The Perfect BRRRR Deal [$63,369.76 Check at Closing!]
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- เผยแพร่เมื่อ 10 ก.ย. 2024
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If you've heard of the BRRRR method in real estate investing, you've probably also heard of the Perfect BRRRR. In today's real estate investing for beginners video, I am going to break down what is the BRRRR strategy, how to do a perfect BRRR method, and more.
I started my journey with house hacking, then wholesale real estate, and now BRRRR investing.
Stay tuned to see how I did it!
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Watch these next
-Wholesaling My First Deal Series (8 episodes!):
• Wholesaling My First D...
-My BRRRR Mistakes Are Piling UP!
• DIY Gone Wrong! | Inst...
-All About House Hacking Playlist
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- The ABCs of Real Estate Investing: amzn.to/2zTE4mg
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From a 59 yr old white dude ... YOU GO GIRL ... Stack that cash.... I am proud of you... I taught my children the same thing... Respect the Hustle
Many Blessings , SMR
The BRRRR does really work. My wife and I are in the process of buying possible 5 houses taking us to 23 units in all. We did a BRRRR on the first 4 rentals we own. Great video
Hello do you know if it's possible to get a hard money loan for a fix and flip when you pay a mortgage?
"...today my portfolio is $1.4Million Dollars..."
'-DAAAAAAAAMN!' That never gets old!
My favorite part of the video!
They took the words right outta my mouth 😭
how is that cause Im still learning
I had to rewind it lol
Im a plumber and its what got me into real estate. Its crazy how plumbers are payed a good amount of money. $3400 for this small job. Im only 21 but have worked on $350k-$1m+ houses and its all the same stuff. Once I start doing BRRRRs I hope to have my plumbing company established and hire my brothers and dad to do the work and help them out. It'll be cheaper, and more direct communication. Fueling the family business, while fueling my real estate business. Also thanks to working construction I understand a lot of more in depth structural aspect of buildings that most people dont. And I have a lot of connections with guys to do the rehab at a cheaper price for me. Most of them license by the CSLB. I have a really good feeling and positive attitude towards my future. Thanks to people like Lili that show others what it's really like to do this type of business 🌊
Really glad to hear it. Keep that positive mindset!
Then you're good
I LOVE THIS! "Fueling the family business, while fueling my real estate business." You are an amazing brother and son. I hope that you have great success!!
Love the meat and potatoes your putting out there. A lot of people give you a high level explanation which doesn't really teach you ALL the ins and outs. Or, they lock it up in a course and still don't give you all the ins and outs. Great work, keep it up!
You are 100% correct
I subscribe to so many RE channels and this was about 10 of their videos combined into 1! Very clear, consider, organized, and easy to understand. Wishing you a successful TH-cam career on top of real estate!
Thanks so much!
I love to see my black queens making boss moves like this. ❤️❤️❤️
Mrs Lili Thompson is legit and her method works like magic I keep on earning every single week with her new strategy
I have been trading with Mrs Lili Thompson for same months now, profits are very secured and she guarantees 100% percent return of profits on every investment. Invest and trade with Mrs lili Thompson she is the best.
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Great job! Bought a house to learn everything, from electrical to plumbing. Did everything myself. Now building a two story addition from block to roof. Contractor thought I would pay 38gran on labor alone!! Not happening. Did all Blu prints and permits . 20gran on materials. No labor cost. Heloc. Is great option. 👍
I’m trying to learn the balance of hiring contractors vs diy because I can do 99% of the work myself but Time is more valuable than money.
You don't want to ever do it yourself.
Y out want to use that time looking for your next deal starting on the next to keep the flow going.
Same. I think starting off it's not a horrible idea. Especially if you enjoy the process. It's just something I think needs to be walked into intentionally and not done in every house. You also don't want it taking away from finding other deals. I'd be interested in hearing of others have some checklist that persuade them DIYing or hiring. I don't want to see, "always hire" cause that's just a brainless cookie cutter response.
For me, I can do level 4 drywall finishes, but it takes me forever. So depending on the size of the job I might hang and tape, but hire someone else to finish.
