BiggerPockets Real Estate Podcast - How to Use the BRRRR Method to “Invest on Repeat”

Episode Date: May 30, 2024

Want to reach financial freedom faster? The BRRRR method is how you do it. Seriously—the BRRRR strategy is almost too good to be true, which is why so many real estate investors use it as the stepping stone to start building wealth. In short, the BRRRR (buy, rehab, rent, refinance, repeat) method allows you to reuse and recycle your money repeatedly, turning one sum of cash into multiple investment properties or an entire portfolio! This allows you to build your real estate portfolio faster WITHOUT having to wait around to save up tons of capital to invest. But how do you use the BRRRR method to build wealth, passive income, and financial freedom? We’ve got a financially free investor, Dave Meyer, on the show to walk through the three steps of completing a BRRRR real estate deal. From finding the properties to analyzing them for maximum profit potential and refinancing to get your money back out, these are the steps a beginner needs to take to do their first BRRRR deal. Plus, we’ll even show you a tool that runs the numbers for you in just minutes so you can get your first or next investment property even faster! Want to do BRRRR deals like the pros? Sign up for BiggerPockets Pro to unlock unlimited BRRRR calculator usage and access all the elite investor tools by using code “BUYPOD24” at checkout. Plus, you’ll score a sweet discount and over a thousand dollars in bonuses!  In This Episode We Cover The BRRRR method explained and how to use it to “invest on repeat”  Why BRRRR may be one of the best ways to reach financial freedom FAST The risks of the BRRRR method (and easy ways to get around them) How to find perfect properties for the BRRRR method (and Dave’s favorite way to find deals) Analyzing a BRRRR deal from start to finish (in just minutes!) with the BRRRR calculator  How to get funding for your first or next BRRRR deal with these investor-friendly lenders  And So Much More! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-no-number Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [e-mail]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey everyone and welcome to the Bigger Pockets podcast. I'm your host, Dave Meyer. And today I'm going to be bringing you a deep dive into the Burr method and be talking about how it works and how you can build your real estate portfolio using this really cool, efficient way of investing. The content that I am going to present to you today originally actually came in the form of a webinar. If you've been on the Bigger Pockets website, as I assume most of you have, you would know that we offer lots of live webinars, on-demand webinars pretty frequently. And every once in a while, we get such good feedback about one of those presentations that we decide to distribute it elsewhere in the bigger pockets universe. And that's what we're going to do. So we're taking a webinar. I've obviously adapted it for

this podcast format, but I'm going to be delivering you that webinar today. The title of this webinar is Supercharge Your Investing, Leverage Burr, to invest on repeat. And I know that a lot of people think that now, in 2024, that the Burr method doesn't actually work. And if you haven't heard of this before, Burr is basically a rental property with a rehab built into it and a refinance. Burr stands for buy, rehab, rent, refinance, and repeat. I'll get into that in a minute. But a lot of people think that with higher interest rates, the Burr method doesn't work.

But I actually believe that Burr, along with many other value ad focused strategies like flipping, actually work quite well in 2024, and we're going to get into that during this webinar. Now, before we jump in, I just want to acknowledge and thank you all for spending this time with us. We know that you have tons of other things that you could be doing right now. But in exchange for listening to this webinar, we want to give you a little gift to get your investing career started or accelerate your investing career. And that is a 20% discount on our pro membership. So if you've ever wanted to become pro or after this webinar, you feel like the tools that pro offer you are going to help you get into the Burr strategy or really whatever strategy you're working with,

go to biggerpockets.com and enter the coupon by pod 24. That's B-U-Y-P-O-D-2-4 and you'll get 20% off your first year on pro. And for those of you who actually stick around to the end of the webinar, I have another perhaps even better gift for you. So make sure to stay tuned. All right, with that, let's jump into today's webinar, Supercharge You're investing, leverage Burr to invest on repeat. And as we're starting the webinar, I want to make the goal of today's session very clear to you. By the end of this webinar, you will know whether or not the Burr strategy is the strategy for you because it's not for everyone.

But you'll know whether or not it works for you. And you'll also have the tips and tricks, sort of the tactical stuff you need to know, to find and analyze deals in any market. the U.S. I should also take a minute to introduce myself for those of you who don't know me. I do periodically host this podcast, so maybe you know me from here. But if not, I also host the On the Market podcast. I've been a real estate investor for 14 years, both in rental properties and commercial investing. I've written two books, real estate by the numbers, and start with strategy. But I think most important for our conversation here today that you should know about me is

that I was too a newbie in real estate, not that long ago. I, too, had a lot of lot of questions, fears, reservations, confusion about how to get started in real estate investing. But I was able to figure it out and scale a very successful portfolio because I figured out what tools to use, what people to surround myself with, and what education I needed to take on on an ongoing basis. And that's really what helped me scale. Today's agenda for the webinar is going to start with just learning a bit about Burr and why experienced investors tend to love this strategy.

