Want to know how to use the house you live in to pay for your DREAM home? (So you never have to sell.)
Or how to buy MULTIPLE properties... WITH JUST ONE POT OF CASH?
Introducing the Buy, Refurbish, Refinance (BRR) Property Strategy! Honestly, #BRR is THE best strategy in the U.K.
I like to call it the BOOMERANG property Strategy! Haha.
You see in the simplest terms #BRR is when you use a pot of cash to buy a home/ investment property, then if you’re clever, in 3-6 months, you’ll be able to get ALL your money back, to buy another one, and another one and ANOTHER ONE!! WOOHOO! Soon you’ll get Financial Freedom like me!
I know this may sound like a complete fabrication, but I have successfully bought many properties with just one pot of cash.I built 10kpm (net) passive income in 18 months.
This strategy is the fastest way to achieve Financial Freedom. So rewind to 2011, I set myself a goal to achieve £10,000 a month passive income in 18 months This goal came about because I NEEDED to get out of my banking job.
I had just found out we were expecting our first child, and rather than be happy, I burst into tears.
It wasn’t because I didn’t want my son, it was because I knew I would have to continue to work crazy hours, and I just wouldn’t see him as much as I wanted.
I wanted to be a ‘present’ mummy. When my 18-month sprint to Financial Freedom took off, I was more focused than I’d ever been before. £10kpm was a lofty goal…But I was a woman on a mission, determined to implement the BRR strategy
I made LOTS of mistakes (initially.)
Lost lots of money. I just struggled to get this strategy right. It’s not easy to do without training.
HOWEVER once I did it right once, and saw the money I had paid out to buy the property, returned to my bank account 7 months later, I celebrated!
I knew my life would never be the same.I knew that I had finally refined the process, and just needed to rinse and repeat it, again and again, and again!.. Boy did I do that!
I was buying a Property a month in South London. It was crazy. I had to pinch myself. Other people heard what I was doing, and gave me their money to invest. LOL.
Once I hit 10kpm, I handed in my notice to my boss, and it was hand on heart one of the best days of my life. I couldn’t believe I even got featured in a property magazine documenting my journey of how I had achieved it.
Fast forward 7 years and we now have pushed to 30 properties, and we’re just adding 2-3 a year using this strategy. Life is very different now. We travel the world as a family every summer and I am the boss of my life and living life on my terms.
So if you have the desire to build up a portfolio of properties that will pay you a passive income with one pot of cash, then read on!
If you want to learn how can you replicate this strategy for yourself, then lean in!
You have a few options.
1) You could do what most of the population do…Buy a property with the money you spent years to save, then work hard for another decade to build up another pot of cash to buy a second one. (YAWN)
2) You could sit tight and wait for property values to go up in value may be over 5-10 years. (YAWN AGAIN!)
3) You could learn how to do #BRR and BOOMERANG your money back out!
Might sound crazy to do, but it is 100% possible. You can even do this with your residential home.
You just need to know HOW to source and buy one property that just keeps on GIVING! This will get you to achieve Financial Freedom in no time. This is not a get rich quick scheme, it is a get rich QUICKER strategy.
#BRR on your residential home
The video above shows how we used this strategy on our residential home in London, we purchased it for 780k and after we implemented the fundamentals of the #BRR concept it was worth 1.1 Million.
We’ve since moved out of London to the New Forest. It was the 1.1million pound, this house paid for our new Forest house, we still own the above house. THANK YOU #BRR
So How does Buy Refurbish Refinance Work?
There are 3 LANES.
LANE 1- Buy a Below market Value Property, (Maybe 15-20% below what it’s truly worth)
LANE 2- Buy at Market value and Add value a lot of value to it. (Extension/ loft conversion)
LANE 3- A hybrid of both, you negotiate the price down as much as you can, then add enough value to it (probably no need to go crazy on the refurbishment)
Let me Blow your mind with the figures of this...
You buy a property for £250,000.
25% Deposit= £62,500 (your mortgage would be 75% of the £250K value @£187,500.00)
Stamp duty £10,000 (Aug 2019)
Legal and survey fees £2000.00
Total to pick up keys =£62,500 + £10,000 + £2000= £74,500
Let’s say you then do a light refurbishment on it for £15,000
Total money in = £89,500.00
Now because you would be buying in the right area and you would have bought the right property because you’d have taken the time to learn how to do this properly.
After 3 months, the refurbishment works are done.
You go back to the bank and tell them that the new value of the property is £350,000 ( you would already have known you could appreciate the price to this point before buying it)
They then lend you 80% of £350,000= £280,000
You use the 280k to pay back the first mortgage £280,000- £187,500 = £92,500
It cost you £89,500 out of your pocket to buy the property, and do it up so you pay yourself back.
£92,500- £89500= You’ll be left with £3000.00.
So let’s just take a moment.
You now own an appreciating asset, providing you with cash flow, that just paid you BACK £3000.00 on top of the money you invested?
A recent deal we got all of our money back out on.
Plus you then rent it out and get a passive income from it too!
Mortgage at 3.5% of £280,000= £816.00pm.
Lets round it up to £1.000pm to account for maintenance etc.
If you rented that property for £1500,00 a month, you have just made £500.00 passive income.
Then you buy another property repeating the exact same process
£500, £1000, £1500, £2000, £2500, £3000, £3500, £4000, £4500, £5000. 10 properties later and your on £5,000 passive income a month!
What if you rented the property as room lets, this could pretty much double the income you get back per property!
£1000, £2000, £3000, £4000, £5000, £6000, £7000….
How many of these would you need to quit your job?!
Not many right!
Want to learn how to do this strategy the correct way?
“This is like bitcoin, but without the downsides of Bitcoin”
some respect to the og coin, anyone? no? okay
Haha, in my opinion, this is better than bitcoin and you can actually touch and see the physical bricks and mortar, in a market downturn you still benefit from cashflow.