Mastering BRR Property Investing: Kevin Wright's 7-Step Blueprint for Success with Kevin Wright
Last updated: 15 Jan 2025
Meet Kevin Wright
Kevin Wright is a seasoned property investor who completed his first refurb back in 1983, long before Buy-to-Let was even a term. With over 20 years as a landlord and property finance broker, Kevin has earned a reputation for his creative and legal approach to property investing. Known for his no-nonsense attitude and expertise in the BRR (Buy, Refurbish, Refinance) method, Kevin rarely appears publicly, making his insights all the more valuable.
In this article, we delve into Kevin Wright's expert strategies on mastering the BRR method in property investing. You'll discover his 7-step blueprint for predictable success, learn how to find and negotiate with motivated sellers, calculate maximum offers, and recycle your cash efficiently. Whether you're a novice or an experienced investor, Kevin's insights will provide actionable steps to elevate your property investing game.
Why BRR is more than just a strategy?
Understanding the BRR philosophy
Kevin Wright emphasises that BRR is more than just a strategy; it's a fundamental philosophy in property investing.
"First of all, let's nail the lie that it's a strategy because it's not a strategy. Strategies are about deriving rental income—single lets, HMOs, serviced accommodation, etc. BRR is bigger than all those strategies."
BRR is essentially about buying multiple properties with a single pot of cash. If you keep leaving large chunks of cash in every deal, you'll run out of funds before you run out of ambition.
"You run out of cash before you run out of ambition."
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Calculating the maximum offer
The three crucial numbers
There are three key figures in any BRR deal:
The End Value (Done-Up Value): The property's value after refurbishment.
Refurbishment Costs: The total cost to bring the property to its end value.
Purchase Price: The amount you pay to acquire the property.
Kevin points out that you have limited control over the end value and refurbishment costs, but you can significantly influence the purchase price.
"The purchase price has to be the product of someone's calculation."
Making elegant offers and negotiating
Expect rejections and embrace follow-ups
When making offers, expect them to be initially rejected.
"You should expect to get every offer rejected when you make it and give the seller the time they need to acclimatise to your offer."
Consistent follow-up is essential. Sellers become more motivated over time, especially if their property isn't selling.
Financing the purchase creatively
The done-up value bridging loan
Kevin introduces creative financing methods, such as using bridging loans to finance purchases and refurbishments.
"You can use a special type of bridging loan that I call a 'done-up value bridge.' You borrow on the value you've created, and they ignore the purchase price you paid."
This allows investors to recycle their cash more efficiently, sometimes getting most of it back on the day of completion.
Kevin Wright's 7-Step BRR Blueprint
Step 1: Find an unmortgageable property
Look for properties others avoid—those that are unmortgageable or have problems like structural issues or legal complications. These properties have less competition and offer better negotiation leverage.
Step 2: Calculate the maximum offer
Determine the maximum price you can pay to achieve your desired profit margin, typically aiming for 15–20% of the property's done-up value.
Step 3: Make your offer
Present your calculated offer to the agent or seller, explaining your reasoning clearly and professionally.
Step 4: Follow up
Regularly check back as sellers often become more motivated over time, especially if their property isn't selling.
Step 5: Finance the purchase
Use cash or bridging finance creatively to fund the purchase and refurbishment.
Step 6: Improve the property
Carry out the refurbishment to bring the property up to its maximum value.
Step 7: Refinance or sell
Refinance based on the new value to pull out your cash or sell the property for a profit.
"Once you understand the rules of the game and you play it, it's just fun watching it play out."
Actionable tips for aspiring investors
Target Problem Properties: Seek out properties with issues like structural problems or unmortgageable status to reduce competition.
Ignore the Asking Price: Base your offer on careful calculations, not the seller's expectations.
Be Patient and Persistent: Follow up regularly, as sellers often become more receptive over time.
Utilise Creative Financing: Explore options like done-up value bridging loans to maximise your cash flow.
Build a Reliable Team: Collaborate with builders, brokers, and mentors who understand and support your strategy.
Conclusion
Key takeaways
Mastering the BRR method is about more than just buying, refurbishing, and refinancing properties. It's about understanding the psychology of sellers, making calculated offers, and using creative financing to recycle your cash efficiently. By following Kevin Wright's 7-step blueprint, you can accelerate your property investing success.
What should I do next?
Watch Kevin Wright's exclusive episode on YouTube
Ready to revolutionise your property investing approach? Watch Kevin Wright's insightful episode on our YouTube channel for exclusive tips and strategies.
Connect with Kevin Wright
To learn more about Kevin Wright and his expertise, visit Kevin's website and discover how his mentoring can help you achieve your property investing goals.