Next, we're going to move on to talking about who Burr is right for and who might want to skip this strategy. And then lastly, I'm going to demo some tools and resources that are going to help you take on Burr if this strategy is right for you. And this will make finding the right deals, funding those deals very, very efficient. So that's the tactical stuff. But let's just take a minute to set the scene and talk about why we're all here in the first place. Because if you're attending this podcast webinar, you likely understand the impact of

owning real estate and investment properties and how important that can be to securing a financial future for yourself and for your loved ones. You might be here because of the incredible opportunity for financial freedom that real estate investing offers, or perhaps you just want a little bit of cash flow, or some tax advantages to make you more efficient with the money that you earn. But whatever the individual thing you're looking for, whether it's appreciation or, you know, cash flow or each of those things, I encourage you to sort of think about the bigger picture, right? Because cash flow is great. Everyone wants more money coming in, right? But for most investors that I know and people who are getting started, they actually want something bigger and maybe something even more

important than just cash next month. They're pursuing something like financial independence, which means you get to do what you want with the people that. you want to be doing it with and whenever you want to be doing that thing. Or it's about generational wealth or financial security. And I encourage you to think about these things because real estate can help you in the short run. But I find that it is more motivating to think about the big picture and sort of the end goal of what you're trying to accomplish as you start to build your portfolio. So keep those things as mine because as we talk about the things that you have to do in real estate, you know, it's going to take work. That is part of real estate investing.

But if you keep the end goal in mind and your real true motivation in mind, I promise you guys can start making progress and building momentum towards your financial goals. Now, if real estate can help you do all these amazing things that you're dreaming of, the question is, why don't more people do it? Why doesn't everyone go out and start buying real estate? Well, there are real challenges. There are roadblocks that you have to get around to be a real estate investor. For example, A lot of people are worried that they don't have enough money readily available to make their first purchase. Well, in reality, you can actually start building your savings today and use strategies that use your equity very efficiently, like the Burr strategy that we're going to be talking about today. You also might be worried about losing everything on the wrong deal.

But as I'll show you today, if you use the right tools and just learn from investors who have been doing this for a long time, you'll be able to, plan ahead for any unexpected financial hiccups and pick deals that are going to put you in the best possible financial situation. And if you have these concerns, I totally understand that is a normal thing. It wasn't so long ago that I had many of these concerns. And I'll just be perfectly honest with you all. When I buy a deal now, I still get a little bit nervous. You should have a little tingling in your gut before you make a large financial decision. But I've figured out, number one, the right tools. If you have the right tools, it makes everything a lot easier. Number two, the right education, which has helped me feel really confident in my decision making. And number three, I have surrounded

myself by the right people, so I have a team in case something goes wrong or there's an opportunity that I want to take advantage of that I have the right people to do that. And this formula of finding the right people, the right tools, the right education, it's not just me. This is what people on the Bigger Pockets platform do all the time. For example, I was just reading a forum post by a guy named Logan Koch who said that he six years ago didn't have a clue about real estate or how to invest, but because of the community at Bigger Pockets and the education that they provide, he was able to scale his portfolio, create $100,000 in equity in less than a year, and has been able to quit his full-time job. And Logan,

is not unique. I'm not unique. I think what he has discovered, what I've discovered and many others have discovered is that it actually doesn't take that many properties to achieve financial freedom. It actually just takes the right goals, getting the right plan in place, and taking the right actions. That's what we're going to do today. But remember, guys, as we go through this information, real estate is not a get rich quick scheme. This is going to take work. But if you are committed to taking consistent actions starting today, you can get on your path to wealth and financial freedom. Let's do that today. Let's dive in. We're going to start by just quickly recapping what the Burr method is. Burr is an acronym. It stands for buy, rehab, rent, refinance, and repeat. So basically, by that's self-evident,

