FIXER UPPER RENTALS (B.R.R.R.R.) With Brandon Turner WELCOME! - - PowerPoint PPT Presentation

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FIXER UPPER RENTALS (B.R.R.R.R.) With Brandon Turner WELCOME! - - PowerPoint PPT Presentation

Oct 13, 2022 558 likes •1.91k views

Get Todays worksheet at www.BiggerPockets.com/125worksheet HOW TO MAKE SIX-FIGURES WITH FIXER UPPER RENTALS (B.R.R.R.R.) With Brandon Turner WELCOME! WHAT WERE GOING TO BE TALKING ABOUT TODAY: HOW TO MAKE SIX-FIGURES A YEAR

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SLIDE 1

FIXER UPPER RENTALS

HOW TO MAKE SIX-FIGURES WITH (B.R.R.R.R.)

With Brandon Turner Get Today’s worksheet at 
 www.BiggerPockets.com/125worksheet
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SLIDE 2

WELCOME!

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SLIDE 3

WHAT WE’RE GOING TO BE TALKING ABOUT TODAY:

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SLIDE 4

HOW TO MAKE SIX-FIGURES A YEAR (PART- TIME!) WITH FIXER-UPPER RENTAL PROPERTIES

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SLIDE 5

B.R.R.R.R.

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SLIDE 6

B.R.R.R.R.

BUY

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SLIDE 7

B.R.R.R.R.

BUY REHAB

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SLIDE 8

B.R.R.R.R.

BUY REHAB RENT

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SLIDE 9

B.R.R.R.R.

BUY REHAB RENT REFINANCE

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SLIDE 10

B.R.R.R.R.

BUY REHAB RENT REFINANCE REPEAT

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SLIDE 11

I’M GOING TO SHOW YOU HOW, REALISTICALLY, YOU COULD MAKE OVER $100,000 PER YEAR DOING PART- TIME REAL ESTATE INVESTING USING FIXER-UPPER RENTAL PROPERTIES.

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SLIDE 12

THIS IS NOT GET RICH QUICK
 THIS IS NOT EASY BUT IT IS DOABLE

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SLIDE 13

THIS IS NOT A GUARANTEE OR SOME SUPER SECRET PLAN. IT’S JUST A STRATEGY! HOW WILL YOU USE IT?

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SLIDE 14

BUT FIRST… DO YOU WANT TO REMEMBER EVERYTHING FROM TODAY’S WEBINAR?

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SLIDE 15

THEN FOLLOW ALONG WITH TODAY’S WORKSHEET:

www.BiggerPockets.com/125worksheet

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SLIDE 16

DOOR PRIZE #1

WWW.BIGGERPOCKETS.COM/BOOKS

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SLIDE 17

DOOR PRIZES #2 & #3

www.BiggerPockets.com/_______ www.BiggerPockets.com/______
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SLIDE 18

Who Am I?

Brandon Turner

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SLIDE 19

Who Am I?

Brandon Turner

Heather!

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SLIDE 20

Who Am I?

Brandon Turner

Heather! Charlie

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SLIDE 21

Who Am I?

Brandon Turner

Heather! Charlie

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SLIDE 22

Who Am I?

Brandon Turner

Heather! Charlie

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SLIDE 23

Who Am I?

Brandon Turner

  • Real Estate Investor
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SLIDE 24

Who Am I?

Brandon Turner

  • Real Estate Investor
  • Author of “The Book on
Investing in Real Estate with No (and Low) 
 Money Down”
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SLIDE 25

Who Am I?

Brandon Turner

  • Real Estate Investor
  • Author of “The Book on
Investing in Real Estate with No (and Low) 
 Money Down”
  • Author of “The Book on
Rental Property Investing”
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SLIDE 26

Who Am I?

Brandon Turner

  • Real Estate Investor
  • Author of “The Book on
Investing in Real Estate with No (and Low) 
 Money Down”
  • Author of “The Book on
Rental Property Investing”
  • Cohost of the
BiggerPockets Podcast
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SLIDE 27

Who Am I?

