Exploring Financing Options for BRRRR Strategy -Possible Lenders
Nathan P TannerPro Member
New to Real Estate · Bay Area California · Member since 2022 · 34 posts · 16 votesExploring Financing Options for BRRRR Strategy -Possible Lenders
Most Popular Reply
Lender · Sanford, NC · Member since 2024 · 358 posts · 120 votes
1yWould love to help you on this.
14 Replies
- Lender · Sanford, NC · Member since 2024 · 358 posts · 120 votes1y
Would love to help you on this.
- New to Real Estate · Bay Area California · Member since 2022 · 34 posts · 16 votes1y
Quote from @Deborah Wodell:
Would love to help you on this.
I will send you a direct message to get into more detail thank you Deborah
- Investor · TX · Member since 2021 · 53 posts · 59 votes1y
Send me a dm man. Would love to help if I can, I started in 21' have 70+ doors now all through the BRRRR process. Started using hard money. Gained enough capital over the last couple years to be able to pay cash up front on the purchase side and finance my own rehabs as well. I do 3-4 BRRRR's a month right now and continuing to scale. I started a YouTube channel recently to help share my experiences if you want to take a look https://www.youtube.com/@InvestorPlayWithGabe
- New to Real Estate · Bay Area California · Member since 2022 · 34 posts · 16 votes1y
Quote from @Gabriel Watts:
Send me a dm man. Would love to help if I can, I started in 21' have 70+ doors now all through the BRRRR process. Started using hard money. Gained enough capital over the last couple years to be able to pay cash up front on the purchase side and finance my own rehabs as well. I do 3-4 BRRRR's a month right now and continuing to scale. I started a YouTube channel recently to help share my experiences if you want to take a look https://www.youtube.com/@InvestorPlayWithGabe
Thank you Gabriel, I will send you a direct message now.
- Lender · South Lake Tahoe, CA · Member since 2019 · 109 posts · 36 votes1y
Quote from @Nathan P Tanner:
Hey everyone!
I’m currently in conversations with a company that funds real estate deals, and I’m actively exploring the best financing strategies to support future projects using the BRRRR method 🏚️🔨🏠
Right now, I’m looking to connect with:
-Hard money lenders
-Private money lenders
-Investors or companies familiar with BRRRR financing
-Anyone with insights on structuring deals for short-term rehab and long-term refinance successMy goal is to build solid partnerships and learn from those who’ve successfully used these strategies to scale their portfolio. Whether you’re a lender, an experienced investor, or someone who’s navigated this process before — I’d love to hear your thoughts and possibly work together.
?- What kind of terms should I look for in a hard money loan for BRRRR?
?- What’s the best way to position a property for refinance after rehab?
?- Any recommendations for lenders (local or nationwide) that understand BRRRR well?Open to advice, referrals, or direct connections — feel free to DM me or drop a comment below if you’re open to chatting or working together.
Thanks in advance for your time and insight!
What's up Nathan — welcome to the BRRRR thread
You're asking the right questions. Quick answers:
-
Hard money terms to aim for: 12–24 month interest-only, no prepay penalty, 75–80% of ARV, and as high a rehab holdback as they'll allow. Avoid junk fees and read the fine print—some of these lenders are smiling while they bleed you out.
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Positioning for refi: Keep your rehab tight and clean—no HGTV fluff. Make sure your scope adds real value (beds, baths, square footage). Get it leased ASAP post-rehab, and keep your docs tight—lease, rent roll, rehab receipts, and before/after photos.
-
Lender recs: Depends where you're buying, but there are solid nationwide players and plenty of local lenders who actually understand BRRRR. If you need insight, take it from us who have already personally done it.
DM me if you want to dig into specifics or run through a sample deal structure. Always happy to chat with someone who's trying to build the right way.
—Jeb
- New to Real Estate · Bay Area California · Member since 2022 · 34 posts · 16 votes1yBeen taking notes all morning, im going to send you a direct message now. Thanks Jeb
What's up Nathan — welcome to the BRRRR thread
You're asking the right questions. Quick answers:
-
Hard money terms to aim for: 12–24 month interest-only, no prepay penalty, 75–80% of ARV, and as high a rehab holdback as they'll allow. Avoid junk fees and read the fine print—some of these lenders are smiling while they bleed you out.
-
Positioning for refi: Keep your rehab tight and clean—no HGTV fluff. Make sure your scope adds real value (beds, baths, square footage). Get it leased ASAP post-rehab, and keep your docs tight—lease, rent roll, rehab receipts, and before/after photos.
-
Lender recs: Depends where you're buying, but there are solid nationwide players and plenty of local lenders who actually understand BRRRR. If you need insight, take it from us who have already personally done it.
DM me if you want to dig into specifics or run through a sample deal structure. Always happy to chat with someone who's trying to build the right way.
—Jeb
-
-
- 1yDevin PetersonBusiness MemberLender · Sarasota, FL · Member since 2022 · 2k+ posts · 679 votes
Quote from @Nathan P Tanner:
Hey everyone!