you go out and acquire a property. Two is rehab. And so that's an important part of the Burr strategy is that you're always looking for a property that is eligible for, a big renovation. It doesn't have to be big, but let's say you at least need to put a little bit of money in to get it up to its highest and best use. You're not buying new properties in Burr. You're not buying something that's really pristine and in great shape. Step three is rent. So once you've got it up to its highest and best use, you rent it out to qualified tenants. Fourth is refinance. And that's sort of the beautiful thing that we're going to talk a lot about today with the Burr strategy is when you refinance, you get to pull some money that you've invested into this deal out. And

and then use it for other deals, which brings us to our fifth step in the burr process, which is repeat, right? So you take that money out using the refinance and you repeat. If you've never heard of a refinance, by the way, it's basically just taking out a second mortgage and replacing your first one. All right, so let me just give you a quick example of how this might work in today's market. So let's just say you buy a property for $200,000 and you put $20% down. So you're going to put $40,000 into this property. Next, you need to rehab it. And let's just say it's an expensive renovation and you need to put $40,000 again into it.

So you're now into this deal for $80,000. But because you've made this rehab, the value of your property has grown to, let's just say, $300,000. So this is when you go and refinance. And refinance, again, just means that you're taking out a mortgage with the new value of the property to replace the first mortgage. And so you're going to take a new loan out on a $300,000. property. You still have to keep 20% in, so you have to keep $60,000 in. Then you need to pay off that original loan, which would be about $155,000. And that would leave you with approximately $35,000 that you could pull out of the deal and use as a down payment on your next deal. And this brings us to our

next question of why do investors love the Burr method? Well, first and foremost, it allows you to use your capital very efficiently. As the example I just gave you shows you put, yes, $80,000 into this deal to get this great, really nice new rental property that you have, but you are actually able to take $35,000 of that out and keep that property and use your $35,000 somewhere else. So this is a very efficient way of using your equity and it increases the velocity at which you can acquire rental properties, which is why personally I think the Burr is, valuable. The second reason that people love Burr so much is that it incorporates value add. And value add just basically means taking a property that needs a renovation and doing that

renovation cost efficiently so that you are raising the value of the property by more money than you invested to actually do those rehabs. And value add, especially in today's economy, is one of the best ways to generate returns in real estate investing. And so when you add up all of these benefits of Burr combined, it really is a powerful way to supercharge your wealth. Now, Burr isn't right for everyone. We talked about that at the beginning, that this is a good tactic. But for some people, it's not right. So let's just talk about some of the tradeoffs and things you should be thinking about. First is like, are you willing to do a rehab? Not everyone has the time or the patience to do a renovation. And you might want to do it yourself. You might

want to hire it out. Two different models, but you need to think to yourself, like, am I willing to do one of those options. Will I do it myself? Will I rent it out? Am I willing to take on the time and effort that a rehab tikes? Because otherwise, you could just buy stabilized assets. That is easier, but it doesn't generate the same amount of return. The second thing is that Burr does require solid planning skills, right? Like, this is a more complicated strategy. But as I'm going to show you, if you have the right tools, it's really not that hard, but you do have to be willing to sort of put in some effort ahead of time. And some other things to just think about are that you're going to be using short-term loans. There are some risks like rehabs going over budget or a low appraisal after rehab. You need to

season your loans. You give to potential closing costs. All those things are things for you to consider. And if you're thinking, wow, those are a lot of downsides. Then maybe I shouldn't do burr? Well, not really. That is at least not what I would recommend. I'm naming these downsides because I just like to be realistic about what the pros and cons are a particular strategy in. And by naming these challenges, you know about them ahead of time. And that means you can prepare for them and hopefully avoid them, right? Burr has propelled so many people to financial freedom. I have used it to help me on my journey to financial freedom.

And I truly believe that anyone here can do it. So let's just talk about how you can work around some of the cons that exist in this strategy. So first and foremost, remember, that every strategy has pros and cons. And so this isn't like unique to Burr that there are things that you need to think about. Every real estate strategy has this. We're just talking about the ones that are sort of unique to Burr. So first things first, let's talk about using a couple of lending things. So first is you might have to use a short term loan. Those can be higher interest rates. But instead of using a bridge loan or hard money for Burr, there are some strategies you can use like

using a home equity line of credit if you own your own home. or you can use cash and not take out a loan at all. And if you're thinking, you know, using my example for before, I don't have 80 grand in cash to put into a deal. Not many people do. But if you do, that's a great strategy. Or you can consider using a partner, right? Maybe this is an opportunity to bring on a partner who has some equity and you can

split it or figure out a way where you can get cash for the rehab period and not have to take out a second loan. Another potential pitfall that you want to avoid with the brink. strategy is a low appraisal after rehab. Now, this gets a little bit technical, but when you go and refinance your property after your rehab, the amount you're going to be able to pull out and refinance for is dependent on an appraiser. And appraisals vary wildly sometimes. Like, I actually had a deal where I was doing a rehab on, and the appraisal varied by $75,000. This was an expensive house, but still, $75,000 is a crazy difference.

