BRRRR: Buy, Rehab, Rent, Refi, Repeat Training!

Video Transcript Below

Hey, Daniil Kleyman here and this is going to be an awesome content filled video where I'm going to educate you about a strategy that I myself have been using for years. It's one of the most powerful rapid wealth building strategies that there is, and surprisingly very few people out there are sharing this information. I think this is going to be incredibly eye opening for you, especially if you're into building wealth which I don't see why you wouldn't be.

Why is this important? Real true generational wealth in real estate comes primarily from property ownership. I can't stress this enough, it comes from ownership. If you're wholesaling right now or if you're learning how to wholesale, that's great. You can make some very nice checks and build up a very nice income wholesaling. Rehabbing and flipping, you can make some nice checks but all of that is only as good as how hard you're willing to work permanently. Meaning you make a nice check wholesaling, to make money again you have to wholesale another deal. To make another check rehabbing and flipping, you got to go out and find a new deal. Real wealth, look at real true real estate millionaires and billionaires, they are people that own property long term. They've taken advantage of market cycles, they've taken advantage of appreciation. If a lot of them are smart, they use 1031 exchanges to avoid capital gains and keep rolling money over into new bigger deals. It's all about property ownership.

Buy, rehab, rent, refi, repeat. B-R-R-R-R. It is one of the most powerful wealth building strategies I've encountered. It allows for rapid portfolio building using limited amount of cash or private money. This takes advantage of the concept of velocity of money so that you can roll over the same cash into deal after deal after deal. This is key and you'll learn more about this in a second. The beauty of the strategy is it works in the flat market. It works in the rising market, it works in the flat market, the market that's not appreciating. You'll see why in a second.

It allows you to build a portfolio with little to no money of your own tied up. This is crucial. It allows you to build a portfolio where you don't leave any money tied up yet it ends up being a portfolio with at least a 20% equity position versus the debt that you have on it, usually more, and this will also serve to protect you in a down market. It serves to protect you in the down market for two reasons. One, you won't have any of your own cash or equity tied up but on paper you have an equity position, so if the market depreciates you have cushion to the downside.

I've personally used this strategy since 2009 to build a portfolio of rentals worth over $10,000,000. These have been both rehabs and new construction, both residential and commercial. This portfolio cashflow is clean. After paying my property manager, all expenses, it cashflows just a little over $20,000 a month. It continues to work for me whether I do new deals or I decide to just take a month off and travel. These are just some of the projects I've done and again, you can apply this to residential, commercial, new construction, cosmetic rehabs, gut rehabs. In this video, I'm going to explain this strategy in detail, step by step.

These deals, when they're done properly they're fairly math intensive, meaning to go from one deal to the next without getting stuck. What I mean by getting stuck is by leaving money tied up in a deal. You have to make sure the numbers work before you buy the deal. I'm going to show you how to do this easily, and unfortunately most investors have no clue how to do this.

I'll show you how to massively increase your chance of getting financing, and there's two financing components here. On the front end, short term financing, and for the refi. Let's talk about leverage. Leverage has always been the key to building, again, true long term generational wealth in real estate. Leverage can come in many forms, and no, not this leverage. This is a TNT TV show, Leverage, and not a very good one at that. Leverage, there's multiple levels that you can apply to thinking about leverage and they really differentiate the evolution of real estate investors.

Let's talk about leverage level one. Traditional thinking about leverage goes something like this. I'm going to find or save up some cash, 20 or 25%, and use that as a down payment on a rental, on a single family house, and I'm going to go out and I'm going to get a bank loan to finance the rest and I'm going to buy this house. Then over time, I'm going to save up another 20, 25% from my income and I'm going to use that as a down payment on another house and another house.

Look, this is pretty good and it can be powerful over time. There's people that work corporate jobs that over time, as they save up 20, 25%, they buy one house, maybe they buy one house a year or every few years, and by the time they retire they have a nice portfolio of five to 10 houses. Not bad. It can be powerful. You can take $20,000 in cash and you can buy a $100,000 asset and over time your tenants will pay off your mortgage. It's nice, but how far can this be scaled if you have to wait to save up 20% to buy each new deal? Not going to be scalable. How fast can you truly grow your portfolio?

