're in Colorado, hit me up. You'll master it by the end of the day. Guaranteed.
These guys are really good in explaining.
Listened to the book twice already and it is very well written with a lot of great information! Thanks for the great podcast Brandon and Dave!
David's advice to lower capital expenditure, perform the rehab first before getting the appraisal. This pumps up the property's value and you can get more money back.
A good advice for those looking to maximize profits.
At 27:08.
Brandon I just want to point out The advice you gave on putting laminate floor instad of carpet.On average laminate flooring cost about $1,000 per standard 10x15 roomjust for the flooring alone ,no installation cost included.Your average carpeted room at the same sizewith installation is around 5 to 600 if you use Berber carpeting that isn't mono colored.The laminate flooring Unless covered with a rug is susceptible to cracking breaking splintering shreddingand shedding because of the nature of the click lock installation and the thinness of the pieces where they overlay . dealing with this right now in a 10 bedroom house that's over 120 years old with extremely uneven sub-flooring and joist issues. A great suggestion for houses built within the last 20 years that have no sagging or structural issues. The new laminate and flooring Install was done last year with normal office/gamer chair wear and tear . Rolling back and forth causes significant cracking and splintering of those aforementioned areas. with deposits typically equaling first month's rent and that being a couple hundred dollars under the typical $1,000 replacement of the flooring itself It is actually a loss to put in laminate flooring that's just going to be damaged within a year or two when carpet lasts at least 5 years with proper cleaning and care assuming you rent to a clean person.
Black belt investor: definition. master of real estate investing. Good analogy.
I have been listening for weeks about the different ways to buy,fixup,rent,or sale . Profits . Passive income the whole bit. For me it gets down to this. I am a senior citizen retired on a fixed income. Maybe we save 100 dollars a month if nothing breaks or falls apart. A real mess! But it is MY mess. And it is up to ME if to change that if I really want to go forward. I was so depressed over this but where there is a will there is a way. Face it folks to do any damn thing in this country you got to first get off your butt. I started searching and low and behold I found a dish washing job at Applebees . Pay is 18,000 a year. This will be additional income that I can save every bit of it. Not a hard job to do unless you feel washing dishes is beneath you. I started brain storming myself and guess what. I got stuff around the farm here that is only collecting dust. An old tractor with front loader. And several pieces of equipment collecting rust etc. etc. It will take a while but in the mean time I can still keep educating myself.. This is a wonderful country folks.
58:30 is where you can start if you want to skip to the actual method
David and Brandon, you guys are so awesome. Each of you have the heart of a teacher...people have really good B.S. detectors, and your authenticity of your enthusiasm shines through. There is a really cool theme with these Acronyms. BRRRR & FEEL both align well with the "OODA Loop" - Observe, Orient, Decide, Act. I believe the OODA origin is from the U.S. Air Force but generally, the idea is to focus on the process. You "Fail Forward Fast" by working in this tight loop of activity. I love it!
love this video, I bought all the books including BRRRR book. I'm very excited, thank you both for the great information. Blessings!
I haven't hand written this many notes since I have been out of school 😂
I've paused and played back idk how many times and I still have 25 min. to go! You guys have much respect from me and thank you.
Oh dear lord this is the episode I’ve been waiting for. Can’t wait for the book!
I look forward to more books from Bigger Pockets. And a book on BRRRR would be fantastic to read.
Absolutely hands down the best episode of BP
@@vcatdog832 It is definitely a great episode! 😄
The BRRRR book is out and is good.
My favorite new channel. Just discovered these guys.
One thing I’m not seeing mentioned in any BRRRR content is the fact that there are fees associated with a refinance. These fees can be wrapped into the loan with most banks, however the balance still cannot exceed 70/75/80 percent of the ARV (whatever the bank offers). I think this is important to note because that’s either 5-8% in fees that either need to be paid out of pocket, or your “all in” figure has to compensate for these fees.
Do you have to take the full LTV amount? Let's say I only need to take out a LTV of 45% to repay lenders, because I'd rather have a smaller monthly mortgage for greater cash flow. Is that possible, or is it always the full LTV at cashout refi?
