It’s something used quite often in the USA, but it can also be implemented here.
Here’s how you could implement BRRRR if you wanted a faster strategy to accumulate property than the traditional Buy, Hold & wait for growth strategy.
1. Buy a property in need of renovation under market value
2. Renovate the property which will provide significant uplift in value creating equity
3. Rent the property out once finished
4. Refinance the property & using the equity you have created…
5. Repeat the process & go again
Now you will have to show serviceability for borrowing, but with the right properties, the right finance broker & the right structure there are financing options outside of the big banks that can make serviceability a little easier.