If I can do something but it's going to take me a month and I can hire and they'll have it done in a week. I'll probably hire.
What are others doing for measuring this?
Facts!
My humble opinion: DIY a hobby house or historical reno, something you are emotionally inspired by. But, never an active funnel property.
I'm a realtor and have an 8 yr old daughter who's nickname is Lelee! She caught me watching one of your videos and asked who you were... I said "That's Lili"... she then said, " Can you teach me how to be like that Lili?"
I teared up and said "ABSOLUTELY!!" Keep doing what you do young Queen!♥️👑👊🏾
That's awesome! I completed my first BRRRR deal in February. It's a great feeling! Congrats! 💰
Congrats!
were you able to refinance the home in under 2 years of ownership? If so... what bank did you use? Im having a hard time finding a lender who will do a cash out refinance unless ive owned the home for 2 years
@@hatchett999ify tell the bank you want to do a term/rate refinance. Stay away from saying “cash out refinance”
@@carguyty9370 I'll definitely look into that. Thx for the info
How did that work out for you?
That kind you for motivating me to take the steps into buy/sell homes. It’s great to see another black woman leading the way and teaching others. Love it
OK sistergirl, you doing what I used todo back in day, 19---to 1980...now I am trying to teach my grandson and his friend, back then there was no "You Tube"...now we starting out with Wholesaleing Real Estate...I am doing a lot of praying.....along with mucho consistant WORK...soooo may God bless us all!!!!!!!!!!
I do BRRRR's as well. I do 95% of the work myself. I love this video and how transparent it is.
Nice!
👆report the scammer and reply if they aren’t there anymore so I can take this down! Thanks!
I started watching you when you just started and I couldn’t be happier for you! Keep doing your thing 💯💰💰
I swear she is going places, while inspiring others. She’s humble, authentic, and honest.
That's an AWESOME comment & sentiment to have for someone that's not urself!
@@justinrobinson7222 q a
I swear I been here for the journny
Yes exactly her growth is amazing
Love how you QUICKLY broke everything down without making it sound boring!
Absolutely power packed video. You came clean and complete in this one. You are a gem, unofficially you are my mentor. You made me feel powerful 👍🏾
Another great strategy is to use credit cards to pay for the renovation. Then you can use your points to travel
I just turned 18 and I’m currently working on coming into the investing world and getting my first house. It’s risky making moves like these but I believe that I can and you just made it a lot easier. I know this took a lot out of your time and a lot of planning but thanks for helping us🙏🏽 of course there is a lot more to learn like getting a team together but everything takes time! FYI I took like 5 pages of notes 😂❤️
Definitely the best breakdown I've come across on YT, you snapped Lili! I see this vid hitting 1M views eventually, Congrats on everything!
Appreciate it!!
I TOTALLY agree!
Million dollar question: how much are you paying in taxes on this forced appreciation and are you able to deduct non - cash expenses from your earned income while executing the BRRRR strategy ?
@@Liliinvests wuttup ma let me ask u..after 10 mortgages how do u keep the brrr if u cut get more mortgages after 10
@@computerfastrepair I would imagine you would set up an LLC for each individual property thereafter
This is BEYOND AMAZING!!!& you’re so right no one has explained it better!!! Let’s go Lili!!! 👑✨❤️💰
glad you enjoyed it!
She is amazing!!!!
Great breakdown, only thing I could add is in year 1, you CAN quantify your ROI. Just factor in your $30k + $6k cash flow / $30k investment = 120% return in year 1. Additional 20% annually on your original $30k + holding cost. Just because you made it back doesn’t mean you never made the investment!
Super impressed, you’re an inspiration!
This video was so inspirational. Congrats on all your success!!
Don't know how or why this video showed up in my feed but man I thank God that it did. Definitely have a new subscriber!!!!! 🙌🏾🙌🏾🙌🏾
Wow!!! This is a huge sign for me!On August 17th,(the same date on your check) eleven years ago I closed on my first home. I had just turned 27yrs young, a entrepreneur, a single mom so I was so proud of myself!! This is no coincidence that I clicked on this video!!! Sending a big congratulations to u🥂 on all of your success and may tmh continue u on your jouney!🙏🏾💖
Oh wow! So glad you're here now!
