Tag Archive for: Real estate investing

Text "What is a credit score?"

How Is My Credit Score Calculated?

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Real estate investing gets a whole lot easier when you understand your credit score.

There are a couple different types of credit scores, but the numbers we’ll use here reflect FICO scores (the most widely used credit score for most lenders).

Credit scores range between 0 and 850. More than 740 is great, and a score of less than 700 begins to limit your options.

This number is calculated by looking at five main pieces of information:

  • Credit mix
  • New Credit
  • Credit History
  • Payment history
  • Amounts owed

Credit Mix

Close to 10% of your score is based on the mix of credit you already have.

Do you have seven credit cards?

Or zero?

Do you have a car payment, a mortgage, student loans, personal loans?

Typically, the more diverse your lines of credit are, the better it is for your score.

New Credit

Around 10% is based on “new credit,” or how often you get credit inquiries or open a new line of credit.

New credit can temporarily lower your score. So for example, if you buy a new car, you’ll probably have trouble securing a loan for a property right away.

Length of Credit History

About 15% of your score is calculated based on how long you’ve had your lines of credit.

If you opened your first line of credit less than 5 years ago, you’ll have a lower score than someone whose credit is 40 years old.

Amounts Owed

These last two categories are the most important. They make up two-thirds of your credit score.

About 30% of your score is determined by something called amounts owed. Amounts owed is about your debt. More specifically, it’s about how much of your available credit you’re using.

For example, let’s say your credit card has a max of $1,000. You buy a new set of tires and brakes, so now you owe $1,000 on your card. You’re using 100% of your $1,000 limit – you’re maxed out.

The story creditors see when they look at you is that you’re not managing your credit well. They’ll assume you won’t manage other loans well either, so you get a lower score.

But let’s look at another situation.

Say you got a different credit card with a max of $5,000. That same borrowed $1,000 has a way different effect on your credit score. You’re only using 20% of your credit line, and you’re leaving 80% at your disposal. Creditors like that story. So you get a higher score.

Payment History

The biggest amount of your score, up to 35%, is based on your payment history.

Payment history is exactly what it sounds like:

  • How are you paying your bills?
  • Do you always pay on time?
  • Have you had any bankruptcies?

Financial institutions can see this information, and it’s the top factor they consider. At the end of the day, lenders want to know: Will you pay them back? On time?

Read the full article here >>

Watch the full video here >>

Text reads "What Is Hard Money." Mike Bonn stands with cartoon coins surrounding him.

The Beginner’s Guide to Hard Money Loans

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Hard money basics you need to know before real estate investing.

We’ve been in the hard money loan business for 20 years. Half the calls we receive are still beginner real estate investors trying to learn the money side of investing.

If that’s you, you’ve likely applied for, heard of, or thought about using hard money lenders. But maybe you don’t fully understand the private lending world yet. How does a hard money loan work? How much interest do private lenders charge? Do hard money lenders require a minimum credit score? Should you just wait until you qualify for better bank loans?

This guide will help answer:

  • What is hard money?
  • What do hard money lenders look for?
  • How is hard money different than other loans?
  • How do you qualify for hard money?
  • Is hard money better than banks?

Becoming hard money proficient will put you miles ahead as an investor. 

Ready to nail the basics?

What is Hard Money?

Hard money is a short-term loan designed for real estate investors. Hard money lenders focus on lending money on undervalued properties in need of rehab.

Hard money loans are short term – usually around six months or a year – and are designed to help buy properties to fix up.

While “easier” than traditional bank loans, hard money loans are also more expensive due to higher interest rates. Which brings us to the most important quality of hard money loans: they’re fast.

In real estate investing, discounted properties typically require fast-closing deals. Hard money loans can help you take advantage of prices while they’re low, and: 

  • Save on the property cost to begin with
  • Get more from selling or refinancing the property.

These savings more than cover the costs of a hard money loan for most investors.

The speed of hard money makes it valuable for newbie and seasoned investors alike. Hard money loans are made for real estate investors.

How Does A Hard Money Loan Work? 

What do hard money lenders look at? There are two main factors lenders of hard money consider.

Loan-to-Value Ratio

An important number a lender takes into account is the cost of the property. The ratio of the loan they offer and the cost is important for you to know.

Let’s say you have a property with a current appraisal of $200,000. Then you get a loan for $100,000. The loan is half of the value of the home, so your loan-to-value is 50%.

