Table of Contents
Part 1 Introduction to BRRRR 15
My Story 18
How BRRRR Supercharged My Success 20
Chapter 1 Getting To Know the BRRRR Method 21
Why BRRRR Is Better Than Traditional Financing 21
The Traditional Method Explained 22
The BRRRR Method 23
How BRRRR Increases Your ROI 24
How to Increase Your ROI 25
BRRRR Gets the Most Out of Your Capital 27
BRRRR Increases the Velocity of Your Money 28
BRRRR Increases the Efficiency of Your Investing 29
A Story from My Own Life 30
What You Will Learn from This Book 31
How Learning to BRRRR Will Make You a Better Investor 33
Recovering More of Your Capital Allows You to Buy More Deals 36
How Getting More Capital Back in a Deal Will Make You a Better Investor 36
How Learning to BRRRR Will Supercharge Your Wealth 37
Key Points 50
Part 2 Buying Great Deals 51
Chapter 2 Buying Under Market Value 52
The Three Forms of Distress 53
Rules of Thumb 54
How Properties Are Valued 56
Tricks for Understanding and Increasing a Property's Value 57
Finding Property Deals and Analyzing Them 58
Rockstars Know Rockstars-Finding Talent to Help You Find Deals 62
Rockstars Play with Rockstars 65
Practical Advice for Proving Your Value to Top-Level Talent 66
Using Wholesalers to Find Deals 70
How BRRRR Helps You to Pay Under Market Value 73
Cash Offers Are Stronger 74
Cash Offers Open Doors to Buy Homes that Aren't Eligible for Financing 79
Example of a Real-Life BRRRR 81
Why Mastering "Buy" Is the Most Important Part of Real Estate Investing 83
Positioning Yourself Safely for Market Corrections 89
BRRRR Allows You to Pull More Money Out Than You Put In 92
Key Points 94
Chapter 3 How to Find Deals 95
All About Agents 96
Calling Team Leaders/Brokers to Ask for Top Talent 98
All the Ways to Find Agents 100
Wholesalers 103
Alternative Methods of Finding Deals 106
Key Points 111
Part 3 The Rehab Process 113
Chapter 4 Rehabbing Like a Pro 114
Finding a Rockstar Contractor/Handyman 115
Make Top Priorities a Top Priority 119
Finding Team Members Who Also Invest 122
Bringing Value First 124
Finding Contractors through Networking with Other Investors (and Others) 126
Using Handymen in a Rehab to Save Money 128
How to Receive Bids from Your Contractor 131
Two Types of Contractors 138
Turning Your Bid into a Contract 140
Creating a System with Your Contractor for Repeat Business 142
Upgrade Hacking 145
Why Upgrade Hacking Fits Well with the BRRRR Model 152
Key Points 154
Chapter 5 Common Rehab Strategies 155
Adding Square Footage to increase Your Property's Value 155
Adding Bedrooms and Bathrooms 157
Adding Value through Strategic Remodeling 159
Landscaping Tricks 161
Miscellaneous Common Rehab Ideas 163
How I Lost $5,000 Because of a Bad Roof 168
Running Your Rehab 170
How to Use a Team Member to Check on the Progress of Your Rehab 171
Brandon Turner's Story 173
Key Points 174
Part 4 The Rental Process 175
Chapter 6 Understanding Rent Prices 176
Finding Preliminary Rent Estimates 177
Finding More Accurate Rental Estimates 180
Asking Other Investors in the Area 181
Asking Property Managers 182
Asking Agents to Provide Rental Comps from the MLS 183
How to Determine if Rents Are Likely to Increase 184
Factors that Determine Whereto Live 185
Determining Supply 188
DOM 189
Property Manager "Turn Times" 190
Craigslist 190
Permit Watch 190
Property Manager Yearly Rent Increases 191
Downtown Construction 192
Real Estate Agent Intel 192
Research Your Competition 193
Using Better Materials 193
Buying in the "Path of Progress" 194
Buyer Bob's Story 194
A Case Study of San Francisco 196
The "Can You Believe That House Sold for That Much?" Talk 200
Key Points 200
Chapter 7 Tenant Tips 201
How to Find, and Keep, Great Tenants 201
Lower Vacancy 206
Self-Management vs. Professional Management 210
How to Find a Great Property Manager 214
How to Interview Your Property Manager 216
How to Establish Systems with Your Property Manager 221
Key Points 225
Part 5 The Refinance Process 227
Chapter 8 Choosing Your Lender 228
Getting the Loan, and Asking the Right Questions 229
Portfolio Lenders 235
Relationship Building Advice with Portfolio Lenders 235
How Many Loans Can I Have with Your Institution? 240
What Is Your Institution's Appetite for Residential Loans? 240
Key Points 242
Chapter 9 The Value in Financing 243
Loan to Value vs. Loan to Cost 243
Different Types of Loan Products 245
Which Types of Loans Work for Investors? 250
The Story of Insightful Ivan 251
To Leverage or Not to Leverage? That Is the Question 254
Other People's Money 255
Low Interest Rates 256
Long Amortization Periods 257
Real Estate Is Low Risk 258
Inflation Hedge 259
Don't Just Work for Money 260
Exit Strategies: How the Refinance in BRRRR Compares with the Sale of a Flip 261
The Argument Against Flipping 262
Selling a Property Is a Costly Endeavor 263
Refinancing Is Tax-Free Money 265
When a BRRRR Goes Great 269
Key Points 272
Part 6 Repeat: Building Systems to Run Your Business Like a Business 273
Chapter 10 Building Systems to Increase Your Success 274
The "Four E's" 275
The Pareto Principle 276
Benefits to Building Systems 278
Benefits to Leverage (or "Employable" Tasks) 278
How Repetition Increases the Performance of the Four E's 280
Persistence Is the Key to Success 284
Using Funnels to Find Talent 285
Using Your Failures to Improve Your Business 290
Key Points 293
Chapter 11 Scaling Your System for Increased Success 294
Real Estate Is a Get-Rich-Slow Game 295
Systems Provide Opportunities 295
How Systems Help You Master the Five Elements of BRRRR 298
Building Your Network Through Repeat Business 299
The Story of a Fisherman's Journey 300
Using Systems to Find Deals Through Others 307
Staying Top of Mind 312
The Impact of Compound Interest 314
Value Through Volume- How Investing at Scale Gives You a Competitive Advantage 317
Key Points 322
Part 7 Digging Deeper 323
Chapter 12 Arguments Against BRRRR 324
Key Points 331
Chapter 13 How You Should Expect BRRRR To Improve Your Results 332
What Kind of an Investor Do You Want to Be? 335
Acknowledgments 337