@@Liliinvests thanks me too
my bday
You are the most complete instructor of all.
This was AMAZING!! You truly lived up to your words at the beginning. I've never heard such a thorough breakdown. Can't wait to see more videos like this one. Subscribed!
So glad you enjoyed it!
Wow. You’re doing the thing. I’m 65 and until listening to you was scared to life to renovate a property left by my parents! If you offer classes I may take a class from you!
This was top tear great! I needed this, looking to buy my first rental property in a couple weeks and I wanted to know an estimated cost to BRRR! Thanks soo much Queen 🔥
Okayyyyyyy investments🎉 Hey girll
It’s been a month, have you purchased a property yet?
I rarely ever comment on TH-cam videos, but wow - you are incredibly well-spoken and knowledgeable.
Wow! This is really good stuff! I’m an aspiring real estate investor and this is the first time I’ve ever hear anyone on TH-cam break things down as well as you did! This is not only great in terms of explaining everything but also being thorough and transparent about how you got to your final payout! Thanks so much for sharing. You definitely gained a new subscriber in me!
I’m new to the channel as of today. Great content detailing hard money and rehabbing. But, my friend not so fast. I love real estate I left my $120k job. I have 37 houses. I saw your comment and feel your passion. But take it slow all I’m going to say.
I've been watching YT videos & reading books on real estate non stop for the last 18 months. This has to be the most thorough breakdown on BRRRR I've seen(and I've read BRRRR by David Greene of bigger pockets). Really great content! Like & subscribe!
I just know that feel good being able to do all this and make your self financial freedom 🦅 congratulations
Nice work! Thanks for breaking it all down! When I do BRRRR deals, the big number is the net worth increase, not the check you get back at closing. This BRRRR deal looks like ARV of 205k, all in for ~155k, Value Created = $50k.
Good margins, good cashflow, just need 20 more exactly like this! Keep crushing it!
I'm leaning very hard toward the BRRRR method for my first investment property. I'm really glad to see this was such an incredible home run for you!
GO LILI GOOOOOOO!!!!! I started watching her at less than 5000 subs and now she's close to 80 thousand!!!!... Also, she hadn't made ANY money in wholesaling when i first started following...now she has 1.4 million in her portfolio!!!! LILI you are a freaking TRUE inspiration to US ALL!!! Regardless of gender, race or orientation!!!....Im in love!! lmao thank you!
This was my 1st video! And I loved how detail and raw you explained everything 😍. You did an amazing job! Best Teacher awards goes to you! Now I need to see all your other videos and make some action with the BRRRR , already have the house since May 2021, but I feel stuck in the renovate / refinance/ repeat part 🥲
In my most hood voice: You did that! 👏🏾👏🏾
Lili I love your explanation of this method. You nailed it. Can you please do a video on how you go about finding these properties? Mainly how do you determine your potential post Reno value pre-appraisal?
Wow I’m so happy to see where you have gotten and where you are going God bless you ! Thank you for being so transparent with us !
Watching Your Videos Remind Me Of What This Martin Luther King Jr Weekend Is Becoming Possible For Our Young Kids.
Keep Up The Good Work 😎👊‼️
I appreciate what you’re doing, but please include things like property taxes, insurance, and your reserves when you’re discussing cash flow so everyone watching can understand how to calculate their own chase flows so they aren’t buying bad deals. The people I’ve seen get blown up starting in this business are the ones that think they get to keep everything after their mortgage payment.
Responding to this in an upcoming video 😎
ya Id like to know how to much to save for repairs and do you extra pay mortgage or how much you save to just put away
Says 2 years ago u shot this … BEST MOST HELPFUL VIDEO ON YT! Girl u gave me hope !!
Got you!
One of the easiest to follow breakdowns I’ve seen - great job here! 👏🏼👏🏼
Glad to hear it!
