Tag Archive for: rental property loans
Intro to BRRRR
Are you looking for a simple, easy-to-use strategy to use on your rental investments? Then we recommend Bigger Pockets’ BRRRR strategy (also known as BARRRR).
BRRRR/BARRRR stands for:
Buy
Advertise
Rehab
Rent
Refinance
Repeat
For a full introduction to this real estate investment method, check out this video from Bigger Pockets.
Cash Flow vs Profits
The Difference Between Cash Flow and Profits
Did you know there’s a difference between cash flow and profits? Actually, there’s a significant difference.
Cash flow is the money flowing in and out of your bank account every month to fuel a project from start to finish. The trick is to match incoming money to outgoing money. If cash flow is negative, you’ll spend more time juggling who gets paid and how instead of focusing on finishing and selling the project.
Profits are what you make after everything is paid. Basically, they’re the BIG payday at the end of a project. Profits replenish the pool of money you get to play with, apply toward your next project, and use to lower costs on your next deal. They can also help your cash flow by showing lenders you’re worthy of better products and rates. In their eyes, you’re successful and able to repay them.
Ready to boost your cash flow AND profits? Then contact us!
Take Advantage of the Fix and Flip Escalator
Now that you’ve seen the benefits of the Fix and Flip Escalator, let’s talk about what you can do to take advantage of it!
- Start with what you have and see how you can enhance it. For example, what are your assets and experience level, and how can you use them to accelerate yourself up the escalator?
- Show off your work! Create a portfolio. The more you analyze your project history the more likely bankers and lenders will fight for your business.
- Fix your credit. Your credit should range between 670-800+. If it’s below that, you should focus on fixing it.
- Keep up to speed on the finance world. Be aware of what products are available to support your current and future plans.
- Find people who can help you with the finance stuff. Because, again, math. Ugh!
- Create a roadmap to financial success!
By moving away from an expensive partner and heading toward profit boosting cash, you’re sure to make A LOT more money A LOT faster.
Which means you can start fulfilling all of your lifelong dreams sooner.