Spare tires are like side hustles—last weekend, I was reminded just how valuable that spare tire can be in the context of the BRRRR method. As we’ve been embracing our nomadic slow traveling lifestyle over the past few years, we’ve encountered only minor vehicle issues, with the most significant being a leaky fuel pump we had to repair in South Carolina.
When we started our journey, we hauled a 5×8 utility trailer, staying with friends, family, or in hotels and B&Bs. At the advice of seasoned travelers, I purchased a spare tire for the trailer. Initially, I was hesitant; after all, trailer tires are different from regular tires and require specific lug nuts. My thought was, “We have roadside assistance—what’s the worst that could happen?”
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Just as I was recording a podcast episode on the BRRRR method, I received a call from my wife: someone had hit our car. Thankfully, everyone was okay, and the trailer hitch absorbed most of the impact. This incident made me reflect on the importance of having a spare tire, both literally and metaphorically.
Just like the spare tire, your side hustle or secondary income stream is crucial for financial security. You might think you have a stable job or secure investments, but layoffs and market shifts can happen. For 15,000 miles, that spare tire was tucked away, bulky and awkward, and I barely thought about it. Similarly, your side hustle may feel cumbersome or secondary, but its true value becomes apparent when you need it most.
In the past three years, the spare tire has proven to be invaluable. Last weekend, in a gas station parking lot off I-85, I had to use it to get back on the road quickly. The process of changing the tire was far quicker than sourcing a trailer-specific replacement or waiting for roadside assistance. This experience underscored the importance of being prepared for unexpected challenges, just like in real estate investing.
In the context of the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat), having a side hustle or an alternative income source is akin to having that spare tire. It provides a financial cushion and peace of mind. While you may not use it frequently, its presence can be a lifesaver when you face financial bumps along the road. Regularly checking and maintaining this “spare tire” ensures you’re prepared for unforeseen events and can continue building your real estate investment portfolio with confidence.
Remember, just as I discovered the true value of the spare tire, you’ll find the importance of your side hustle or secondary income stream in times of need. So, keep your financial spare tire inflated and ready, ensuring that your BRRRR investing strategy remains on track and resilient in the face of life’s uncertainties.
Common FAQs using the BRRRR Investing Strategy:
I use and highly recommend DealCheck.io.
With none of your own money, yes. Partnerships are the best way to grow your portfolio without using your own money. Utilizing creative strategies like Hard Money (via W2 Cap Capital LLC) will allow you to fund the purchase and rehab with only 10% down (sometimes 0% down given the opportunity).
Off market. If you don’t know how to pull an off-market list or the mailers you’re sending aren’t producing the results you want, watch the free video at https://FindYourNextBRRRR.com to see exactly how I’m finding our most profitable properties.