Secrets behind BRR Property Investing Strategy from Kevin Wright
Last updated: 19 Dec 2024
Meet Kevin Wright
In this week’s Deal Finder’s Corner, Property Filter had the pleasure of hosting Kevin Wright, a property expert and seasoned educator with over 30 years in the industry. Known for his practical approach and innovative financing solutions, Kevin has helped countless investors and deal sourcers achieve consistent results in property investing. His deep understanding of creative finance, particularly the BRR strategy (Buy-Refurbish-Refinance), has made him a trusted mentor for investors seeking to scale their portfolios.
Why BRR is a game-changer for property investors?
BRR, or Buy-Refurbish-Refinance, is an effective strategy for investors wanting to grow their portfolios quickly by recycling their capital from each deal. Here’s how BRR works:
Buy – Purchase a property below market value.
Refurbish – Increase its value through targeted renovations.
Refinance – Mortgage the property at its new, higher value, allowing you to recover some or all of your initial investment.
The BRR model offers flexibility: you can rent it out as a buy-to-let (B2L), convert it into an HMO, use it as serviced accommodation (SA), or even flip it for profit. This strategy is particularly beneficial for investors aiming to maintain liquidity, as it enables them to reuse their funds across multiple projects. Property Filter enhances this approach by allowing investors to find motivated sellers quickly, so they can move directly from deal discovery to negotiation.
Source properties from motivated sellers and assess their potential seamlessly with Property Filter.
Kevin’s secrets to making BRR work
Leveraging bridging finance for swift deal execution
According to Kevin, using bridging finance is essential in a BRR strategy, especially for deals that need fast turnarounds. He highlighted how bridging finance lets investors complete purchases in as little as 11 days, ideal for competitive situations like auctions or off-market properties.
“When you step outside your comfort zone, that’s where the magic happens,” says Kevin, encouraging investors to see bridging finance as a tool to unlock unique opportunities.
Example case study: Converting problems into profits
Kevin shared the story of his mentee, Matt, who successfully used bridging finance to acquire a property in 11 days. By solving a common building issue, Matt was able to significantly add value to the property and refinance it at a higher market value, allowing him to recycle his cash for future investments.
Key takeaways:
Buy below market value – Matt purchased the property for £93,000, well below its previous sale price.
Identify fixable problems – By addressing a roof issue, he unlocked additional value, which enabled a higher refinancing value.
Efficient use of bridging finance – With a quick turnaround, he secured the property and refinanced to pull cash out, ready for his next deal.
“Don’t pay retail when you can buy wholesale,” Kevin advises, encouraging investors to seek properties with issues they know how to solve.
Finding the right deals on Property Filter
Property Filter’s features streamline the BRR process, allowing you to:
Filter for motivated sellers – Source properties with high motivation indicators.
Quickly assess deals – Use comparables and deal calculators to evaluate profitability.
Track and manage leads – Follow up on opportunities efficiently, so you never miss a deal.
With Property Filter, you can eliminate manual research and move straight to executing high-potential deals. For deeper insights, Kevin’s 7 Steps to a Predictable BRR Outcome course offers a structured approach to mastering BRR, covering sourcing, funding, and maximising returns. Once you’ve chosen BRR as your strategy, Property Filter enables you to find great deals quickly. After defining your investment area, you can refine your search with tailored options:
HMO PD Conversions
Existing HMO in Article 4
1->2 beds conversions
Short Leases
Lease Options (Negative Equity)
Flips
Buy to Let 2 or 3 beds
No matter what you decide, Property Filter will enable you to:
Compare all market insights using a real-time database
Find properties below market value
Identify motivated sellers
Perform due diligence
Assess deals quickly using built-in calculators and comparables
Organise your viewing calendar
Utilise functional Follow-up-System
Ultimately, you'll be able to make more great deals and achieve your goals faster.
Practical tips for BRR success
Learn to assess deals efficiently
Use Property Filter’s deal calculators to evaluate the potential ROI, helping you focus on high-value opportunities while saving time on due diligence.
Master the use of bridging finance
Kevin stresses the importance of bridging finance for securing off-market deals quickly. With options like market value bridging, you can fund properties even when conventional mortgages aren’t available.
Seek out “problem properties”
Properties marked as "cash-only" often indicate issues that mortgage lenders won’t finance. By using Property Filter to identify these, you gain a competitive edge and access to properties with fewer interested buyers.
Why BRR works in the current market?
The UK property market presents challenges, especially as competition grows in popular investment areas. Kevin suggests looking at properties above the usual £250,000 mark, where competition thins out, allowing investors to find less-contested deals with significant upside potential.
“Observe the masses and do the opposite,”
Kevin recommends, highlighting that unique, higher-value properties can often yield better profits.
Conclusion: Take your property investing to the next level
With the right tools and strategies, BRR can unlock unparalleled opportunities for growth in property investing. By learning from experts like Kevin Wright and utilising Property Filter’s capabilities, you can streamline the BRR process, build a high-performing portfolio, and achieve results faster.
