How do you grow your rental property portfolio without running out of cash for down payments?

In this episode of Ask Coach, I'm going to share with you one of my favorite strategies

for those of you who are growing your property portfolio and is called the Burr Strategy.

We're getting started right now.

Hey everyone. Welcome to the Ask Coach edition of the Real Estate and Financial Independence

Podcast. My name is Chad Carson. You can call me Coach Carson. And this show is all about

helping you invest in real estate so that you can achieve financial independence and do more of what

matters. In just a moment, I'm going to take you to a clip from a recent live stream. And in that live

stream, I got a question from someone who is a relatively new investor. And their concern was how they

were going to finance and raise the cash continually to try to buy multiple properties as they grew their rental property

portfolio. So part of it was just like, where should I get the financing? What's the right

strategy? And part of it was I think I might run out of cash and not be able to buy any more deals.

And so I talked to them about a strategy I've used before early in my career that people talk a lot about at bigger pockets, some of my friends over there. And so I want to share with you what that strategy is. It's called the Burr strategy. I can explain it and give you kind of example how that might help you. Let's get started right now. The Burr strategy means you buy it, you remodel it, you rent it, you refinance,

and then you repeat. So you've got those five, you know, five different steps. The thing on the

financing, though, is typically on the front end, you are not using your conventional loan. So you're

either using like a line of credit you have, your own cash, using a private lender, maybe a

hard money lender, or maybe a combination of all

those. Typically, like the lowest cost is going to be like a line of credit, maybe like a

helock or something, your helock and your cash are your most valuable money. And so you want to use

those for in and out deals, for short-term deals, because you can just write a check and buy a good

deal quickly. And so when you're buying a really good deal that's a fixer-upper, you know, having to go through the commissional loan process and get an appraisal and do all that stuff and an approval is you're going to lose deals doing that. So having a source of cash, either through a lot of credit or your personal cash, is really helpful or private lender is what I've used a lot. So that's typically what you're going to do, Dan. So that's like the buy side of the Burr strategy that's using that private money or the cash money. And then you remodel it. You make sure you have enough money through your own personal cash or the borrowed money to do the remodel. And then you get it rented out. You get it looking good, you get it stabilized. It typically, you know, I know that this is something that can change too from lender to lender and from year to year, but you're typically going to have to season that property. It might be six months. Sometimes it might be more than that. It could be 12 months, depending on the lender. You need to ask. I would look for somebody who would do it six months if possible because, you know, maybe it takes you a month or two to remodel it, it takes you another month or two to get everything full and stabilize, and then you have a couple months of steady rent to then take to the lender and show them your leases, show them the numbers, and then you can get a new appraisal at that new rent level. So that's kind of six-month

period is what you're looking for. So as you're growing, you just need to make sure you have

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