What is the Burr method?

The Burr method is a real estate investment strategy, primarily used in the United States, designed to maximize returns through the following steps:

1. Buy: Purchase a distressed or undervalued property.
2. Rehab: Renovate and improve the property to increase its value.
3. Rent: Lease the property out to tenants, ensuring it generates regular income.
4. Refinance: Secure a new mortgage on the renovated property, ideally at a higher valuation than the purchase price.
5. Repeat: Use the capital from the refinancing to invest in additional properties, thus repeating the cycle.

This strategy leverages the increased property value and rental income to obtain better financing terms and build a real estate portfolio efficiently 1 2 3.