So if you get an appraisal that doesn't match your expectations and you're looking at comps in your area and you're saying, okay, that is not realistic, then you can actually contest appraisals. You can go ask your bank for another appraisal and sometimes it will be more favorable or they'll confirm what you learn the first time and you'll just have to take out less money. But don't just settle for the first appraisal if it's not to your expectations. If you don't think it's right, you can contest those. So that's another trick that you should remember. Third is rehab ends up going over budget. This really just comes down to planning and understanding your market well. So if you're new to rehabs, get multiple bids from multiple contractors to make sure that your

estimates and your timeline are accurate. That is the best way to avoid this pitfall. Fourth is seasoning. So when you take out some mortgages, you have to quote unquote season them, which means that you can't refinance them for a certain period of time. And so this really comes to. to one, just picking the right loan in the first place, or two, using some sort of hybrid strategy with, you know, a bridge loan, if you can get that at a reasonable rate, or using cash or a

he lock like I talked about before, that can avoid that potential for having to hold on to that property longer before you do the refinance. And the last thing here is two potential closing costs, because you're getting your loan, right, the first time, you're going to pay somewhere between $3,000 and $6,000 probably in closing costs. And then you're going to do that again when you get that refinance. And no one wants to pay two sets of closing costs. So one of the tips I recommend here is just working with the right lender and letting them know your intentions, right?

Because if you tell them, I'm going to do a burr, I'm going to hold this first loan for 12 months, 16 months, whatever, and then I'm going to refinance. They might be willing to work with you on closing costs or find loan products for you that work better so that you're not increasing your expenses. All right. So that's the Burr strategy. hopefully you are sold on it. And if you are, let's get you one.

We're now going to talk about the three steps to buying your first or your next Burr property. This is pretty easy, guys. Step one, it's not rocket science, is finding deals. Step two is analyzing deals. Step three is funding deals. Hopefully you can see real estate investing, it does have challenges, but it is not complicated. Anyone can do this stuff. So let's break these down one by one.

Step one is finding deals. And our survey is internally at bigger pockets, which we do from time to time just to understand what challenges people have, what they're trying to learn. Our surveys show that finding deals is actually the second biggest perceived challenge in real estate investing, only behind funding. We'll talk about both of those more. And you might notice that I said perceived challenge because finding deals is not something to be overwhelmed by. It is something that anyone can do starting today. So I'm going to share with you a couple of strategies that I use and other investors. use for acquiring deals. And I should say actually acquiring leads. So basically finding properties

for you to then analyze and potentially bid on. So here are a couple strategies. First is networking. Just talk to other investors. Talk to your title company, your lender. They might know people who want to sell and they can point you towards good deals. Driving for dollars or other direct marketing strategies basically means going to sellers or potential sellers before they've already put a deal on the market and trying to find a mutually agreeable price before you face the competition of that property being on the MLS. You can also work with wholesalers who are people who basically do networking and direct marketing for you and then you pay them for the convenience of not having to do that and

them having found a deal for you. Now, these are all good tactics to finding leads and eventually finding deals. But they are, as you can imagine, a little bit time consuming, like now. working takes time. So does direct marketing. They can also take money. If you want to take that on and you're trying to build a big portfolio, that can definitely be worth it. But I'm actually going to tell you guys, the vast majority of the deals I personally do actually come from a different strategy. And it's definitely the least exciting and the least sexy strategy out there. But it is working with an investor friendly agent. I know that sounds really boring, but the vast majority of

deals I do. And yes, this is true still in 2024. I have bought four on-market units so far in 2024 working with an investor-friendly agent. And these aren't just any agents. These are people who truly understand markets, who think like an investor, and who can really help you understand which deals the numbers work on and which ones you should avoid. Now, if you're sold on the strategy because it's easy, it's the least time-consuming, you may be wondering, where do you find one of these magical investor-friendly agents that can help me find deals. Well, we have a tool for you at BiggerPockets that can help you do this completely

