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Purchasing rental properties as an investment is one of the most significant investments an individual can make. Over time, investing in single family rentals will yield tax benefits, cash flow from the rental income, and significant appreciation.

But one of the biggest challenges that new investors face is not having enough money saved up for the down payment required by most conventional lenders. For example, a $300,000 rental property would require a 25% down payment which would be $75,000. Many would be rental property investors are turned off from investing in rental properties because they don’t have enough money saved.

Lex Levinrad, the Founder of Lex Levinrad Real Estate Training has a solution that he shares with his students. Of the many real estate investing methods that he teaches, one of his favorite strategies is known as the “Buy, Repair, Rent and Refinance” Method. According to Lex, if implemented correctly, it is an easy way to buy rentals and create long-term wealth. “The buy, repair, rent, and refinance strategy is the easiest way for anyone with a job and decent credit to get started investing in real estate,” shared Lex Levinrad.

The buy, repair, rent, and refinance strategy involves a few simple but important steps to ensure its success. First, an investor buys a house and pays for it in cash to purchase it at a discounted rate. For this method to work, the investor must pay no more than 70% of the “After Repair value” or what the house would be worth once it has been repaired. Most homes purchased at a discount are “fixer uppers” that need some work. Since banks do not lend on fixer uppers, the investor needs to find a private lender that is willing to lend them the money to purchase the home. One of the best ways to find private lenders is by attending local real estate investment club meetings.

After the house has been purchased, the next step is for the investor to hire a contractor to make repairs to the property to get it ready to rent. Once the repairs are completed, the home is rented out to a long term tenant. The monthly rent payment should be more than enough to cover the cost of monthly interest payments to the private lender.

Then the next step is to refinance the loan with the private lender. After submitting the loan to a mortgage broker and having the house appraised most banks will lend up to 75% of the appraisal amount. If the house was purchased for 70% of this amount, then the loan amount from the bank should be enough to cover the original loan with the private lender. This allows the investor to refinance the mortgage from the private lender’s high interest rate short term loan to a lower interest rate long term conventional loan. If this method is employed correctly, after the refinance is completed, the investor will receive cash back since the amount the bank will be willing to lend will be more than the amount borrowed from the private lender. The result is that the investor will not have to use much of their own capital to buy the rental property.

To help new investors learn how to implement this strategy, Lex teaches this buy, repair, refinance method at the Fixing and Flipping Houses Boot Camp which is held twice a year in South Florida. The boot camp is a three-day event where Lex personally teaches his students how to find, buy, fix, flip and rent houses. He also teaches his students how to calculate the maximum price to offer, how to calculate the After Repair Value, how to estimate repairs, labor and material costs and how to find a private lender to fund the purchase of the house.

Lex Levinrad Real Estate Training offers other real estate training boot camps for new investors including the Wholesaling Real Estate Boot Camp, the Foreclosures and Bank-Owned Properties Boot Camp, and the Airbnb and Short-Term Rentals Boot Camp.

To find out more about Lex Levinrad Real Estate Training visit https://www.lexlevinrad.com.

About Lex Levinrad Real Estate Training

Lex Levinrad Real Estate Training was established by Lex Levinrad in 2008. Lex has been a full-time real estate investor since 2003 and has flipped over 1,000 single family homes. Through his various real estate training programs, he teaches his students and new real estate investors how to find properties to buy, wholesale, fix, flip, or rent. An internationally recognized real estate expert, he has authored seven best-selling real estate investment books and has been featured on Fox News, ABC, CBS, NBC, The Miami Herald, The Sun Sentinel, and the Orlando Tribune. His Podcast “Investing in Real Estate with Lex Levinrad” has had over 5 million downloads and his YouTube Channel with the same name has had over 2 million viewers.

Media Contact
Company Name: Lex Levinrad Real Estate Training
Contact Person: Micaela Scott
Email: Send Email
Phone: (561) 948-2127
Country: United States
Website: https://www.lexlevinrad.com/