After Repair Value (ARV)

ARV, after repair value, is another important factor hard money lenders consider. The properties targeted by real estate investors are undervalued. They need work to be brought up to the standards of the surrounding community.

So, lenders look at not only the current value of the house, but also the future value of the house, after it’s all fixed up.

Many hard money loans are based on after repair value rather than loan-to-value. Your lender might offer you up to 75% – not of what you’re buying it for, but what you could sell it for by the end. 

What Does ARV Cover?

A key factor to ARV is that lenders will lend not only for the initial purchase, but for the fix-up costs. 

Many lenders will put money aside in escrows to use throughout the project to pay contractors and cover other renovation costs. 

If your loan considers ARV, it’s possible for you, with ZERO money down, to:

  • Buy a property.
  • Fix it up.
  • Either sell it (fix-and-flip) or refinance it (BRRRR).

After selling or refinancing, you use that money to pay the loan back.

Hard money is designed to build value into real estate. Understanding the role of the after repair value will help you immensely in your hard money investments.

How Is Hard Money Different from Other Loans?

Interest rates on hard money are between 2-5% higher than what you’ll find at banks. You can expect origination fees to be about twice as much. Appraisals will be close to the same.

So on paper, the rates and fees are higher, so it feels like you’re spending more. Which you are! But with hard money loans, you’re paying for:

  • Accessibility
  • Convenience
  • Flexibility
  • The opportunity to purchase properties you’d never be able to while relying on bank loans.

While hard money costs more than other loans, the potential value is also way higher. When sellers have discounted real estate, they want it sold fast. Banks can take 25-30 days to close. You can receive hard money in a matter of days.

Every week, we see hard money work to save people money.

When a recent client of ours bought a property, he saved 10% – just because he could close faster than the other five bidders. His savings on that purchase were $30,000: much more than double what he’ll spend on the loan transaction.

How Do You Qualify for a Hard Money Loan?

There are two kinds of hard money lenders. They each have different qualification requirements.

National Hard Money Lenders

National lenders lend in almost every state. They are larger organizations, backed by hedge funds and private equity.

National hard money lenders require:

  • A credit score check, and a good score.
  • Experience – at least five deals in the last three years. 
  • Properties to be in specific larger communities.

So if you’re new to investing, need to improve your credit score, or are looking at more rural properties, you may need to look into local lenders.

Local or Private Hard Money Lenders

A local, or private, lender will specialize in your state or area. Local lenders are much more likely to:

  • Not ask for a credit score.
  • Not require experience.
  • Lend for rural areas.

Local lenders are focused on the deal itself and whether it has good value.

When deciding which lender to use for hard money, always shop around to see what fits your situation now. And be aware that another lender may fit you better in the future.

Are Private Lenders Better Than Banks?

It’s impossible to say whether hard money lenders or banks are “better” for real estate. It all depends on your deal and where you are in your investment career.

When to Use Bank Loans vs Hard Money Loans

Bank loans will have lower rates and may be the better route if you:

  • Have had a successful investment business for over two years.
  • Make a lot of money at a W-2 job.
  • Have 3-4 weeks to close.

Hard money loans will be easier, faster,  and may work better if you:

  • Are newer to real estate investing.
  • Don’t have money up-front to invest.
  • Don’t want to put your own money into a deal.
  • Need to close within a week or two.

As long as a property promises income, hard money more than makes up for its higher rates with the speed and greater potential savings. Starting in hard money paves the way for you to work up to bigger funding opportunities.

Ultimately, your investment career should always have a mix of funding types. Bank loans, hard money, and OPM all have their place to work for you in real estate investing.

Where to Go from Here

Understanding money is key to successful real estate investments. When you put time into understanding money, you get control of it. With control, you can multiply your investment earnings four times over.

It doesn’t stop here. We want to help with your hard money education:

5 Ways to Make Money in a Volatile Market

5 Ways to Make Money in a Volatile Market

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5 Ways to Make Money in a Volatile Market

Check out our latest Market Watch videos here: https://youtube.com/playlist?list=PLb…

The current market is going CRAZY with increasing interest rates, rising inflation, and supply chain issues. As a real estate investor, how can you prosper in these times? In this video, we share 5 ways to make money in a volatile market. Check it out! STAY CONNECTED ========================

 

How to invest in real estate with $0

No money to put down on your first investment?

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Money shouldn’t stop you. Use these 3 tips to get started.