@@onealr any LTV is doable. But keep in mind the lower you go with the loan amount, (if under 100,000 or so. Your rate will go up. Lenders like larger loans, especially on a 30yr. Also if you did take out the full ltv, you could use the cash for a different property and maybe get two properties to brrrr. Or a larger more profitable property. Just some food for thought
@muttr He explains it in the first 8 mins of the podcast... Watch the podcast. 😑
@muttr After Repair Value; Loan To Value
Thank you! Great tip!!
David Greene is very smart and humble
This is one of my favorite BP podcasts thus far and I’ve probably seen 75% of them. David is brilliant! Thanks for all the great info. I’m BRRRR’ing my first duplex right now myself.
Congrats on your refinance. Best of luck on securing your next property!
“Tore up from the floor up” has been used by the Urban youth since the 80’s, as many other amazing creations.
Thank you so much for sharing this information. I just bought David’s BRRRR book and Brandon’s REI book. Excited to finally get this started.
I feel like you guys should already own the planet... like how is this not already a thing? I want to get my first rental BRRRR, so more research is needed, but this is a good start.
That “system” bit was pure gold. Are the “systems” you use in the book? Tips on setting up the systems and network?
Ofcourse
I didn’t know you were a LEO. I’m an officer in Jupiter, Florida and retiring in 10 months. I love listening to your podcast and RUclips videos. I too want to build a successful real estate portfolio.
Im brrrr ing two deals right now. LOVE IT! This is my very first.... and guess second deal. Purchase and Rehab was 100% financed working on a refi now and expecting a few $k in my pocket. Oh yeah, and cash flows!!!
Justin B Did you use a hard money lender when you say “purchase and rehab was 100% financed”?
@@3dinterview528 yes, I used a hard money loan on each of them. I just refinanced this past Tuesday.
So Justin...I'm struggling to get started but gone DO THIS!...So let me ask did you find the properties yourself or did you use a realtor? I called a realtor that I knew, in fact the second one and they both just don't seem interested in those of us wanting to buy properties for fix and flip or buy and hold. I've found a property that I wanted to go check out but the first thing they both ask is do you have a pre-qual letter....help me out what am I missing...open for any tips...thank you
@@goodlife3437 In my opinion its very difficult to find great deals with realtors. And when you do the price is drivin up by the competition. I found my two rental properties by driving around. (Driving for dollars) I was looking for distressed homes in a good neighborhood. These homes never hit the market. I would also try and contact owners of rental properties sometimes you get lucky and find someone that's out of state and ready to call it quits. Or you find out that they passed away and the family will be inheriting a property they don't want. Its kinda how I pick these two up.
@@justinb1606 Thanks for your quick response Justin. I actually found a property that's listed gone try to offer 20% less of what they're asking since it's definitely gone need some work and see how that pans out. I noticed 2 properties on the next street over from it were rehabbed and currently asking 118K vs this property listed at 79K that I'm considering. Another question, where/how were you able to find your HM Lenders to do 100%? As you can tell I'm like new to this :-) I'm hoping to build a portfolio of 25 homes with a net CF of $200 per month over the next 3 yrs...not sure if that's too lofty or what. Thanks man for your feedback and response.
As an agent that specializes in working with investors I find myself on a very regular basis telling them to get on BP. This is a GREAT concept!
I’m halfway through listening to this on the podcast and am loving it. Thanks Brandon & David!
Just get started immediately next time. We really don't give a shit about anything but real estate and learning
I nearly peed myself when he said, "God is great, god is good, let us thank him for this Randy."
I’ve been watching a lot of real estate videos because I want to start investing this year. This is by far the best one. Thank you so so much 🙏🏼
Good luck on your investment journey!
You guys are the best in the real estate industry !!!
You guys have any videos were you guys educate on the financial side of brrrr ? Like how to work with the banks and what do they look at how much money you need to have or if they have any guidelines to qualify to refinance a brrrr project. Thank you
I am so happy I listened to this podcast....thank you guys for this info and I will definately be refrencing this video and book...Great work guys!
