What does BRR mean? | Understanding BUY REFURBISH REFINANCE

What does BRR mean? | Understanding BUY REFURBISH REFINANCE | Property investment UK

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3 жыл бұрын

BRR or even BRR-R means Buy, Refurbish, Refinance and Rent is one of the most popular strategies within property investment in the UK. It is an extremely effective way to start a property investment journey and be able to have none of your own money in the deal. In this video I wanted to explain the strategy of BRR when starting as a beginner in property investing and how you can use this within your own property strategy.
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I do this every month to help me develop my property portfolio! Buy, Refurbish and Refinance is part of my property investing strategy and it should be part of yours!!
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Пікірлер: 110

@billyblueday 2 жыл бұрын

Great video trying to get my head around it all 🤔 Keep up the good work Thanks Billy

@paulbine3297 3 жыл бұрын

Definitely got massive value from this, thanks again Jamie 👏🏾!!

@JamieYork 3 жыл бұрын

Great to hear Paul!

@sexykassy 2 жыл бұрын

Loved this video!! Really great for someone like myself wanting to start out in the property investing world! Well done :)

@JamieYork 2 жыл бұрын

You can do it!

@joyosobu1955 3 жыл бұрын

Quite informative - especially that 6 month rule which I completely believed in. Thank you.

@JamieYork 3 жыл бұрын

You're very welcome!

@qadeerhussain5751 2 жыл бұрын

Thank you for your valuable time and effort in making this video

@JamieYork 2 жыл бұрын

It's my pleasure

@Dazzl3r 3 жыл бұрын

One of the most informative and real property channels. Love the work!

@JamieYork 3 жыл бұрын

I appreciate that! We've got loads of great content coming up!

@jamesprenter5212 3 жыл бұрын

Great video Jamie - I loved the example from Manchester and completely agree that BRR is not a strategy but rather a tactic to apply to a strategy. Keep up the great work!

@JamieYork 3 жыл бұрын

Thanks James, really glad you enjoyed the content!

@GoodBlokeOutdoors 3 жыл бұрын

cracking upload mate. Thanks Jamie

@JamieYork 3 жыл бұрын

Glad you enjoyed it

@solodrivingstandardsacadem8241 3 жыл бұрын

Another great contents.

@JamieYork 3 жыл бұрын

Thanks again!

@jamesgriffiths6118 Жыл бұрын

Thanks Jamie, I enjoy your enthusiasm and clear delivery. Looking at first BRR after hopefully completing my first BTL shortly. My question is should I try and release some equity from my current house for a BRR (around £80K) or just release enough for a deposit and then bridge it?

@qadeerhussain5751 2 жыл бұрын

Excellent advice 👍

@JamieYork 2 жыл бұрын

Glad you think so!

@simplifygardening 2 жыл бұрын

Hi Jamie. I found you tonight and have been thinking about doing this as part of an income strategy from my channel and website

@JamieYork 2 жыл бұрын

Love it

@ja55mck Жыл бұрын

Useful vid but couple of questions. When I've done this in the past we always struggle with the end valuation and getting the cash back out. It doesn't seem to matter how much evidence you give the valuer. With us they always just ask how much we bought it for and how much the refurb was and then they base the new value on that figure which obviously leaves out a lot of costs like stamp duty etc. Last one i did I bought for 350k spent 70k on refurb. exact same house 2 doors down had recently sold for 500k so expected a similar valuation. They valued at 420k saying 'well that's what you spent on the refurb'

@HB-vd4zu 2 жыл бұрын

Hi Jamie, thank you for the amazing content, i have bough a property on a buy to let mortgage fixed for 5 years, the property needs a significant amount of work but once completed should increase both rent and sell value, my plan is to rent it for at least the next 5 years but i would like to release some capital once the refurbishment is done, how can i do that when the mortgage is fixed for 5 years ?

@bensavage1195 2 жыл бұрын

Hi Jamie, thank you so much for the video it helped a lot, just one question. I've gone through the stage of BRR for my first time buyer property but never refinanced the property back earlier this year when I purchased. Due to age I have a family member acting as a guarantor and we would want to re-mortgage in 2 years when the fixed interest finishes and to take them off the mortgage all together. Property was bought BMV and value has been added through refurb + with a tenant in now. Do you think this has stunted how much I could have maximised the start of my portfolio?

@nassimelias4871 3 жыл бұрын

Another good informative video. Thanks 😊

@JamieYork 3 жыл бұрын

Glad you liked it!

@weicheng0036 3 жыл бұрын

That's exactly what I am doing now, even the numbers in your example are quite similar to mine. I hope I could get a final value of 120k when I refinance it lol.

@JamieYork 3 жыл бұрын

You got this!

