Posted in: BRRRR

BRRRR – The Smart Investors Investment Cycle

Have you heard the acronym BRRRR? You may have heard this from someone when talking about land and property. In the world of real estate, you will likely encounter this word countless times, especially if you’re planning to get an education in real estate investing. Buy, rehab, rent, refinance, repeat, or BRRRR for short, is sometimes called the smart investor’s investment cycle. This is a common and conventional way of purchasing lease properties. Buying a property with finance (mortgage), rehabbing it, renting, and repeating the same process. 

The most traditional way of buying properties is with the help of some loans, usually from lenders or a bank. You’ll need to have a down payment, pretty stressful, right? However, through this investing method buying homes has never been more straightforward. Rehabbing can add value, renting can help you generate more income and cash flow, to have a better and secure financial position, and the process can be repeated many times over. In no time, you’ll be able to construct your portfolio in the real estate industry.

B stands for Buying. There are tons of techniques to help you in this section, including loan, seller financing, cash, short-term loan, and more. It depends on what option the investor will choose. Different initial funding can have different holding costs, benefits, and gains. The main point is that you have to guarantee that the capital won’t run out and that you can endlessly keep buying properties until you reach your financial goals. Whether or not you use a real estate broker for this stage is up to you. 

How can you do that? One rule is that you should never invest in more than seventy-five percent of the ARV or after repair value of a property. Secondly, it is vital to purchase properties that are under market price. Spending too much money on a property can negatively affect your recovery from unexpected problems and issues in the future.

Giving an entire make-over to the house can cost a lot. Make sure that rehabbing the property is done well, but at the same time ensure that you’ll be able to recover the money you’ve spent on it. Adding value, function, and making it livable are the three main things to remember in the rehab stage. You don’t want to end up spending money and then not being able to get it back. Properties that need lots of fixing are cheaper, and other investors probably won’t care about the property, but those are the ones you should be looking for. Because once you focus on these properties, you can add value or equity to your sales.

Once you’ve done the rehab stage, you can then start looking for renters. It’s good to get tenants who pay on time monthly since that will help pay the mortgage and generate income for your bank account. The renting phase can be one of the crucial parts of BRRRR. That helps the with the refinancing and the rest of the cycle.

As for your refinancing, some banks can help you borrow the estimated value for your BRRRR property. You can also ask investors, friends in the real estate industry, or online websites such as Popstream, Redfin, and many more. You want to be sure to give them clear and precise pieces of information on what you need, and they might be able to help you. 

Keep in mind that you want to get as high of an estimated amount or cost as possible. A perfect combination of how well the rehabbing stage went and how much income you are getting from your first renters plays a significant role in this. 

Getting prior approval for a loan is recommended before buying. Once all the buy, rehab, rent, refinance are all successful for the first property, you can go on and “repeat” the same process again. This part is the most exciting of all, getting to experience your early success. Taking in everything that you’ve learned through the process can be extremely helpful with your next BRRRR. By doing so, you can see which parts you need to improve on. 

Focus on building your systems. A system can help you accomplish your goals and objectives by repeating the same method again and again. It’s okay to make mistakes, but be sure to learn from it, and eventually, you’ll see that the strong foundation you will cut down on the unnecessary mistakes you make throughout the process. Take notes of everything and document it so that you can go back to it whenever you need to.

Posted in: How To


Saving money for buying a house or property may take some time, even to save enough for an initial payment and closing costs. If you are planning to buy a home, you’ll need to save for those expenses.


It’s essential to have a good idea of how much your ideal house will cost. How can you do that? Start by researching home prices in your area. There are plenty of online and offline options that can help you figure out how much it’ll cost you. The more knowledgeable you are of how much your dream home costs, the easier it is for you to narrow down how you can save money to buy it. You’ll also want to find out the down payment cost you need to bring on closing day.

Having cash to pay for the down payment is a necessity when purchasing a house. It is the money that you have to bring with you as an initial payment. A portion of the total cost must come directly from you. Banks can be handy if you want to borrow some mortgage or house loan money. You may be wondering how you’ll get a mortgage loan? Well, continue reading to find out how.


Before we tackle how you can get a mortgage loan, you’ll have to check first if you’re qualified for it. Keep in mind that even though the U.S government offers help to homebuyers in the form of housing loans, there are still some downsides to going that route. So be sure to research it if you are interested in that. Here are some steps that can help you get a mortgage.

