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BRRR Method - a way to build your RE empire

Africanama

Africanama

Rising Star
BGOL Patreon Investor
I am follow BiggerPockets.com the website for a while and one of the main concepts they promote on the website is the BRRR -
Buy, Renovate, Refinance and Repeat. You buy using private money or hard money for investment properties, fix it up, put a tenant in, refinance and repeat the process.

Has anyone ever done this and could speak about their experience?

 
I'm a private money lender in Atlanta and I lend to investors all over the Southeast and the Mid-Alantic. This method is a very good way to create a solid RE portfolio. A lot of my investors/clients have amassed millions of dollars in Real Estate holdings by utilizing this strategy.
 
Barron11 said:
I'm a private money lender in Atlanta and I lend to investors all over the Southeast and the Mid-Alantic. This method is a very good way to create a solid RE portfolio. A lot of my investors/clients have amassed millions of dollars in Real Estate holdings by utilizing this strategy.
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I'm just now starting to deal with private lenders, I have a couple properties in my area that I'm trying to get financed. What advice can you give and do you do business in SC?
 
southrue said:
I'm just now starting to deal with private lenders, I have a couple properties in my area that I'm trying to get financed. What advice can you give and do you do business in SC?
Click to expand...

Yes, we lend in SC but it must be in SC major markets such Greenville, Columbia, Charleston and Hilton Head.

A couple of things to note when working with a private lender:

1. Do not pay any upfront fees (only pay for an appraisal or a rehab inspection if the lender requires it)

2. You will have to bring a downpament to closing typically, 10% - 20% of the total costs of the project - subject to 70% of the ARV / its prudent to have 20% of the total project costs at your disposal - we want to make sure you have enough money for the Downpayment + closing costs + 10% of the rehab budget + 3 months payments while the property is being rehabbed

3. Although credit is not the most important item when we underwrite a file it is very important- make sure you pull your own Tri - Merge credit report to see what your scores are

4. Consider finding a mentor or partner with experience- our pricing is largely dictated by the experience of the borrower - the more experience, the better the rates we can offer

5. Go to a number of your local Real Estate Investor Associations in your area and start to network with investors that have a good amount of experience- they may partner with you if you find a good deal and can put up 50% of the Downpayment
 
Barron11 said:
Yes, we lend in SC but it must be in SC major markets such Greenville, Columbia, Charleston and Hilton Head.

A couple of things to note when working with a private lender:

1. Do not pay any upfront fees (only pay for an appraisal or a rehab inspection if the lender requires it)

2. You will have to bring a downpament to closing typically, 10% - 20% of the total costs of the project - subject to 70% of the ARV / its prudent to have 20% of the total project costs at your disposal - we want to make sure you have enough money for the Downpayment + closing costs + 10% of the rehab budget + 3 months payments while the property is being rehabbed

3. Although credit is not the most important item when we underwrite a file it is very important- make sure you pull your own Tri - Merge credit report to see what your scores are

4. Consider finding a mentor or partner with experience- our pricing is largely dictated by the experience of the borrower - the more experience, the better the rates we can offer

5. Go to a number of your local Real Estate Investor Associations in your area and start to network with investors that have a good amount of experience- they may partner with you if you find a good deal and can put up 50% of the Downpayment
Click to expand...
I've been flipping houses in Memphis the past 2 years and I'm trying to transition to rentals using this exact method. Do you lend in the Memphis area and do you have any knowledge of 203k rehab loans?
 
Barron11 said:
I'm a private money lender in Atlanta and I lend to investors all over the Southeast and the Mid-Alantic. This method is a very good way to create a solid RE portfolio. A lot of my investors/clients have amassed millions of dollars in Real Estate holdings by utilizing this strategy.
Click to expand...

How do you become a lender? That may be up my alley, I don't really have the time to rehab houses etc. Congrats though.
 
bubba2k5 said:
I've been flipping houses in Memphis the past 2 years and I'm trying to transition to rentals using this exact method. Do you lend in the Memphis area and do you have any knowledge of 203k rehab loans?
Click to expand...

Yes, we lend in Memphis but we have a couple closing by month's end. I'm very particular about the street and neighborhood I lend in Memphis.

I'm familiar with the 203K rehab loan to a degree- that loan is really designed for retail borrower that want to buy a fixer upper. I only lend to Investors.
 
BronxBomber said:
How do you become a lender? That may be up my alley, I don't really have the time to rehab houses etc. Congrats though.
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It's not that difficult to become a private lender if you can manage risk and raise money. If you have or can raise $200K then you can lend on a couple of smaller projects and give your Investors their return. Once people know you can perform then you can start getting more folks to invest with you.

There are a lot of people that that have a lot of money that dont want to do the work so they will invest you for a decent return on their capital.
 
papi68 said:
Sold them due to a divorce. Otherwise, I would have been multi by now. I've done it once and will do it again. Now, I'm focused on my law practice though.
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Though about going more passive? You can invest in commercial multi family if can qualify as an accredited investor or even sophisticated investor in some cases.
 
Barron11 said:
Yes, we lend in SC but it must be in SC major markets such Greenville, Columbia, Charleston and Hilton Head.

A couple of things to note when working with a private lender:

1. Do not pay any upfront fees (only pay for an appraisal or a rehab inspection if the lender requires it)

2. You will have to bring a downpament to closing typically, 10% - 20% of the total costs of the project - subject to 70% of the ARV / its prudent to have 20% of the total project costs at your disposal - we want to make sure you have enough money for the Downpayment + closing costs + 10% of the rehab budget + 3 months payments while the property is being rehabbed

3. Although credit is not the most important item when we underwrite a file it is very important- make sure you pull your own Tri - Merge credit report to see what your scores are

4. Consider finding a mentor or partner with experience- our pricing is largely dictated by the experience of the borrower - the more experience, the better the rates we can offer

5. Go to a number of your local Real Estate Investor Associations in your area and start to network with investors that have a good amount of experience- they may partner with you if you find a good deal and can put up 50% of the Downpayment
Click to expand...
Cool if I PM you about a project I'm looking at in Columbia, SC?
 

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