For those looking to build a property empire, there’s a growing movement called BRRRR. But is this the real deal, or just another “get rich quick” scheme? The Telegraph investigated recently.

The BRRRR Method: A Simple Explanation

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It’s a way to build a portfolio of rental properties, even if you don’t have all the cash yourself.

Here’s how it works:

1. Buy: Find a property that needs work and negotiate a discount.
2. Rehab: Use an investor’s money to fix up the property.
3. Rent: Rent out the property and use the income to cover mortgage payments.
4. Refinance: Get a mortgage from a traditional lender and use the money to pay back the investor, including agreed interest.
5. Repeat: Use the investor’s money again to buy another property and start the process all over.

BRRRR Success Story: Mark and Susannah

The Telegraph talked to a husband and wife team who ditched their corporate jobs to build a property empire using the BRRRR method.

• Finding Deals: They use software like Property Filter to find properties that have been reduced multiple times, suggesting a motivated seller.
• Building a Network: They connected with a mentor, who has over 200 properties in his portfolio. He helped them find trusted tradespeople, solicitors, accountants, and estate agents.
• Family-Friendly Approach: They focus on properties near their home in Warwickshire, rather than chasing bargains in cheaper areas further away.
• Targeting Young Professionals: Instead of traditional buy-to-let, they offer luxury rentals to young professionals through their company.
• Finding Investors: They secure investors from their network, offering returns of 6-9% for investments of £100,000 to £250,000.

A New Approach

This isn’t your typical house share. They offer high-quality, furnished accommodation, including all bills and cleaning services.

• High-End Features: They spend over £100,000 refurbishing each property, including high-speed internet and separate laundry facilities.
• Long-Term Vision: They focus on long-term rentals, aiming to improve the quality of existing housing stock.
• Lower Risk for Investors: Investors don’t have first charge on the property. They are investing in the couple, not just the property itself.

BRRRR: A “Get Rich Quick” Scheme?

The couple emphasise that BRRRR isn’t a get-rich-quick scheme. Building a successful portfolio takes time and effort.

The Bottom Line:

The BRRRR method is a potential way to build a property empire using other people’s money. However, it’s important to do your research and understand the risks involved.