“Substantial wealth is possible through real estate investing. It is the single best way I know of to build wealth, and the BRRRR method is the single best way I know how to do it.”
That’s the advice from David M. Greene, author of the book we’re reviewing today. If you’re interested in successful real estate investment, add this practical and informative book to your toolbelt. Greene offers invaluable information and instruction on the BRRRR method.
Buy: Purchased a distressed property under market value with cash (that means no loan – so if you need to save first, then make the commitment and save first).
Rehab: Fix up the property. Greene offers advice on what to fix, how to fix it, finding deals, connecting with reliable contractors, etc. As he says in the book, “Finding talent is finding talent, and it doesn’t matter where you are: Talent always acts the same.”
Rent it out: Create cash flow – the cumulation of your financial and time investment.
Refinance: Actually, since you bought with cash, this is your first loan on the property, but now it’s worth a lot more, and you can borrow more against it than you could have in the first place. What percentage of the home’s value that you borrow is between you and the mortgage company and it is affected by the monthly rent income. The bottom line, you get back your initial investment and the cost of your rehab.
Repeat: Use your borrowed cash to buy another distressed property under market value.
That’s the process in a nutshell, but Greene’s book provides the details. He helps you:
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- Define your goals and strategize
- Determining how much money you will need to start
- Gain know-how on finding and buying a property below market value
- Understand what types of ‘distress’ you are looking for –what is profitable rehab
- Save money in the process. According to Greene, “You want to look for opportunities in the rehab process to maximize your value without having to pay full price for it.”
- Find talented people to build your team (This isn’t a one-person show).
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The BRRRR method has helped many people build a solid portfolio of investment properties. If you are interested in joining them, Greene explains the process and teaches you how to use it efficiently and effectively. It’s a comprehensive yet easy-to-read guide for beginners and those who are already on their way along the real estate investment path. He defines each concept, explains it well, and provides examples. On top of that, he throws in humor and anecdotal stories as word pictures to make his point.
The anecdotal stories bring us to the one drawback. While some readers enjoy it, others have pointed out that Greene could have provided all the essential information in a shorter, quicker read. As one reviewer said, “Lots of incredible and truly valuable information! Had the tendency to get too wordy and go on for too long sometimes but an absolute must-read if you’re looking to get into real estate investing.” But, of course, you won’t know what you think unless you read the book, and in the process, you will learn a lot.
At Rentals America, we take care of the property management details for real estate investors –focusing primarily on single-family units.
About Rentals America
Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.
