The BRRR Method With No Money: I recently visited a Buy, Refurbish, Refinance, Rent (BRRR) deal in Derby. The property was bought by my student, Nathan, using a mix of investor money and a bridging loan from Samuel Leeds Finance. Other than the refurb, Nathan put in none of his own money! He will now refinance the property, repay the loan and the investor, and be left with a free house! If you want to see exactly how he did it, I highly recommend watching the full video at the top of the page!
A lot of people want to use the BRRR method, but have no money to get started. But the reality is, you don’t actually need to use any of your own cash! If you know how to: use bridging finance; find investors; and find excellent deals, you can get started with no money down! In this article, I will give you a simple 3-step guide on how to use the BRRR method with no money.
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1. The BRRR Method With No Money: Find A Deal
The first step is finding a deal. You will need to find a rundown property, at a good price, that you can add value to. Your aim will be to find a property that will be worth at least 25% more than you spend on the purchase and the refurb combined. This will then allow you to get a 75% mortgage, pulling out all the money you put in.
To do this, you will need to get builders quotes to estimate the cost of the work. You will also need to find out what comparable properties in the area have sold for. You will need to have some training or previous experience in order to get this right.
2. The BRRR Method With No Money: Other People’s Money
Now that you have found a deal, it's time to buy it! However, this doesn’t need to be with your own money! If you have found a good enough deal, the money will come. Cash rich investors are often time poor. They would prefer to have someone like you find the property and manage the project, rather than do it all themselves.
You will need to attend property events to get to know investors. You will also need appropriate training to show them that you know what you are doing. If possible, find property training that also allows you to meet investors at the same time.
Once you have found an appropriate investor, make a deal with them. This can either be in the form of a loan or as a joint venture (JV) partnership, whereby you share ownership of the property.
3. The BRRR Method With No Money: Repeat!
Once you have: bought the property; done the refurb; and repaid the investor, it is time to do it all again. This time will be a lot easier. Your investor may want to invest again, and if they don’t, you now have a case study to show other investors! This means you can begin on your next project and, over time, build a portfolio of properties using none of your own money!
Once you have cash-flow coming in, you may decide to do BRRR projects with your own money, or you may continue to leverage investor cash to do much bigger deals. Either way, this wealth building skill is now at your fingertips!
The BRRR Method With No Money And Other Property Strategies
If you want to learn how to use the BRRR method with no money and other property strategies, why not learn from a property expert? Join me at my next £1 training event!
On the course, you will learn how to:
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Become a property investor using other people’s money so that you can get started straight away
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Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!