Let's talk about leverage level two. The next level of thinking about leverage goes something like this. Instead of saving 20% from my income, I'm going to go out and I'm going to find equity investors to put up the 20%. We'll take out a bank loan and buy the deal together. This is better. You can go and you can find multiple equity partners and buy more deals than you could on your own. The pros of this is you grow your portfolio faster than method number one that I just showed you. The cons are you now have permanent partners, you're sharing cashflow and profits and you're managing other people's money.

Look, which is perfectly fine. A lot of huge multi family and commercial portfolios are built primarily this way. People go out and they syndicate equity and then they go and they get the bank to finance the bulk of the project. Then they have equity investors that they're paying returns to and they owe money to the bank but it allows you to scale really fast.

You could also just team up with equity partners and buy cashflowing houses for cash. The equity partner could actually fund the entire purchase and not need a bank and we teach this in one of our courses. The one negative downside is that you'll need more and more equity partners as you ramp up your portfolio. Each equity partner is going to get tapped out of the money that they have available and in order to keep growing your portfolio, you're going to have to keep finding new partners.

Hope that makes sense. I tend to go pretty fast but you have full controls on this video. You can rewind, you can pause if you need to rewatch this.

Let's talk about level three. This is next level thinking about leverage. You'll probably wondering who the fat guy is here. The fat guy, that's going to be you once you have so much real estate and so much money that you never have to get off your butt ever again. Let's hope you don't end up looking like that.

Here is the third level of thinking about leverage. Use the concepts of forced appreciation and velocity of money to get rid of long term equity partners and get into deals with zero down. The end result of this ends up being an income producing portfolio where neither you nor any partners have cash tied up. Forced appreciation, what does that mean? It means massively improving the asset either through a renovation or improvement in operations. Or both. Improvement in operations means if you buy an existing, let's say apartment building, you raise rents, you decrease expenses, you've just massively increased the net operating income the building generates and because of that, its value goes up in accordance. You can improve an asset using both methods. For single family houses, you're typically going to improve it through a renovation. Improvement in operations typically applies more to commercial assets. The result ends up being you buy something for two, you may put $2 in renovations into it and the value goes up exponentially. The value doesn't go up by two, it goes up by four, so two plus two equals six.

Forced appreciation is a truly beautiful concept. It works even if the overall market is not moving. This is key, because you may find yourself in a market that's not appreciating. How do you create value? You create value by physically improving a property and raising its value, forcing its appreciation.

Velocity of money, what does that mean? It essentially is a concept that describes how fast your money works for you. The faster you can turn a fixed amount of money from one deal to the next, the more deals you'll be able to do. Velocity of money and moving your money from one deal to the next. When I say your money, I don't mean your personal money. We'll talk about this in a second. It could be somebody else's money, but the key is to take that fixed amount of money and move it from one deal to the next, to the next, to the next. That is absolutely key to this strategy.

With the traditional approach to leverage, let's say $100,000 can be leveraged and turned into $500,000 in assets. 20%, five to one leverage. With the BRRRR strategy, if executed properly, $100,000 can be leveraged into millions in assets and then pulled out. As an example, over the course of the first three years when I got started, I turned a single $100,000 private money loan into a $5,000,000 income producing portfolio and still had that $100,000 pulled out to use for future deals. It's very powerful if done properly.

Let's talk about exactly how this strategy works. Step one is buy. Find a single family house or a multi family property or a commercial property, preferably in need of renovation. Again, with multi family assets you can find something that simply needs improvement in operations, but let's just talk about single family houses for now. If you're doing a rehab, you can a cosmetic rehab, you can do a full rehab, I personally am a fan of gut rehabs because you can buy the property dirt cheap. You can typically buy shells pretty cheap and you can significantly improve their value through a renovation.

The key here is getting a deal at the right price. You'll see why in a minute. Your total cost basis should be below 80% of the after repair value. Your total cost basis is calculated by adding up acquisition plus your closing costs plus the cost of your renovation plus your holding costs. When you add all that up together, it should be below 80% of what the property will be worth and what it will appraise for when your renovation is finished.

