BY BRAD BECKETT ON JUNE 8, 2022
A recent report on Bankrate.com reminds us that the acronym BRRRR is not a signal that it’s cold, but rather a strategy that many investors may know well; Buy, Rehab, Rent, Refinance, Repeat. Click here to read more.
Bankrate says the BRRRR method requires some advanced-level real estate expertise, but the thinking behind it is simple: Increase the value of distressed or older properties to make them attractive enough to rent, then leverage that appreciation to continue acquiring more properties for more rental income. They say that, if done right, the BRRRR method is a pathway to collecting passive income and building a large portfolio of rental properties. Indeed…
“If you’re an investor interested in the BRRRR method, start by building a relationship with a local community bank, says Charles Tassell, chief operating officer at the National Real Estate Investors Association.”
“That is the most critical aspect for an investor,” says Tassell. “Community banks understand individual investors better than large institutions, and they can be a bit more creative when it comes to making room for you in their portfolio.”