Christian Osgood explains the BRRRR strategy for residential real estate, then introduces BRRRR Plus for commercial properties with five or more units. With commercial properties, you can raise rents and cut expenses to drive appreciation yourself, refinance to return your capital plus a premium, and keep the property essentially free while recycling that capital into the next deal.
Chapters
Most people use the BRRRR method to recycle capital. Buy, rehab, rent, refinance, repeat. You improve the property, pull the money out, use the money again, buy another property, repeat the process. It is a little slow, but I've been using this. I've been using this to buy infinite properties, $0 out of pocket using banks. See, with commercial, you can actually push the rents, increase the income, or lower the expenses, but you can force appreciation in a way that you can't in residential. Residential depends on the market. Commercial is highly dependent on your actual operations. I'll actually use the recycled capital. An investor will come in, put the down payment in, the bank will spot the rest of the money. We improve the property modestly, refinance, pull their money back out with a little extra. They get a premium. They usually fund the next deal or do whatever they want to do with it. It's their money. And we get to keep the property for free. And you can do this on properties again and again and again and again. That is the advanced BRRRR method. That's in commercial real estate only, 5 units and up. That's BRRRR Plus. DM me the word info if you want to learn more from me and my team.