For a ton of ideas in finding cheap off market deals, simply go to RehabValuator.com/wholesaling. There's a ton of content there but don't go there now. Write down this link, go there later.

Once you find this deal, this single family house, you're going to need short term financing for the period when you do the renovation and you lease up the property. That can come from your own cash, it can come from a private lender, it can come from a credit line, it can be your own credit line. Maybe you have a credit line against your personal residence or against some free and clear houses that you own. It can come from a private lender's credit line, a friend or a family member's. It can be a HELOC, a home equity line of credit that somebody is able to tap and lend you money short term. It can even come from seller financing. If you find the house that you're going to renovate, negotiate seller financing with the owner and tell the owner you're going to pay them off as soon as you refinance which should be six months or less. You'll need someone to refinance your rehab in addition to your purchase, so if you're dealing with a private lender make sure they finance your renovation as well.

Again, if you want to learn how to find private money and how to structure private money deals, go to RehabValuator.com/private-money. Again, don't go there now. Write down the link, but there is a ton of free education at that link on finding private money and then structuring your deals so it's a win win for everyone.

Step two, once you've found this property and secured the short term financing, is you're going to rehab it. This will be a rental so you want to keep the finishes in line with what your market expects, and don't overdo it. In my rentals, I actually typically do a high end project. We do granite countertops, stainless steel appliances, but then there is other parts of the rehab that I save some money on. Instead of doing tubs surrounds, for example, with tile, we do single piece fiberglass tubs because those are going to last a long time. I do three quarter inch hardwoods which cost a little bit more initially but I can sand and refinish them, et cetera, et cetera. Be smart about the finishes that you put in. You want to make your rental attractive but you don't want to overdo it. It really is also going to depend on the area where you're rehabbing and what the market expects there.

Typically, unless you're buying something way below its today's fair market value, today's fair market value in its current condition, you're going to be able to create the highest appreciation through bigger rehabs. You're typically going to get smaller discounts on properties that just require a cosmetic renovation. You're typically going to get a much bigger discount on properties that require significant rehab.

When you go to reappraise, showing the bank that you just made major system upgrades, for example, electrical, HVAC, plumbing, will help justify a higher appraisal along with all the cosmetics upgrades that you've just made.

My rule of thumb when it comes to rehabbing is this. I do all the work required right now during my initial rehab to make sure that I have zero maintenance calls for the next five years. I want to get ahead of any problems I'm going to face. That means I'm typically going to do a pretty significant renovation on the property because I don't want to hear from my tenants for the next five years. It's better to spend the money before you refinance and then roll it over into the financing. It's better to spend the money now on the rehab because then you'll be able to pull that money out when you refinance.

The alternative is you're going to pay for things in cash as they arise. If you're buying a property and you're leaving some potential deferred maintenance there, like for example if there are heat pumps that are 10 years old and they work just fine but they're 10 years old so you're probably going to have issues with them in the next two, three years. If you have to replace that heat pump in two or three years, you're going to pay for it with cash and that's going to come out of your cashflow. Instead, replace it now and then you'll be able to pull that money right out when you refinance.

Again, go to RehabValuator.com/rehabbing and we've got a ton of content there on buying land, doing new construction, rehabbing, et cetera, et cetera. Write down the link, go there later.

Step three is you're going to rent the property. Now I recommend, and this is something that we've had a lot of success with this, start advertising the property as soon as you start your renovation. We do showings even while my construction crews are in the property doing the work and typically by the time that the renovation is finished, we already have a lease in hand and tenants ready to move in. This is going to allow you to proceed to step four quicker. The quicker that you have a lease in hand after your renovation is complete, the quicker you'll be able to refinance. You'll see why it's so crucial to do that.

Step four is you've bought the property, you've rehabbed it, you have a lease in place, you have tenants either already moved in or ready to move in, you're going to now refinance the property. You're going to go to a local community bank or a credit union. Why local banks instead of going to Wells Fargo or Chase? Local banks are typically portfolio lenders. They are mandated to lend in your local community, in your local market. Because they're portfolio lenders, what that means is they instead of issuing you a mortgage that has to fit into the boxes of being conforming, a Fannie or a Freddie, they don't sell these loans into the secondary markets. Instead, because they're keeping these loans in their portfolio, they are much more flexible in who they lend to, how they lend, what the loan criteria are.

