Jul 17th, 2020
Discover how BRRR real estate snowball strategy grew his portfolio, maintained a steady cash flow for him, and made him retire from a full-time job at the age of 24, find out his one-of-a-kind strategy for finding good deals, and learn how to leverage YouTube to grow your real estate brand online.
Mike Rosehart is Canada’s Youngest Early Retiree, an Ivy League Business Graduate, YouTube Social Media Influencer, Entrepreneur, and a Real Estate Investor based in London, Ontario with an 8-Figure real estate portfolio comprising of over 50 buildings. Mike is an expert Joint Venture Strategist with a wealth of experience in finding off-market private deals, flipping, renovating, and managing the bottom line–focused on cost control and maximized return on investment.
In this episode, let’s listen to Mike about how he bought his first property at age 19, used cash flow earned from it to grow his portfolio until he finally gave up his day-time job and retired to fully focus on real estate.
01:28 – What is a BRRRR real estate snowball method
04:16 – What brought him to real estate early on at only 19 years old
07:28 – His way of finding good deals
10:19 – Why he doesn’t do joint ventures anymore and what’s the advantage of raising your own capital
12:53 – What his deals look like with occasional joint venture partners
14:36 – What is the term of the deal with lenders, how do they earn
15:46 – What impact does YouTube has on his real estate business
17:51 – How does he make content for his YouTube channel
“But the BRRRR is the idea that you can find the undervalued asset, you pull your down payment and you repeat the process, and it effectively allows you to tax-free withdraw from the property because you don’t pay taxes to yourself all of your down payment, and then roll into another property.” – Mike Rosehart
“There are two things that appeal most about real estate over all other asset classes, the first one is leverage. No one’s going to lend you the money, but they’ll lend you to buy real estate.” – Mike Rosehart
“Leverage is super attractive because if you’re buying strong cash flowing properties, good returns on investment, you’re looking at leveraging five to one, that’s an amazing return you can’t do in the stock market.” – Mike Rosehart
“The thing that I loved about real estate is that when you look into real estate, single-family, duplex, triplex, and a lot of the markets, institutional investors don’t touch that space, they stay out of it. So, it’s easy to develop a competitive advantage in that market.” – Mike Rosehart
“I very rarely JV anymore only because of the complexity attached to a JV having to have another stakeholder, I prefer to just raise the capital and then borrow the money at four or 5%. And then the rest of it,10 or 12%. And if you’re buying cash flowing properties, typically end up having more capital in your pocket and not having to share the equity.” – Mike Rosehart
“This is how I do a fixed return with the investor. I structure their piece as debt on the property all secured as debt for their capital that they’re bringing towards the deal, and then I give them an equity sweetener.” – Mike Rosehart
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