free. Just go to BiggerPockets.com slash agent, enter a little bit of information about yourself. And boom, you're going to get matched really quickly with a qualified investor-friendly agent who can help you navigate your market and send you great leads. So that's step one is get lead flow. And, you know, people call that finding deals, but I think a better way to describe it is getting leads because not every property that you look at, even if you have a great agent, even if you're a great wholesaler, whatever it is, not every deal you look at is going to become a deal. Not everything's going to pencil out in terms of dollars and cents. And that brings us to step two, analyzing deals because once you have people sending you potential investments, you need to

decide as the investor. You have to decide which ones are correct for your portfolio, your personal strategy, your financial situation, and you do that by analyzing deals. Personally, I think this is the most important skill in real estate investing. And luckily, it's something that everyone can learn. I know that you start thinking about analyzing deals. It sounds like a lot of math. It sounds really complicated. But that's not really the case. If you use tools and you use systems that other investors have used before, you can see that you're going to be able to learn how to analyze deals really quickly. And being able to do it quickly, but accurately, is super important because just as an example, I put a property into contract a few days ago. And I think I'd probably analyze 30 or 40

deals before I pulled the trigger on this one. And you're thinking like, oh, this is going to take an hour per deal. No, it takes me like five minutes to do the initial analysis here. And I can sort through these relatively quickly. And I'm actually just going to take a minute here to show you how to do that using the bigger pockets burr calculator. And hopefully you'll be able to see that by using the right tools, doing this level of deal analysis to find the right property for you is actually not all that hard. And I found a deal that we're going to just do live here. It's in Indianapolis. It is a three bed, one and a half bath. It's 1300 square feet. It is on the market for $117,900,000. And we're going to go put this in the burr calculator. If you want to follow along or just

find this later. When you're on the Bigger Pockets website, just hit the tools thing at the top, and then just punch that Burr button, and you'll get to the Burr investing report and hit start a new report. So there are basically four steps of walking through this deal analysis. First, you're just putting in property info. That's just like the basics about the property. That's going to be easy. Then we're going to put in purchase conditions. That's stuff like the purchase price and loan conditions. Then we'll get rental info, which is how much income you're generating and some of the expenses that you're going to have to take on and then that's it. So let's start here and just come up with the title of a report, which will be this be webinar demo. And then we're going to put in our property address, which is

3435 cent court in Indianapolis. In addition to our address, I'm also going to put in property taxes, which we see here are $1,237. I'm going to put in a photo so I can remember which property that I am looking at and hit next step. So that was the first step. Super easy property info. Now we're moving on to purchase info. So for now, let's assume we're buying this at full purchase price, which is 117,900. And now we're going to have to talk about our after repair value. So let's assume, I don't know anything about this deal, guys. I just found it online, but let's just make some numbers up so I can do this demo. Let's assume that we're going to put $20,000 into this deal. That's a lot given the price of this, you know, at $117. So let's do a major rehab here of $20,000. But let's assume that we can

get this property up to $180,000 by making those renovations, and we're going to put in closing costs of $5 grand. Now, if you ever at any point during your analysis or like, how do I know what closing costs are? In the Bigger Pockets calculator, there's all these tool tips, so you just hover over them, and they'll give you really good rules of thumb that you can use to just make estimates. So for purchase closing costs, we'll put $5,000, and we'll keep moving on. Next, we'll put on loan details. And again, this is going to be the first loan for our burr. For a down payment, we're going to put 20% down. We're going to do an interest rate of about 7%. That's what I've been quoted recently. I'm going to wrap my loan fees into the loan. I'm going to do a interest only

loan. I like doing interest only during a rehab period because it's not enough time for amortization to really benefit us as the investor. So I do interest only to keep my expenses as low as possible. I assume this renovation is going to take us six months. So I'm going to say that my rehab is six months and I'm going to refinance after, let's just say, eight months to be conservative in case it takes us a little bit of time. Next thing we have to do, that was our first loan, is talk about our second loan. So let's say we have to keep 20% in on our $180,000 property now. So we're going to do $180,000 times 0.8.

That consists of 144. So our new loan is going to be $140,000. $4,000. And I'm moving quickly, guys. So if you're wondering how I'm figuring out these numbers, it's all on my screen in front of me because the Bigger Pockets calculator just does all these numbers for you. So I'm walking you through this, but I'm going to show you that this only takes two or three minutes because the calculator is basically doing everything. So for my refinance, I'm going to do 144 grand. Again, at 7%. And then I'm going to say that it's amortized for 30 years. And that's it. I'm going to hit next step. So we're now done with steps one and two. And next

we have to put in our rent. So this is somewhere where people get hung up, but luckily for you, on the bigger pockets, we have a calculator. It's called a rent estimator, and it will tell you what we expect the rent to be for this property. And it will actually give you what's known as a distribution. It will show you what medium rent is, what a low-end property will rent for, and a high-end. And so for this property here, the median is $1,275 per month.