What does that mean for you and why is that important? Well, it means portfolio lenders typically won't limit you on how many properties you can have financed. There's no 10 property limit there or four property limit or whatever Fannie and Freddie change their mind to these days. A lot of these banks won't have seasoning requirements, which means you're not going to come in there and they're going to tell you, “Well, you've only owned the property for four months and so we want to wait until you own it for 12 months or two years before we refinance it.” They don't have those seasoning requirements, which means you can refi a lot quicker.

They're going to lend you based on a percentage of the new market value of the property, not based on your cost. Again, this is key. You're going to walk in there and all that's going to matter is this. They're going to send down an appraiser who's going to look at the renovated property and the lease in hand, determine the market value now and they're going to lend you based on that number.

Here's how a typical deal would look like. These are just for illustrative purposes. You can scale these numbers any way you want. You're going to buy a property for $50,000, and again, I don't want to hear that you're in a market where houses cost $500,000. What matters is percentages. You can do the same thing here.

You're going to have, let's say, $1,500 in closing costs, you're going to put $20,000 into rehab, and then another $1,000 in holding costs. Your total cost basis so far, let's do the math here, get your calculator out, is $72,500. You're going to pay interest to a private lender for three months, let's say at 8%, $1,400. That brings your total cost basis to $73,900. You're going to rent this property for $1,000 a month and the new appraisal is going to come in at $100,000. Then you're going to tell your banker you want a loan for 80% of that and they're going to lend you $80,000 minus closing costs and the new loan, which let's say will be $3,000 including points and origination fees.

After those $3,000, your actual loan proceeds will be $77,000. You're going to pay back to your private lender $70,000, and after recouping your holding and closing costs, you're actually going to walk away with $3,100 in your pocket.

Now, these deals are possible. Even if you're in a market that is competitive. There are going to be pockets of your market where you can do these deals. Step five is going to be repeat. The net result of step four, of the refi, is that you completely paid off your short term financing in full, whether it was your own cash that you recouped or you paid back your private lender, and you now have that money to work with again and put it into the next deal. The cool this is you now have a cash flowing asset that brings in a positive cashflow every month and you didn't leave any money tied up in the deal. On paper you still have 20% equity, $100,000 value of your property minus the $80,000, so your balance sheet looks good and you can take that $70,000 from your private lender, from your cash, and roll it over into the next deal.

A couple of important points here. Again, yes, you can still find deals like this in almost any market. Maybe not every part of your market but there are going to be neighborhoods where you can still do this, and neighborhoods, chances are those are the neighborhoods that make sense for rentals anyway. Not the higher end neighborhoods. This works for $50,000 deals or $500,000 deals or $5,000,000 deals. What matters most is investment amount versus the new appraisal. That's what matters, percentages.

The key to success here is, one, having short term financing, and two, having reliable, what I call take out financing. Take out financing is your refi. You can actually use private lenders for take out financing instead of banks if you want. If you're not able to go out and get a bank loan, find private money lenders that want to lend you long term on income producing properties and use them for take out financing.

The other thing you can do is you can get credit partners. If you alone can't walk into a local bank and get a bank loan, find somebody that will go on that loan with you and be a credit partner, somebody that has really good income and probably a steady job and good credit. For being a silent credit partner on your deals, give them a percentage of your cashflow. You can be really creative here.

Most important of all, you have to know that you will get your take out financing before you buy the deal. Otherwise what's going to happen is you're going to get stuck and leave money tied up, whether it's your own money or your private lender's money, and then it defeats the point of the whole strategy. The party is basically over. To know that you'll be able to successfully take out your money, you'll need to project rents accurately, what your take out interest rate will be, and most important of all, the debt coverage ratio of the new loan to make sure that you can actually get the kind of financing needed to recoup your money. Banks will generally want to see a 1.3 DCR or higher. You absolutely have to run all these numbers before you pull the trigger on the deal.

A couple of additional keys to success. One, don't buy in areas where you will have a hard time renting. You won't be able to refi without a lease in place.

Two, even though bigger renovations tend to add the most value and thus the highest forced appreciation, that extends out your timeline and slows down your velocity of money. This is a trade off that you should be mindful of.

