It's not just how we feel in Minnesota all winter, it's our investment mantra!
When we started our real estate journey, there were no visions of large scale remodels. We had no experience outside of DIY projects and had never been a general contractor, but decided we were going to buy a home in need of massive city repairs because our prior 7 offers had all failed!
We hired a general contractor to run point on the project and learned 2 things.
1) We had the skills and knowledge to be a better GC than the guy we hired
2) We were spending all of our cash in the way we bought and financed the project
So we brainstormed for better solutions. How could we scale a rental business without massive cash outlays each time we bought a property? We had an aha moment when we found another home needing serious remodel and learned about a strategy called Buy, Renovate, Rent, Refinance (BRRR for short).
BRRR allows us to use bank money for renovations, add equity to the home through a remodel, rent to create cash flow, and take cash back out with a refinance to roll into the next project!
If you have any questions about the process or our approach, feel free to reach out to us with the contact form below!
It's not just how we feel in Minnesota all winter, it's our mantra for real estate investing!
When we started trying to become real estate investors, we never had visions of performing large scale remodels or doing any of the work ourselves. We had no experience outside of some DIY projects and had never been a general contractor, but decided we were going to start our journey by buying a home in need of massive city repairs because our prior 7 offers had all failed!
We hired a general contractor to run point on the first project and quickly realized 2 things.
1) We had the capabilities, experience, and real estate knowledge to be a better general contractor than the guy we hired
2) We were spending all of our cash in the way we bought and financed the project
So we brainstormed for better solutions. How could we scale a rental business without massive cash outlays each time we bought a property? We had an aha moment when we found another home needing serious remodel and learned about a strategy called Buy, Renovate, Rent, Refinance (BRRR for short). BRRR allows us to leverage bank financing for renovations, add equity to the home through a pre-planned remodel, rent at a rate that creates cash flow, and take cash back out with a refinance to roll into the next project!
If you have any questions about the process or our approach, feel free to reach out to us with the contact form below!