If I haven't mentioned it before, Brandon Turner and David Greene, you guys are awesome
Best show yet. Great job fellas. And I’ve listened to nearly every single one of them. This is good stuff here
Me to iv only got 50 left. How many do you have?
Truly superb content on just the career change i'm making! Thanks!
Question: Is there an advantage to becoming a real estate agent in doing this BRRRR method? Or does it not matter? Thank you for sharing.
It doesn’t really matter but it’s probably more advantageous to be a contractor rather than a realtor when it comes to investing.
Just to tag on too this I'm going for my GC license aswell this year. But having my real estate license helps negotiate a lower price by throwing up your commission as a price drop point or using it like a closing cost coverage like I did in my last property saved me $3,500 representing my self. As well as the network of real estate knowledge and MLS access pros and cons to being active tho costs me average of 2,500 to maintain an active license in NC.
Gucci Mane has entered the chat.
Gucci Mane: Brrrrrr!
S A or bird man
😂😂😂😂
Aanual too haha
1017
Thinking the same thing
This is one of My faviorte podcasts ever on god
On God 💯
On god 🤝
On God 🗣
Hey Brandon love your FEEL approach. With respect I added two more words based on you’re explanation of the concept.
F.E.E.L.E.R
Focus
Educate
Execute
Learn
Evaluate
Repeat
Thank you for doing the audiobook for it too. Hard enough to get the Honey fully on board and hoping hearing from you will peak that interest.
“I’d rather eat Randy “ is fantastic 😂 I’d never heard of this song, and paused to listen and I was not disappointed
I think these podcasts are fantastic. I would love for Bigger Pockets to create a segment that goes really deep into how to structure deals. As deep as you can possibly go, into very fine specifics for people who have deep grasps on all of these concepts!
Yes!!! 🤗
Wait... If you refi 90k you then have to pay off the 60k existing mortgage, then you can get back your 30k, you don't have 90k to go out and do it again and again. You basically just have the same 30k except now you have equity that just sits there until you sell.
@@nxadragon The point being you pay your lender back quickly, they're likely to turn around and loan to you for the next one...
If you are looking for one resource to learn how to do Real Estate investing this would be it. There’s also a book that goes along with it that has valuable bonuses. These guys are excellent teachers and fun to listen to.
Thanks for the great episode! I’ve been listening to the audio book on my daily dog walks and drives. Great info. I will absolutely get into my first deals this year. 3+ in 2022!!
If your a real estate agent, you have access to see expired listings. When these deals are expired you can deal with just you and the owner.
@muttr I agree , you would still have to get broker involve if you learned of the listing because of the broker listing
This podcast is so awesome and insightful. I’m watching it back again. I hit the 👍 and I’m planning on getting the book. Buying my first Brrrr this year. Tha is for all you guys do
I agree this podcast was very awesome and insightful. I also look forward to reading the book. All of the other books that I have by Bigger Pockets have all been great.
This is how Ben Mallah built his empire. Also using 1031 filing to stay ahead of the IRS.
where is josh dorkin? do you know?
What is 1031?
@@rb7454 google it bro.. google is your bestfriend
One of your best videos so far. Strategies and reasons are clearly mapped out.. Thanks a million. I am getting the book
where can we find an Excel spreadsheet with the BRRR calculations? that would really help.
I’ve had 100% respect for you both. I’m a long time listener and this is my 3-4th time watching this. You’ve inspired me to BRRRR a house. I’m in the middle of rehab right now. All of the advice on here is amazing. However, I have to say, the “rather eat randy” recommendation was horrible. 😂 Would not recomend.
Good luck!
Update?
@david giles how’d it go ??
I just bought this book. We have 2 properties right now. The second property was a cash buy and we want to use the Brrrr method to upscale so we can gain financial freedom faster.
What are the biggest deals you guys pick up? Both in terms of price and also in terms of units? Any preference on unit mixes when closing your deal?
David and Brandon... excellent Video! I often frown when I see 1 hour plus but this is tome very well spent! It was like a good book. I’m at min 1:04, ran a couple errands, doing busy work at home (😒 Laundry) and I’m totally bummed because I realized I’m almost done with this one. Glad I chose to listen to the whole interview. I replayed several parts as I’m slightly distracted. Good Stuff gentleman! Ordering your book tonight.