Brandon Turner

  • Real Estate Investor
  • Author of “The Book on
Investing in Real Estate with No (and Low) 
 Money Down”
  • Author of “The Book on
Rental Property Investing”
  • Cohost of the BiggerPockets
Podcast
  • Played The Fairy
Godmother in my HS version of Cinderella.
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SLIDE 28

I AM ALSO A 
 BRRRR FANATIC! MOST OF MY REAL ESTATE PORTFOLIO HAS BEEN BUILT USING THIS METHOD.

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SLIDE 29

Cedar BRRR

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SLIDE 30
  • Purchase Price: $70,000

Cedar BRRR

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SLIDE 31
  • Purchase Price: $70,000
  • Closing Costs: $2,000

Cedar BRRR

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SLIDE 32
  • Purchase Price: $70,000
  • Closing Costs: $2,000
  • Repairs: $35,000

Cedar BRRR

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SLIDE 33
  • Purchase Price: $70,000
  • Closing Costs: $2,000
  • Repairs: $35,000
  • Total Cost: $107,000


Cedar BRRR

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SLIDE 34
  • Purchase Price: $70,000
  • Closing Costs: $2,000
  • Repairs: $35,000
  • Total Cost: $107,000

  • ARV: $145,000

Cedar BRRR

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SLIDE 35
  • Purchase Price: $70,000
  • Closing Costs: $2,000
  • Repairs: $35,000
  • Total Cost: $107,000

  • ARV: $145,000
  • Refinance: 70% ($90,000 )

Cedar BRRR

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SLIDE 36
  • Purchase Price: $70,000
  • Closing Costs: $2,000
  • Repairs: $35,000
  • Total Cost: $107,000

  • ARV: $145,000
  • Refinance: 70% ($90,000 )
  • Cash Flow: $200/month after Refinance

Cedar BRRR

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SLIDE 37
  • Purchase Price: $70,000
  • Closing Costs: $2,000
  • Repairs: $35,000
  • Total Cost: $107,000

  • ARV: $145,000
  • Refinance: 70% ($90,000 )
  • Cash Flow: $200/month after Refinance
  • Sold for $165,000 (Profit: About $40,000)

Cedar BRRR

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SLIDE 38
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SLIDE 39
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SLIDE 40
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SLIDE 41
  • Purchase Price: $90,000
  • Closing Costs: $2,500
  • Repairs: $7,500

4/5 Plex

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SLIDE 42
  • Purchase Price: $90,000
  • Closing Costs: $2,500
  • Repairs: $7,500
  • Total Cost: $100,000


4/5 Plex

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SLIDE 43
  • Purchase Price: $90,000
  • Closing Costs: $2,500
  • Repairs: $7,500
  • Total Cost: $100,000

  • ARV: $160,000
  • Refinance: $90,000
  • Cash Flow: $1,000 per month

4/5 Plex

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SLIDE 44
  • Purchase Price: $90,000
  • Closing Costs: $2,500
  • Repairs: $7,500
  • Total Cost: $100,000

  • ARV: $160,000
  • Refinance: $90,000
  • Cash Flow: $1,000 per month
  • Equity: $70,000

4/5 Plex

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SLIDE 45
  • Purchase Price: $565,000

24 Unit Apartment

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SLIDE 46
  • Purchase Price: $565,000
  • Closing Costs: $5,000
  • Repairs: $60,000

24 Unit Apartment

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SLIDE 47
  • Purchase Price: $565,000
  • Closing Costs: $5,000
  • Repairs: $60,000
  • Total Cost: $630,000


24 Unit Apartment

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SLIDE 48
  • Purchase Price: $565,000
  • Closing Costs: $5,000
  • Repairs: $60,000
  • Total Cost: $630,000

  • ARV: $925,000

24 Unit Apartment

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SLIDE 49
  • Purchase Price: $565,000
  • Closing Costs: $5,000
  • Repairs: $60,000
  • Total Cost: $630,000

