so our first investment property was a complete train wreck yeah we still made money yeah barely
but we we were successful because we worked really really hard and we stuck together to
do it and we want to go over what we did and how we were successful with that so you can be
successful and not have to struggle as much as we did exactly so that's why we made this channel we
hope you listen to this entire video and like and subscribe if you found it to be valuable to you
so kev do you remember our first two family oh my god how can i forget yeah you're definitely
sure i remember that house we found a beautiful two family god awful you read that word a lot
beautiful and i don't think you know what that word means so basically folks you know we use
what's called the brrrr method today and you know we used it before they called it that oh yeah exactly
i mean this was over 12 years ago now and we found this rundown boston style duplex that needed
a lot of work this place was a dump dude it was it was so bad of a house that if it was in a
neighborhood of a dump the dump wouldn't want that house in its neighborhood we found this property
that we each had about five thousand dollars we went in to buy this property and we really didn't
know what we were doing we actually had to find a hard money lender yeah i mean we're not going to
be able to buy anything with just 10 15 000 so we had to use uh our money that we saved up a little
bit as well as hooking up with a hard money lender to get the rest to buy this property and we did
yeah and uh they also funded our rehab project as well because they needed quite a bit of rehab yeah
yeah i think we probably put in a couple extra bucks here and there in the rehab as we went too
yeah i mean we once again wheat now to save some money we actually did a lot of the work ourselves
so kevin would come from his job and help after hours i actually kind of got laid off at the time
so i was out there you know standing in the floor and i had some free time yeah exactly
so putting in the time uh and doing the rehab uh yourself will save you a fortune but otherwise
you're buying the property at a great price because it needs work you can build some value in
it big b buy that's right this is the first part of the brrrr method and then the second part of
course like we just talked about was renovate and that's where we were spending the big r renovating
the property building that value over time i mean you know finding stuff like sanding the
floors fixing the electrical plumbing new heating systems new kitchens bass whatever we could do to
make a really good value into that property to this day nobody on the team lets me paint anything
nope let me just tell you still have some driveways that have been painted by this guy yeah
you know it is what it is i do my best but you know you got to do what you got to do to get
yourself started so okay so you you worked really hard you chipped in you painted the driveway
and you did all the important things yes and everything was beautiful everyone was asking us
what they were driving walking by saying hey when is that gonna be ready for rent we want to rent
this place oh my god this is amazing yeah we've never seen anything like that we're literally
we'll be outside doing some work cleaning up the property and people come by from the neighborhood
that are passing by on the sidewalk saying this is beautiful when are you going to be able to rent
it you know can i get an application yep uh we didn't have an application we didn't have anything
the first thing about being landlords we're just like hey let's buy a house and fix it
yep and we'll make tons of money yeah totally uh you know uh so we went on to the next step
from there which was to rent it yep and uh we found some tenants good dad whatever
oh my god we did not know what we were doing let me just tell you so we let
basically anybody move in uh to this place we didn't yeah we didn't know what i mean screening
right super important oh that's very important and uh we didn't do any of that no no now we teach
all about it so you don't have to make the same mistakes we've made and lived through
but uh we didn't know anything about tenant screening or leasing all we knew is we needed
to get it rented as fast as possible because we didn't want to sit on that hard money which was
costing us every month at the time it was 15 we were paying 15 on that money wow what a great
deal for our hud money lender right there huh he was crushing it so uh yeah so we wanted to get
this thing rented right away why do we want to get it rented why do we want to have leases in place
because we wanted to go on to that next r which was refinance gotta refinance immediately yep
and at the time we actually worked with a mortgage broker uh to try to find the best deal possible
for us so that we could get it done also as fast as possible so we did we uh worked with that
broker we got them all the paperwork all the the rents the leases and basically what we did to the
property they sent out an appraiser they have praised the property it appraised for far more
than we actually bought it for and renovated it for so that was awesome because we were crushing
it i mean that's the whole point of this if you're buying something already at a discounted price
because it's distressed maybe you got a great deal on it because you're just a shrewd negotiator
which i'm sure we weren't at the time then you renovated the property you placed tenants in
there this thing is making money you cleaned it up it's way nicer than it was before you've built a
tremendous amount of value exactly so we harvest that value when it comes time to refi so not only
did we get all the money we paid for the property to buy it yep it's called a cash out refinance and
that's actually allowed us to pull out an extra 30000 so we got our initial investment of 10000
we paid off our hard money loan yeah so he was happy we were interested yes exactly i think
the whole process took about about four months ago yeah a little bit longer than we thought you
know but i mean again we didn't know what what to expect or what we were doing so remember this
is a process you want to flow right through the brrrr method as quickly as possible to get this
thing going about the velocity of money absolutely and yeah exactly so then we made an extra 30 000
and we rolled that in to the last r which was repeat into the next duplex fantastic and that's
exactly what you can do you take all the money you pay it back with the refund you keep a little bit
extra maybe and you know and then just start working on the next deal and do the same thing
exactly and that's actually so we use this whole method over the last 12 years to grow to
500 rental units that's uh boy and uh that's a lot of driveways for me to drop paint all over it it was
well you can't do some of this kind of stuff without scaling so there's an important thing
to learn about that we cover how to scale your business in other youtube videos as well
so stick around for more of that check them out here thanks a lot guys take care