The (Almost) Perfect BRRRR Deal | Cash Flow, Loans, & More
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- Опубліковано 16 чер 2024
- The perfect BRRRR doesn’t exist. Or at least that’s what people who aren’t that great at doing BRRRRs say because the perfect BRRRR most certainly does exist. Although it’s hard to achieve, an “infinite BRRRR” is by no means impossible, and it’s what real estate investor Tarl Yarber strives to reach on every rehab. Not all of Tarl’s projects are infinite BRRRRs and even when he has to leave money in a property, it’s usually a phenomenal deal.
In this episode, Tarl walks through one of his most recent rehabs, which took over two years to get finished! This property has everything-an outdated single-family home, a disgusting DADU (detached additional dwelling unit), and a full-sized lot ready to parcel up and sell to the highest bidder. Tarl and his team had to spend over a year trying to get non-paying tenants out of the back house before they could even start their rehab!
So, how did this all play out on Tarl’s bottom line? Stay tuned to find out. Tarl proves that even on some of the hardest deals, having multiple exit strategies can be your ticket to cash flow, high ROI, and peace of mind once the BRRRR is done!
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How to Fail at The BRRRR Method:
• How to Fail at The BRR...
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Tarl’s “Infinite BRRRR Strategy” Defined:
• The “Infinite BRRRR St...
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3 Exit Strategies You Need to Have When Investing in Real Estate:
www.biggerpockets.com/blog/ex...
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10 Key Components of BRRRR Strategy Success:
www.biggerpockets.com/blog/re...
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How to Evaluate BRRRR Risks and Rewards:
www.biggerpockets.com/blog/br...
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Connect with Tarl on BiggerPockets:
www.biggerpockets.com/users/t...
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Follow Tarl on Instagram:
@tarlyarber or / tarlyarber
00:00 Know Your BRRRR Exit Strategies
01:12 A DADU-Sized Headache
03:19 Acquisition Numbers
04:14 Before and After Renovations
08:24 Enter the DADU (Detached Additional Dwelling Unit)
11:16 The Best Part of the Deal
12:39 The Final Numbers
19:45 Getting Your Money OUT of a Deal
25:58 What About the Extra Lot?
27:55 Cash Flow Numbers
One of the best videos from BP right here. Real good in-depth on the realities of buying "distressed properties," the actual rehab process, and the endgame number crunching. 10/10
Tarl’s videos are the only videos from Bigger Pockets that I get excited about! If you could do an in-depth video on your systems that you use in your business that would be great! Keep them coming!
I agree, I look forward to his videos the most. David Greene is great too, but his videos are too long.
After watched hundreds of real estate videos this one was the best one explained something.
Dang Tarl you knocked that ROI out of the park. So educational and glad you got that property!!
Great video..very common scenario discussed here..I like your honesty and in-depth analysis..
this is the best video from BP ever! we want more like this!!!
I have a similar same deal. Bought a home in PHX - Arcadia area - for $270K in June 2020, lot size of 18,000 SQFT. Did the BRRRR but very small cash flow. Land will be divided into three parcel, and will eventually build 3 homes, about $800K each. I love real estate investing because there are some many different strategies that can be use. Great video!
That’s awesome man! How much will it be to build each house? Will that be paid out of the HELOC or a separate construction loan.
Awesome, that's great. Thanks for sharing the numbers with us.
Great stuff, thank you! Plus, in addition to your 46% ROI from the cash flow, you also gain from the appreciation and loan pay down. Dope!
Tarl’s videos are gold
Legalize Freedom. Love it👊💪
Love the way teach . Thank you so much sir ...
Great information Tarl! I hope to walk in your footsteps, but only over here in the midwest :-D
Yeeeeeiii!!! hahahaha!
It took me a while before understanding BRRR. It is more complex than what most people explain...
One of the most important things that is often overlooked is interests for the loan, origination fees, etc. Money is expensive and needs to be taken into account.
Appreciate the detailed explanation.
Fantastic video mate!
Question....
Where do you refinance a rental property?
Because banks won't wanna lend me money on rental properties
Love your shirt!
