Strategies, Stories, and Lessons Learned After 482 BRRRR’s w/Mark Ainley The SFR Show

In this episode, Michael and Emil chat with Mark Ainley from GC Realty and Development about his experience with hundreds of BRRRRs. 
 
Mark Ainley with GC Realty - c. 630-781-6744 
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Transcript
 
Michael:
Hey, everybody. Welcome to another episode of The Remote Real Estate Investor. I'm Michael albaum. And today I'm joined as usual by,
 
Emil:
Emil Shour.
 
Michael:
and we have a special guest with Mark Ainley with GC Realty and Development. We did a deep dive on Chicago with Mark a while back. He's got a property management business, but today's going to be talking to us about the burst strategy. So let's get into it.
 
Michael:
Mark. Thank you so much for coming back on the podcast. We had so much fun with you doing the Chicago deep dive for anyone who didn't catch that episode. Go give it a listen. We've got Mark Ainley with GC Realty and Development. How are you, man?
 
Mark:
I'm good. I'm not as hot as you guys. You guys got a lot to fire in us out there.
 
Michael:
So yeah, big time fire. It seems like the market's hot. The state is hot. You know, everything seems to be on fire these days. Um, so today I wanted to chat with you. Not just I, but Emil as well. One is chat with you about BRRRR. Cause we were chatting with you before we recorded the last episode. And you were telling us how you had done like 480 some odd BRRRRs out in the Chicago area. Is that right?
 
Mark:
Yeah, no, we did between Oh eight and 18. We did a, just over 400, I think it's 482 to be exact units, which were all made up of like one to four unit buildings.
 
Michael:
Fantastic. So for those of our listeners who might not be familiar, can you just give us a quick and dirty definition? What is a bur and how does it work?
 
Mark:
Sure. Buy, renovate, rent, refinance and repeat the acronym goes. Now when I started doing it, I didn't know what it was. I just thought I was smart. I wish I would have pointed trademarked it or… I was thinking about that today when I was preparing for this call. I'm like, man, if I would've came up with that, that was so smart. So we started doing it and it was really a business model to us and how we were approaching it back then.
So for us, when we started in 2008, I got my into real estate in 2003. And you guys know out there in California, just as much as we do here in the Midwest, you couldn't do those types of things in the two thousands, just because pricing was so high, the opportunity wasn't there. So I really didn't have a, that access to those types of deals until the market crashed. And when the market crashed, the math just made sense to me on a couple of things I was looking at how to go at it.
 
Michael:
Right on. And so why do you think just at a high level, we're going to dig into some details of a couple of birds you've done, but at a high level, why is it such a powerful tool or vehicle, whatever you wanna call it.
 
Mark:
So it is powerful because the concept of it is you are not leaving any of your money into the deal at the end of the day, instead of a there's tons of these late night commercials are vest with other people's money or no money down, or do seller financing, all that type stuff. You can do these types of deals without having to do these by these crafty sales type pitches or get some guy to tie you to his second loan. I don't know. They got some crazy things they do out there to find ways to not have to put money into a deal. And this one's halfway legit. Now don't get me wrong. You have to find a way to have money on the front side of things. And we can talk about that. But, uh, um, at the end of the day, you can get out of a deal having little to maybe five, 6% in the deal. And sometimes even we were successful. We even were able to exceed what we had in there on a cash out, depending on the lender we're working with.
 
Michael:
That is so cool. So I know people talk about the rural all the time. People tell successful and unsuccessful burgers all the time, but yo