Ashley Kehr:
Have you ever heard of the Burr strategy? It’s the real estate investing method that actually scales your portfolio and fast. But what if you don’t have the cash to complete it? There’s a more beginner friendly Brr R method for those without six figures, and we’re about to share it with you.
Tony Robinson:
But after you burr for the first time, chances are you’ll be paying today’s sky high home insurance costs. But don’t worry, we’ve got some solutions to lower your insurance premium so your bill stays reasonable.
Ashley Kehr:
Finally, we’re going to share the lazy method experts use to increase rents. It’s so genius that your tenants may even ask you to raise rents on their behalf. Once you hear about it, you’ll use it on every rental. This is the Real Estate Rookie podcast. I’m Ashley Care.
Tony Robinson:
And I’m Tony j Robinson. And if this video gets 100 comments, I’ll finally share my nighttime skincare routine. With all of you who’ve been asking,
Ashley Kehr:
Does it involve cucumbers?
Tony Robinson:
It absolutely does not. So with that, let’s go to today’s first question. Alright, so our first question today comes from Reese. And Reese says, I’ve heard that the Burr strategy is dead. And just really quickly, for those that don’t know, Burr stands for buy, rehab, rent, refinance, repeat. But Reese says, I’ve heard that the Burr strategy is dead unless you have huge capital, like a minimum of 50 to 80 K to start. So if a new investor has 25 to $30,000, is there a way to pool this with a small group of other investors to do a bird deal together? Almost like a small syndication. For example, if there was a property that was $100,000 and it needed $60,000 in rehab, the amount needed would be 160 K. In total. If there were five investors each putting in $32,000, that would give us a 160 K.
Then after repairs, we sell that property for two 40, each investor would get a return of $48,000. Then after repairs, we sell…