  • CREDIT – Getting your credit score to where it needs is important because it means you will get better rates when applying for a loan. It also tells the lenders how qualified you are for favorable loans and how well they can trust you on paying the mortgage back over time. Thus, the lower your credit score, the more you’ll pay in interest.
  • BUILDING YOUR SAVINGS – It’s not impossible to buy your dream house, but knowing what you can reasonably afford will help you make it more possible. It’s essential to understand how you can afford the monthly cost, including payments for taxes, insurance, interest, and mortgage principal. The initial payments are only part of the story. 
  • CHOOSE THE RIGHT TYPE OF MORTGAGEThere are several kinds of mortgages that you’ll need to evaluate. But the primary types include Conventional Loans (regular loans), Federal Housing Loans or FHA Loans, and Jumbo Loans. Each of them varies in terms of down payment, interest, and other factors. You can speak with your mortgage lender and ask for help on what option would be best for you to pick. After picking the right lender and getting pre-approved, the next thing is finding and closing on your home. There will be lots of paperwork that you’ll need to sign before getting the keys to your dream house.


A mortgage is a loan from a lender or bank to help you fund the purchase of a property or house. Once you get it, you’re agreeing to repay the money you borrowed over the long term, including its interest. Since your home is used as collateral, the lender or bank has the right to foreclose on your home or property if you fail to pay the promised amount written on your promissory or mortgage note.

Put more simply, once you fail to pay the borrowed money according to the terms established on your mortgage note, then the bank or lender has the right to the ownership of the house or the property you owned.


There are plenty of ways to save money, but really it all comes down to these five steps.

1. Record Your Expenses

2. Budget for Savings (10% is a good starting goal)

3. Decide On Your Priorities To Cut Expenses

4. Picking The Right Tools That Can Help You (like setting up a Robinhood account)

5. Make Your Savings Automatic

Posted in: House

What Are Some Benefits Of Buying Over Renting?

Becoming a homeowner is considered an important life goal by many Americans. Some benefits of owning a home may seem so obvious, but most of them are not clear. It is imperative to weigh your options to ensure that you’re making the right financial decision.

Before making the purchase decision:

• Take time to plan and find a home that suits your needs and lifestyle.

• Determine the impact the house will have on your life and your finances.

• Take time to familiarize yourself with the process and requirements of becoming a homeowner.

Having a clear comprehension of the benefits of buying a home will affect your decision to purchase or lease.

Why Buy, Not Rent?

Consistent Payments

You may not have enough cash to buy a home, but your credit score may be good enough to acquire a mortgage. Most mortgages come at a fixed rate, meaning that your repayment amount and interest rates are not subject to change. This way, you can effectively plan your budget and include a fixed amount to go towards your mortgage repayment.

You can organize yourself to make stable monthly payments until you can clear your mortgage. Conversely, renting an apartment means that your payments can change, especially on the renewal of your lease. This may happen primarily due to increasing property rates, your location, and housing demand. Buying a home ensures your peace of mind, and you can create a foreseeable budget plan.

Gain Equity

In real estate, equity is the calculated market value for a house without any liens, including a mortgage. The good thing about becoming a homeowner is the opportunity to build equity. As you continue staying in your home and making monthly payments towards your mortgage, your equity increases.

Lower Overall Costs

Buying a home comes with many costs, such as insurance, home appraisal, and down payment. The down payment for the property may be much more than paying for the monthly rent. 

However, the overall cost of owning a home will much lower than the price of renting plus utility bills after some time. This way, you can save the rent money or use it to make home improvements and repairs.

Long-term Investment

Buying a home is more than just a necessity but also an excellent long-term investment. Property rates are on the rise, and that means that you can get a better return on investment when you decide to sell your home at some point. However, before investing in real estate property, it is essential to note the market’s driving factors such as location, infrastructure, security, land rates, and property valuation.

A home is a viable long-term investment because even if the property values depreciate, the land value where the house sits will continue appreciating. Land is among the few things whose values don’t depreciate, and thus, buying a home will always provide a return on your initial investment.

Tax Benefits

Becoming a homeowner means deducting your mortgage payments from your tax returns. Apart from mortgage payments, one can also deduct other home expenses such as property tax and home equity loans. This way, you can save a significant amount from your taxes and invest elsewhere or in your home.

Understanding the pros and cons of owning a home will affect your next real estate decision. We can’t all be cut from the same cloth, and that’s why it’s imperative to examine your needs and make a decision that suits you best.


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