Question for BRRRR Investors – How Does the Repeat Work with Private Lenders?

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Question for BRRRR Investors – How Does the Repeat Work with Private Lenders?

Shaun Matthew Vicencio
Member since 2025 · 5 posts · 0 votes

Hey everyone! I'm diving deeper into real estate investing and learning about the BRRRR method (reading BRRRR by David Greene right now). I have a specific scenario I’d love to understand better, especially the Repeat part when using a private lender.

Here’s what I’m thinking:

🏠 Property price: $1,000,000
💰 75% funded by private lender = $750,000
🤝 25% funded by JV partner (including closing costs)

Let’s say:
🔧 Renovation cost: $50,000 (covered by me)
🏡 After reno, new appraised value (ARV): $1,250,000

If I refinance at 75% ARV:
✅ New refinance loan: 75% of $1,250,000 = $937,500
✅ I use that refinance to pay off the private lender’s $750,000 loan

Now I’m left with:
➡️ $937,500 (refinance amount) - $750,000 (paying off private lender) = $187,500 left over

Do I need to find a new investor for my 2nd property?

Here’s my main question:

👉 How do I repeat the BRRRR process if I don’t have extra budget for the next down payment or renovation costs? Especially here in BC, Canada where housing prices are so high—even for distressed or foreclosed properties.

Do you know of any books, websites, or YouTube videos that explain this part in more detail (especially when using OPM or private lenders)? Or if you’ve personally done this in BC, I’d love to hear how you made it work!

Really appreciate any insights or resources 🙏

and By the way is there any of you are based here in BC Canada mainly in Greater Vancouver to Lower Mainland like to connect with you guys!!

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Shaun Matthew Vicencio:

    Hey everyone! I'm diving deeper into real estate investing and learning about the BRRRR method (reading BRRRR by David Greene right now). I have a specific scenario I’d love to understand better, especially the Repeat part when using a private lender.

    Here’s what I’m thinking:

    🏠 Property price: $1,000,000
    💰 75% funded by private lender = $750,000
    🤝 25% funded by JV partner (including closing costs)

    Let’s say:
    🔧 Renovation cost: $50,000 (covered by me)
    🏡 After reno, new appraised value (ARV): $1,250,000

    If I refinance at 75% ARV:
    ✅ New refinance loan: 75% of $1,250,000 = $937,500
    ✅ I use that refinance to pay off the private lender’s $750,000 loan

    Now I’m left with:
    ➡️ $937,500 (refinance amount) - $750,000 (paying off private lender) = $187,500 left over

    Do I need to find a new investor for my 2nd property?

    Here’s my main question:

    👉 How do I repeat the BRRRR process if I don’t have extra budget for the next down payment or renovation costs? Especially here in BC, Canada where housing prices are so high—even for distressed or foreclosed properties.

    Do you know of any books, websites, or YouTube videos that explain this part in more detail (especially when using OPM or private lenders)? Or if you’ve personally done this in BC, I’d love to hear how you made it work!

    Really appreciate any insights or resources 🙏

    and By the way is there any of you are based here in BC Canada mainly in Greater Vancouver to Lower Mainland like to connect with you guys!!

    Not familiar with canada but do you also have closing costs that come into play when buying?
    Buying $1M and putting $50k to get to $1.25M is pretty challenging here in US, can it be done in Canada.

    What you also fail to list is the interest you are going to be paying on that loan. you are going to easily be paying $10k in interest per month to factor that in.
    BRRR with all cash back out really does not work in todays interest rates - it worked great when rates were 3% but back to reality of needing money to play in the real estate game. 
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  • Shaun Matthew Vicencio
    OP
    Member since 2025 · 5 posts · 0 votes
    1y

    Yeah, that’s exactly the tough part here in BC—the housing market is so expensive. I’ve been trying to look for distressed properties, but even those are close to a million, especially since I’m focusing on single-family homes. We also have closing costs like property transfer tax, legal fees, and inspections, so it all adds up quickly.

    I'm still new to this type of investing, so I'm learning as I go and trying to wrap my head around all the moving parts. I definitely see what you mean about interest rates—it's way harder now compared to when rates were 3%. Even if refinancing is possible, the high monthly payments and interest with private lenders make it really challenging. I'm starting to realize that BRRRR only really works well right now if you've got strong cash reserves or find an amazing deal, which isn't easy in this market.

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