743: Better Than BRRRR!? How to Make $200K+ on ONE Deal w/Janice Stitzer

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 23 March 2023

⏱️ 69 minutes

🔗️ Recording | iTunes | RSS

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Summary

The BRRRR method is one of the most celebrated, highly-effective real estate investing strategies the world has ever known. Never heard of it? BRRRR stands for “Buy, Rehab, Rent, Refinance, Repeat” and is a simple framework to allow any real estate investor, no matter their skill level, to get into real estate investing for no money at the end of the deal. This down payment recycling system allows you to use the same amount of cash to build a real estate portfolio that’ll expand to infinity. And for a while, the BRRRR method was yet to be bested—until now. Janice Stitzer may have cracked the code. As a house-hacking California native, Janice was pushed out of the golden state right before the last crash when housing prices were high, cash flow was low, and traffic was at a standstill. She and her husband decided to boost their quality of life by relocating to Colorado, where they started a construction company and a BRRRR-ing empire. Then in 2008, when lending screeched to a halt, her BRRRRs died down. But some years later, a new idea hatched—the BRRRR 2.0. Using this simple strategy, Janice got a brand new short-term rental that cash flows like crazy, all while gaining $200K in equity before her first guest checked in. This repeatable system can be used by almost anyone and doesn’t require much experience. With just five properties, this “BRRRR 2.0” investing style could make you a millionaire. But you won’t know how it works if you don’t tune in! So, stick around! In This Episode We Cover: The BRRRR 2.0 method and how it unlocks MASSIVE amounts of equity House hacking in expensive markets and the lowering your cost of living (even in LA) The BRRRR strategy explained and why it’s still one of the most profitable ways to invest The five things to look for when developing land or investing in new construction Why you NEED a great general contractor at your side ANY time you plan on building Short-term rental investing and why the cash flow beats consistent long-term rentals And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch BPCON2023 Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area David's BiggerPockets Profile David's Instagram David’s YouTube Channel Work with David Rob's BiggerPockets Profile Rob's YouTube Rob's Instagram Rob's TikTok Rob's Twitter How to Succeed in Real Estate Investing Using the BRRRR Method 14 Questions to Ask Before You Hire a General Contractor 4 Vital Points to Consider BEFORE Getting Into New Construction Book Mentioned in the Show: Buy, Rehab, Rent, Refinance, Repeat by David Greene Connect with Janice: Janice's Instagram Janice's Website Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-743 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the Bigger Pogas Podcast Show 740-3.
0:04.0	I bought the land right, so the land was actually two parcels being sold together,
0:08.9	but no one figured that out for some weird reason. I ended up selling half of the parcel,
0:15.2	or half of one of the two parcels. And so all in I was at 381 and the appraisal came in at 565,000.
0:26.4	That's very cool because a lot of people, like the journey to build this house,
0:31.2	very hard, but once you do it one time, it's like, it's actually not that hard to build a house,
0:35.2	again and again and again. And you built, you know, like $200,000 of equity or something like that.
0:40.7	Just doing that. Let's go on out everyone. This is David Green, host of The Bigger Pogas Real
0:44.7	Save Podcast. Here with my partner in crime, Rob Abasolo and our guests, Janis Ditzer,
0:49.0	with a fantastic episode that we are recorded together in Denver, Colorado. In today's episode,
0:54.1	we get into all kinds of cool stuff, including leaving one market and getting into another market,
0:59.2	moving your money from a market that might be crashing into one that you think will have a run,
1:03.2	and a trending topic, new build construction. The new bur, B-U-R-R-R, new build. Just the new,
1:11.9	new bur, and U-B-E-R. I just coined it. Thank you for that. You're welcome. That's what I'm
1:16.3	here for. Before we get into today's fantastic episode, I want to tell you one, listen all the way
1:21.0	to the end. If you've ever wondered about the origins of the word podcast, we saw that right
1:25.1	before you today. And two, our quick tip of the day is going to be newer folks. Listen to how we
1:33.1	talk in the beginning about how real estate felt way too expensive and we didn't want to get into
1:37.7	buying it and we had all kinds of fears and we tried to save money on contractors and all these
1:42.1	other ways and are just costing more money and experience people. There's a ton to learn here
1:47.5	for somebody who's wanting to know about permitting, zoning, new home construction, what goes into
1:51.9	construction, easy ways you can get ripped off by contractors or rip yourself off by doing things
	...

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