So, you're hungry to become a real estate investor. You know that whatever route you go, owning property is a recipe for success. But in truth, becoming a real estate investor is probably just an idea you've been thinking about for way too long. Time is passing and it’s time to take action. But where do you start?

If you're dreaming of becoming a real estate investor, we're here to lay out a simple method for you to start making your investment dreams a reality.

Today, you're going to listen in, chill out and learn how to BRRRR.

BRRR is an abbreviation that stands for Buy, Renovate, Rent, Refinance and Repeat. 

BUY 

First, we need to buy a property. To have the biggest impact, you'll want a property that needs some love. Some investors use this approach to get their hands on houses that need a lot of work. They know that by doing this, they can get a better deal. 

But you should also consider properties that are not being used to their full potential. For example, raised bungalows can be turned into duplexes very easily. Some people look at a home that isn’t living up to its potential and just feel put off. Who would want to live THERE?! 

But smart investors use imagination, calculation, and action to find the diamond in the rough. They will aim to get a good price on a home that needs some work, and purchase it. 

RENOVATE 

Next you need to renovate. Renovating your house is all about making it the best it can be. You might have to get rid of some things that you don't like, especially outdated and unsightly aspects of the home. Doing this alone can greatly improve the home visually. 

If you want to add another unit to your home, make sure that you do it legally. Make sure to follow all local construction codes and zoning restrictions. This will ensure that your home is safe while having a positive impact on your resale value over time. 

If you are doing a renovation, be careful not to spend too much money. You want any improvements you make to be more valuable than their actual cost. Make sure you look at the current market and what people are looking for. This will help you avoid spending too much on trendy features that no one will want later on. 

RENT 

When your renos are complete, you’ll need to find tenants for it. To do this, you will need to look at what similar units in your area are renting for. This can be done on Facebook Marketplace or local Kijiji, or hire a realtor to find and screen qualified tenants. 

You should be patient when looking for a tenant. Don't just choose someone because you need someone to fill the space. If you wait for the perfect tenant, you will be better off financially and emotionally. They are out there, but they will find you if your property looks good and appealing. 

REFINANCE 

Now that you have finished making the changes to your home and it is now a multi-family house or has updated features, it's time to refinance it for its present value. If you do it carefully, the refinanced value of your home should be more than the total of what you paid for it and what you spent on renovations. 

This will allow you to take out some money (not all of it and not immediately, but eventually) to buy your next property and start the BRRR process all over again. Typically in Ontario, lenders will only let you refi after owning the home for one-year at minimum.

The BRRR Method is a great way to build your real estate portfolio and ultimately your wealth. Buy, Renovate, Rent, and Refi-ing properties could help you build the future of your dreams. 

You need to start somewhere though, so if you're looking to get this process started, give our team a call today.