I’m currently in conversations with a company that funds real estate deals, and I’m actively exploring the best financing strategies to support future projects using the BRRRR method 🏚️🔨🏠
Right now, I’m looking to connect with:
-Hard money lenders
-Private money lenders
-Investors or companies familiar with BRRRR financing
-Anyone with insights on structuring deals for short-term rehab and long-term refinance successMy goal is to build solid partnerships and learn from those who’ve successfully used these strategies to scale their portfolio. Whether you’re a lender, an experienced investor, or someone who’s navigated this process before — I’d love to hear your thoughts and possibly work together.
?- What kind of terms should I look for in a hard money loan for BRRRR?
?- What’s the best way to position a property for refinance after rehab?
?- Any recommendations for lenders (local or nationwide) that understand BRRRR well?Open to advice, referrals, or direct connections — feel free to DM me or drop a comment below if you’re open to chatting or working together.
Thanks in advance for your time and insight!
Hi Nathan,
Excited to hear that you are well onto your journey of RE investing. There are a ton of great resources available here on the BP forums! To answer your questions in order:
1. I would look for a bridge hard money loan that has a first-time buyer product with as little as 10% down.
2. The best way to refinance is use a DSCR loan, most definitely the easiest way.
3. I would reccommend communicating with an experienced loan broker who can help you shop and compare terms across a wide variety of lenders.
That is really the best way to educate yourself is by connecting with someone who can establish a strong and reliable relationship with a few exceptional lending partners.
More than happy to connect. Best of luck!
ProAlpha Capital55 Reviews - Specialist · NJ · Member since 2022 · 1k+ posts · 663 votes1y
Nathan, welcome and good luck on your journey. I am an investor/consultant/HML Broker. I have been part of the team in putting together 40+ deals in the last few years. I learned so much from that process, I have also brokered hundreds and hundreds of HML and I have bought property myself.
I didn't read any of the books or listen to any of the podcasts, I kinda learned from taking my lumps and asking questions along the way.
Basically, there are a few different ponds to fish for a deal. You have on market (the biggest pond), wholesale market (2nd biggest), off market deal (smaller yet), and then you have the alternative markets like Foreclosure, Short-sale, Auctions. These are the smallest ponds yet.
Financing offers are limited as to the kind of license they have and what pond they can fish in. Usually the first two biggest. Can you snag a deal out of those ponds? I'm sure. But, projects with a project cost worth while is not a hard sell, so if you see it so does everyone else who is looking. I've seen the fish that come out of the on market/wholesale ponds. The project costs has no chance to be under 75%. Once all fees and closing costs and holding costs are loaded into the back, there is zero % chance in my experience that you are in a quality project, numbers wise for a flip.
I've seen projects in the 70% - 75% project cost to ARV and when projects go longer and have overages and the market depreciates even a little or has a little too much inventory at the time. You are always reducing and chasing a sale. You don't even get your ARV as your exit, not really. You are always 5% - 15% under. Combine that with a 10% overage on the rehab and a 5% holding time overage and your all of a sudden -5% on the exit.
I'm describing to you real experiences that I saw happen and that happens all the time in this industry.
And you have investors out there talking themselves into bad deals just to get involved in the game. I see it all the time as a broker. They'll bring me a 120k purchase with a 60k rehab (pulled out of thin air most likely) and say ARV is 220k. 40k spread? That can evaporate like water on the sun. That's not a good deal in my opinion, but a lender only needs 10% - 15% profit margin to approve a deal, they'll make you layout more on the purchase to lower the loan amount but they'll let you do the deal.
A Flip is a very specific situation. You need a small enough project cost, you need rates to be descending, you need buying power of the people to be ascending, you need to be very close to the comps, you need inventory not to be flooded. People are trying to flip in markets they don't know using the 75% project cost rule and they'll all go broke. This is my assessment after watching these kind of deals very close up.
Now a BRRRR can work. Depends on the rent. Even if you have to leave some money in at the refi, you'll have cashflow and your unrealized equity in the home should be appreciating over time. An exit at the 6 month mark could be a loss, but an exit at the 6 year mark can be a score with the same house.
I totally pivoted on how I look for properties and the kind of teams I need set-up in the markets. You'll need capital or a true Private Money Individual. I don'y mean a national PML, I mean a guy that can cut you a check for the entire project (purchase and rehab) on your greenlight. I only make advantage cash buys now. I only buy when I am starting 30% - 50% under market. They are cash buys and often without seeing the inside other than through a window maybe, but you start a Flip or a BRRRR ahead of the game.
I see you are in the bay area which is a pricey market to say the least. To do this kind of thing there would take truck loads of money. But there are markets out there in the 2nd and 3rd tier cities of the country where you can buy a 3/1.5, 3/2, or even a 4/2 for under 50k. Fixed up they are worth 200k. They usually take 50k - 70k for a rent ready rehab. You buy for 50k, put 50k in and your ARV is 200k that's a 50% project cost. You can sell for 179k and still do very, very well. That's the safety net of starting in those tiny ponds. Big Fish. Meaty fish. And whether you are flipping or Brrrring, starting under market will either fatten your bottom line on a flip or it will fatten your cashflow on a BRRRR.
