50 Rental Properties in 6 Months Using a Supercharged BRRRR Method
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- เผยแพร่เมื่อ 15 มิ.ย. 2024
- How can you get 50 rental properties in 6 months? The BRRRR method (buy, rehab, rent, refinance, repeat) is commonly known among real estate investors as one of the fastest ways to build a portfolio of rental properties. The beauty of the BRRRR strategy is that it takes less time and money to get properties to cash flow with baked-in appreciation. But what if you were to ramp up the BRRRR method, so instead of doing a BRRRR every year, you did it 125 times a year. Sounds a little insane, right?
Meet the man behind the madness, Chad Beeman, who has (and this is not an exaggeration) bought and BRRRRed fifty rental properties in the past six months. This is a staggering amount of properties to buy in such a short amount of time. The craziest part? Chad is planning on purchasing another seventy properties over the next six months! So how is he able to buy so many properties, scale so quickly, and do so without losing his balance?
Chad walks through his small team, system, and thought process that helps him stay so successful. He’s had some blunders in the past (like spending $30K rehabbing the wrong house) but has thought of them as “tuition” when investing in real estate. Thanks to these mistakes, he’s been able to grow faster, build more than a million dollars worth of appreciation, and shoot well past financial freedom in his real estate investing journey.
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LinkedIn: / chadbeemanrei
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Instagram: / robuilt
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Episode 644
Show notes at: www.biggerpockets.com/blog/re...
00:00 Intro
02:45 Quick Tip
03:45 50 Rental Properties in 6 Months!
13:19 Has the Housing Market Affected BRRRRing?
17:14 Becoming an "Accidental" Millionaire
22:57 How to Make Multiple Offers
32:48 Building the Team and Rehabbing the Wrong House
42:42 Partnering Up on Properties
47:02 Deal Deep Dive
51:34 Famous Four
#biggerpockets #realestatepodcast #ep644
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Rehabbing the wrong house: “I’m good.” 😂😂😂😂😂😂
Cheers to you guys for adding so much value and keeping it real. One of the best BP podcasts yet 🙌
We are seeing and finding BRRRR opportunities all over the Metro Detroit market that are still penciling out well and most better than expected/conservatively planned for. Very insightful video and look forward to more like it
That story is pure gold! I will be extremely careful and triple-check everything when it comes to REI. 👍🏽💯😁
Thank you for the constant content guys
Thanks 👍 very great info. 👍🔥💯
I've grabbed 16 doors in 8 months on my own.
What is your mix? SFH, duplexes, etc?
@@randybates789 Since January, I've purchased a 10plex, a 4plex and two SFHs.
@@robertgust5864 how did you pay for those?
@@AberrantArt Sold a rental and did a 1031 exchange. Then applied for a LOC and acquired one new property after the other using the BRRRR method.
do you have Instagram or email? I'm 21 getting my license and want to get into rentals
Love it… this is our model and what we’re hoping to look like in 6 years. Thanks for sharing how you did it and that the team is the key. We’re starting to really build out our team now so it’s super relevant for us right now.
Working on my first BRRRR. Learning a lot. Keep the education coming!
How many Brrrs have you done so far?
That story was golden 😂
My question is.. how is he structuring the partnership deals.. how would you in his situation? LLCs for each partnership? Some kind of agreement document with everything in 1 LLC? Lots of details to this piece
S corps they are better for partnership
Very Nice! 😍
The rising interest rates, especially when that comes in the middle of a project, can be very disheartening. Changing the rules in the middle of the game! But, it made me feel much better to hear him say that he has left 10-20k in some of his BRRR deals too. But, that strategy he is using makes me scratch my head and open my mind a bit!
How wild, I am looking to get started in the Destin/30a area. I currently own and live in 1 condo on 30a with 350k in equity and 85k left on mortgage. Heloc for down payments on investment properties?