David Greene got me taking notes. Looking forward to read bigger pockets library.
Every Morning just listen to BiggerPockets that is all the motivation and knowledge you need
or, where they came from...Lifestyles Unlimited.
I'll take the older guys who are not getting off to just hearing tore up from the floor up. Youth still make to many mistakes. And this process is not new. It has been around since the advent of real estate.
Tore Up from the Floor Up by: Sheneneh from the TV show "Martin".
Ha ha they don't know about that!
misunderstoodkj thank you!!!!!!!! I knew it was from a show but I couldn’t remember which show
Facts
@Timothy Graham and if they don't know now they know
" What is black culture?" For $500
As part of the International Association of Randy/i/ie/ee's, Julian Smith's video is disturbingly entertaining. You guys are hilarious!
Quick summary:
• The velosity of money: the quicker I can send out my money to come back with a bump. The higher my net equity is. 2x a month, 1x a month, 1x every 3month's. Etc.
David is just insanely smart and inspiring! Thanks for all this great information. Can’t wait to be at the point of having too many single family homes and turning them into one big one!
Great info and strategies. Thanks guys.
I LISTENED TO YOU GUYS AND 80'S DISCO CRYSTAL BALL APPEARED , LIGHTS AND LET'S DANCE .... DAMN INFORMATIVE. THIS VIDEO IS A SIGNIFICANT EDUCATION THANK YOU.
Did David take credit for "Tore up from the floor up"? LOL that's old 90's slang.
I know right! It's funny how "certain" slang pops up decades later like it's brand new Lol
Kmsl. I am watching this on my smart TV and pulled out my phone to make sure to comment regarding that. Lol. Like that is one of the most popular phrases from the 90s. I'm surprised Brandon didn't know that.
@@jazziedazzle It's brand new to millennials.
Yes he did. I was listening to the podcast and came to you tube just to comment on him trying to take credit for “tore up from the floor up”. Sad.
@@browneyes39 happy I'm not the only one who had to come and comment
You guys have great chemistry. So funny. Love the content thanks!
Maybe “Fixed Up from The Sticks Up”
Griffith Group Mine is better. 😁
Maybe "Bricks up"
from the ground up*
Are you trying to rob a rehabber?
I lived in Boca Raton Florida for many years .I remember it when it was a nice little fishing village. Then it started to really BOOM like overnight. So what was pushing all this? After watching this for a few years it became plain that it was huge corporations like Arvida Corp. Those were the big dogs that quietly came in with a plan that really took many years to unfold. Short story was the snow birds was the main market they was after. People from NY and others came down and many just planned to buy a nice home and retire in the sun. Houses and lane appreciation was going thru the roof. Big deals are made on golf courses. Rubbing elbows with the elites.. Story goes like this, Hey Joe I see you are looking to buy a home in this fine booming town. You buy a home here for 200,000 . One that we know you can afford and live comfortably. In a couple years you home will double in value . Then they talk you into a leverage deal for a 450,000 home because hey others here are doing it everywhere you look. And in a couple years you can sell that Home over there east of A1A and make a cool million dollars. So thousands of retired senior citizens ended up in houses they could not afford .When the big BOOM ended .They had to sell after 2 years. Some even had a balloon on there home. Those that survived ended up in a much smaller cheaper home than what they originally started to buy. Moral of this story is do not try to run with the BIG dogs when you are a small dog. There is allways a game going on somewhere . My Dad always told me to not play the game till you KNOW what the game really is.. So many thanks for this podcast that is educating people . Knowledge is powerful.
The, Bruce Lee quote is so powerful
Was training to be an Accountant and as an ex-cop to have this knowledge is amazing !
They never actually train you to invest ..
Thanks Wonder Twins David is so wise and has great advice with every word he speaks.