Number three, watch your balance sheet. Leverage is great but it will work against you in a down market. If you over leverage, it will also affect your ability to get new loans, so don't over lever.

Then watch your loan docs. Read them. Every time you sign your loan docs with a local bank, read the docs. Watch out for some of the clauses they like to throw in there which may allow the bank to call the loan due on demand. There's going to be cross collateralization that they will attempt to put in there. Rent assignments, et cetera. Have an experienced attorney review these clauses. Often some of these clauses you can negotiate. Your biggest keys to success are really going to be about two things. Knowing your numbers cold before you even get into the deal and then your ability to get the short term financing and the take out financing.

Let me show you how to run your numbers and then get financing all in about 10 minutes. You may already be familiar with the software if you are one of our current users but if you're not, Rehab Valuator is a pretty killer software that I've spent a lot of time and money putting together and that I use daily in my own business. There is a free account that you can set up. There is a free version of the software that you can get your hands on after watching this video, but it will not only help you crunch the numbers on these deals before you ever pull the trigger to make sure that you can actually buy the deal at the right price and be able to refinance and get your money out, it will also help you to get financing both short term and refi financing. I'm going to show you how to do this in a matter of just a few minutes.

All you do is you log in. It's going to take you to a screen where all your current deals are saved. We're going to click new deal and we'll just say, “Rental property in Church Hill,” and for now we'll just enter an address, let's say just for illustration's sake, and we can fill in all this other information later and click save.

The analysis interface is very simple but the goal here is to make sure that we are not overpaying for this deal, but moreover, the goal is to make sure that we'll be able to, based on our projected income for the deal and based on the projected terms of the new refinanced loan, we want to make sure we can actually secure that financing.

Just like in our previous example, we're going to say purchase price is $50,000. We'll enter closing costs here, let's say $2,000, and there is a way here to do them detailed as a percent of purchase price but for now we'll just input $2,000. We'll leaving holding costs as is and we can enter a detailed rehab budget here or we can just enter a quick lump sum, so let's just say $20,000 is our renovation budget. Then you go here and you select, instead of an all cash deal you're going to get short term financing for it. Click financing and we are going to get our private money lender to finance 100% of the cost of the deal. We're not going to pay them points but we'll pay them 8% interest rate.

There is an option here where you can actually share profits of the deal but because we're not going to flip it, we're going to refi it and keep it, we're going to say no, no split of profits. By the way, if you're new to the software, everything here, every section has a little tutorial that pops out when you click on it and every input and output has an explanation. Then you can also go to help and get a menu of tutorials here as well as additional case studies.

Here is the cool part. We know we're going to pay $50,000 for this deal. We're going to spend $20,000 rehabbing it. We're going to go here and click on exit strategy two. If you're flipping, you're going to use flip analysis or you're going to click exit strategy two and you're going to look at hold and rent analysis. Again, there's tutorials here for every step of the way but we're going to say our expected appraisal of this deal is $100,000 and it's going to take two months to rehab it and then an additional two months to find a tenant.

Immediately you can see your total cost basis in this deal is going to be $75,454 and we're going to borrow that entire amount from our private money lender. Then you simply go to this input and you click enter projected income and we're going to say this is actually a three bedroom house, 1,200 square feet and we're going to rent it for $1,000 a month. For simplicity's sake, we won't include any vacancy. You enter your projected operating expenses, let's say an 8% management fee, insurance, property taxes, and you can enter these on a monthly or an annual basis and you can change these to whatever you want. We're going to click update.

Here is what the software tells us. First of all, the one option I forgot to select is we're going to click here and we're going to say yes, refinance this property into permanent financing. Then you're going to enter loan to value of your new loan, 80%. New mortgage rate, let's say 4.5%. Because community banks are normally commercial lenders, we're going to amortize this loan over 20 years with 2% in closing costs.

