The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) Method is a real estate investment strategy that involves flipping distressed property, renting it out, and then cash-out refinancing it in order to fund further rental property investment. How The BRRRR Method Works? If done correctly, the BRRRR Method can provide passive income and a revolving method for purchasing and owning rental property. The method works through the following steps: 1.Buy a property: The property you purchase should be a distressed property that needs some work to get up to code and ready to rent. Because of the home’s condition, it will likely be cheaper to purchase. 2.Rehab the property: Since the property is distressed, it may require extensive work. In this step, you’ll renovate the property to make structural, safety and aesthetic improvements and prepare it for renters. 3.Rent out the property: Determine the rental price and find people to rent the home. 4.Do a cash-out refinance on the property: With a cash-out refinance, you convert your equity into cash. You access your equity by taking out a bigger mortgage, borrowing more money than you currently owe. The cash can be used for anything, including purchasing another property. 5.Use funds from refinance to buy another property: In this final step, you’ll start the process all over again. Using the funds from your cash-out refinance, you’ll purchase another distressed property and rehab it, before renting it out and refinancing that property.

We invested 38 BRRR projects in 2021. Avg fixing cost: $30,000

Target properties at ~300K. 10 properties in a package. The investor put in $500K SALA guarantees purchase loans SALA will be responsible for repairing/renting/refinancing. 250k will be cashed out in 2 years and remained 250K will be cashed out in 4 years. SALA will take 30% of joint venture. After cashing out, SALA will take 30% of rental income. SALA will charge Acquisition fee: 2.5% of the purchase price, Listing fee 2.5% of the selling price, when resale. Property Management Fee: 8% of rental income (charge monthly). Tenants Finding Fee: 50% of monthly rent (one-time fee).