Want To Learn About Premier Real Estate?

]Is It Better To Invest In Premier Real Estate, Fixer Uppers, Or Retail Real Estate Investments?

It Depends On Your Goals As A Real Estate Investor.

Brandon Duff

 

My Name Is Brandon Duff And I Started To Invest In Real Estate in 2015.

My Current Portfolio Consists Of

2 Single Family Homes And two 4-Plexes

I Bought My First Rental Property in 2015 Which Was A Single Family Home.

In 2016 I Bought My Second Single Family Home.

Both Of These Properties Are B Class Maybe C Class Properties.

These Would Not Be Considered Premier Real Estate.

And I Am Going To Go Over My Exact Reasons Why I Don't Invest In Premier Real Estate and The Methods I use to invest in cash flowing real estate investments.

Why I Don't Invest In Premier Real Estate

Premier Real EstatePremier Real Estate  Properties  Are  Located In “A Class” Neighborhoods, Which Is Great For Appreciation Of The Property If You Are Buying Your Dream House.

But For My Goals As A Real Estate Investor, I Invest For Cashflow.

Premier Real Estate Investments Are Priced Much Higher, Which Means The Returns Aren't As Great For Investors Who Are Looking To Invest For Cashflow.

A great rule of thumb is

  • A class is appreciation
  • B class is for both
  • C class is for cash flow
  • D class is Don't

In The Next Section, We Are Going To Go Over Methods To Invest In Real Estate And The Method I Use To Buy Real Estate That Cashflow Vs Appreciate.

 

Cash flow is King

You have probably heard that cash is trash and cash flow is king, it's 100% true..

Cash flow is the life blood of your company and gives you freedom, while appreciation is just icing on the cake.

If you are not investing in cash flowing real estate investments, you are going to drown.

Cash flow is king for a reason, it allows you to keep your business stable.

If and when something goes wrong because of a bad tenant, a big repair, Capital expenditure or whatever else, if you don't have cash flow and reserves then you might just be screwed.

Don't get me wrong, Appreciation is great, it has allowed me to do cash out Refis and pull the equity out to buy more cash flowing real estate investments.

Brrrr method

The BRRRR method is

  • Buy
  • Repair
  • Rent
  • Refinance
  • Repeat

This Is The model I use to invest in real estate.

When I Buy A rental property, I am buying to get the most cash flow but also something that will appreciate over time and will have equity in the property on the purchase of the property.

We typically don't buy distressed properties but some that need some cosmetic work and negotiate to get built-in equity.

Once the repairs are done we find a renter and start collecting checks.

Our investments for cash flow follow the 1% rule which is rent is equal to 1% of the purchase price.

Since we negotiated down the price, we now have built-in equity and forced equity by doing repairs, allowing us to take out our money and do it all over again.

 

If You Want To Learn More About Myself

Check Out My About Me Page. 

About the Author Brandon Duff

Real Estate Investor, Owner of Super FB Tools, Play 2 Earn Investor And Pizza Lover. 

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