hey guys flippin landlord ninja here kevin the property prince and we are two guys take on real
estate real estate so we're here to talk about how we actually started our company and what's helped
grow our wealth throughout the years absolutely we started off before this was a thing i think and uh
we thought we were blazing a new path yes and uh then brendan turner decided to coin the phrase and
took all the couple credit off this can a guy buy us a cup of coffee we could ask him sure he's out
in hawaii i believe so good for him well we you know i was not out in hawaii cold weather is not
out in hawaii like right here yeah and uh so we're sitting here in the cold weather dealing with some
poor cold temperatures what what kind of temperatures uh it's 50 60 60 degrees
it's cold in here man yep it is well look at these funny puns we're using
so yeah so once as always we're here to pay it forward teach you from uh
our mistakes so you don't have to make the same ones absolutely and if you find any of
this information relevant or valuable please take a moment subscribe to our videos like them and
share with your friends yes just you know just tap that like button just a little bit
flex that index finger and help us out a little bit with the click of a button we'd appreciate it
okay so you're in the bur method and the first letter is b so what does that sample have that
stands for buy matt all right all right well we got that down so that's the easy part it's telling
you what the b stands for now what are you buying well you're buying a distressed or undervalued
property absolutely so how do you find those properties well they're everywhere i mean they
literally are everywhere just lying out in the street sadly i mean that's exactly what it is you
just need to know how to tune in to those deals find those deals and make sure you act
on them yeah so there's uh you can do it the numerous ways uh we you can buy from a wholesaler
absolutely um you can work in social network your way through uh by joining real estate
groups and talk to a bunch of different investors out there you could do uh driving for dollars we
have a video on here about that right one of my personal favorites i love driving for dollars
um you can also do bandit signs which i hear that you know you're not exactly uh doing that
well these days but you can try that out and you need to be careful in your market if it's actually
illegal to uh put those out because otherwise you're just gonna get taken down and you might get
yelled at by the police yeah i'm sure you can send postcards i mean you can work with any
kind of approach that might be a numbers game where you you put your information out there
or you contact a zillion people and eventually you get a deal yeah you can buy a list from like
list source and other different uh prop stream you can build a list with right you can talk to
code enforcement get a list there uh so yeah many different ways you're gonna find a property that's
undervalued or there's some kind of distress that you can buy it for you know less than it's worth
absolutely and that's the key part of it is buying the property right you want to buy something with
some upside potential something that's undervalued or something you can do to the property that'll
create and add value all right so next on our bird journey is the r the first star right are you sure
yes i am and what does that stand for that stands for rehab all right so this is where
you're building that value where you're going to look at different aspects of the property that
you can put value in whether it be sweat equity or you hire contractors to do that work but yeah
that's where you're building that value that you can uh increase the equity in the property
uh absolutely right this is something where you're taking a property you're making significant
improvements for less than the improvements are worth so if you're going to create a value of
75 000 of rehab work you're doing it at a fraction of that cost how you do that there's
a variety of ways yeah so you want to look at things that actually add the most value so
for instance you know popping on a roof especially if you can negotiate just pop it right on matt
just pop that roof right on yes exactly it's that simple it's just like a lego just poop i did that
before breakfast this morning pop the roof on real quick came into the office hung out exactly
well get it uh yeah so you're going to basically work with a contractor get a contractor that you
can actually work well with and get the cost down so that whereas someone else would look at that
value of maybe 20 000 you're getting it done for maybe 12. now you're all sudden you have eight
thousand dollars of value you just generated that's absolutely the key and that type of
thing applies to all the different aspects of the property maybe we're talking about plumbing work
electrical work chances are you're not somebody that can do all of that work yourself or you're
not inclined to do all that work yourself and you want to staff it out to people that that can do
that at a a very discounted price a very favorable price for you yeah so the top things i would say
that you can build value in a rental property are going to be your big items like your roof
adding heating systems uh upgrading electrical uh your water lines kitchens bathrooms flooring
just paint simple thing of painting a property looks you know it's low cost but it makes such
a difference in its value and it's perceived value absolutely right so those are the big ticket items
and you want to stay away from accidentally or inappropriately renovating things that have very
little return on your costs so uh going really above and beyond on renovating over renovating
you might call it a kitchen or a bathroom or maybe some some other elements of the property
that you're investing twenty thousand dollars in and you're only getting twenty thousand dollars
of value and that's not a great way to use your money that's smart admin exactly uh and the way
you kind of figure out what is in your market and what actually is you know what the expectations
are on your market it's going to be you can go on to zillow and basically just you know google what
other uh apartments in your area have what are the what is the common things they have if they all
have granite well you're gonna want for granted but if they're all laminate counter tops quinny
and granite might not make the most sense it might not bring you that extra value uh so you got to
want to really look at what's out there and kind of compare absolutely right so doing your rehab
but is important but doing it in the most cost effective way is the chief point you're trying
to bring away here okay guys so you renovated the property it's beautiful oh my god now what
do you do kev you retire matt wow oh no that's not what that r stands for oh no stop the video
so you are now going to rent this out you're going to find a great
qualified tenant that you can get maximum value so you uh for that unit absolutely
renting the property out is incredibly important because it's going to help you in the later stage
the next r you need to have a great lease with a very favorable favorable rental rate uh on this
property so you can use that rental as income to help you qualify for the next upcoming r on
the video so how do you go about finding a great tenant uh well there's a lot of different ways
um honestly there's options where you could post something on facebook usually like a marketplace
ad that would be a great way to go something where you can put in minimal work or you can make an ad
and have people go through some basic steps to inquire about it and pass a screening process true
uh and if you if you haven't already if you've got been working on building up your team
such as like ourselves finding a great property manager they can do a lot of this for you they can