Wow, that was a great turnover on the house and studio apartment. I learned a lot in this video. Thank you.
This is a great video! Can you also touch on how this affects your income taxes? Are you getting hit with any short term capital gains? Are you rolling any profits into 1031 exchanges? It’s also important to remember and stress that relationships with contractors are extremely important. Some of the work you had done would cost me 2-3x more in my area. They also may be giving you better deals because you provide them with multiple jobs per year. A new investor will likely not have those relationships yet so their renovations costs may be substantially higher. Thank you for the great info though!
@matt since it’s a refinance, you don’t realize the gain, so it’s tax free! She would only realize if/when she sells! Best part about BRRRR & Cash our refi’s!
She actually makes those points in many of her other videos.
Cash flow is minus ALL costs, not just the difference between rent and mortgage, all costs. Property taxes can be signifcant, it isn't just vacancies, or maintenance and repairs. There are also capital costs, and emergencies or surprises.
Girl you did that! Congratulations to your success , and thank you for being so transparent about your deal.
This is probably my favorite how to real estate video
Amazing!!! I’ve been watching you since day one! You are truly an inspiration and I can’t wait to be able to do the same things that you are doing 🔥🔥
No you go to the club 🤦🏿♀️🤣
Lili, I have been studying the BRRRR method since the term was kind of coined by Brandon on Bigger Pockets. No one in the last five years or so has been as clear and concise on how to make the method work as you have in this video. Thank you for your work, and keep hustling. I admire you!! #INSPIRATIONAL
Hello Paul do you know if someone is able to get a hard money loan on a home that they pay a mortgage on?
Oh my God you are an amazing teacher!! Now I feel like I can do this. I pray I can learn more from you and step out of my fear box and start building something for me n my kids. Great job! You have an awesome personality as well
Thank you!
I love this idea but I think the hardest part is trying to juggle your life while doing this on the side.. such as paying for bills for the house your living in. Working minimum of 40hrs a week etc etc.. And when you finally do find a tenant, well you go a month or 2 of them behind on your rent, now your floating 2 mortgages. I think that’s why most people try to live in the house they are flipping/renting which then becomes headaches of its own.
This is a truly incredibly made video, I don't even know how this was in my recs but I watched it from beginning to end
I’m a realtor in Fl and this is one of the best if not the best in-depth breakdowns l have seen with a lot of information. You’ve earned my follow! Keep up the great work!
Now that's impressive, go head young lady, you got this thing on lock 👏👏👏👏👏
I remember watching you when you first started off but then I fell off. It’s crazy how far you’ve come in such a short amount of time. You don’t know me from a brick but I’m proud of you! Keep going 🗣❤️
We OG subscribers've been on the journey with you every step of the way. Now you on that millionaire status! Super inspiring, keep up the good work, Lili!
You’re a real one! Thanks!
I am only two minutes into the video and I like her already!! She's legit, has a good spirit! Solid!
Thanks so much!
I learned SO much! Thank you for covering more than anyone else and for rocking this industry while young. I’m going to watch all your other videos now and I will also like and share them.(sent my daughter this one)
Ive been wholesaling in Texas for 3 years and so far your channel is one of the best ones for real estate cause you don’t give fluff. You’re super appreciated!
well done mate - awesome stuff. Appreciate the transparency and talent.
I know im a bit late to this video but this is just awesome and well explained. So many videos out there never explain all the other costs or how to get the Private Money or even how most of the time you need to still have some money upfront to get started so many people act like you can go in with a private lender to pay for 100% of everything and then pay back later when its just not realistic when starting off. Well done!
You’re a beast ! Proud of you and thank you for the motivation. Your videos are truly inspiring. And don’t forget to look into life insurance! You’re a millionaire lady and you should make sure you’re protected. Keep up the great content 💪🏾💙
Thanks for watching!
My cousin introduced me to your videos and I’m hooked thank you 🙏🏽 we need more ppl like you
This was great!! wow proud of you queen for killing this!! I hope to pull off a perfect Burrrr one day. Thank you for this.
