CHICAGO, ILLINOIS, UNITED STATES, September 18, 2021 /EINPresswire.com/ — Investing in real estate always comes with a fair amount of risk. However, the payouts can also be very large if the investor has the know-how and good timing. Investing in houses with the intention of flipping them can have a large potential for profit, though expenses and risks can sometimes be equally as high. Savvy investors always seek methods that reduce risk and increase profits. The BRRRR method is very safe compared to other forms of investing and can be used by anyone with a steady income. It is a very effective way to grow your wealth with limited downside risk and huge potential returns.
Dominic Kosteris has made it his mission to help people get ahead financially using the BRRRR strategy and has made a lot of money and continues to make more through smart investments while showing others how they too can use this useful tool.
What Is BRRRR Investing?
BBRRR stands for Buy, Rehab, Rent, Refinance, Repeat. Just like you would expect, the BRRRR investing method involves buying a property, rehabbing it, renting it out, and refinancing. The process begins immediately upon purchase of the property.
B- Buy. I was fortunate to buy a house undervalued for 50k. I bought it outright with my retirement funds.
R- Rehab. I accessed an extra 5k for rehab that included paint, finish hardwood floors, and fix broken windows.
R- Rent. I rented it for $1,400
R- Refinance- I do business with a credit union. They appraised the unit for 90k and gave me a loan for 67.5K. I repaid my retirement savings. With the extra 12k that I made, I used that to buy another unit by putting down the required 20%
R- Repeat- I'm on the prowl for another house that's undervalued now that I have my retirement funds reimbursed.
The entire goal is to do this over and over again while growing your passive income.
While most investors get excited about the idea of flipping houses for huge returns, there can be some difficulties involved with this process. Flipping properties is not for everyone if you are uncomfortable with putting time and money into a project. It also involves a lot of risks because you must buy low, renovate high and then sell higher. There are times when the sale will fall through, and your plans will have to be altered, which can cost you more in opportunities than you can afford.
The BRRRR Method and Rental Properties
Dominic Kosteris started by explaining that there are so many similarities between buying stocks or real estate and let's face it – real estate investment offers a lot more "bang for your buck." It is a great way to build wealth, and it also offers a lot of flexibility. There is a lot less risk involved in investing in real estate, and it has the potential to offer huge returns when done correctly.
How does the BRRRR method work?
This technique works really well if you are looking into investing in real estate where you buy an investment property at a low price and rent it out to tenants for income via your bank account or with another person's bank account while waiting for the value of the house to go up so it can be sold for more money than purchasing costs.
Dominic Kosteris made a fortune exploiting the BRRRR strategy. His latest acquisition was a 3 bedroom 1 and a half bath property he purchased for 50 thousand dollars total, including repairs and purchase price. He started rented it for $1400 and also took out loans against his retirement fund to finance this project, spending 56 thousand in all on the construction, of which 75% was financed by credit union lending institution, allowing him to reap maximum profit while minimizing risks through clever financial management skills.
Dominic Kosteris used the money from his credit union to buy a house in his neighborhood. He then put down 20% of the cost required by FHA and saved himself on interest payments for years! He then collected rent from the renter, and he continued to save hundreds of dollars on interest for years.
Dominic Kosteris found an ingenious way around that pesky rule about not being able to get an investment loan with Federal Housing Administration financing when he bought a home just like everybody else- but instead of taking out a mortgage, Dominic paid cash upfront using funds given by the Credit Union. He used the money from this refinance to buy more rental properties using the BRRRR strategy. Not only did he save on interest payments, but he also acquired a pretty sweet deal for himself.
However, the BRRRR method is a great way to secure real estate and get ahead! It can be a great way to get started in real estate investing without having your life savings tied up.
The BRRRR method is one of the most popular ways to start real estate investing without draining your savings. It may not always be an easy way, but it can prove profitable in the end if you are willing to put in a little bit of work upfront.
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Source: EIN Presswire