You don’t have enough savings. After all, flipping is how you want to start making money, right? And you want to begin that real estate investment journey now.

But if you don’t have the money to begin with… how are you even supposed to start?

We see people do it every day. Here are the 3 main ways people have made successful real estate careers with zero money down.

What Are Other Ways to Start with No Money?

Clients come to us wanting to get into real estate but think they need money in the bank. That’s not always the case.

Here are the 3 key ways we see people start their investments with no money:

  1. If you already have a mortgage, get a HELOC.
  2. Start with money from family, a friend, or an outside partner.
  3. Use a 0% credit card to fund the costs of your investment.

Read the full blog here »

These aren’t the only ways we’ve seen people succeed with a new real estate career. Want even more ways to get into flipping and property investment with zero down? Download our free checklist, or check out these videos on our Youtube channel. Happy investing.

Investing in Real Estate with Zero Down

3 Ways to Start Investing in Real Estate with Zero Down

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Is investing in Real Estate with Zero Down for real?

No money to put down on your first investment? That shouldn’t stop you.

Use these 3 tips to get started.

You don’t have enough savings. After all, flipping is how you want to start making money, right? And you want to begin that real estate investment journey now.

But if you don’t have the money to begin with… how are you even supposed to start?

We see people do it every day. Here are the 3 main ways people have made successful real estate careers with zero money down.

  1. Get a HELOC

    If you already own a house, the first tactic you should use to get money for real estate is to get a HELOC.

    HELOC stands for “home equity line of credit.” It’s basically a second mortgage that works like a line of credit that you can use and pay off over and over again. You’re able to use it for multiple properties.

    You could get a HELOC from credit unions or banks. We usually send our clients to credit unions because they tend to have better options for HELOCs. A credit union will likely give you:

    • A longer term
    • Fixed rates
    • A little more money

    If you already own a home, go to a local credit union and ask them about a HELOC first.

  2. Start a Partnership

    But what if you don’t have a house, so you can’t get a HELOC? A partnership might be your next best option. There are two routes you can go.

    Family or Friends

    You can ask a family member or friend to be a money partner. They can provide you with the cash to use for a property’s down payment, or for the repairs of your flip.

    The close and personal aspect of partnering with someone you know can be the best option for some people. In other cases, it’s nice to partner with a person or entity who’s not so personal.

    Outside Partner

    You could also look for an outside partner.

    For example, Hard Money Mike partners with people who find good deals but don’t have the money to make that first purchase. We help them finance the whole amount so they can get into their first two or three deals. After letting us help fund their first three deals, most people come out with enough money to do their own down payment and repair costs on their next property, with no partner.

    Beginning investors can make their business independent quickly when they seek out the right partner to get them started.

  3. Use a credit card

    Many people hesitate to use a credit card to fund their investments – for good reason. But when done right, a 0% credit card can be the simplest way to start investing with no money down.

    What are the wrong ways to use a credit card for a fix-and-flip?

    • Getting a credit card with a high APR.
    • Using the card to go out and have fun.
    • Not paying back the charges you put on the card.

    If you’re smart, it can be easy to use a credit card the right way. Start with a 0% APR card. Understand that it’s a tool for your business, so treat it that way. Only use the card for repairs, contractors, and other costs associated with your flip.

    Take out the money, sell the property, then clear the card back to zero before moving onto your next project. Don’t let the debt accumulate. Don’t keep a balance from deal to deal. This is where credit card use falls through for most investors. They don’t use the money from the sale to fully pay off the card, and it gets out of hand fast.

    But if you do it right, a credit card works as a great way to help beginners get the funds needed to start in real estate.

What Are Other Ways to Investing in Real Estate with Zero Down?

Clients come to us wanting to get into real estate but think they need money in the bank. That’s not always the case.

Here are the 3 key ways we see people start their investments with no money:

  1. If you already have a mortgage, get a HELOC.
  2. Start with money from family, a friend, or an outside partner.
  3. Use a 0% credit card to fund the costs of your investment.

These aren’t the only ways we’ve seen people succeed with a new real estate career.

Want even more ways to get into flipping and property investment with zero down? Download our free checklist, or check out these videos on our YouTube channel.

Happy investing

Investing in Real Estate with Zero Down

Why Realtors Make Good Team Members

Why Realtors Make Good Team Members

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Why Realtors Make Good Team Members

If you want to make the most money on your real estate deals, then you need to create a solid team.

And some excellent members to add to your team are investor-friendly realtors.

