BiggerPockets Real Estate Podcast 513: Seeing Greene: BRRRR 101 - Loans, Deals, & Cash Flow
Oct 3, 2021
Dive into the world of the BRRRR strategy with insights on financing, rehabbing, and cash flow. Explore whether to refinance in your name or an LLC, and find out how to secure properties through agents or wholesalers. Discover the minimum cash flow requirements for multifamily properties and the differences between hard money loans and construction loans. Learn to navigate competitive real estate markets and maximize returns with smart investment practices like tenant screening and reinvestment strategies.
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Pre-Approval First
- Get pre-approved before starting the BRRRR process, not after.
- This helps avoid issues with financing and ensures the chosen strategy aligns with lender requirements.
Wholesalers vs. Agents
- Wholesalers offer higher potential rewards (off-market deals) but also greater risks (less representation).
- Agents offer more security and fiduciary duty but may have fewer deeply discounted deals.
Cash Flow vs. Appreciation
- High appreciation markets (like Austin) often yield low initial cash flow.
- High cash flow markets typically have lower appreciation; choose your priority.
