BRRRR Method

Using the BRRRR Method to
Achieve Financial Freedom

FASTER
Hosted by David Greene
Co-host of The BiggerPockets Podcast
Instagram: @DavidGreene24 Twitter: @DavidGreene24 LinkedIn: @DavidGreene24
Follow me on Facebook: DavidGreene24 Youtube: /DavidGreeneRealEstate
WELCOME!
WHAT YOU’LL
LEARN TODAY
I’ll show you just exactly what the
BRRRR method is, including
• How to make it work for you

• Why it’s the best method to use for
buying real estate
• What you need to know to do it well
• How it can exponentially grow your
wealth
• How to combine it with BP technology
to take all the guesswork out of RE
investing
STAY TO THE END FOR TWO
AWESOME DOOR PRIZES!
www.BiggerPockets.com/_________ www.BiggerPockets.com/_________
WHY ARE WE TEACHING
THIS FOR FREE?
ABOUT ME
DAVID GREENE
Real Estate Investor
Discovery Bay, CA
Copyright © EO BiggerPockets Inc. All Rights Reserved 7

ABOUT ME
DAVID GREENE
Discovery Bay, CA

ABOUT ME
DAVID GREENE
Discovery Bay, CA
• Real Estate Investor

ABOUT ME
DAVID GREENE
Discovery Bay, CA

• Co-host of the BiggerPockets Podcast

ABOUT ME
DAVID GREENE
Discovery Bay, CA

• Author (3 books and counting!)

ABOUT ME
DAVID GREENE
Discovery Bay, CA

• Real Estate Agent

ABOUT ME
DAVID GREENE
Discovery Bay, CA

• Real Estate Agent

But…
THE HUMBLE
TRUTH
Over time I discovered “the
truth” about scaling a real
estate portfolio effectively -
and I’m gonna share it with
you today - so you can cut
short the learning and
testing and failing time.
Get the good info without

the embarrassing bad
experiences.
Copyright © 2016 BiggerPockets Inc. All Rights Reserved 15

TODAY...
Today:
● 30+ units in four states
● Shares in three large
apartment buildings
● Own mortgage notes and
shares in note funds
● 100% of my bills paid for
by real estate
● Best selling book on
Amazon
● Featured on HGTV’s
“House Hunters”, Forbes,
and CNN Copyright © 2016 BiggerPockets Inc. All Rights Reserved 16
WHAT WE’RE TALKING ABOUT TODAY:

WHAT WE’RE TALKING ABOUT TODAY:
FINANCIAL
FREEDOM
FASTER Copyright © 2016 BiggerPockets Inc. All Rights Reserved 18
BRRRR
● BRRRR takes wealth building and allows it to explode

BRRRR
● Allows you to build a rental portfolio with very little capital

BRRRR
● Allows you to quickly scale your portfolio

BRRRR
● Works with both Single Family & Multifamily

BRRRR
● Works on Big Deals and Small Deals

BRRRR
● Great for first-time investors

BRRRR
● Works great in today’s competitive market

BRRRR
● You can outbid house flippers and wholesalers

BRRRR
● A strong hedge against inflation

BRRRR
● A strong hedge against inflation
● Reduces rental property expenses and headaches and helps you attract
better tenants with less management
BUT...

99% OF THE PROPERTIES OUT THERE ARE
NOT DEALS.
YOU HAVE TO:
a.) Understand how BRRRR works &

b.) Analyze for the best BRRRR deals
c.) Take consistent action
ARE YOU READY TO
LEARN?
ARE YOU
COMMITTED TO
FOCUSING?
ARE YOU
COMMITTED TO
TAKING ACTION?
BRRRR:
BRRRR:
BUY
BRRRR:
BUY
REHAB
BRRRR:
BUY
REHAB
RENT
BRRRR:
BUY
REHAB
RENT
REFINANCE
BRRRR:
BUY
REHAB
RENT
REFINANCE
REPEAT
● Alexon
● Purchased for 45k
● Rehab of $8500
● Total of 53k
● Appraised at 95k
● Pulled out $71,250
● Bank gave me the
difference of $23,750
● Cash flows at $250 a
month after refi
● Now worth 130k
● total equity created =
$77,000
● What would $77,000 do
for you and your
family’s future?
If you master the BRRRR
method,
you will master real
estate investing
Let’s go through each
step of the BRRRR
strategy in detail!

BUY

BUY
You make your money when you buy

BUY
If you know what price to offer on a property,

you have nothing to fear in real estate
BUY
If you know what price to offer on a property,

you have nothing to fear in real estate
Every property has a “home run” number

How do I know what to offer?