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I always was confused on how you get Captain right after the brrrr. When you said the bank gives you cash after the appraisal it makes sense. Thank You.
As a newbie coming into the market, this was very informative and very refreshing to watch…. Loved both breakdowns and it’s got me excited to get the ball rolling!!!
All these people. She just gave us the information to what it takes to get that perfect brrrrr. How to investment the profit after closing is up to you.
In your scenario you said the hard money lender lent you $120k + $50k. You also said you did a cash out from the bank for $200k. Paid the $170k back to HML and got back your $30k. How much does the HML charge in interest for their 6 month loan?
Usually you're paying 10 to 12% interest only each month. Plus whatever utilities you have on and insurance.
Those numbers were just examples but as she mentioned, she was keeping it simple but there are other minimal costs associated.
@@theoriginalkp7594 The person above mentioned 10-12% interest per month. Are they saying 15-17k per month on that loan? And I get that she used an example, I'm just trying to figure out what the HML fee would be in this made up scenario.
@@thepatsyfamily ok, I understand. Typically it is anywhere between 10-12%. So in this scenario, if the rate was 12%, she would be paying $1,700 a month interest only to the lender.
@@theoriginalkp7594 $90,00 /10% to HML= $9,000 for a yr. Here loan was for 3 months I think with a extra month in the contract in case it went past 90 days. She went over but contract was $500 each month after the first 3 months. $9,000 ÷ by 12 is 750. See paid the HML $750 a month.
This is hands down the BEST explanation of BRRRR I’ve ever seen… I’ve seen so many but this is the one that opened my eyes
Lili this video was great & you’re truly an inspiration to a young entrepreneur like me who is currently wholesaling trying to build enough capital to buying my first rental
You can get the capital from other resources
@@Ashley-eb2wp “other resources” wow why didn’t i think of that
OMG!!! I ALMOST HAVE NO WORDS! IM a 36yo guys who has seen so much, I rarely get shocked about someone. But my God your incredible!
I wish I knew you personally and could shadow you through the process if getting the loans and figuring things out in real time. Id really like to be able to do this method, but I have zero experience in this, and am trying to figure it out completely.
Where did you learn about this? And how did you do it the first time?
I really am speechless.
thanks! check out my first wholesale deal playlist to see how I started
Awesome video. I like how you break down each step. Making it very easy to understand. How soon can you refi the property after it finished being renovated? Most lenders I talked to require a 12-month seasoning period.
Or you can also get a rehab loan from the bank conventional rehab loan or fha rehab loan. You need a couple walls up but can pretty much renovate anything
I'm so happy for you. I'll be turning 19 in a couple days and have been preparing to execute my business plan starting with wholesaling. Did you end up sticking to on market deals or did you end up doing cold calls as well
do cold calling as well.
Love seeing young people doing real estate.
Hi, I just found you today and I already adore you!! I love how you are straight to the point and willing to share all this great info! Do you do all this under an LLC, or the loans, financing, refinancing, and rentals through your personal credit? I want to get started, but I'm struggling on which way to go with this.
I'd like to know this as well!
This is from a while ago but for anyone wondering she said in her early stages of wholesaling she did everything under an LLC. Once she wanted to start buying houses is when she wanted decided to file an LLC about 1-2 years ago. So this is under her LLC and any future deals (and wholesales) will also be under said LLC. Can answer about whose name the loan is under though. But It's not unlikely that since she already has an established record with her LLC's bank that they are willing to loan her a pretty good amount of money.
My goal is to get into wholesaling and be as knowledgeable as you are. That being said NYC is a different beast when it comes to wholesaling and real estate in general.
You did an amazing job queen! With so much to unpack it’s easy to leave out the taxes but overall great job! Exchanging hard money to conventional loan after refi should be the next video to clarify how the debt services affect your profits.
She makes it so easy to learn from…. I got my pen and pad and I start writing down her methods down….. 🐐 🐐🐐🐐
Thank u
LIKE Button 🤙🏿
Hey Lili...I thought I saw a video with Harlem Globetrotters and there was a young lady that looked like YOU. Thanx for adding value to wholesaler s everywhere. Appreciate you Lili !!!
