Fast Financing for BRRRR Deals — How Are You Making It Happen?

Question

I’ve been talking with a few BRRRR investors lately who lost out on great properties because their financing took too long to come through.By the time the lender was ready, someone else had closed.

For those of you doing BRRRR projects — I’m curious:

- How are you securing funds quickly enough to compete in today’s market?

- Do you lean on private lenders, hard money, lines of credit, or something else?

- Any strategies for covering both the purchase and rehab without waiting months?

In my own experience working alongside investors, I’ve noticed that having a fast-approval, investor-focused financing option can completely change the pace of a project.
When funding is ready in days, it's so much easier to stick to the BRRRR timeline and avoid missing deals.

What’s been your fastest turnaround time from deal finding to closing? And what’s the biggest delay you’ve faced?

Dale Robert Mason · Answer

What HML is doing 100% of purchase and 100% of rehab? How are these priced?

Jordan Ray · Answer

I know 2 lenders in the Memphis area with this structure, I am pretty sure this is market specific but feel free to reach out if you want more info!

Allie McAlister · Answer

Hi @Kelly Schroeder

I have a lot of clients that are utilizing hard money loans that roll purchase price, rehab, ad sometimes even closing costs into one loan that allows you to bring little to nothing to the closing table on the right deals.

It depends on the market you're looking in, as I'm based in Memphis TN, but I'm sure there are similar options in most markets.

Best of luck!

Andrew Postell · Answer

@Kelly Schroeder yeah, Hard Money all day long. That is the most common techinique for someone just starting out. Once established, once you have assets, experience, etc. then you can get a LOC on your assets, or go to private people for money. HML. That's the most effective way.

Jordan Ray · Answer

Great questions — this is exactly where a lot of investors get stuck. In competitive markets, waiting on traditional financing is a deal killer.

In Memphis, most BRRRR investors I work with avoid that problem by going with hard money lenders who fund 100% of the purchase and 100% of the rehab. The turnaround is fast — often just a few days from application to closing — and on average it only runs about $10K out of pocket per closing. That speed lets them lock up properties before someone with slower financing can even get in the game.

That’s also why Memphis works so well for BRRRR: you can still find deals that meet the 1% rule, leverage investor-focused financing, and scale quickly without draining all your liquidity.

If you want to see examples of how out-of-state investors are structuring these Memphis BRRRRs, I’d be glad to share some numbers. It’s exactly how a lot of my clients avoid delays and keep recycling their cash into new deals.

Elealeh Fulmaran · Answer

Speed is more about systems than lenders. Keep a stack ready—private lenders pre-papered, a hard money line for fast closes, and a HELOC/LOC for earnest money and draws—with the refi route set before making offers. Biggest delays usually come from title clouds, appraisals, and slow draw processes, so opening title and ordering appraisal on day one, plus working with lenders who fund draws quickly, helps a lot. When the deal is solid and docs are prepped, money moves fast.

Jaron Walling · Answer

For us it's been savings, private money, and credit cards to get BRRRR deals completed. I partnered with family but I'm managing all the contractors, buy some materials, and DIY projects where I can.

We're not using any HM.

Greg Kasmer · Answer

@Kelly Schroeder- I agree with Andrew on this... Typically Hard Money to start, but as you complete 1-2 deals you can explore other options such as private loans from friends/family. Lines of credit will likely take a bit longer as you'll need 1-2 years worth of experience (and financials) to share in order to obtain the credit. Good Luck!

Caleb Brown · Answer

Hard money is quick. Once you start a relationship and start doing deals they can close in 10-14 days.

Erik Estrada · Answer

I think this is where it comes in handy to have cash set aside for new purchases. Doing a Cash Out Refi or HELOC to have funds available prior to looking at properties will be very beneficial to close quickly.

Hard Money also works, but it is a hit or miss if you are not working with solid lenders. Make sure you have a solid Hard Money lender lined up prior to submitting any offers or looking at deals.

Fast Financing for BRRRR Deals — How Are You Making It Happen?

Fast Financing for BRRRR Deals — How Are You Making It Happen?

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