How Does Buy Refurbish Refinance Work?: Do you want to know if a property deal is worth your time and money? In a recent video, I reveal the simple step-by-step process I use to analyse property deals for profit. In the video, I explain the 25% principle that will allow you to profit from property, even when amateur landlords are struggling!
You may have heard of BRR, but how does Buy, Refurbish, Refinance work? If you want to see exactly how to use the BRR strategy, which allows you to use the same pot of cash to buy multiple properties, make sure to watch the full video until the very end. You can find the video at the top of this blog post or via my YouTube channel. If you want to grow a property portfolio of your own, don’t skip this one!
Have you ever wondered why some property investors struggle to grow their portfolio, while others grow their empire quickly? It isn’t always about having the most money! Even a relatively small pot of cash can be used to buy multiple properties, if used correctly.
In this article, I will explain the Buy, Refurbish, Refinance (BRR) strategy based on the 25% principle! By the end of this post, you will understand the basic blueprint for building a property empire.
Many people are finding traditional buy-to-let investment no longer makes financial sense. They are now looking into BRR. But they have questions! How does buy, refurbish, refinance work? How do I find a property suitable for the strategy? How do I know a property will be profitable? That’s why I want to get property education into the hands of as many people as possible.
I want to help people understand the Buy, Refurbish, Refinance (BRR) strategy, but I need your help to do it. Please share this post with your friends on social media. The 25% principle is understood by the rich, but with your help, everyone can benefit from it!
1. How Does Buy Refurbish Refinance Work?: Find A Property With Vision!
The first step is to find a property with vision, that is to say a property with potential (one that needs work). One of the biggest mistakes new property investors make is to try and compete with the average homebuyer looking for a ready-made home. Instead, look for rundown properties that you can add value to.
Not only is this a great way to get a good deal, it also improves the nation. By turning these properties around, you add to the stock of housing available.
2. How Does Buy Refurbish Refinance Work?: Calculate The Cost To Fix Up The Property!
Next, you will need to calculate the cost of doing up the property. Estimating costs will take either experience or some property training. Get quotes from builders in the area for confirmation.
You should also get an independent building survey done, particularly with properties in need of a lot of work. This is an important step that could save you from losing a lot of money, if things go wrong.
3. How Does Buy Refurbish Refinance Work?: Calculate The GDV And Make An Offer Accordingly!
Next, you need to work out what the Gross Development Value (GDV) of the property will be. This is what the property will be worth after all work is complete. You will need to look at comparable properties in the area to calculate this.
Once you know this figure, this is where the 25% principle comes in! Take away 25% from the GDV, then take away the cost of the refurbishment. The remaining amount is the most you can offer for the property.
If you do this right, this will allow you to get a 75% buy-to-let mortgage that covers the amount you spent on the purchase and the refurbishment. You can then use that money to buy another property and do it all again!
As a thank you for reading until the end, I want to give you access to our free BRR/Flips Calculator! Simply enter your figures, and the calculator will do the hard work for you!
How Does Buy Refurbish Refinance Work?: Get Trained!
How does buy, refurbish, refinance work? Now you know! Want to learn more about how to profit from UK property? Join me at my next introductory online training event!
We have different online trainings throughout the year, each teaching different things. Here is a sample of what you could learn on one of our online introductory webinars:
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The SECRETS to becoming a successful property investor
Get immediate and actionable insights to accelerate your property investment journey.
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How to LEVERAGE other people's money to get started
Begin to understand the strategies to use to reduce the barriers to getting started.
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How to FIND fantastic property opportunities
Understand where property professionals source the best deals.
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How to RECYCLE your money again and again
Don't just do it once, repeat the process to build your property portfolio.
Property investing is not just for the rich! Learn the strategies that thousands of people have used to not only start investing, but become financially free! Tickets are free, so book your property training webinar now. If you are ready to take action, I hope to see you very soon!