@jamiefranklin8094 3 жыл бұрын

Thanks for all the help Jamie! I'm looking at getting 2 properties fairly soon. Would I be better off opening a limited company?

@JamieYork 3 жыл бұрын

Yes, absolutely

@estebancardona6568 2 жыл бұрын

Man never quit doing these videos!

@JamieYork 2 жыл бұрын

Neverrrrrrrrr! 💪

@mattom43 2 жыл бұрын

Great video. Problem for me is that houses around my area cost at least £250k 😭😭😭

2 жыл бұрын

Hey Jamie, great video! I'm just struggling with one thing. So when you get a mortgage, you are agreeing to pay a set amount of interest, so when you refinance, does that amount not need to cover the old amount borrowed + the interest of the old loan in order to pay the old one off? Cheers

@innovativehomeappliancesfo7458 Жыл бұрын

Regarding BRR approach, when you refurbished the property would the bank revalue your property from 80K to 120K? Would they engage a valuation company to value the property or do you need to show ready tenants for your refurbished property to justify the 120K?

@AN-vt3kl 3 жыл бұрын

Hi Jamie. Like your vids by the way. My question to you is, i have invested all savings in a property which we bought to live in, started of as a dated house but being in a trade we have refurbished property and added loft convertion to it so our lvt is around 50-65% of the mortgage left on property at the moment, but there is slight problem because we have done all this work, we haven't got any saving left instead we got a debt which we are paying of at the moment, so idea i had was remortgage property and bring equate out from the house to raise deposit? Would that work if we would like to start invest in buy to let and what would be your advice on this. Thanks in advance

@JamieYork 3 жыл бұрын

Hey! Thanks for the comment! That's exactly what you could do, technically you could refinance up to 90% of the market value if it's a residential. Obviously you need to make sure that you reach the criteria of an affordability check, which you'll need to speak to a broker about of course :)

@lbk2582 2 жыл бұрын

would the bank give that 90k/75% BTL loan given that the rental income/coverage wont change...?

@woods313 2 жыл бұрын

Hi Jamie , how to put 20% down if you have 0$ savings . 1 .Can we borrow money from lender 1 for the down payment ? Can we borrow money for the Morgage from lender 2 ? Reno’s from credit card. Is this approach works ?

@simionarama9382 3 жыл бұрын

Thanks for another great video Jamie! What's your thoughts on being blacklisted for refinancing within those 2 years of mortgage initial period? Is that a real thing?

@JamieYork 3 жыл бұрын

Never had any issues like that at all. If communication is clear, most lenders understand what you're doing and they still make money from you! honestly, NEVER heard of that happening to anyone before!

@realrobprice 2 жыл бұрын

When you refinance the house and pay the bridging company back, what happens to the deposit on the house? The original house owner doesn’t have a deposit anymore as the bridging company has there money back, and I lent the money off them to pay the despot to refurbish the house? So how can you possibly own the house to rent out if there is 0 deposit on the house??

@odysseasv7138 3 жыл бұрын

Hi Jamie. I know is best to use Bridging Loan for BRRR deals but would it be ok to use normal BTL Mortgage and then refinance(or the banks/lenders will hate you?)? I'm asking as I feel Bridging is riskier cuz if something goes wrong and you don't get the mortgage after the refurb you are in big trouble after few months(right?).

@JamieYork 3 жыл бұрын

Absolutely fine, just make sure that there's no early redemption on the mortgage

@harrydobson7572 3 жыл бұрын

Hi Jamie, I have a question, is this a strategy you will employ on EVERY property purchase you make? What if the property needs no refurbishment? Or do you only source properties that are in need of refurbishment so you can make a profit via BRR?

@JamieYork 3 жыл бұрын

Not on every property. BRR is just a tool for property investors when a property type comes available. I do target BRR Properties but I also buy properties and sell them without doing any refurbishment

@mathewparry5644 3 жыл бұрын

Hi Jamie, are you able to refinance a property if payed off fully in cash? Love the content keep it up ! Thanks

@JamieYork 3 жыл бұрын

Yes you can! I often will buy a property in cash to get a quick completion the refinance once I have control of the property! Hope this helps

@mathewparry5644 3 жыл бұрын

@@JamieYork Thats brilliant thank you for the quick response 🙏🏻

@Runed101 3 жыл бұрын

Jamie your videos have been a great help. Keep up the good work. Quick question: I am looking to purchase a buy to let using the BRR method. Would you recommend this for someone who’s investing in their first buy to let? I would need to get a mortgage out for this and also ofc be aware of early redemption charges. My goal is to purchase the first property, pull my money out and repeat until i have at least 2 properties. Please let me know your thoughts!

@Runed101 3 жыл бұрын

Oh and also, I don’t NEED to refurbish the property do I? For this tactic to work? I mean I’m looking for properties that are already at a decent standard. Would the BRR method still work? Sorry for the multiple questions, would appreciate any advice!

