Have you ever wondered what made some young entrepreneurs so successful? I can tell you one thing and that is you cannot find your answer from people in their middle ages. The thing they did when they were young may not be applicable now.
All you need is someone at your age and in your circumstances. Someone who can provide practical ways to take real estate investment to its highest levels. One of those young investors will tell us today how he managed to build his legacy of 16 properties before the age 26.
So, if you are someone looking for inspiration to do something with your life and become financially independent, continue reading this article. Sanan will break down how the game is done:
Sanan and His BRRRR Strategy
His entire program is focused on the BRRRR method of investment. It is commonly practiced by so many real estate millionaires around the world. Sanan learned this from his mentors at the age of 21 and since then, he could turn that into a lucrative business for himself in Dubai and Tbilisi.
The key advantages of this classic approach are the possibility of cashback and the use of other people’s money rather than using your own. In other words, this approach in investment doesn’t need a huge load of cash to get started with. We all know how risky are those investments that require lots of cash in the beginning.
Tell Me More About This BRRRR
This approach to real estate investment is basically revolving around 5 principles. Sanan explains them this way:
In this stage, you hunt for great deals. No matter what season or economic situation you are in, there are always great deals. Real estate is alive and dynamic anywhere humans live. Check them out if you don’t check them out you will never believe they exist and you’ll just think it’s too good to be true. Once you found the perfect deal use 20% of the property value for a down payment.
Great deals are not perfect properties that are ready to go for top dollar. Oftentimes, you need to use your expertise to run a few renovations or creative improvements on it and make it more presentable.
Once the property is renovated and is ready to go, you rent it out. You might want to watch out for the vacancy rates and seasons. This way, the money keeps flowing in every month.
Now, it is time to send the bank to evaluate the property. It is renovated and rented, and you get a new loan based on the new value or a secondary loan. Negotiate for a lower interest rate and cash out all the money you’ve invested inside it to put it on your next property that you’ve found.
Most banks will go along with this and if they don’t, you can refinance through another bank.
As long as the cashflow keeps rolling in, you can do this all over from the top. Now, you have more experience and this cycle will eventually happen faster and less stressful.
What is Next?
The bottom line on the BRRRR method is consistency and repetition. This is a cycle that needs to keep rolling so it gets better and better. This is definitely not a get-rich overnight scheme and you won’t expect the cashflow to leap into your arms easily.
All you need is an action plan. An action plan is a clear plan that is tested and tried. You don’t need to reinvent the wheel. In this fast paced life, we don’t have the luxury of tests and trials. Find your mentor, someone like Sanan, who is there for to share their insights and have been where you are now.
Sanan Sanani is a 26-year-old real estate entrepreneur, investor and coach. He is the founder of the RMB movement that is focused on helping income earners find their ways to monetary freedom. Learn more from Sanan’s free 90 minute online Real Estate training here.