The TRUTH About the BRRRR Strategy

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Guess what the average birth strategy loan is? Let’s be honest about it, not what you get quoted, but what’s the average? Come on, people are like hesitant because I’m gonna call him a liar. Do you knuckleheads know about something called the birth strategy? Hey, let’s be real, everybody. Let’s be real about the birth strategy. What percentage of downpayment and equity do burr strategy investors have to have in their deals when they get loans? 25 to 30? Don’t tell me 20% You bullsh liars. Do not tell me 20% You are foolish.

Show me one lender that will give you a 20% loan legitimately as a brand new person don’t lie at least 25%, at least 25%. When you get quoted 20% That’s when you immediately say that’s a lying lender. I’m brand new, I have no experience, they’re going to require how much if I’m brand new, and I’ve never done a deal before a birth strategy deal is going to require how much money? The average is 35%? Really? Yes. This is why I talk so much crap about the birth strategy and how people are charging all this money for these birth strategy mentorships.

So bold strategy, cotton, let’s see if it pays off for him is because new people have to go get a loan, a hard money loan to secure the property, then you have to get a bridge loan to renovate the property, then you have to get a tenant in there for six months, seizing the property and then go secure a loan at 65% of the LTV, which requires you to have 35% in the deal. anybody tells you otherwise tell them to meet me in the back of an alley and I will beat their ass and the ground rules are there are no they’re lying to you. Now, as you grow more and more seasoned, it changes. Okay. And I do agree with that.

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But a lot of the birth strategy lenders talk about oh, I’m $0 out of pocket out of this. Yeah, you’re right after you secure two loans and took six months to do it. You’re freaking knucklehead. tell people the truth, you can’t handle the truth. So let’s have a real honest conversation. I’ll answer the question. If I look at this from the burst strategy, a burr strategy investor is going to look at this deal and go damn, the property’s worth for 20 years 305. So I can take over a sub two loan, guess what the average burr strategy loan is?

Let’s be honest about it, not what you get quoted, but what’s the average? Come on, people are like hesitant because I’m gonna call him a liar. What is the true percentage, not the loan to value guys? What is my interest rate on a bird deal? If I’m brand new, I’m five to six and a half percent. If I’m experienced, I’m at probably four and a half to five and a half percent. So let me ask you knuckleheads a question.

If I’m a burr strategy person, and I got to come in and put 35% down into a deal. First off, I’m going to buy this with hard money. I’m going to renovate it. I’m going to put a tenant in the property and while I have a tenant the property guess what’s burning at me my hard money loan, then I have to go and apply for a new 30 year conventional loan using my credit, that’s going to be a freshly minted 30 year amortized loan at 6%. Roughly. Does that sound exciting? Then why are there 2 million people learning about burr strategy?