Now, normally, if I'm just buying a property and not renovating it, I will use that average, but we're doing a major rehab here. So I expect my property to be one of the nicest properties in the area. Now, I don't want to do the 100th percentile, the highest possible thing. That's too risky. But I'm going to use the 75th percentile here, which means it's above average, but it's not the absolute nicest property. So that means I'm going to use a number.

This is all in the calculator, again, of $1,450. And then I'm moving on to expenses. We're going to actually skip over utilities because this is a single family home. And as the landlord, I'm not going to pay that. Tenants just pay their own utilities. And I'm going to move on to the landlord paid expenses. So these are things like vacancy, which I always like to put at 6% about. Repairs and maintenance, which I think 5% is pretty good here.

Actually, let's make that like 7% just to be conservative. Then we're going to do capital expenditures. And CAPEX is, it's kind of similar to repairs and maintenance. maintenance, but it's treated differently by the IRS. This is big things like replacing the roof or a hot water heater, adding value to the property. And sometimes, you know, if it's an older house, I'll do like 10 or 15%, but I'm going to do 5% here because we're doing a lot of CAPEX at front. Remember, I'm putting $20,000 into this to renovate it and make it nice up front. So I'm not expecting a lot of CAPX expenditures in the near future. Lastly, I will put in management fees of 8%.

And I will double check my growth assumptions, which I'm going to just put at recent averages and hit calculate results. All right. So hopefully you can see that just by using this tool, I analyze that deal and I was talking a lot in like, you know, five minutes. So once you get good at this, if you're using a calculator, you're going to be able to run those deals quickly. And what this shows me is that it's a really solid deal. So after I do my refinance, I'm going to get monthly cash flow of about $100. bucks and I'm going to earn a cash on cash return of about 6%. So for me, that's a really good deal. I really like those numbers and I think this would be a very efficient use of my capital.

This might be a deal that I go and offer on. Now, if this isn't, you know, not every deal is going to work out. So what I recommend you do, though, is if you find a deal that doesn't make sense, is don't just give up on it because deals aren't just found. They are often made. And so in the calculator, you can go and actually edit some of your assumptions. Like, maybe it doesn't work at full purchase price, but instead of offering 118, you offer 110, that gets you the return that you're looking for. Then you can go out and make that offer to the seller. You don't know if they're going to accept it at that price, but as an investor, you're going to have to make some offers based on your own internal criteria. And if they don't accept it, that's fine. You just have to do this enough times

until you get the right deals. So hopefully you can see how cool this is, because now I know that this would be a great deal. It would be getting me cash flow, good cash on cash return. It also shows me like my long-term prospects. Like if I held onto this for 10 years, I'd earn $80,000, which is incredible, given the amount of money I would have put into it, it just shows that this is a good deal and super useful. The last thing I just want to mention about this calculator and tool is that it also spits out really nice looking PDFs with all these numbers. And that's really useful if you want to bring on a partner, if you want to get your spouse on board, or as we're going to talk about in just a minute, if you want to get a loan for this property, having a really professional analysis is going to help you in that effort. All right. So let's get back to our three steps. Now that you can see that deal analysis is something that you can learn right now, all you got to do is put in reps and that takes the guesswork out of which deals you should pursue, right? Because you'll know in real dollars and cents using solid, fundamental.

which deals make sense. So this brings us to the last piece of the puzzle, step three, which is funding deals, right? As I mentioned before, our surveys actually show that funding deals is the number one challenge in buying real estate. I hear this all the time. You might be thinking, I don't have enough money for a down payment or to finance that rehab. But let me just tell you something. Sort of like before I talked about specifics, let's just talk about a principle that I think a lot of less experienced investors miss about funding, which is that with the right and the right deal and the right network, funding deals actually becomes a lot less stressful. And there is a reason that I've presented this information today in a specific order, right?

We talked about finding deals first, analyzing deals second, and then you finance the deal, right? A lot of people think, oh, I'm going to go find a loan, and then I'll know how much I qualify for, and then I will go find a property. But that doesn't really make sense, right? Because you have to put yourself in the bank's shoes. They want to know their loan is going to be going towards a really solid deal and that you're going to be able to financially perform on that loan. And so if you went to a lender and say, hey, will you lend me money? They'll probably be like, maybe, but what project am I lending on?