From what I understand, in South Carolina you can only have a mortgage on 4 properties at one time. Which would limit the brrrr strategy to 4 times until one gets paid off. Still an awesome strategy. I plan on doing this. I finally just saved up 100k and I’m 32 lol. It’s just hard to find a decent house around here for under 100k and still have money to fix it up
Could sell to cash out equity instead of refinance with the bank. Pay back everyone who you borrowed from and the rest is profit. No bank required. Sure its not brrrr but if you can only have 4 mortgages at least you can make some cash.
"Fixed up from the sink up"
I got you David.
58:22 - 58:40
BRRRR method
Buying is where you're gonna make your money.
Rehab is where you're gonna keep your money.
Renting is how you're gonna protect your money.
Refinancing is how your gonna recapture your money.
Repeating is how you're going to supercharge your money.
I just purchased the book from the BP website.
Good move. How did you like it?
Really good. It pairs well with the long distance investing book.
I really gained a lot of value from the pitch decks that came with it.
@@villgomez Nice. Are you pitching for JV partners? Have you considered private money if you are flipping or doing buy and hold?
A lot of gold nuggets in this episode! I think when multi-family become more of the portfolio, single family deals may become less of of a focus. However, the speed to closings might be faster on single family. After acquiring so many SFRs, consolidation to multi makes sense. following the principles or Monopoly, four green houses for one Apartment.
I found this after buying the audiobook! So far I definitely could have gone without all that 20+ minutes of introduction. Just some constructive criticism for the show. So much non-value until the teaching of the method came up. But keep up the great work guys! Bigger and better!
After you buy it and fix it , how long do you have to wait before you appraise/refinance and pull your money back out ?
The real question is where are you finding these houses at $30-60k
Fam... thats a down payment
@@fluffycomedian no m8 that's the purchase price.
You basically gotta go to some backwater towns to find those prices
I need a master i live by florida but could be in texas too .. 😊
In the sticks where there are no paying jobs, and in the inner city where there are more hoods than neighbors.
Ya pays yer money n takes yer chances.
Thank you for the wealth of knowledge and making me smile, needed to see this!!! 😇
Loved the show Gentlemen. Thank for a informative session 👍
I'm just getting started, can you guys point me in the right direction as to who I can ask very basic real estate questions? Such as a home rental vs a plot of land with vacation cabins..does the land value typically increase as with a home? And do bank loans on assets work with land alone... basic dummy questions
Sounds like the main key to BRRRR is the purchase price...this makes or breaks the strategy it seems.
Buying right is always the key to any good deal
Absolutely! It's pointless, if i can make 30k anyways, i don' need brrrrrrrr, but he doesnt tell you how to get a house that cheap
Come back here every now and again to reset. So much great information in one podcast.
Hey wildland firefighter here that heard about this podcast from a coworker. You guys inspired and educated me enough to buy my first duplex and house hack it. Just curious what video games you play haha.
noah pratt congrats!
I'm doing a deeper research on this strategy. I really like it, thanks very much. I will buy your book, study and pursue it, i hope it will work with our very challenging market here in Vancouver, Canada.
Check out the channels Meet Kevin and Graham Stephan for some great info on this strategy.
One thing that must be considered on either a the BRRR or a flip are excessive costs. If it’s a rental you may be able to less expensive materials, while on a flip in a nicer neighborhood, you what to spend s little more. I’ve been shocked by what plumbers charge for replacing shower kits. One of the less expensive charges $520 for labor. It will be a little less for the sink, but we’ll end of spending no less than $2000 and this is not a full bathroom rehab. For a 2 bath house you can expect to pay $2,500 per for a total of $5,000. Good idea to just be aware of your costs. Between kitchen and three bathrooms we’ll spend over $12,000 on a $200k house in Atlanta. Total rehab will be $30,000 at least but probably closer to $40,000. With these costs, you’d really need to buy well below market prices. David is probably keeping his costs low and probably builder grade. Yet still, I wonder how expensive his plumber is. 😂
Those numbers are why I replaced my own water heaters and ran my own electrical when adding lighting. They charge like it's difficult. It's not. Same goes for working on my car. They'll charge $500 for 30 minutes worth of work and $70 in parts.
David Greene is one smart man