Real estate investment has almost became a specific art form due to the heavy mathematics and science behind it. There are many different financial aspects to take into consideration, and when you’re working with percentages and estimated calculations, things can get confusing and murky fast. Errors made in the initial budgeting stage have the potential to derail an entire deal.
The Denver Metro Investment Group uses a unique method for calculating these costs and refinancing options. It’s called the BRRRR Method.
All You Need To Know About The BRRRR Method
No, it’s not just cold in here! BRRRR is actually a very well-thought out method with advanced spreadsheet tools to help take all the heavy lifting off of the mathematical portion of buying, renting, and refinancing homes. The real estate business is complicated enough without losing sleep over decimal points, dollar signs, and percentages.
That’s where the BRRRR Method steps in.
What BRRRR Stands For
When you hear or see the term BRRRR, what it means is Buy, Rehab, Rent, Refinance, and Repeat. It’s a calculator and spreadsheet that is designed to help walk through investors through their best options for purchasing a home, with different scenarios being analyzed to provide the best outcome. This method is very mathematical, but it’s made easy with the BRRRR spreadsheet, and is a very valuable tool for investors to utilize.
How BRRRR Works
The BRRRR method Spreadsheet works to analyze and add up several different financial aspects to buying a home. When using the BRRRR method with the BRRRR calculator spreadsheet, you can get the numbers laid out and used to come to a conclusion on your action plan and budget.
Three different areas are used. You can analyze the outcomes for buying property through these three methods:
- Cash Purchase
- Conventional Financing Purchase
- Hard Money Purchase
From here, this tool will take your numbers and percentages and give you accurate results regarding your financing options. Next, all sorts of factors are mapped out with the calculator spreadsheet, from taxes to mortgage costs to maintenance and repairs.
The final result allows you to see comprehensively the budget you’re looking at as well as an accurate estimate for rates, fees, and APR or CAP rates. The cash flow analysis for investors makes this a very valuable tool to have access to.
Finding BRRRR Spreadsheets
Realtors Charles Roberts and Chris Lopez have a unique understanding about the lack of specific resources and adequate help online being offered to investors. This is especially true when it comes to the financial side of things, since it’s going to be a different experience based on where you are located. The real estate scene varies from city to city, and in Denver, things are on a whole new level than elsewhere in Colorado. You need specific, accurate information… not generalized knowledge you can find anywhere. Getting access to the BRRRR spreadsheet is as easy as making a free account on the DIRE website and downloading it for your own use.