Here's what we see. Net operating income on a monthly basis is going to be $780, our new mortgage payment is going to be $506. The new loan amount on this $80,000, we're going to take out after paying off our lender, we're actually going to pocket close to $3,000. Return on cash invested is not applicable because there is no money tied up in the deal. We didn't put in any of our own cash because short term financing covered the whole thing. Original money tied up after refi is zero. Equity left in the deal after refi, $20,000. Monthly cashflow after paying all of our expenses plus a management company is $274. If you're self managing this, then take this out. 0% management fee, that bumps up our cashflow to $354 a month and cash on cash return is infinite because we didn't leave any money tied up in the deal.

Here is where it gets even cooler. Will you actually be able to get this loan at 80% of the appraisal, given the rent that you expect to get, and this mortgage rate? Well, go down here and you can see the new debt coverage ratio is 1.7. That is actually very good. Most banks are going to be very happy to see it. Payback period on your cash invested. Well, there is no cash tied up to pay back. Then you've got some other metrics here.

You can immediately go in here, and this by the way works on any device, including your cell phone, but you can immediately crunch your numbers here and see exactly how much cashflow you'll have after you refinance, how much money you'll leave tied up, et cetera, et cetera. Based on these numbers, this deal is perfect for the Buy, Rehab, Rent, Refi, Repeat strategy. You're going to have 20% equity, no money tied up and $354 in cashflow and then you'll be able to take that $75,454 that you borrowed from your private lender and you're going to able to roll that into the next deal and the next and the next.

Here is where it gets even cooler. By the way, everything I showed you so far, you can do with the free version of Rehab Valuator except for ability to create detailed rehab budgets here. That comes with the premium version. Here is where this software gets really powerful because you need to be able to secure financing. There is no tool out there that can help you do it as well as this one. Check this out.

You're going to click on view reports and you're going to generate two separate reports. The first one is going to be for your private lender to get short term financing. You're going to click private lender funding request, hold, and you're going to click generate. This report is auto generated for you and I'm going to show you what it looks like in a second. You can essentially type in a project description, “Great property in a favorable rental location, project will take four months but may potentially take five.” It doesn't matter what you type in here. This is just for illustration purposes. All of this is auto generated for you.

You're showing your private lender the after repair value is $100,000, I'm going to buy this for $50,000, I'm going to need $20,000 to renovate it, I'm going to have about $3,500 in closing and holding costs that I would like you to also fund. I need a total of this amount and I'm going to pay you interest on the backend after I refinance. Now you can certainly structure this in a different method. You can pay your private lender every month. You can pay them interest. In this case, I structured the deal so that I don't have to come out a single penny. We're deferring all of our interest rates to our private lender until after we put the permanent bank loan in place.

You're showing your private lender I'm going to pay you 8% interest, it's going to take two months to rehab, two months to lease. Total amount of time I will need the loan for is four months and here is how much you are going to earn to the penny. Then all we need to do here is just upload a couple of pictures. This is a project that actually, one of the projects I've done, and you're done. You have a one page funding request that, if you click show PDF, it creates a PDF report that looks like this. You can print this out and hand this to a private lender at your meeting. You can click get unique link and actually email a link directly to this page to your private lender. You can private message them in Facebook or you can even text it to them.

The other thing you can do is you can create a full funding presentation for your deal. By clicking on view reports you can add project summary, you can add a cover page, you can add a cashflow summary, a comparable sales report. Check this out. You're going to click on comps report, click generate and then you're going to go here. Boom, all your comps are auto populated. You can even see them on a map. You can include that in your presentation as well.

The end result of that is you are not only showing your private lender exactly what their loan to value will be, what their risk is, but you're also showing them what they will earn to the penny by doing this deal with you. This builds a huge amount of credibility. Private money is all about relationships, it's all about trust, it's all about getting people to believe in the fact that you can execute the deal and you're showing them the deal using these tools.

Here is the other cool part. You're going to generate a second, separate report to show to your bank in order to get take out financing. You're actually going to click view report and you're going to click marketing sheet, hold. This report is going to show the following information. This again, this is auto generated for you. This is the story you're going to tell to your permanent lender. Property appraisal will come in at $100,000. My total cost basis is $75,454. The property brings in $1,000 in income, $140 in expenses. Again, these numbers are just for illustrative purposes. A house that costs me this much is actually probably going to rent for $1,100 to $1,200. I'm being conservative here but this is just for illustrative purposes. This is the story that you're showing to your permanent lender.

