Dani Lynn RobisonWealth Activator | Real Estate Investor & Speaker | Helping People Create Wealth With Simplicity, Trust & Impact

Here’s How You Can Use The BRRR Method to Become A Millionaire 💸 #realestate #financialfreedom

18 May 2024

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Short tutorial-style explanation of the BRRR (Buy, Rehab, Rent, Refinance) method for building wealth via leveraged real estate. The speaker gives a numeric worked example showing how an investor uses down payment plus rehab to increase appraised value, refinance at 80% LTV, pull out original capital, and repeat the process.

Questions this video answers

$200,000

$40,000

$20,000

$60,000

$250,000

Here's how the rich use debt to get even richer. It's called the Brrr method, and it works like this. Let's say you want to buy this house for $200,000. The good news is that you only need $40,000 to buy it. Now let's say you put $20,000 into rehabbing the house, so that's $60,000 all in. Once the house is rehabbed, you're going to rent it out for a higher price than if you didn't rehab it. And because it's rented out now, you can refinance the house and pull out 80% of the appraised value. Here's the best part. Because you rehabbed and rented the house, the appraised value is now $250,000 instead of the original $200,000. So the bank allows you to pull out $200,000 and you pay back the remaining $160,000 loan, giving you $40,000 in cash to go buy another property and repeat the process. Follow for more real estate hacks just like this.