- Lender · New York City, NY · Member since 2016 · 26 posts · 9 votes1y
Nathan -
Great to see you working up to your first deal. Somethings to consider as you work through the BRRRR strategy:
Seasoning: how long do you need to own the property before you can execute on a cashout refinance. For example, Easy Street Capital, has no limitations on a cashout refinance after six months.
DSCR: What is your projected Debt Service Coverage Ratio for the property once it is stabilized. Calculation: (Annual income - expenses)/Annual loan payment
Bear in mind that lenders will only use certain expenses, for example, Easy Street Capital takes taxes, insurance and HOA and uses those to calculate annual expensesCredit score: The higher your score the better terms you will receive on your DSCR loan. Notably, this does not have a large impact on Hard Money Loan terms.
LTV: What is your projected loan to value when you refinance? A lower LTV (55-65%) will allow for better rates and terms, while higher LTVs (70-75%) will result in higher rates/buydownsInvestment strategy and experience: If you plan to use the properties for STR, a track record will qualify you for larger projected incomes, while no track record will mean lower projected incomes and lower DSCR numbers.
These are a few of the considerations for you to keep in mind as you review deals and run your own numbers. I would be happy to look at anything you're considering and talk it through with you.
Good luck on your investment journey!
Erik
- New to Real Estate · Bay Area California · Member since 2022 · 34 posts · 16 votes1y
Quote from @Erik Quinson:
Nathan -
Great to see you working up to your first deal. Somethings to consider as you work through the BRRRR strategy:
Seasoning: how long do you need to own the property before you can execute on a cashout refinance. For example, Easy Street Capital, has no limitations on a cashout refinance after six months.
DSCR: What is your projected Debt Service Coverage Ratio for the property once it is stabilized. Calculation: (Annual income - expenses)/Annual loan payment
Bear in mind that lenders will only use certain expenses, for example, Easy Street Capital takes taxes, insurance and HOA and uses those to calculate annual expensesCredit score: The higher your score the better terms you will receive on your DSCR loan. Notably, this does not have a large impact on Hard Money Loan terms.
LTV: What is your projected loan to value when you refinance? A lower LTV (55-65%) will allow for better rates and terms, while higher LTVs (70-75%) will result in higher rates/buydownsInvestment strategy and experience: If you plan to use the properties for STR, a track record will qualify you for larger projected incomes, while no track record will mean lower projected incomes and lower DSCR numbers.
These are a few of the considerations for you to keep in mind as you review deals and run your own numbers. I would be happy to look at anything you're considering and talk it through with you.
Good luck on your investment journey!
Erik
Thank you Erik, I appreciate your help for sure. seems like its endless on who can finance a deal. Finding the right company that I can team up with and work long term is my goal. Someone to have a relationship with, someone that can really help me identify if my deals make sense. i will send you a direct message so we can talk more
- Lender · Philadelphia / Nationwide · Member since 2019 · 5 posts · 2 votes1y
Hi Nathan, ran across your post and would love to connect! Shoot me a message and we can connect anytime.
- Lender · Member since 2025 · 21 posts · 4 votes1y
Solid questions. A lot of success with BRRRR comes down to lining up flexible short-term debt and making sure the refinance lender is comfortable with the post-rehab numbers. I've worked with plenty of investors navigating that balance and always enjoy swapping notes, happy to connect and share insights.
- Member since 2025 · 29 posts · 0 votes1y
I'd be happy to connect!
417-372-1530
[email protected] - Real Estate Agent · Member since 2025 · 30 posts · 1 vote1y
Quote from @Nathan P Tanner:
Hey everyone!
I’m currently in conversations with a company that funds real estate deals, and I’m actively exploring the best financing strategies to support future projects using the BRRRR method 🏚️🔨🏠
Right now, I’m looking to connect with:
-Hard money lenders
-Private money lenders
-Investors or companies familiar with BRRRR financing
-Anyone with insights on structuring deals for short-term rehab and long-term refinance successMy goal is to build solid partnerships and learn from those who’ve successfully used these strategies to scale their portfolio. Whether you’re a lender, an experienced investor, or someone who’s navigated this process before — I’d love to hear your thoughts and possibly work together.
?- What kind of terms should I look for in a hard money loan for BRRRR?
?- What’s the best way to position a property for refinance after rehab?
?- Any recommendations for lenders (local or nationwide) that understand BRRRR well?Open to advice, referrals, or direct connections — feel free to DM me or drop a comment below if you’re open to chatting or working together.
Thanks in advance for your time and insight!
Great post! While I'm not a lender, I work with BRRRR-focused investors by helping them source the right properties to make the strategy work. Through my company, Propel Leads, we provide fresh, verified off-market owner data (probate, pre-foreclosure, code violations, etc.) that often line up well with BRRRR opportunities.
If having a consistent pipeline of distressed properties is something that could help alongside financing, feel free to DM me and I’ll be glad to share more.
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