go out find that tenant once you got it ready they'll go out and market it they'll go take
professional photos drone footage 3d tours all that kind of stuff that basically they'll attract
the best tenant they're going to go through their screening process that they've taken years to
develop and handle that all for you and i'll tell you they're going to charge you a fee for
doing this now what you need to decide is that fee important uh enough to uh forgo or not and i would
like to suggest that there's a lot of other things that come with a professional management company
going through that process that help protect you which the number one thing you would have to worry
about if you're inexperienced with rentals is a discrimination situation good point yes there's
a lot of things you have to worry about in terms of the application process the tenant screening
process and for somebody that's a rookie that's not well versed in this stuff you may be inviting
an opportunity for disaster this is true i mean if you even just marketing it and
saying the wrong thing in the marketing can be discrimination something so simple as saying
oh section 8 welcomed or something along that line so you think you're just doing the right
thing and trying to attract and help you know some people that have a hard time finding an apartment
located in a nice neighborhood near a church oh something like that all these jesus christ
is right all these kind of things could play into this kind of a situation where the most innocuous
thing the most well-intentioned thought in an ad even could result in a discrimination
situation for you so if you're not well versed in it we really highly recommend finding a property
management company like ourselves to help you with that um rental many people find that well
worth their time because screening tenants showing a property getting everybody onboarded it's very
time consuming even just showing an apartment can be an incredibly frustrating situation because
many people not properly screened and brought through the proper process simply don't show up
for the showings that you've taken your time to schedule with yeah okay so we're on to the third r
and that stands for retire come on will that retire when when matt when do we get to retire
this is why we're different we're never retiring okay fine so this is fun this is this is fun well
this part are we having fun are you guys having fun well stop having fun and start working on
refinancing yes uh so now you've you know gone out you've talked to a bunch of different banks you're
gonna get the best rate possible pin them against each other and they're going to come out and do
what's called a cash out refinance well sweet that mean that just sounds fantastic anything
that talks about cash out on your guys so uh let's talk about what happens with a cash out refinance
what money are we taking out of the property so what you're having them uh do is they're gonna
you know look at your ltv so different banks will have different ltds different times uh the cycle
of uh real estate so right now i you're hearing a lot of people talk about maybe a 70 lte and what
does that mean well if the value of the property is a hundred thousand dollars they're going
to give you or loan you a mortgage of seventy thousand dollars thanks for using simple numbers
like that because i i was worried you're going to do something tricky and i was like 252 000.
i was going to ask i need to appear smart on camera so awesome so an ltv of 70
nets you in a hundred thousand dollar property uh seventy thousand dollars that you pull out
now you have that money in your hand well yeah essentially so it depends on how you actually
bought the property so let's say you bought the property with your own cash or you know
using your 401k or an ira whatever it might be you bought with your own cash you renovated with your
own cash so you're out uh let's just say sixty thousand dollars you bought it for forty thousand
you put twenty thousand dollars and now they send out an appraisal or appraiser they come out
and they're like it you did such a great job here wow amazing you got it rented out it's now worth
a hundred thousand dollars okay and they're saying the bank then literally you know on the refinance
hands you a check for 70 grand there's no other liens i'm guessing on the property so you get
you know all of your money back for 60 i've now gotten all that money back and plus an extra 10k
ten thousand dollars more and what else is with the property well it's tax free first
off that's extra 10k that is a nice thing that is a nice thing and i probably have some equity
you have thirty thousand dollars thirty thousand dollars in my equity bank account basically
yes absolutely so i have thirty thousand dollars in equity that i've earned for myself i basically
have ten thousand dollars uh in money more than i started with correct and all because i bought
this property and did some renovation work and rented you bought it undervalued and then you
put sweat equity into the property and increased its value well why isn't everybody doing this matt
well i won't because it's a simple process it's just nice it's not easy and you know what not
everybody knows about this this is true so we're happy to share this information with you so you
now know about it and you can maybe look at this as a potential strategy for you to acquire
property okay so you're at the final step the last r and that stands for we have earned it retirement
i'm sorry no no these jokes doing anything for you people we are repeating the process
that worked out so great you know we're going to repeat this and do it again
exactly based on our example you got your 60 000 back and you have an extra 10k and my favorite
thirty thousand dollars in equity exactly so why not do that again right take that money that you
have buy another property all the rents and repeat absolutely and you know you're renting it out you
have a great property management company so you're cash flowing uh and now you can go do that again
why wouldn't you do that 10 20 30 times no no real reason maybe just you know getting stuck on one of
those steps which is probably buying the property finding a great opportunity to buy the property so
the whole time that you're going through the rest of that process after you've started with the bee
and you've kept going you need to be ready to farm to start finding another bee another target
property to buy and this is one of the reasons why it's really important to build a good team
because if you have a great wholesaler or someone else a realtor or someone that is looking out for
that property you're just focusing on hiring the contractors and managing all that talking
to the banks kind of playing puppet masters so to speak so that you can just keep this ball rolling
over and over again and do like what we did and got to 500 rental units
absolutely right and you know what you in our example here we're talking about hiring a
property manager so it does cost you money out of the monthly rents and maybe maintenance and work
orders and stuff like that but many people find it to be well worth it because you get to keep
focusing on the larger bigger picture and bigger dollars of doing these projects over and over and
over exactly so i hope this was really helpful i know we gave a kind of a brief overview of
the whole burr strategy as we're freezing here it is cold in here you're literally saying burr right
now yes but we will continue to develop videos that will help you have all the different insights
of each one of these different uh segments of the burr strategy so please hit that subscribe button
share and just tap tap tap that like button yeah add a couple of comments tell us about
your experience with this tell us if you have any questions about the burr strategy and why
you think it would or wouldn't be right for you all right thanks guys best of luck out
there