  • ARV: $925,000
  • Refinance: $650,000

24 Unit Apartment

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SLIDE 50
  • Purchase Price: $565,000
  • Closing Costs: $5,000
  • Repairs: $60,000
  • Total Cost: $630,000

  • ARV: $925,000
  • Refinance: $650,000
  • Cash Flow: $3,000 per month

24 Unit Apartment

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SLIDE 51
  • Purchase Price: $565,000
  • Closing Costs: $5,000
  • Repairs: $60,000
  • Total Cost: $630,000

  • ARV: $925,000
  • Refinance: $650,000
  • Cash Flow: $3,000 per month
  • Equity: $275,000

24 Unit Apartment

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SLIDE 52

ENOUGH ABOUT ME… LET’S TALK ABOUT BRRRR!

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SLIDE 53

Benefits of BRRRR

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SLIDE 54

Benefits of BRRRR

  • Combine equity growth of
flipping with cash flow of rentals.
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SLIDE 55

Benefits of BRRRR

  • Combine equity growth of
flipping with cash flow of rentals.
  • Serious equity now
  • Serious cash flow now
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SLIDE 56

Benefits of BRRRR

  • Combine equity growth of
flipping with cash flow of rentals.
  • Serious equity now
  • Serious cash flow now
  • Less competition for deals
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SLIDE 57

Benefits of BRRRR

  • Combine equity growth of
flipping with cash flow of rentals.
  • Serious equity now
  • Serious cash flow now
  • Less competition for deals
  • Ability to get creative with
the financing
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SLIDE 58

Benefits of BRRRR

  • Combine equity growth of
flipping with cash flow of rentals.
  • Serious equity now
  • Serious cash flow now
  • Less competition for deals
  • Ability to get creative with
the financing
  • Long-term capital gains
tax (with 1031 exchange possibilities!)
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SLIDE 59

Benefits of BRRRR

  • Combine equity growth of
flipping with cash flow of rentals.
  • Serious equity now
  • Serious cash flow now
  • Less competition for deals
  • Ability to get creative with
the financing
  • Long-term capital gains
tax (with 1031 exchange possibilities!)
  • All 4 Wealth Generators!
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SLIDE 60

Cash Flow Appreciation Tax Benefits Loan Paydown

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SLIDE 61

Benefits of BRRRR

  • Combine equity growth of
flipping with cash flow of rentals.
  • Serious equity now
  • Serious cash flow now
  • Less competition for deals
  • Ability to get creative with
the financing
  • Long-term capital gains
tax (with 1031 exchange possibilities!)
  • Fun!
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SLIDE 62

HOW TO MAKE SIX FIGURES WITH BRRRR

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SLIDE 63

DON’T GET YOUR UNDIES IN A BUNDLE BECAUSE THE PRICES DON’T LOOK LIKE YOUR AREA.

WARNING:

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SLIDE 64 After Repair Value: $200,000
 x 80% 

  • minus repairs ($25,000)

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SLIDE 65 After Repair Value: $200,000
 x 80% 

  • minus repairs ($25,000)

_________________________________________
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SLIDE 66 After Repair Value: $200,000
 x 80% 

  • minus repairs ($25,000)

_________________________________________ $135,000 Purchase Price
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SLIDE 67 After Repair Value: $200,000
 x 80% 

  • minus repairs ($25,000)

_________________________________________ $135,000 Purchase Price + $25,000 rehabs + $5,000 closing costs = $165,000
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SLIDE 68 After Repair Value: $200,000
 x 80% 

  • minus repairs ($25,000)

