Interest rates have risen quickly by historic standards, but the fact that rates were going to go up significantly was clear in advance. Trench, who also hosts the "BiggerPockets Money" podcast, said the 2 million members of the BiggerPockets community had a lot of warning that the famed strategy was going to hit the skids. "We've seen the interest in BRRRR fall off a cliff over the last 12 months." Buy a property, a year later your interest rate is 25 or 50 basis points lower and you're able to add a lot of value quickly," Trench said. "That was a real winner in a falling-rate environment. It was also a great time to implement the strategy that's associated with Bigger Pockets: " Buy, Rehab, Rent, Refinance, Repeat," or BRRRR.īRRRR is a way to make quick profits and build up a sizable real estate portfolio, and until recently, market conditions were very favorable for the approach. Trench told Insider in a recent interview that the combination of surging home prices and low interest rates over the last few years made for an environment that was good to novices and pros alike. "The worse you were at rehabbing the property, the slower you did it, the more money you made," says Scott Trench, the CEO of real estate investing platform BiggerPockets. When it comes to the housing market, for the last few years it might've been better to be lucky than to be good. He also explained what options his listeners are considering in today's higher-rate climate.He told Insider that prospective investors should be very cautious in today's market.Scott Trench is the CEO of real estate investing platform BiggerPockets.Account icon An icon in the shape of a person's head and shoulders.
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