Ever thought of building another home on the property? Might be a way to set up some passive income without pulling equity on the property. Builds in anti fragility got a bad tenant who won't pay rent or leave its not another mortgage you gotta pay. Loose your job? Tenants rent covers mortgage. If you ever want to sell have option to sell as one unit or split and sell two separate homes.
I use a HELOC for cash purchase and then refinance it back out. However I also have cash on hand in the event I have to leave money in the deal. Also have cash reserves for maintenance or anything unexpected. In the current environment it is hard to BRRR all your money back out and cashflow after expenses.
Honestly big respects to this guy but I would not want to invest how he’s doing. He’s banking on appreciation and not CoC returns which to me is a big red flag, not to mention all in SFH? That sounds like a headache in 20+ years… hundreds of individual roofs to repair, etc. I would’ve just taken all that money to buy an apartment building of 100 units. But to each their own I guess lol.
Agreed, Imo CoC to appreciation is like investing to gambling, Respectively.
Exactly... Banking on appreciation seems equivalent to the "growth at all costs" tech startup mentality. In some instances, it works perfectly. In others, it fails spectacularly.
I sincerely hope they're in the former group and not the latter.
Where are you going to find help? I live in Anchorage AK And I cant find anyone to do anything.
"you know"
- Chad Beeman
How do u know what to give as a offer on a house as the market is just starting to go down? Like sellers are still thinking they have gold when they have silver. Say someone has a house up forsale for 350k but in six months the market will shot that house down to 180k? It’s just really confusing to me as to how to make a offer on a property that someone has listed for five times what it’s really worth?
Don’t buy it then??
How is the market going from $350 to $180 in six months? Didn’t even come close to happening in 08 and that was a real estate based recession. I don’t think values are dropping. I think we are getting a quick correction but my area is still stable and going up in most parts.
20% market correction
Correct me if I'm wrong so if someone brings him 5-10k on the refinance he makes them a 50/50 partner?
Little confusing the way it was worded. I took it as he proposes 50/50 to those with money who want to get into the industry. But when he needs 5-10k, he approaches a contact to make them a partner in some fashion, not necessarily 50/50.
Yes, that seems to be correct..but at a higher price point.. like 15k+. It all depends on the deal on how much money he'd want from the investor.
Where’s the deals coming from? Mls, off market, wholesale?
Yes
I have 2 rental property now in AZ how can I BRR or make money to buy more property’s I feel stuck .
Drop your email i will help you
Talk to a lender near you, get 80% loans against both pull out as much as you can in the refi. Get that cash and go buy more homes
I just called an agent that listed a fix and flip, and I felt really confused after I hung up.
I asked if she recalled selling that property, she said yes and I asked if she works with people who do fix and flip (which was exactly what just sold)? She said "I don't do that" I asked if she comes across anything that is not ready to list on MLS but the person wants to sell, she said "I told you, I don't do that! I have plenty of clients to keep me busy, I don't get involved in ANY OF THAT."
Is this a common belief that agents have???
Agents get harassed by investors all of the time so they usually ignore them unless they know you’re legit.
@@caleblane8237 that's unfortunate. It seems like a mutually beneficial relationship
@@AberrantArt as an agent myself I get about 10 inquiries a day from “investors” looking for fixer uppers and off market properties. Make a relationship with a good agent and prove to them that your legit and ready to buy
@@caleblane8237 wow. And I still hear people say the industry isn't saturated and now is a great time to start etc... I feel like I'm getting started too late.
Seems like you just need to find an investor friendly realtor. You could also get to know some wholesalers
What are some of the questions that Chad had asked for quality workers in his team? We’re they different than the questions he had used in the beginning with just hiring his team or what was he asking them or looking for to identify that his contractors, property managers, and other key players were better quality…
He was doing checks of their work and references.
Rising rates , has priced a lot of buyers out of the market , 6-7% , on a 400k house is 2200 -2500… mortgage , most Americans. Can’t afford these mortgage s ..not sure how , investors without capital , can invest if u don’t have capital & high interest rates .. numbers but , it’s gonna be hard
The prices are coming down so it evens out
Get creative, talk to desperate sellers, they’ll literally give you houses they can’t afford 🏡
I really wish I could start I think by the end of month I might get on the website anybody got any news on the website is it really worth it.