@JamieYork 3 жыл бұрын

Sounds like a great way to get started. This is the way I started. Be careful to not over leverage the property!

@JamieYork 3 жыл бұрын

That would be a different strategy than BRR

@Runed101 3 жыл бұрын

@@JamieYork Thanks for the reply man. Can you give me an idea of how I could over leverage? Thanks again!

@odysseasv7138 3 жыл бұрын

@@Runed101 BRR is strategy to apply for a BTL. So if you don't do BRRR and buy TurnKey properties to let straight away you are doing vanilla BTL. Therefore how come you will pull your money out to go and repeat? Unless if SOMEHOW you buy a property that is 20-30% discount and then refinance and get that equity out, I don't see how you could pull money out, neither how you will find such discounted properties that don't need work.. Keep improving your knowledge before you dive in

@gaborbalog8028 3 жыл бұрын

Thanks Jamie for the informative video. This is the strategy that I'm looking to source and package up for investors. Now that you mentioned 150k is the sweet spot it got me concerned a bit. Do you think is it a strategy worth to source in an area where I live where house prices are between 200-260k with average monthly rent of 800-1200? What's your view as an investor on these figures? Thank you very much

@gaborbalog8028 3 жыл бұрын

Forgot to mention that the capital growth in my area over the last 5 years was at 30%

@JamieYork 3 жыл бұрын

Glad you got value Gabor! Yes, that will still work mate, it's just how you position the deal! If it's at a great price and with that capital growth!!! Amazing deals to be had for sure.... you just need to make sure it's got the right rental coverage!

@gaborbalog8028 3 жыл бұрын

@@JamieYork thank you very much for your quick response. It's given me piece of mind tho. After stress tesing some potential deals properties still would bring 300-500 positive cashflow and great, approximately 10k pa capital growth. In my opinion it's a very attractive town to invest long-term.

@kevinjacob7354 2 жыл бұрын

Hi jamie - does this means while refinancing you will also leave 25% deposit in the deal ? ie the 30k ?

@JamieYork 2 жыл бұрын

Yes :)

@cancer2361964 Жыл бұрын

you didnt do the roce formula. your videosm help me with the numbers which is,mgreat. can you do a video about presenting deals to investors and the numbers and information that should be included. if you have done anin depth video of this can you put in the comment section please.

@JamieYork Жыл бұрын

Sure thing 💪

@tan9640 2 жыл бұрын

Hi hope you’re well Please can you help, I’m struggling to get my head around refinancing and how much money you can pull out of a deal. Purchase price: 100,000 Deposit: 25,000 Fees+ Refurb: 20,000 Total spend: 45,000 New Value: 135,000 75% LTV: 101,250 How much money do you then have left in this deal, if any and how’d you calculate that? Thank you!

@captainflipflop8805 2 жыл бұрын

All these videos on buy refurbish rent out and refinance all sounds great but what are you telling the banks about how your going to repay the mortgage?

@JamieYork 2 жыл бұрын

I don't tell them anything... I never intend to pay it back... and they don't expect it either. People carry on refinancing, benefitting from the cashflow and capital up lift

@captainflipflop8805 2 жыл бұрын

@@JamieYork good to know. I’ve inherited a rental property and plan to refinance it to raise funds to start a portfolio. Fed up of making other people money and time to do it for myself now.

@TheInvestingVlogger 2 жыл бұрын

But doesnt this super increase the overall debt. What would be exit strategy? Especially if the value has been increasing / decreasing during the duration and ends up the same price what you initially purchased it for? Would you not have more to pay back overall? Thanks

@JamieYork 2 жыл бұрын

Then you need to make sure your purchasing at the right price

@KraneD 2 жыл бұрын

This strategy has an inherent risk you have rightly identified. It depends on prices rising to reach the new amount you refinanced at. If they drop or stay same, you might be in for some trouble down the road.

@seanpilling5919 3 жыл бұрын

I assume if you are buying a property on a BTL mortgage, would the property have to currently be a rental, so the banks know your rental coverage? Or could you get a BTL on any house, and prove the proposed rental of the house for mortgage purposes?

@JamieYork 3 жыл бұрын

Not at all, you can predict the rentals very accurately based on data around you, which the banks rely on also :) Yes, pretty much any house as long as the rental coverage is there :)

@jamesgrant3812 3 жыл бұрын

@@JamieYork when applying for a further advance on your btl do they use the rental income to see if u can afford also how long should a further advance take

@trmpropertysolutions 3 жыл бұрын

You can still refinance on a normal buy to let after 6months if you add value right?

@JamieYork 3 жыл бұрын

Yeah you can!