But, why do realtors make such great team members for real estate investors?

Well, first of all, they have a constant pulse on the market.

They know what’s happening, where it’s happening, and how it’s happening.

Second, discounted properties also tend to fall into their laps, and they can pass those properties on to you.

So, what type of realtor should you work with?

Well, they should do more than put you on their MLS drip. Any realtor can do this, and nowadays, many of the properties on the MLS get listed on sites like Redfin and Zillow.

So, getting on an MLS drip won’t help investors much…especially when we’re looking for under-market properties. And under-market properties aren’t found on the MLS often. The right kind of realtor will have a lot more hustle. They’ll actually search for under market properties and then go through the numbers to decide it’s worth investing in before they present it to you.

Better yet, investor-friendly realtors connect with professionals in various industries, like bankruptcy attorneys. That way, when investment properties pop up, they’ll be one of the first to know about it. And then tell you about it, rather than making you wait to—hopefully—see it on the MLS weeks or months later.

Most importantly, the right realtor will LOVE working with investors.

Unfortunately, about 95% of the realtors do NOT like working with investors. Or, if they do, it’s part-time and not a high priority for them. These are usually more experienced realtors who have an established client list. They don’t really need your business to make money. They already have a system in place.

But, when you find realtors who are investor-friendly, you’ll know. You won’t be a side gig or a part-time project for them. They’ll be hungry to help you find investment properties and make a lot of money.

Many times, these are newer agents who are willing to be trained. They’ll be the ones looking for business and finding ways to make money with you, not off of you. So, rather than selling 3-5 properties a year, they want to sell an investment property every month.

Now, is it a bad idea to team up with both experienced and new realtors?

Not at all.

In fact, it’s a great idea to work with multiple realtors, because they all have different resources, experiences, and ideas. Plus, if one moves away or quits their job, you don’t need to worry about losing your main resource for finding properties. You’ll have others to fill in the gap.

If you want to create a smooth, easy system with your investment properties, then adding a realtor or two…or three…to your team is an excellent idea. Just make sure they like working with investors and are hungry to make money. The hungrier, the better for both of you!

Happy investing!

How to Combat Red Flags in Real Estate

3 Ways to Combat Real Estate Red Flags

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3 Ways to Combat Real Estate Red Flags

It’s time for a real chat.

Because we care about our clients and anyone else who decides to invest in real estate.

So, here’s the brutal truth: there are people who will lie to you in this industry. Lenders, realtors, other investors, and so on. Or only tell you half-truths.

I know. This is a HUGE surprise.

Okay, maybe not.

But, even if common sense and experience tells you that people lie, you can’t always believe it when it happens to you.

Why?

Because, more often than naught, you WANT something to be true, especially when it comes to making money. You want to believe you found an incredible deal, or an incredible lender, or an incredible something that nobody else has had the luck to find.

We all want those incredible moments to be true, right?

But most of the time, they’re just not.

So, what can you do to protect yourself and your wallet from real estate red flags?

Well, here are 3 tips we give to our clients:

First, if it seems too good to be true, it probably is.

For example, “If you buy this property, then you can generate $5,000 – $6,000 every month.”

Okay, that’s definitely a red flag.

Sure, we all want to make excellent cash flow on our properties. But, even in our competitive market, it’s near impossible to make $5,000-$6,000 every month on a standard rental in most towns or cities. The norm is more like $200-$500 a month…at least until a property pays off.

But, even then, making $5,000 – $6,000 every month with a single property is…too good to be true.

Unfortunately, we’ve seen this situation happen more than once to our investors. They get convinced of a sweet, sweet deal and jump into it. And…it doesn’t take long for them to figure out the person who convinced them to buy the property streeetched the numbers and the truth…a lot.

So, what can you do when a red flag waves in your face?

Ask questions.

Okay, someone told you something that’s too good to be true. Now what?

That’s right: ask questions. A lot of them!

For example, let’s say a lender quotes you a 4% rate when everyone else is quoting you about 10%.

Your first reaction is to cheer and think, “That’s amazing! I’m so happy I called this lender.”

But your second reaction should be, “Wait, why? Why is this lender quoting me so much lower than everyone else? What do they see that the other lenders missed? Why are they so much more forgiving and accepting of my financial history?”

There’s gotta be a catch.

Trust us, there is.