What deal are you doing? And if you don't have a deal to show them, they're probably going to be like, great, come back when you have a deal. Meanwhile, if you go to the bank with a really professional PDF that shows that you've done your deal analysis that you've found great deals that it's going to cash flow, that you have good assumptions, you've accurately estimated your rehabs, and you say to that lender or even to a partner, hey, do you want to participate in this deal? They're much more likely to say yes, because they can actually see in real math, in dollars and cents, that the deal that you have is a good one, right? So that's really what I recommend when it talks about finding. Okay, good deal flow. Learn how to analyze

deals and then start approaching lenders and potential partners once you have good deals to show them that's going to make those conversations so much easier. Now you might be wondering now once I find a good deal, how do I find a good lender? Well, Bigger Pockets again has a great tool for you. It's called the Lender Finder. Just go to biggerpockets.com slash lenders and put in again, put in some information about what you're looking for, the deal that you're looking to buy, and you're going to get matched instantly with an investor-friendly, lender who can help you navigate this. And this is super important because, you know, doing a burr is not exactly like doing, you know, traditional home purchase. Again, you're doing

an initial loan. You're getting a refinance. You don't want to pay those double closing costs. So finding a investor-friendly lender here with the burr method is super important. You can do that for free using the bigger pockets lender finder. So just to recap, those are the three steps, guys. This is not rocket scientist. We talked about step one. Finding deals through either an investor-friendly agent, wholesaler, doing the networking yourself. Step two, analyzing the deals and getting really good at identifying of all the potential properties you get sent and you're looking at which ones make sense for you and your strategy. And then step three, using that great deal to approach lenders, approach partners to get the funding for your deals. So now that we've talked about these three steps, I want to ask you all who are listening right now, two big questions.

The first is do you understand how the Burr method can help supercharge your investing journey? Do you get that this is a super efficient way to use your equity and to increase the velocity of your portfolio building? Question number two, do you believe that if you have the commitment and the knowledge and the tools that really anyone, especially you, can pursue your financial freedom or whatever investing goals that you have? Because at the end of the day, the reason I'm asking you this question about commitment is because at the end of the day, that's really what it comes down to. I've told you these aren't like, it's not rocket science. It's not complicated. There's a great quote by Jim Rome. He says, if you really want to do something, you'll find a way. If you don't, you'll find an excuse. And I think that really pertains to real estate investing because this isn't complicated. It's just something that you can do

if you're going to put in the effort. And I know even knowing everything that you've learned today and committing to yourself, that real estate can feel risky. It can feel like jumping off a clip. Like it's this extreme thing and you're taking on a lot of risk. But honestly, guys, that is not true. It is not base jumping. You're not skydiving. You're going on a pretty basic hike, right? You're walking uphill a little bit, but you're doing it with friends.

And you're doing it with people who are going to be able to support you and with the right equipment and the right plan. And that makes real estate investing really not that hard. It's just something that takes putting one foot in front of the other day after day. Now, I don't know why you all came here today. Maybe you're tired of working your full-time job. Maybe you need to start preparing for your future retirement. Maybe you're tired of being a entrepreneur and saying you're going to start a business but never actually doing it.

I don't know. But what I do know is that real estate investing really does work if you're willing to put in the work yourself. And our goal at Bigger Pockets is to help you reach your financial goals through real estate. And that's why we've created these webinars and why we've created incredible tools to help you get there faster and with less pain. And we do that with Bigger Pockets Pro. And with your permission, I'd like to make a special offer for all of you to upgrade your real estate investing toolbox with Bigger Pockets Pro. Pro, if you've never heard it before, is basically a one-stop shop

that we've designed to help you start, scale, and manage your entire portfolio. And if you're wondering how one subscription could possibly provide all this, let me jump into some of the First things first, pro gives you the best deal analysis toolkit out there. I've already showed you the BIR calculator. There are a bunch of other calculators. There's a rent estimating tool. And there's a bunch of other analysis tools on bigger pockets that you get to use to analyze deals like a pro.