@trmpropertysolutions 3 жыл бұрын

@@JamieYork thanks loving your content ❤️

@crpuk1094 3 жыл бұрын

Do you offer training / mentoring Jamie ?

@JamieYork 3 жыл бұрын

I do! Check out my latest masterclass this Thursday here: bit.ly/EPTAYT

@yaseenali8318 3 жыл бұрын

Can you use this for a residential home?

@JamieYork 3 жыл бұрын

As in one you're living in?

@yaseenali8318 3 жыл бұрын

@@JamieYork one I am going to buy to live in -then look to add value and refinance pull out the money (as much as I can) then buy another residential house for my sister .what do you think?

@chrisciocan6360 3 жыл бұрын

can you please explain how the evaluation takes place, don t they see how much you ve spent with the refurb , why are they gonna evaluate the cost with the refurb X4 ?

@JamieYork 3 жыл бұрын

They will look at many comparable metrics such as similar houses in the area with a similar spec, what you've done and other metrics

@LukasDiSparrowOfficial 3 жыл бұрын

talking about Money and NUMBERS: 5:11 - it's £190k not £180 | 95x2-190, you're welcome lol

@JamieYork 3 жыл бұрын

Haha, cheers mate. I’m a screw up 😂

@antonino12345678910 2 жыл бұрын

Lukas for the future open your mind, you could see all the good things that Jamie said, unfortunately you saw the only thing wrong that he did in this video

@dwayneharris4787 Жыл бұрын

Can somebody help me understand something. £100,000 property price £80,000 mortgage £20,000 deposit £15,000 for refurbishments refinanced the property for the value of £140,000 What is the equity, profit and is your new mortgage monthly payments you refinanced to, now have higher payments for the £140,000?? Im just not understanding what happens to your existing mortgage payments? are they paid off from refinancing?

@joyosobu1955 3 жыл бұрын

Not sure of the figures - 95k+95k= 190K right?....

@JamieYork 3 жыл бұрын

I probs did a mistake! Sorrrrrrrrry :(

@joyosobu1955 3 жыл бұрын

No worries - won’t stop me from watching your informative videos 👍🏾👍🏾👍🏾

@NOTYOURGURL2024 Жыл бұрын

AGP

@JamieYork Жыл бұрын

Thanks! Go to www.aspirepropertygroup.co.uk and fill in your details :)

@yunussengoz3615 3 жыл бұрын

Can i take out a mortgage in order to buy BRR and also refinance the property that’s already on mortgage after refurbishment is done ?

@jamesprenter5212 3 жыл бұрын

Yes - although you have to be careful with early redemption penalties when remortgaging the property.

@JamieYork 3 жыл бұрын

Yes sir! But, as James has said, be careful with early redemption charges!

@JamieYork 3 жыл бұрын

Spot on!

@paulh2184 3 жыл бұрын

95K +95K = 180K 🤔 I think you’ll find it’s 190K

@JamieYork 3 жыл бұрын

Oh damn it. What’s the minute where I get it wrong. Need to get better at quick mental math eh! 😉

@paulh2184 3 жыл бұрын

Good video though I’m doing a BRRR at the moment I have to rent it out for 6 months though before I can refinance it

@Runed101 3 жыл бұрын

@@paulh2184 The BRRR you're doing, did you purchase the property in cash or did you get a mortgage?

@healthiswealth8153 3 жыл бұрын

@@paulh2184 try kenton finance they refinance a lot quicker than 6 months

@paulh2184 3 жыл бұрын

I bought the house cash by refinancing 2 other properties so I own it outright

@jeewizz8646 3 жыл бұрын

Doing my research, getting the impression you may be a bit of a conman blagger type. Not another samuel leeds are you?

@JamieYork 3 жыл бұрын

Thanks for the comment Jee Wiz! Great that you’re getting your research done! I don’t really know Sam Leeds tbh mate so couldn’t comment on him, but no, I wouldn’t say I’m a conman blagger. I’d say I’m pretty straight talking, I’ll share my opinions on thing like the market and the facts as I know them. I do property full time with offices up in Leeds, which people are welcome to come to (out of lockdown of course) and you’re welcome to watch the videos. I’m sure you’ll make your own mind up of course but genuinely hope you get some value from watching. All the best

@jeewizz8646 3 жыл бұрын

@@JamieYork thanks, i just know leeds has scammed a lot of people by selling courses, but if thats something you dont do then fair enough

@JamieYork 3 жыл бұрын

Selling courses isn’t scamming people. It depends on what you’re promising AND the value of course... which I can’t comment on Sam around. For me, yes I do offer paid for education as well, and add an incredible amount of value I feel. That being said, if people aren’t ready for that then there’s no pressure at all and I hope my KZfaq videos are enough to get them started and giving enough value!