Cody breaks down the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) for real estate investing while testing it in 44-degree water. The strategy depends on market appreciation and stable costs, but works best as one tool alongside buy-and-hold or seller financing rather than a repeatable formula everywhere.
Okay, that is cool. I hate this. I want to go home. It's cold.
All right, we're doing an intro to the Burr method. We're gonna get in the water, but in case we get too cold to speak because it's 45 degrees in the water, we're gonna just talk about it right here. Why we like it, why we don't, why we don't think it's super repeatable. So here we go. Welcome back to the channel. Yeah, for those wondering, this is January 6th, I believe. We're on the Hood Canal.
The water is about 44 degrees last I looked at night.
We're doing it at night because I think it will be more effective for the BRRRR method because it is factually colder. I saw this online and they said you should do the BRRRR method.
This is going to be a great way to grow your portfolio. So this is exactly what we're going to do. In all seriousness, Cody, what is the BRRRR method in real estate?
So we buy a piece of real estate, then we go rehab it if we need to rehab it, then we rent it out, then we refinance, we go get a new loan, pull all our money back out, and then we repeat. But we do it the fun way because we do it while shivering. So let's get in the water.
Whoo! Okay, that is cold. All right, so the Perry method. I don't like this, Cody. The Perry method is hard. I hate this. I want to go home. So a lot of people say the same thing. They buy a property and they don't buy a whole lot of real estate because it's not repeatable. You'll die if you keep doing it. I don't think Cody can survive. It only works when the market does what you think it's going to do. High appreciation markets, it may work really well. Like me, I have a thick coat of blubber. I do not. That is protecting me. If you've got a whole bunch of cash, you can weather the downturns. If you don't, you get in trouble if everything doesn't go quite as you think it will. Don't forget to breathe, Cody. Don't forget to breathe. It's cold. You're buying real estate, use a model that works through every cycle. If you're dependent on contractor prices, interest rates, people paying rent, which you have to on a BRRRR deal, it's probably not the right model. Yeah, buy and hold, fixed rate, for cash flow. If you buy for cash flow, you're going to be fine. Buy so you can hold it. If you buy it so you never have to lose it, without changing your financing, you're good to go. You don't have to burrow every property. You can scale faster if it's just a tool in your tool belt. Still a great strategy. Doesn't work for everything. Make sure to choose a winning strategy. Seller financing is one way to do it, but just solve for how do you buy it? How do you never lose it? Also, if you enjoyed this video, we worked really hard to be entertaining, as you can see. Please like and subscribe. I'd appreciate it. Thank you.