So.. have you started yet?
@@lilfame001 no this democrat price hike on everything is killing me
Nice. I tried out the rental calculator to play with. The 5th entry I clicked the results. My finger bumped one of the the Intrest rate adjustment so I refreshed the screen and it locked me out of the reports. I didn't even get a chance to look at the numbers on my deal! But now all of my work is in your data base... Nicely played and very wise of Biggerpockets. But honestly that didn't make me want to upgrade to pro when I realized I couldn't even see the entries anymore on the 5 free ones. I'm suspicious of entering data into the calculators now. I feel like you just took my work and ran away with it and I feel foolish.
Lol pride of rentership
Yea all of this was done in Nebraska Lol! Try doing this in California-impossible because this markets completely over saturated.
California communist still wearing mask
this guy will be working for the banks until he drops dead. its fine to have some properties paid off!!
When he says he had a partner come in And give him $14000 I have no clue what that means or what hes paying this person for that $14000
He's not paying a person.. the investor is giving him 14k because he has 9k in the deal. He's also making that investor a 50/50 partner in the property.
Y'know.
What BRRRR Stands for?
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat
Great to get more character development on the character from the doomer memes
$400 cashflow, you are kidding me? Is he including CapEx. Repairs, Property Taxes and other expenses or just subtracting mortgage from rent and call it cashflow?
I believe he is probably leaving out expenses. Especially if he is refinancing 80% LTV at the end.
He has the security of his high income producing business to back up his low margin real estate. Additionally he is doing a BRRRR which is typically more of a extensive rehab than your typical lipstick flip because the main goal is to force equity. And again, he is also spreading risk of one roof going bad out over 120 properties cashflowing by the end of the year. He also obviously has contractors on lock, so the economy of scale is very much in his favor.
@@tyrellrutledge52 whats his profession?
I though he was george saint pierre
My second hand cringe was so strong when he was explaining how he spent $30,000 rehabbing the wrong house. If that happened to me, I think I would've just given up on real estate investing, curled up into a ball, and just died.
Would have been way less if he used draws and verified the work in-between
I completely deleted my Facebook account. They literally have people scamming folks out of tons of money right under their noses without a care in the world but they go Seal Team 6 over anything that might hurt 3 people's feelings for a day. Their priorities are inverted from what they should be.
That story sounds like something from the twilight zone. I'm sure the owner of that house appreciates the contribution to their success. 🤣 Thanks again for all the great info!
ban landlrods and rent end school n university bring back manufacturing ban lawyers owners bank debt mba haev king
Poor timing isnt it ?!?
4:20 is the house still standing?
Is it just me or is Rob a terrible choice for cohost. Hardly ever contributes anything useful, not good at vamping to fill dead air and just isn’t especially charismatic. Nothing against the guy personally but it feels like there could be a much better fit for the job
Oh my gosh hahaha so mean
I actually have the opposite opinion. He's sneaky smart. Actually listen. This guy knows his shit and makes complex questions easy. He's very talented.
@@noeaga I appreciate the implication that I don’t actually listen but I do and I stand by all my points. Of course he occasionally does something right. I didn’t say he’s the worst host on earth but he’s not the best man for the job by a long shot. He gets carried by his cohost and guest. Again nothing against the guy he’s just not that good at it.
I disagree, rob adds a great expertise and different view point to the show. As someone who has evolved from a diy landlord in the land of complaining California to a multi millionaire Airbnb host over the last few years he has a very valuable perspective that a bunch of people are interested in where as David has his expertise is more traditional real estate game. If you remember the old days of David as cohost his job was to occasionally bring an off perspective while Brandon did most of the riffing .
Rob adds a lot of value to me.
Are you really asking for people's pronouns for the badge for your conference?