Leveraging Private Money in Real Estate Investments

This chapter explores the use of private money for real estate investments, specifically through the BRRRR strategy. It highlights a case study involving a private lender's deferred payment and emphasizes the importance of cautious leveraging and maintaining financial safety nets.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

The BRRRR strategy is arguably the fastest way to build wealth with real estate. Just ask Leka Devatha, a Seattle-based investor. She’s got ONE BRRRR property this year that could make her $600,000 in profit. And that’s ONE home, not an apartment complex. So what is the BRRRR strategy, and why do so many investors write it off instead of trying it in 2025? Are they missing out? Absolutely!

BRRRR stands for buy, rehab, rent, refinance, repeat. The basic formula is this: buy a house that needs some improvement, renovate the home (to a scale you’re comfortable with), rent out the home to tenants now that it’s fixed up, and refinance it. Now that the property is worth more, you may be able to get the bank to pay YOU back your initial down payment and renovation costs due to the increase in equity. Then…repeat until you’re financially free.

How do you pull off a BRRRR in 2025 with high interest rates, high home prices, and rising renovation costs? Dave and Leka are walking through their own BRRRR deals, showing you how to successfully BRRRR and do it without using ANY of your own money (seriously!).

In This Episode We Cover:

The BRRRR strategy explained and whether it still works in 2025

Leka’s BRRRR deals making her up to $600K!

The best property types for BRRRRing to get more cash flow, higher appreciation, and bigger returns

How to use other people’s money (OPM) to fund your BRRRR investments

The “DADU” strategy that could skyrocket your home price with one savvy addition

And So Much More!

Links from the Show

Join BiggerPockets for FREE

Let Us Know What You Thought of the Show!

Ask Your Question on the BiggerPockets Forums

BiggerPockets YouTube