SEE NAH, THATS WHY HOOPERS ARE ALWAYS THE BEST TEACHERS!!! YOU KNOW HOW TO CLEARLY BREAKDOWN AND EXPLAIN THINGS… THE OTHER GUYS ARE GOOD NO DOUBT BUT THEY JUST WERENT EXPLAIN/ PRESENTING IT SIMPLE ENOUGH… LIKE YOU ARE A BLESSING FOR REAL 💯💯
listen to me you killed that BRRRR method I have to watch it again cuz I was still shocked on those numbers like wow I'm ready to start tomorrow i need to find a lender first and I need to watch more of your vid first like where I live there is live at least 10 abandoned apartment complexes I think once I get this thing down packed I'm gonna be on a roll Ms.Lili you are awesome I pray for you to continue to have nothing but success in all ur ventures for the knowledge you are shareing
My Baby Girl goes to Stanford! As you know not too many of us go there. I will recommend she watches your videos and gain some inspiration.
I thought the point of REFI was to get money out to buy another property? I love how energetic and go getter you are I applaud you keep it going?
I just like how detailed you are and how you invested you’ve employed yourself to teach your viewers! Thanks for your video, and you got yourself another subscriber👍🏽👍🏽👌🏽
Glad it was helpful! Thanks for watching!
Sis….thank you. This is gold! I’m so excited for my real estate investing journey!!!!!
Thank you so much for your hard work and diligence in showing and teaching Generational Wealth. My 22 is getting her inheritance and she is interested in real estate, so when i came across your channel, and I SUBSCRIBED AND LIKED EVERY VIDEO!, AND i sent the videos to her!
great content! I’m going to make my first deal with your inspiration by May 2022..manifesting
Is this something I can start at 61 years old. So proud of you young lady
yes of course, why not?!
One thing everybody can attest to if they do their background research you can straight from the mud and definitely became self-made in the real estate game... And this is really just the inception. People have to realize this type of information other people for whatever reason will sell to you for hundreds if not thousands of dollars piece by piece. Much appreciated
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Real world numbers for those young investors, do it right the first time so there's no regrets. Pay back your lenders on time to maintain future cash need. Solid video. We can tell you put a lot of effort into your production.
I eventually want to do the same, but my dad told me stories of friends stuck with houses without renters and went bankrupt. Essentially he's not saying I shouldn't do it but just be careful.
Thank you for sharing some of the other fees such as trash, holding costs, etc. Such a great explanation of this BRRR.
Excellent video it's just the classroom that people need instead of studying other nonsense stuff.
Lili, great job, you're a wonderful woman and it is obvious that you're on to something great, creating equity that will pay you indefinitely. However, since this video is about numbers, I must say, you made me go back and re-watch half the video just to be sure I wasn't missing something. The $63, 369.76 included your rehab cost of $60,000, right? Just purchase and rehab is 90k + 60k = $150k. 80% of $205k is $164k, $164K - $150k leave about $15K+/- at closing. Did I miss something? Either way, fantastic job, very inspiring!!
Wow I’ve been watching you on and off and I must say you are incredible in explaining the whole shabang step by step with total clarity, I admire your ability to get down into the details, congratulations on your success and many blessings in all that you do ❤️
My biggest concern about BRRRR... I know my credit/debt isn't good enough to get a mortgage. So if I find a hard money lender and buy a property, what if the bank won't refinance it? Do you need good credit to refinance or are they already considering the property as equity since you paid in "cash" w/ the lender? I want to start BRRRR but I'm scared about the refinance part 😫
you’re an angel! so grateful for you sharing your knowledge and experience with the world! wishing you all the success!
It’s like the 500 monthly basically covers insurance & yearly taxes 🥺 I think wholesaling until you got a good bit of cash .. then not taking the full amount from the bank unless you needed to .. then collecting rent based on what the full mortgage would be … I have cash so I’m going to try it!! Thanks for the info 🥺
the best 28 minutes video I ever watch thank you I see something now