1. Goal is to buy a property.
2. Renovate it.
Then, Pull out all or a good portion of your renovation costs along with your down payment.
3. Rent it out.
4. Refinance - pull out all of the equity.
5. Repeat the process from the money back...

- So today, we're gonna talk a little bit about the BRRRR method. That's the buy, renovate, rent, refinance, and then repeat. So these are the steps of the BRRRR program. Now, the goal is very simple: to buy a property, to renovate it and then pull out all or a good portion of your renovation costs along with your down payment, all right? So that's what we're gonna talk to you about today. And if you like these videos, please hit the like button or the subscribe button. And the subscribe button, it will help the algorithm. All right, so let's jump right into it. We're gonna use a live example of one of the properties our clients purchased recently. So we've rounded numbers to make the calculations easier for the purpose of this tutorial. So purchase price: $700,000. This was a bungalow in Hamilton, Ontario. It was a bungalow that was purchased for $700,000. The client's objective was to raise the value of this property by creating a second unit, a legal second unit. So the client bought for 700, they had a down payment of $140,000 with this 20%. Let's add another $10,000 for closing costs. So you've got a total investment of $150,000. Now the bank will come back and lend you $560,000, okay? So that's the purchase. Now we get into the renovation stage. So in the renovation stage, our client needs an architect. They need that contractor. They need designers. They need painters. They need drywallers. They need materials. So in this example, the total cost of all of that was $150,000, 'kay? So the renovations go along and now the product is complete. The property has been granted legal duplex status, okay? Now, step number three: You go out into the market and rent this out, okay? So you can rent this product out for $4,300 a month, plus the tenant pays all the utilities. So that's the rental process. That step number three. Now the fourth step in the BRRRR method is the refinance. At this stage, you're gonna go to your bank and say, "Hey, Mr. and Mrs. Banker, I have a property. It's worth more than I bought. And I want to pull out all of the equity," okay? So the banker's gonna come through. They're gonna do an appraisal on the property. And in this case, the appraisal came in at $1 million, okay? So the new value of the property is a million bucks. The bank at that point says, "We can lend you 80% of the million dollars," okay? So they're gonna, basically, lend you $800,000 against the new value of $1 million. Now, don't forget: There is an existing mortgage of $560,000 back when they purchased it. So the bank would now lend you 800,000 and pay off the 560, okay? So then you got a new mortgage now for 800,000. The 560 has been paid off. And the difference, which is 240,000, is then deposited into your bank account: $240,000. Now, remember, when you bought this property, you needed 150,000 as your down payment, and then you spent $150,000 thereafter for the renovations: a total of 300,000. The bank has just dropped 240,000 in your bank account, allowing you to pay a good chunk of that 300,000 off, right? So you're basically, at this point, the 60,000 bucks is what you have invested. That's your true investment in this $1 million property. You've got 60,000 of your money and you bought a $1 million property. 6% as a down payment of a million bucks, that's a great deal. And this property also cash flows pretty nicely. So this is something that a lot of our clients are doing. We do this as well. We do about a few of these every year. And it's very lucrative. It's very profitable. It's all about going in there and turning the property and creating something that has more value to than what it was when we started off with. And then the final, last step is to repeat, okay, it's to repeat the process again. Now that you've got all of this money back and you've only invested 60,000, go do it again and again and again, okay? So this is the process. Hope you learned something. Hit like, subscribe if you liked this video. Comments below, questions below, I'm happy to answer. Have a wonderful day.