Why Invest in Property? The BRR Model
Lucy Ingram
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So in week 3 of our 10 part mini-series, we’re giving another great reason to invest in property...
3. The BRR model
Have you seen others be successful in property but don’t quite know how it all works? Have you heard the term ‘recycle your cash’ and want to understand what this means?
The Buy Refurbish Refinance (BRR) model has been a successful property investment tool allowing investors to make money in property for many years. This model can be broken down to its 3 elements, each being equally important in giving you a great return and leading you on your path to wealth. So what is it? BRR is:
1. BUY - buy properties Below Market Value (BMV) that are tired, worn and need of a refresh, but structurally sound. This builds in immediate profit on the day of the sale.
2. REFURBISH - freshen up the property, modernising through new kitchens, bathrooms, adding bedrooms, converting lofts/basements etc. This adds value to the property price.
3. REFINANCE - remortgage the property between 6-24 months later to pull your original investment out, allowing the immediate profit built-in at the time of sale plus the added value through refurbishment, in addition to capital growth over time, to be crystallised! You can then recycle your original pot of money, ready for your next purchase! BOOM!!??
By following this method, in theory, one small pot of cash can build a portfolio over time that can give you both cash flow and capital growth, ensuring lifelong wealth through passive income.
Stay tuned as next week we will be talking about why to invest in property reason #4...the dreaded Section 24!
P.S. If you missed the first 3 reasons to invest in property we’ve got you covered here:
??Leverage: https://www.dhirubhai.net/pulse/why-invest-property-2-leverage-lucy-ingram/
?? Generation rent: https://www.dhirubhai.net/posts/lucyingramrideproperty_humpdayhint-10reasons-generationrent-activity-6676377293209796608-hu8
#humpdayhint #humpday #10reasons #enjoytheride #BRR
Property Investment
4 年Great post as always Lucy. I understand the concept of brr and have done a few back to brick renovations and tackled some pretty grim properties. For us it’s what area to invest in. We are in a part of north wales where the prices are high and to brr they just don’t stack up so we would need to go further afield into northern England. Iv started talks with one or two people but I’m a bit frozen at this point as it’s out of the area I know and obviously trust is a big thing when you are miles away.
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4 年I know many people who are making this strategy work well
I work with time poor professionals who want high returns from property investment.
4 年When I first started in property 9 years ago i didnt even know this strategy was possible without waiting 2 years to refinance. I would be much further down the line had I been more educated.
Helping investors who would like their money to work for them? Are you tired of your money sitting in a bank earning nothing? Let me show you how I can invest your money for a better return.
4 年Great post, how do you find your BRR properties?
Professional Property Investor
4 年BRR model is a classic strategy in my eyes but nothing is risk free! ????