I like your presentation style. Easy to follow. New subscriber here!
BP pro member!
Tarl's videos are the best!
Good job T. thank you
Buy hats! Buy hats! 😂
Just discovering your videos on BRRRR and very much enjoying your content. Super explanations and use of terms, and basic math concepts needed to make deals. Keep up the great work.
Love the Awaken with JP shirt!
Great video. How long does it take to refinance a property?
Are there attached ADUs? DADU sounds ridiculous 🤣
Outside of that great info. I’ll have to watch your infinite brrr videos
awesome Tarl
Hi My name Arman Bagdasaryan and i'm 16 years old located in California. I love real-Estate and i know that this is the path i want to take where i can grow massive amounts of cashflow as well as a lot of other benefits. Right now i'm just trying to learn as much as I possibly can i've read many books about Real-estate as well as the BRRRR book I understand it quite a bit but still need to learn a lot more. Currently tying to find a mentor, i'm trying to work for free in return try to obtain as much knowledge from them as possible. Main thing i'm trying to do it give them something they need in return such as clean up houses before listing etc.. Just to build a good relationships. Any tips for a 16 year old where to look what main things to learn about?
Love how detailed this video is. How would you recommend someone get into doing a brrrr? Should I have about 20% of the ARV In cash in case the deal goes wrong like this one? Thanks
typically you want 6mo mortgage saved in cash reserves
Great video.
Would it be advised to join the two lots to reduce taxes? I bought a similar situation. A house with 2 separate lots.
I feel the pain my tenants stay 13 months without paid I sold the property and the new owner kick her out in one month
Sorry to hear, what a bummer. Hope you were able to make money off the sale at least? I absolutely hate that in some states, landlords have so many restrictions imposed on them, especially during Covid where it was almost impossible to kick out a squatter. I live in seattle, so I see the struggle first hand. Also, that’s another reason why so many people are doing Airbnb, much harder for a tenant to squat. Good luck! ✌🏻
I want to hear the appraisal
Thats a lot of hats man
Nice legalize freedom shirt!
Hi thank you for what you do here and the informations that you give us about real estate investing. Can i see one video here where you explain the materials you use all the furniture for brrrs deals all that stuff i heard a lot about bigger kitchen bigger bats maybe there you have somenting online. Thank you very much ❤️🇹🇩
20:57 he didn’t come up with Brrr strategy. It’s just a cash out refi. He may have come up with the phrase but it’s already been around
Can construction materials be sourced and bought in Mexico, then transported to the u.s.? Wouldn't the materials be super cheap?
You mentioned your wife is your property manager. Do you have her as an employee/head of an LLC you created? So that you can pay her and write it off, correct? Curious because I am trying to do the same with my partner when her and I do a STR so the money comes back both ways.
I can't wait until I understand this shit good enough to start doing it. Im getting Jazzed up and I can see how I'd become addicted to it. It's unfortunate that I'm starting at 37 yrs old... Am I wrong to get my hopes up of financial freedom starting this late
The details here are great! But I'm a little confused about the extra land. You mentioned that the seller couldn't sell because of the problem tenant, but the land is an entirely separate plot. If you can just sell off the land for $80-100k, why couldn't the seller have done that herself instead of including it in the deal? What did I miss?
I think the land CAN BE a separate lot. You have to jump through the hoops with the local government to split the land. Probably something a 80 year old lady wouldn't do.
@@jgn1977 The way I understood it, it already was a separate lot. That's why, as it was stated, it wouldn't be included in a refinance of the property. But maybe I misunderstood something. If it was all one lot when purchased, and then they went through the process of splitting it out in order to be able to sell it separately, then what an excellent find!
Does the principal pay down go into ROI?
Holistically, yes. Principal pay down would go into ROI as would appreciation. The ROI that Tarl is referring to in this case is simple cash on cash ROI, though. Pay down and appreciation make the return even better.
If you are serious about buying hats I have some for sale Yarl.
You shaked so much the camera to make it look amateur that it looks bad. But the advice is actually good thanks
LFG
First!!