Now, deal analysis, it's kind of my thing. I wrote an entire book about it. And I use these tools for my deal analysis. And if you go pro, you can use those as well. Secondly, pro gives you access to exclusive elite level education, like the webinars that we're hearing here, these are available to everyone, but we do workshops and pro exclusive events that are going to help you deep dive into the topics and questions that you have and need to answer to scale your portfolio. And we're also giving you 50% off all of our boot camps, which gives you

direct instruction from some of the best investors in the game, like Ashley Care, Henry Washington, Matt Faircloth, and many more. Third, pro helps you supercharge your network. So you get exclusive access to our pro community forums. Only pros can access this. And it's where a lot of our most sophisticated, experienced community members hang out and talk to each other and share advice. And just by being pro, our data shows that you'll get three times more connections and

build your network literally three times faster than our free members. Lastly, we have built a landlord command center for pro members. So you get free property management software from rent ready. That's a $240 value. You get amazing portfolio monitoring tools as well as accounting software from Stessa. And you get all the legal stuff you need. So like leases, pet addendum, screening tools, all of that you get for every state in the entire country. That's worth like $5,000 all by itself.

You get that for free as part of being proud. So just to summarize, you get analysis tools. You get exclusive education. You get to supercharge your network and you get your landlord command center all as part of pro. And I'm not a CPA, but ask your CPA because for a lot of people, the pro membership is actually tax deductible. This, you know, you could take it for me or you could take it from other pro members like

Aaron C who said, there's no way I could analyze the volume of properties I do without being a pro member. And remember how important that is because you need to analyze a lot of of deals before you can find one. Or take it from Beth R, who said it's been the foundation of her real estate investing endeavor. Jackie O says it's a small cost for so much value, and Martin S. says how actually worth it it is if you use pro, you're going to be able to pursue financial freedom. So you're probably wondering how much is Bigger Pockets Pro?

Well, if you bought each of these things individually and added them all up, it would actually be about $5,000. And that would be worth it because if you bought even one bird deal, you're going to make way more than $5,000, hopefully. But $5,000 is obviously a huge investment. And at Picker Pockets, our mission is to make real estate investing accessible to ordinary people. So we make all of the amazing tools of pro available for a very reasonable price.

We charge just $468 a year. That's a screaming offer. But I'll actually give you a hint. you actually, instead of paying monthly, if you pay annually, we only charge $390.90. And if you remember, at the top of this webinar, I told you, we were giving you a special offer, 20% off, which brings your pro cost down to just $312 for the year. That's $156 in savings. It's amazing.

But at the beginning of the webinar, I also said that we had more special giveaways for you. So let me share with you why we're feeling so generous right now. and three additional things that we're giving you. If you go pro today, you will get the Show Me the Money Starter Pack, which offers you a nine-hour no-and-low-money-down workshop to help you get your financial house in order to make these types of investments. You'll also get an e-book on eliminating debt and repairing credit and worksheets to build a

bulletproof wealth plan. That's on its own. All of that stuff is worth $470 more than the price of pro, but we're just going to throw that in today. Next, we'll also give you the demure. mystifying the housing market bundle, which includes stuff that I wrote like my state of investing, my 2024 state of real estate investing report. You'll also get videos on how to build scenario plans, which will help you invest in an uncertain economy. And I'll also give you my guide to investing in a changing economy to de-risk your investments. That's worth over 500 bucks. You're

getting it just for going pro today. The last bonus that we're giving you is my favorite because I get to give you my book for free. You get real estate by the numbers, the bestselling book by me and Jay Scott. You're going to get our Excel files and our video tutorials on how to be an amazing deal analysis pro. That's $229, but you're getting that for free. So this is really basically the best offer we ever give people is the ones on these webinars. And so if you're thinking about doing Burr, you want to accelerate your real estate investing career. This is the best offer you're ever going to get.

And the good thing is you can try it. If you don't love BiggerPockets Pro within 30 days, just email us and we'll give you 100% of your money back. No questions ask. We want people going pro who are actually going to use Pro. So if you want to do that, you can go to BiggerPockets.com slash pro and enter the code by Pod 24. That's B-U-I-P-O-D-24. That's going to get you 20% off. So you're paying just $312 for all the benefits of Pro plus the show me the money starter pack,

the demystifying the housing market bundle and the ACE your analysis toolkits. Again, BiggerPockets.com slash pro. Enter the code B-U-Y-P-O-D-4. That's all I got for you guys today. Hopefully you learned a lot. And you can see why Burr is such an efficient and powerful strategy for pursuing financial freedom and scaling your portfolio. It's really a lot about efficiency.

That's why Burr is so unique. It really combines a lot of the best elements of real estate investing, like cash flow, leverage, and value add into one really repeatable process that you can use for financial freedom. Again, it's not for everyone, but if it is for you, consider going pro at biggerpockets.com slash pro and using the code by pod 24. If you guys have any questions about this or want to connect with me, you can always do that on the Bigger Pockets platform. Thank you so much for listening, and I'll see you around the community soon.