When lenders give quotes that are significantly lower than their competitors, it’s because they pad the rest of the loan with junk fees. They charge for everything, not just the loan itself. So, before you know it, you’ll be paying more than the 10% interest you would’ve paid with one of the other legitimate, honest lenders.

So always ask questions when a red flag pops up.

And, part of that process includes…

Getting a second opinion.

So, a red flag went up. Then you asked the lender, realtor, seller, investor, or whoever a bunch of follow-up questions to figure out if they’re telling you the truth…or yanking your chain and taking advantage of you.

Sadly, even if you grill this person, you might not get a direct or honest answer from them.

So, go and get a second opinion. Heck, get a third opinion! There are plenty of experts in the field to ask. Go out and see what they think of this “too-good-to-be-true” offer. Is it real…or fake?

Spoiler alert: it’s probably fake.

By taking these simple steps, you can protect yourself and your wallet from falling into a bad situation.

Just remember:

If it’s too good to be true, ask questions and then get a second, third, or even fourth opinion. Do your due diligence to save yourself a lot of hassle…and money.

Happy investing!

How to Make Money Bird Dogging

How to Make Money Bird Dogging

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How to Make Money Bird Dogging

Do you know how to make money bird dogging?

So, let’s say you’re eager to start investing in real estate, but you’re not quite ready to fix and flip or BRRRR. It’s just too big of a commitment or too much of a risk. Or both.

No problem.

You can still make money in real estate with a simple, but effective method called bird dogging.

What is bird dogging?

Basically, it’s driving for dollars. You hop in your car and drive around the neighborhood, city, or entire state and look for potential investment properties. You can even put on your best walking shoes and take a jaunt around your own neighborhood.

So, what does an investment property look like? Well, you should be able to tell it hasn’t been maintained. The paint is chipped, the windows are broken, the lawn overgrown, and so on. Or it’s vacant. Or there’s just something else is wrong with it that makes you think it can be sold at a discounted price.

Then, you collect information about the property. That means you can knock on the door and chat with the owner, take photos, and/or jot down the address. Once you do one or all these things, you can share it with potential buyers.

Buyers are usually wholesalers, investor-friendly realtors, flippers, or other real estate investors. They take the information you provide and follow-up with the owner to see if they’re actually interested in selling their property.

Essentially, you become the eyes and ears of the market.

So, what are some of the biggest benefits of bird dogging?

  • First off, it’s great for beginners who want to learn more about real estate investing. Maybe you’re not ready to flip or rent homes now, but you want to in the future. Bird dogging is a great introduction to both.
  • Unlike flipping and renting, bird dogging also doesn’t require any money to start. You don’t need to worry about classes, training, loans, or anything else that requires cash out of your own pocket.
  • Bird dogging is also something you can do when you have the time. So, it’s easy to fit into your schedule, be it during your lunch break, after you drop off the kids at school, or during your Sunday stroll. Really, whenever works for you!
  • Better yet, bird dogging can create multiple streams of income. You can make money when you find an investment property, when a wholesaler or realtor sells it to a flipper, and—if it’s a flipper—when they sell it after renovating it.

So, there you have it! Bird dogging is something you can do whenever and wherever. Just hop in your car or put on your shoes and go exploring. Find those properties that are in disrepair and share them with buyers.

How to Buy: Breaking Down BRRRR

How to Buy: Breaking Down BRRRR

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How to Buy: Breaking Down BRRRR

So, you’ve heard about the BRRRR method. You know it stands for Buy, Rehab, Rent, Refinance, and Repeat.

But do you know what each of these steps in the BRRRR method really mean? More importantly, do you know how to set each one up?

Because if you don’t, your success will be limited. Because you won’t be able to make as much money as you could by doing things right. Your monthly cash flow will be lower, your down payments will be higher…a lot higher…And your ability to repeat the process will much…much… slower.

So, let’s break things down, starting with the B in BRRRR.

As mentioned, the B in BRRRR stands for Buy.

But wait! Before you run out and buy the first property you find for sale, you need to know a few important—er, VERY important things. Because the B in BRRRR is one of the most crucial steps in the entire process. If you don’t buy strategically, then you might set yourself up for failure.

First you need to find under market properties that you can add value to.

Under market properties are not found on the MLS. They’re usually found through wholesalers and investor-friendly realtors. And they come at a nice, discounted price.

Just taking this step will do wonders for your wallet.

But it’s not the only thing.

You also need to work with the right lenders.

With BRRRR, there are two lenders involved. The first is for purchasing and renovating the property. The second is for refinancing into a cheaper, long-term loan.