_________________________________________ $135,000 Purchase Price + $25,000 rehabs + $5,000 closing costs = $165,000 New Loan: $165,000 Immediate equity: $35,000
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SLIDE 69 Year Loan Value (3%) Equity
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SLIDE 70 Year one: $165,000 $200,000 $35,000 Year Loan Value (3%) Equity
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SLIDE 71 Year one: $165,000 $200,000 $35,000 Year two: $163,000 $206,000 $43,000 Year Loan Value (3%) Equity
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SLIDE 72 Year one: $165,000 $200,000 $35,000 Year two: $163,000 $206,000 $43,000 Year three: $160,500 $212,000 $51,500 Year Loan Value (3%) Equity
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SLIDE 73 Year one: $165,000 $200,000 $35,000 Year two: $163,000 $206,000 $43,000 Year three: $160,500 $212,000 $51,500 Year four: $158,000 $218,000 $60,000 Year Loan Value (3%) Equity
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SLIDE 74 Year one: $165,000 $200,000 $35,000 Year two: $163,000 $206,000 $43,000 Year three: $160,500 $212,000 $51,500 Year four: $158,000 $218,000 $60,000 Year Five: $155,000 $225,000 $70,000 Year Loan Value (3%) Equity
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SLIDE 75

IF YOU SOLD THAT PROPERTY AFTER 5 YEARS… HOW MUCH WOULD YOU HAVE?

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SLIDE 76

ABOUT $50,000

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SLIDE 77

ABOUT $50,000

(taxed at the lower “long term” rate and with no employment tax on it!)
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SLIDE 78

SO… WHAT IF YOU DID JUST 2 BRRRR DEALS PER YEAR?

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SLIDE 79

IF YOU JUST BOUGHT 2 AND SOLD 2 BRRRR DEALS A YEAR, YOU COULD REALISTICALLY GENERATE $100,000 PER YEAR IN INCOME AFTER FIVE YEARS.

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SLIDE 80

Dangers/Risks of the BRRR Strategy

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SLIDE 81

Dangers/Risks of the BRRR Strategy

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SLIDE 82
  • Don’t buy low enough.

Dangers/Risks of the BRRR Strategy

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SLIDE 83
  • Don’t buy low enough.
  • Can’t get the refinance.

Dangers/Risks of the BRRR Strategy

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SLIDE 84
  • Don’t buy low enough.
  • Can’t get the refinance.
  • First loan is too short, time

runs out.

Dangers/Risks of the BRRR Strategy

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SLIDE 85
  • Don’t buy low enough.
  • Can’t get the refinance.
  • First loan is too short, time

runs out.

  • You suck at being a

landlord.

Dangers/Risks of the BRRRR Strategy

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SLIDE 86

THEREFORE… TO AVOID THE BIGGEST BRRRR PITFALLS, YOU MUST DO…

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SLIDE 87

THE MATH

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SLIDE 88

TWO METHODS TO DO THE MATH:

BY HAND

SOFTWARE

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SLIDE 89

THEREFORE… TO AVOID THE BIGGEST BRRRR PITFALLS, YOU MUST DO…

www.BiggerPockets.com/analysis

The BiggerPockets Property Analysis Calculators!

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SLIDE 90

NOW LET ME ASK THREE IMPORTANT QUESTIONS…

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SLIDE 91

1.) DO YOU UNDERSTAND THE BRRRR PROCESS?

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SLIDE 92

2.) ARE YOU COMMITTED TO LIVING PROACTIVELY THIS YEAR TO REACH YOUR GOALS?

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SLIDE 93

3.) ARE YOU WILLING TO WORK HARD TO ACHIEVE ALL YOUR GOALS?

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SLIDE 94

GREAT! BUT…

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SLIDE 95 Investing in real estate can
  • ften feel like this:
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SLIDE 96

But that’s a lie.

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SLIDE 97

This is not just theory. This is how thousands of real estate investors, including myself, have found financial freedom.

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SLIDE 98

But it only works if you work.

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SLIDE 99

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SLIDE 100

LET’S TALK ABOUT A SIMPLE ACTION YOU CAN TAKE TODAY THAT WILL HELP MAKE YOUR REAL ESTATE JOURNEY SMOOTHER.

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SLIDE 101

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