Why I Don't Use BRRRR

Everybody on TikTok seems to talk about the BRRRR strategy like it's the only way to build wealth. Y'all, I've got dozens and dozens and dozens of houses and I don't use the BRRRR strategy. So let me let you in on what it is that I do and you can also do it as well. And in case you don't know, I'm Jackie the Happy Investor. I talk about all things real estate investing. I make it easy to understand, short and to the point because I know that you've got shit to do today. Okay. Now first, let's talk about what BRRRR actually stands for. It is Buy, Rehab, Rent, Refinance, Repeat. The idea is that you buy a property, fix it up, rent it out, then refinance it, pull your money back out so you can go buy another property. Everybody with me? Okay. Now listen, there's nothing wrong with that strategy. It's helped a lot of investors build really large rental portfolios. It's just not the strategy that I use. For me, I'd rather own my rentals free and clear over time. My retirement plan isn't to have the biggest portfolio, but it's to have properties that don't have mortgage payments. And that's the goal. I show y'all how to get into these houses with no money down, so you're not having to do the BRRRR strategy. Most lenders have a seasoning period. Before you refinance or pull your equity back out, you gotta wait a little bit. And that means you usually have to own the property for a certain amount of months or time before you can actually do a cash out refinance. Now, if you're just going to get a standard DSCR and you're not pulling cash out, that seasoning requirement doesn't really apply. And that's the thing, before you build out your entire investment plan around BRRR, I just want you to understand how the lenders' rules work. I'll say this, at the end of the day, it's not about whether the BRRRR strategy is right or wrong. It's about making sure that you're using the right funding and getting the right amount of money that is going to coincide with the goals that you have. And that's the thing, many of the people that I work with, the students that I have, they don't need to refinance to get their cash back in the first place. And that means many of them, they don't have to do the BRRRR strategy. But if you do decide to use the BRRRR strategy, just know that there's something a lot of people I think on social media don't mention. Most lenders have a seasoning period. Before they let you refinance or pull your equity back out, you gotta wait a little bit. And that means you usually have to own the property for a certain amount of months or time before you can actually do a cash out refinance. Now, if you're just going to get a standard DSCR and you're not pulling cash out, that seasoning requirement doesn't really apply. And that's the thing, before you build out your entire investment plan around BRRR, I just want you to understand how the lenders' rules work. I'll say this, at the end of the day, it's not about whether the BRRRR strategy is right or wrong. It's about making sure that you're using the right funding and getting the right amount of money that is going to coincide with the goals that you have.