Investing With The BRRR Method

Are you currently an investor or thinking about beginning your real estate investment portfolio? This is an incredible journey that can provide you with multiple streams of income. There are many ways to go about investing and so many people have different opinions on what is the best way to go about this. Your financial situation is most likely not the same as someone else's, so you want to do your research on the different investment methods. One of the most popular and widely known investment methods is the BRR Method. What does that stand for? How does it work? Let's take a look.Investing With The BRRR Method

What is the BRRR Method?

The BRRR method stands for buy, renovate, rent, refinance, repeat. This makes it seem easy but it is important to note that it can be risky. To understand that risk we need to deep dive into each aspect of the BRRR method and how to use it in your investing portfolio.

Buy

Before you can dive any further you need to decide what you are going to buy. What type of real estate are you looking to jump into this process with? You typically want to look at real estate that has a lower purchase price and is in an area with a higher rent. A huge bonus is something that has long-term tenants that are consistent because this is what makes you profitable.

Renovate

This is the more time-consuming of the processes depending on the state of the property you purchased. This is the step that will pay off. Renovating allows investors to increase their rental value. An increased rental value prevents vacancies and your monthly rental price.

Rent

Rent your investment. This is the 3rd step and involves marketing your property properly through specific websites like Airbnb or a property management company.

Refinance

As the investor, you will work to strategize your financing for your real estate investments. This is where you generate cash flow. When you refinance you can do a short sale or fix and flip, and this help BRRR investors make money.

Repeat (or Renovate)

Lastly, you repeat this whole process all over again. Sometimes you see an investor just jump to renovating existing investment properties. At this point, you have completed your BRRR method and continue on repeat as you build your investment portfolio.

Using the BRRR method can be a great way to build your investment portfolio and earn a passive income. You can have a great return if you make wise choices. Just remember to buy, renovate, rent, refinance, and repeat. More importantly, work with an experienced and trusted agent.

For more information on building your investment portfolio through Chicago real estate, contact me.

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