Here is your cap rate based on cost basis, based on after repair value. Here is the amount of the new loan that you are requesting, $80,000. Here is the equity that will be left in the deal. Here you're showing your lender, look, I'm still going to have positive cashflow after I borrow from you and here's the debt coverage ratio on the loan that you're going to make to me. This is what they want to see.

What your permanent lender wants to see is, A, that you are borrowing less than what their requirement is for LTV. They want to be able to see that you're going to have a very positive debt coverage ratio, but the bigger point of this is that you're going to send this to your lender and you're going to look like a rock star because you're going to look like you know exactly what you're doing. You've run all the numbers. You've run all the scenarios. Again, you can go in here and you can create a full presentation for your lender that's going to include a cover page, cashflow summary. You can even include a detailed rehab budget if you want. There's two pages of additional picks and comps.

All you do is you click generate. You can go in here, insert a picture. Now what I'm showing you here, the full reporting capability only comes in the premium version of the software. You're going to have a cover page, marketing sheet. This is what it would look like. You can upload your logo here. You can have a marketing sheet. You can upload pictures there, cashflow summary, comparable sales report, et cetera. This is the level of presentation and the level of analysis that will ensure you get funding and that banks and private lenders take you seriously.

There is a lot of other functionality here in the software that I haven't showed you. If you're wholesaling, there's a separate set of marketing reports here for wholesalers. We have a completely standalone platform where you could actually find off market deals. If you go to the top of the screen and click find deals, you could actually find deals that other wholesalers post around the country.

If you're looking to buy rentals, this is where you would go. You can search here by ZIP code, city or stage. You can sort these deals, but other wholesalers that use our platform are posting their off market deals here so if you're looking for rentals, this is a great place to find them.

Again, you can go to RehabValuator.com and you can set up a free account that lets you do all of the analysis, lets you search for deals. It's an incredibly powerful software that we continue improving.

All right, I hope you've enjoyed this and that it has been somewhat eye opening. Here's what I would like you to do next. Please share this and use the buttons below the video to share this on Facebook, LinkedIn, Twitter, social media. Very few people that I'm aware of even teach this strategy and nobody that I'm aware of teaches this for free. This education, if put to use properly, can be truly life changing. Again, I've built my entire portfolio this way. I have many friends that have built huge life changing income producing portfolios of real estate using this strategy. Share this with your friends because you want to be surrounded by wealthy friends. It's much more fun to have rich friends than poor friends, all right?

Leave me a comment below the video. Leave me your thoughts, leave me your questions. I will try to answer them as best as I can. If you've enjoyed it, leave me a comment. If you have questions that want an answer, leave it below and I will do my best to get back to you. Then finally go to RehabValuator.com. If you don't have the software at all, create a free account. It's going to let you do all of the analysis functions that I just showed you as well as a bunch of other cool features.

My recommendation would be upgrade to premium. You could still lock in a dirt cheap price for this software. It's cloud based, it's accessible on any device and the premium version will allow you to create full deal funding presentations for your private lenders and for your banks. We have testimonials from hundreds of clients at this point that have raised collectively millions and millions of dollars using this software. It makes a huge difference in your ability to get financing and how your lenders view you. Put a presentation like this in front of them and they will look at you completely differently.

The premium version also comes with project management functionality, ability to post your deals to the Rehab Valuator platform and a whole bunch of other awesome bonuses. Go to RehabValuator.com. At that site, you'll have a link to create a free account and you'll see our pricing for the premium version of our software as well. All right, that's it. Thank you for watching.

BRRRR is one of THE most effective real estate investing methods that I have ever encountered. It's a great way to build a large portfolio of rental properties without needing to come up with down payments yourself or bringing in a new joint venture partner or private lender into each real estate deal.

There are 3 Levels of thinking about leverage in real estate, ranked from most primitive to most efficient. The BRRR strategy uses Level 3 Leverage and a concept called “Velocity of Money” to take the same small sum of cash or private money and rotate that in and out of deal after deal. Net result: you build a big portfolio of rental properties with no money tied up in the deal, high cashflow and a significant equity position on your balance sheet. For more information on this real estate investment strategy, watch our video on BRRR investing.
 

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