For now, let’s focus on the first lender, for when you BUY the property.

Typically, this is a hard money or private lender. It’s not a bank or another traditional lender. Because those lenders usually require 10, 15, or even 20% down when you go to close. And, if you want the most bang for your buck, you should aim to put 0% down at closing. Because once you put money into a deal, it’s difficult to get it back out.

Hard money and private lenders can help you achieve this.

How? Because they let you maximize your LTV (loan-to-value) by lending up to 75% of the ARV (after repair value).

Ok, deep breath! We get it. This is starting to sound too complicated and confusing.

But trust us, it’s not. Just stick with it. You got this!

The right lender will give you a loan that is 75% of your ARV.

That means they will try to cover the full purchase price, plus part or all the rehab, closing, and holding costs. Basically, they will cover as much as the 75% allows so you don’t have to spend your own money.

And the less money you personally have to put into each deal, the faster you can repeat the BRRRR method. Because you’re not forced to wait until your bank account recovers to make another big down payment on another property.

Aiming for 75% of the ARV will also make a big impact on your refinance (the third R in the BRRRR method). But we’ll get to that later. Let’s stay focused on the B in BRRRR.

If you’re interested in trying the BRRRR Method, then it’s crucial you understand this first part of the process. If you buy an under-market property AND find a lender who can cover 75% of the ARV, then your success rate will be much, much higher. And your bank account will be a whole lot happier.

Happy investing!

3 Problems That Cause BRRRR Confusion

3 Problems That Cause BRRRR Confusion

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3 Problems That Cause BRRRR Confusion

Today, let’s talk about three big problems that cause many investors to experience BRRRR confusion.

Have you been thinking about investing in real estate using the BRRRR method? But you’ve hit a roadblock?

Unfortunately, you’re not alone.

A lot of real estate investors, both new AND seasoned, have heard about BRRRR, but haven’t used it.

Because they’re confused.

They’re confused about how to buy, rehab, rent, refinance…or all of the above.

So, to help unravel and debunk some of your confusion, let’s address some of the biggest questions we hear from our own clients about the BRRRR method.

#1: Is BRRRR real?

Yes. BRRRR is real.

There’s a reason why our team created this video for you. We’ve helped many clients succeed using the BRRRR method. But, just like you, many of those clients started their journey confused. Because they didn’t understand the entire process either.

And what they did understand wasn’t always accurate or true. Because they were working with bankers, lenders, or realtors who fed them misinformation or were simply out of the BRRRR loop.

#2: “Can you really find properties that work for BRRRR?”

Again, yes. Absolutely.

Even in our current, competitive market, there are properties that work perfectly for the BRRRR method. The trick is to find the right area to invest in. That might mean leaving your own town, city, or even state to find properties that produce solid cash flow.

And, trust us, those areas exist.

You can start your search by talking to wholesalers, investor-friendly realtors, or even other investors to see where they’re buying properties.

Of course, searching for cash flowing properties requires some time, effort, and patience.  But, if you think about it, all you’re doing is looking for one to four properties a year. Don’t you think it’s worth a little work to change your financial future? We think so.

#3: “How much money do I need to make BRRRR work?”

This is possibly the most crucial question we get. Not only is it a crucial question, but it also leads to the most confusion. Because it involves math, and most people don’t like math.

It also involves financing chit-chat, and again, a lot of investors don’t like talking about financing…even though the entire BRRRR process relies on good, solid numbers with good, solid loans.

But here’s the thing: once you grasp how to properly set up your BRRRR deal, then you can spend little to zero dollars on your properties.

Now, unfortunately, most investors don’t believe this, because, yet again, they’ve been fed misinformation by lenders, realtors, or other investors. So many people believe that have to bring a big down payment to closing.

And that’s because cash-out refinancing has been promoted as part of the BRRRR method. This isn’t a lucrative strategy. Not when there are other types of refinances that allow you to put little to no money in your deals.

The BRRRR method is an excellent real estate investment strategy. And, yes, it can be confusing when you get started. Because there’s a lot of chatter and misinformation flying around. Plus, nobody really likes math or financing. It’s true.

But if you’re willing to learn and do some work, then it’ll become easy. Very easy! And, better yet, lucrative. Because if done correctly, the BRRRR method can be repeated as many times as you want, as quickly as you want. Which means you’ll able to make the kind of money you want.

Happy investing!