How do I know what to offer?
When you make real estate less about

emotion, and more about math, you
take the scary and complicated and
make it fun and simple

THE “Quick and Dirty” FORMULA
Acquisition (sales price) + Rehab

= 75% of ARV

= 75% of ARV
ARV = After Repair Value


= 75% of ARV
ARV = After Repair Value
Why do we use 75%? I’ll explain in the “refinance” portion

WARNING:
NEVER BUY A PROPERTY BASED ENTIRELY

ON A QUICK AND DIRTY FORMULA! ALWAYS
DO A THOROUGH ANALYSIS!
How is the ARV determined?
Comps (comparable sales)

Ask an agent
Ask an agent
Ask an appraiser
Ask an agent
Ask an appraiser
Ask a property manager

Ask an agent
Ask an appraiser
Ask a property manager
Ask another investor

If you get a good enough deal, you can
make money even if things go wrong
during the rest of the BRRRR process.
Buying right is your number one priority!

We will cover how to analyze properties
to make sure you are buying right later
in the presentation.
Don’t miss it!

Rehab

Rehab
Most of the time you will be targeting fixer upper properties.
This means there will be some form of rehab.

Rehab
The rehab process can be done out of state or in state.

The method is the same.

Rehab
The rehab process can be done out of state or in state.

The method is the same.
Do it yourself or hire a contractor?

Rehab
How to determine rehab costs:

Rehab
Get multiple contractor bids

Rehab
Get them in an itemized format

Rehab
Ignore the bids that are substantially higher

Rehab
Ignore the bids that are substantially higher
Choose the contractor with the best prices and the best communication

www.BiggerPockets.com/HireContractor
www.biggerpockets.com/brrrrblog
Rent
Rent
RENT - EXPENSES = CASH FLOW

Rent
RENT - EXPENSES = CASH FLOW
Where do we find rent

estimates?
Rentometer.com

Rentometer.com
Property managers

Rentometer.com
Property managers
Craigslist

Rentometer.com
Property managers
Craigslist
Agents

Worried about making sure you ran numbers
accurately?
We’ve got a solution for that too!
Stay tuned to see a real life analysis shortly.

Refinance
Refinance
Getting pre approved before buying is smart
Refinance
Ask your lender what LTV they are offering

Refinance
If your LTV is 75%, that is your target number to be all in for

Refinance
Some banks require a seasoning period of 6 months, others

require less
Refinance
Some banks require a seasoning period of 6 months, others

require less
Portfolio loans or commercial loans require less of a

seasoning period
Repeat
Systems!

Repeat
Systems!
Systems allow you to scale at incredible rates

Repeat
Systems!
Anything you have to do more than once should have a system

Repeat
Systems!
Technology can make systems much easier

Repeat
Systems!
Technology can make systems much easier
Google drive & BP calculators are my favorite two pieces of technology

Ok - let’s do a REAL LIFE BRRRR
example together right now!

BiggerPockets.com/calc

DO YOU NOW KNOW HOW POWERFUL
BRRRR INVESTING CAN BE FOR YOUR
FUTURE?

GREAT!
BUT … KNOWING IS NOT ENOUGH.

“IF MORE INFORMATION WAS THE
ANSWER - WE WOULD ALL BE
BILLIONAIRES WITH PERFECT ABS.”
-DEREK SIVERS

ARE YOU COMMITTED TO
TAKING CONSISTENT ACTION
TO ACHIEVE YOUR GOALS?

If so, here is the
next logical step
for many of you.

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Using the BRRRR Method to

Achieve Financial Freedom

• How to make it work for you

Copyright © EO BiggerPockets Inc. All Rights Reserved 7

Copyright © EO BiggerPockets Inc. All Rights Reserved 8

• Real Estate Investor

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• Real Estate Investor

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• Real Estate Investor

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• Real Estate Investor

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• Real Estate Investor

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Get the good info without

Copyright © 2016 BiggerPockets Inc. All Rights Reserved 15

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YOU HAVE TO:

a.) Understand how BRRRR works &

Copyright © 2016 BiggerPockets Inc. All Rights Reserved 43

Copyright © 2016 BiggerPockets Inc. All Rights Reserved 44

You make your money when you buy

You make your money when you buy

If you know what price to oﬀer on a property,

You make your money when you buy

If you know what price to oﬀer on a property,

Every property has a “home run” number

Copyright © 2016 BiggerPockets Inc. All Rights Reserved 48

When you make real estate less about

Copyright © 2016 BiggerPockets Inc. All Rights Reserved 49

Acquisition (sales price) + Rehab

Acquisition (sales price) + Rehab

ARV = After Repair Value

Acquisition (sales price) + Rehab

ARV = After Repair Value

Why do we use 75%? I’ll explain in the “reﬁnance” portion

NEVER BUY A PROPERTY BASED ENTIRELY

Comps (comparable sales)

Comps (comparable sales)

Comps (comparable sales)

Comps (comparable sales)

Ask a property manager

Comps (comparable sales)

Ask a property manager

Ask another investor

Buying right is your number one priority!

Don’t miss it!

Copyright © 2016 BiggerPockets Inc. All Rights Reserved 62