Denver Investment Real Estate

Denver Investment Real Estate


#534: BRRRR Strategy Dead? Lender Exposes New Real Estate Investing Trends

November 05, 2024

Is the popular BRRRR strategy still viable in Denver’s market? Kevin Amolsch, Pine Financial Group’s founder and bestselling author, reveals why only 10% of their current loans are BRRRR deals – down significantly from previous years.


Why the BRRRR Strategy is Declining in Denver

Kevin shares invaluable insights from processing nearly a billion dollars in loans over 16 years, showing a dramatic shift away from the once-popular BRRRR strategy. With changing market conditions and rising costs, investors are finding it increasingly difficult to execute this strategy effectively in Colorado’s competitive market.


Current Market Trends Replacing BRRRR Strategy

  • Why many investors are shifting away from the BRRRR strategy and exploring commercial real estate opportunities
  • Current market dynamics showing why residential property appreciation may stay flat
  • How successful investors are adapting their portfolios in response to changing conditions
  • Real examples of deals working in today’s market, including a 7.2% cap rate office building bought below replacement cost

What’s Working When BRRRR Isn’t an Option

As Denver’s real estate landscape evolves, learn why traditional strategies like BRRRR may need rethinking and what alternative approaches seasoned investors are using to maintain strong returns. Kevin highlights emerging opportunities in commercial real estate and explains why some investors are moving toward syndications and private lending for better cash flow.


Market Data Shows Why BRRRR Strategy Needs Updating

Pine Financial’s loan portfolio reveals telling trends about what’s working in today’s market:



  • Extended loan terms due to longer marketing periods
  • Shift toward fix-and-flip over BRRRR deals
  • Increased focus on commercial opportunities
  • Growing interest in private lending as an alternative

Whether you’re a new investor wondering if BRRRR is still viable, or an experienced owner looking to optimize your portfolio, this data-driven discussion provides practical insights for navigating today’s market challenges.


Want to learn more? Join the Investor Success Summit on November 9th – Colorado’s largest real estate investing conference. Meet Kevin and other industry experts, including BiggerPockets CEO Scott Trench. Get your tickets at DenverISS.com.



https://youtu.be/PjTKqqgTODc

Timestamps

(04:50) Current Trends in Commercial and Residential Lending


(07:00) The BRRRR Strategy Today


(11:54) Challenges in the Current Real Estate Market


(18:20) Foreclosure Rates and Lending Practices


(23:04) Investment Strategies and Opportunities for Cash Flow


(43:11) The Investor Success Summit Overview


Links in Podcast

Connect with Kevin Amolsch


Email: kevin@pinefinancialgroup.com


LinkedIn: linkedin.com/in/kevinamolsch/


Visit Pine Financial Group


Interested in Attending the Investor Success Summit? Sign up here