I am naturally a judgmental person. I hate this about myself, and I’m working on it. I especially hate it when I instantly become judgmental about situations where I have little to no experience, but I’m about to do that, so let’s go!
What really grinds my gears and triggers that judgmental behavior is when people don’t accept responsibility for their own actions. It is the complete opposite of Jocko Willink’s Extreme Ownership. This concept is especially critical when you’re diving into real estate, specifically with the BRRRR investing strategy.
There’s a famous quote out there, and I don’t know who said it, nor did I take the time to look it up, but it goes, “A poor sailor blames the wind.” Well, a poor real estate investor blames the market. And in the world of BRRRR investing, where you’re buying, rehabbing, renting, refinancing, and repeating, accountability is key. If you don’t take responsibility, you’ll find yourself facing a costly mistake—without a solid strategy to recover.
I’m looking at this picture of a sailboat that recently washed up on Pensacola Beach. Credit to Justin Saxon for such a cool pic. We live 15 minutes from where this washed ashore, so it’s been all over social media feeds and even some national news outlets.
National news outlets have to dramatize everything, and this is where I get triggered. For the record, I’ve only been on a sailboat a few times, and I wasn’t anywhere near doing anything that helped navigate the vehicle, but I do know how to look at weather reports, and I do take responsibility for my own actions—just like you should when managing a BRRRR investing strategy.
The dramatic story goes… A young guy spent ALL his life savings to purchase this boat in South Florida. His inaugural trip was sailing it home to Texas, planning to pick up his family and head back to the Caribbean islands, where they were going to work and live on the boat. Along the trip to Texas, a HUGE storm reportedly popped up out of nowhere, causing the boat’s owner and his travel friend to radio mayday to the Coast Guard and abandon the boat.
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They made it home safely, thanks to the Coast Guard. But now, the boat has washed ashore, and apparently, it’s very expensive to get it off the shore. Here’s where I get triggered: it seems like the right insurance package would do the trick to help get the boat back. But what does the younger generation do? Oh, here’s my GoFundMe page. Help me fix my mistake. I watched the interview with the boat owner and heard him blaming the weather. At no point did I hear him take full responsibility.
This got me thinking about the risks in BRRRR investing. This guy invested in a sailboat with very little knowledge—just like a real estate investor diving into a BRRRR strategy without understanding market shifts, rehab costs, or the refinancing process. If you don’t prepare, and if you don’t have the right team or knowledge in place, you’ll find yourself yelling, “GoFundMe.”
If you’re on the cusp of making your first or next BRRRR investment and you’re not extremely comfortable or confident about it, listen to your spouse. Make sure you surround yourself with people who know what to do when your situation shifts. But for the love of all that’s holy, do not sink your life savings into one property and do not start a GoFundMe page when things go wrong.
Common FAQs using the BRRRR Investing Strategy:
I use and highly recommend DealCheck.io.
With none of your own money, yes. Partnerships are the best way to grow your portfolio without using your own money. Utilizing creative strategies like Hard Money (via W2 Cap Capital LLC) will allow you to fund the purchase and rehab with only 10% down (sometimes 0% down given the opportunity).
Off market. If you don’t know how to pull an off-market list or the mailers you’re sending aren’t producing the results you want, watch the free video at https://FindYourNextBRRRR.com to see exactly how I’m finding our most profitable properties.