With the help of TikTok, investing in real estate has become a popular method of making money fast. If you look up ‘real estate investments’ on TikTok, countless tips and tricks focused on how to become a millionaire fast through real estate investments end up on your feed. While TikTok can be considered a reliable source for recipes and day-to-day hacks, we decided to dig deeper into the real estate investing tips for our readers to determine if there are legitimate ways to properly invest in real estate.
After scrolling through TikTok, it is apparent that there are multiple different methods for getting started on growing your real estate investments. We decided to focus on the three more popular methods: the BRRRR Method, House Hacking, and REITS.
BRRR meaning Buy, Rehab, Rent, Refinance, Repeat. After some research, it is easy to find that this method is a legitimate practice in the real estate investment world! Tatiana Londono, owner of one of the largest residential brokerage firms in Montreal, the Londono Realty Group, says that the BRRRR method is her #1 investment strategy to becoming a millionaire.
First, you Buy, but it is not as easy as it seems. You need to make sure the property you are purchasing is the right kind of property that will attract renters and be cost effective for you. A great way to start this process is by working with a real estate agent! Make sure you check out Prime Realty’s Blog “What to look for in a Real Estate Agent” to help your search for a good agent! You can find experienced commercial real estate agents who are equipped to help you find the perfect property for investing. When looking at properties, you will need to analyze the property carefully to estimate potential updates and renovations. This step allows you to determine if the renovations will add value to the property to increase the rent or end up causing you to spend more money.
After carefully choosing the right property to purchase, you are ready to move into the Rehab stage. The biggest tip is to make the property functional and livable by only adding things that will increase the value of the rental. Repair the things that add value to the property like kitchen and bathroom updates, roof and drywall repair, and landscaping.
Renting the property is one of the more important steps. Tenant selection is a major part of ensuring your investment property is successful. Running background checks, checking their rental history, and screening potential tenants are key to ensuring the success of your investment.
Refinancing your property takes a bit of time. Once the property is rented to a reliable renter, you can start looking at your options. Some lenders look at how long you have owned the property and will consider that against your appraised value. If you are given the options between cash-out refinance or pay off outstanding debt, you will want to choose cash-out. The renters will help you pay off the outstanding debt, you want the cash to invest in a new property.
Repeat!! Use the profits from this property to buy another one!
If you want deeper explanations and tips for the BRRRR method, check the link here or watch more of Tatiana’s videos here.
This is when you purchase a duplex or multiplex, move into it, and charge your renters enough to cover the mortgage. Real estate investor Antonio Cucciniello, founder of Investarters, has a lot of resources to help first time real estate investors. One of his top ways to get into real estate investing is through house hacking. This method is a great way to save money. If your mortgage payment can be covered or mostly covered by renters, then you as the owner are able to save on living costs and can use your savings to invest in other properties or save up for your dream home. You know you are doing this correctly when you can pay for the mortgage for multiple properties with the rent payments and have enough to renovate/rehab new ones, while living for free. To learn more about house hacking, watch the videos linked at the end of this blog.
REITs or Real Estate Investment Trusts
REITs is our third TikTok approved way of dipping your toes into real estate investment. REITs are companies that either own, finance, or manage income-generating residential or commercial properties. This method allows you to make passive income in the real estate market without having to be a property owner. @EcommJess is a great TikToker to follow if you want to learn more about REITs.
These methods have barely scratched the surface of the real estate investment trend on TikTok. If you are interested in learning more about these methods, jump on TikTok! There are great resources out there with methods on how to start, where to start, and information on the types of loans you can receive. Overall, one of the most important aspects of a good investor is their ability to consistently learn and grow with the market and the trends surrounding it. While using TikTok as resource is a great way to get started in real estate investing, we hope you check back soon for another blog that outlines tips and tricks from successful real estate investors.