How To Rapidly Build A Large Real Estate Portfolio Using Buy, Rehab, Rent, Refinance, and Repeat Strategies

In this article, you will gain a full understanding of how you can rapidly build a large real estate portfolio by using the buy, rehab, rent, refinance and repeat method. This strategy was pioneered by Danill Kleyman of True Vision Analytics, who is one of the best, if not the best real estate expert of all time I ever come across I happened to attend one of his online training and the above strategy simply blew my mind.

Today, I am happy to share my own take and also hope that you can put this method to use as soon as possible.

If you are into the following market category and has been struggling:

Then this article will definitely benefit you the most and you can come back and thank me later.

From what I noticed, the strategy works with property owners meaning if you own the property. Then sell and buy more. Commercial property buying and selling will benefit too if your overall objective is to increase your portfolio. Same goes to house flippers and homeowners who want to increase their real estate portfolio.

One great thing about this strategy is that it works in a flat market and it also works in a volatile market as well. The juice behind it is that you only use one fund and then recycle that fund over and over and over until you reached the expected or intend portfolio limit or your target. Now let’s look at what the strategy really is and how to use it.

What Is Buy, Rehab, Rent, Refinance and Repeat Strategy?

The strategy according to Daniil is called BRRRR which stands for:

Benefits of BRRRR Strategy

How Does BRRRR Strategy Work?

First and the most important rule here is to make sure you don’t get stuck on the first deal before jumping over to the next deal. Yes! I myself I was confused at first when he explained in detail, my jaws dropped, figuratively.

Because these deals when done properly are maths intensive and according to Daniil, the best way to not get your numbers stuck it to make sure your numbers work before buying the next deal.

For the sake of not wasting your time, let me jump right into how this strategy works

Step 1: Buying A Property

This is the first and most important step into the strategy. This shows that you are ready to build your portfolio and you are committed to making it work

You can use a various source to get funding and this include:

Step 2: Rehab

Once you have secured financing and bought your first house, you will need to rehab it. Always bear in mind to keep the property with the market tune as you will be renting it out and don’t overdo it.

Aspire to create more the highest property appreciation through bigger rehabs. To achieve this, you have to do this:

Make sure you do all your rehab work now so you don’t have any maintenance call for the next 5yrs.

Step 3: Rent The Property

This step requires that you start showing the property to potential tenants before the renovation and improvement finished. You will proceed to step four quicker if you already have a lease in and a tenant to move in soon as renovation is complete.

Step 4: Refinancing The Property

This is a very crucial step in building your portfolio much faster. As much as the lease is in place and the rehab is complete, go to your local community bank for refinancing talks. This is because, your local community banks are often mandated by regulation, to give you a loan to local businesses. And they are going to lend you based on the percentage of the new market value of the property not based on your cost.

Step 5: Repeat

In this final step, you are going to repeat the whole process with the net result of step 4. This means you have paid off your short-term financing and you now have a cash flow asset that brings in money every month with zero cash tied up of your own. With the positive cash flow coming and a 20% equity on paper, your balance sheet looks and you can take to your local bank again for another loan.

Conclusion

These five steps; buy, rehab, rent, refinance and repeat are the steps that makes up BRRRR strategy you can apply from today to change. This is how you can rapidly build a large real estate portfolio. Again according to Daniil, there are a couple of very crucial points to note so as maximize this strategy.

These are;

This is how to rapidly build a large real estate portfolio using buy, rehab, rent, refinance and repeat the strategy. The most important point again is to know your numbers before you go into any deal. And your ability to get short-term finance and a take-out financing. Which is getting a funding upon the net profit of your first deal. You can use
Rehab Valuator free software to calculate and master your numbers within a few minutes. Please leave your comment or any question below and I will get back to you immediately.



Source by Richard U

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