Looking for a Brrr lender

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Looking for a Brrr lender

Sabrina Morgan
Member since 2024 · 24 posts · 8 votes

Hello,

I'm purchasing a pre-foreclosure with cash using a BRRRR strategy. The lenders I've found will only refinance up to 80% of my acquisition cost, but I'm looking for a lender that will lend based on the property's appraised value so I can recover more of my capital for future projects.

Does anyone have recommendations for lenders that offer appraisal-based cash-out refinances with little or no seasoning requirement for investment properties?

Thank you!



I posted in the general area, so hopefully it's okay that I'm posting here.  I don't see a way to remove my other post.

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Stacy RaskinBusiness Member
Lender · Member since 2022 · 1k+ posts · 494 votes
2mo

There are options with no seasoning from DSCR lenders to use the new appraised value for a cash out refinance when paying off a hard money loan. If buying the property in cash, three months will be the minimum seasoning or waiting period I have seen and 6 months seasoning will get you more DSCR cash out refinance program options that will use the new appraised value.

[email protected]818-770-0340
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  • Tyler MccleanPro Member
    Investor · Nassau County, NY · Member since 2022 · 69 posts · 18 votes
    2mo

    I can definitely help you where is the property located?

    1Reply
  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 651 posts · 314 votes
    2mo

    Hey Sabrina,

    Definitely seeing a lot of movement in this space, even for DSCR Lenders

    Most are requiring 3-6 months of seasoning, but there are options for even less based on the amount of rehab you are doing (total cost instead of just acquisition)

    Are you planning on doing any work to it? I am aware of at least one lender who will lend on appraised value if you have done some recent renovations to the property

    Otherwise, your best bet is finding a program that will do 120%-140% of total cost instead of just acquisition.

    Hope that helps, happy to connect and assist if it would be helpful!

    Good luck

    [email protected]417-427-2612
    1Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2mo
    Quote from @Sabrina Morgan:

    Hello,

    I'm purchasing a pre-foreclosure with cash using a BRRRR strategy. The lenders I've found will only refinance up to 80% of my acquisition cost, but I'm looking for a lender that will lend based on the property's appraised value so I can recover more of my capital for future projects.

    Does anyone have recommendations for lenders that offer appraisal-based cash-out refinances with little or no seasoning requirement for investment properties?

    Thank you!



    I posted in the general area, so hopefully it's okay that I'm posting here.  I don't see a way to remove my other post.


     Hi Sabrina, 

    If the property needs rehab, you should be able to cash out on the property's new appraised value without any seasoning restrictions. Otherwise, you will need to wait a 90 day seasoning period 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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    1Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    2mo
    Quote from @Sabrina Morgan:

    Hello,

    I'm purchasing a pre-foreclosure with cash using a BRRRR strategy. The lenders I've found will only refinance up to 80% of my acquisition cost, but I'm looking for a lender that will lend based on the property's appraised value so I can recover more of my capital for future projects.

    Does anyone have recommendations for lenders that offer appraisal-based cash-out refinances with little or no seasoning requirement for investment properties?

    Thank you!



    I posted in the general area, so hopefully it's okay that I'm posting here.  I don't see a way to remove my other post.

    @Sabrina Morgan
    You're asking the right question. Some investor-focused lenders will refinance based on the property's appraised value rather than just acquisition cost, but the seasoning and cash-out guidelines vary quite a bit. If you already have an estimated ARV and rehab budget, that will help narrow down which programs are a fit.

    786-656-0387
    DreamPoint Capital
    WebsiteView Page
    1Reply
  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 494 votes
    2mo

    There are options with no seasoning from DSCR lenders to use the new appraised value for a cash out refinance when paying off a hard money loan. If buying the property in cash, three months will be the minimum seasoning or waiting period I have seen and 6 months seasoning will get you more DSCR cash out refinance program options that will use the new appraised value.

    [email protected]818-770-0340
    Bright Skyline518 Reviews
    WebsiteView Page
    2Reply
  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    2mo

    Hi Sabrina, is this your first rental property that you are using the BRRRR method with? What are your goals for growth? I ask this because I may not be able to help you on the refinance of this property but I could share some ideas on how to buy properties in the future that make it easier to refinance properties at 75% of the appraised value without needing to wait for any seasoning period. But it has to do with how you buy it at the beginning. For example, I bought a property that needed no rehab for $187,000. I got a tenant into the property within 9 days and started the refinance and the appraisal came in at $245,000 and I was able to get a loan on the property for close to $190,000. But it had to do with putting a rehab credit into the contract when I purchased the property in the first place bringing up the purchase price to $245,000.

    Let me know if you would like to talk about this strategy sometime.

    480-206-1209Podcast Guest on Show #287
    1Reply
    • Sabrina Morgan
      OP
      Member since 2024 · 24 posts · 8 votes
      2mo
      Quote from @Shiloh Lundahl:

      Hi Sabrina, is this your first rental property that you are using the BRRRR method with? What are your goals for growth? I ask this because I may not be able to help you on the refinance of this property but I could share some ideas on how to buy properties in the future that make it easier to refinance properties at 75% of the appraised value without needing to wait for any seasoning period. But it has to do with how you buy it at the beginning. For example, I bought a property that needed no rehab for $187,000. I got a tenant into the property within 9 days and started the refinance and the appraisal came in at $245,000 and I was able to get a loan on the property for close to $190,000. But it had to do with putting a rehab credit into the contract when I purchased the property in the first place bringing up the purchase price to $245,000.

      Let me know if you would like to talk about this strategy sometime.

      Hi Shiloh, 

      It's not my first investment property, I own several.  But it's the first time I've paid cash for a property and will be getting a loan to recoup my funds.  I purchased for $231k and the value is about $330k to $337k.  I will be putting about $5k to $10k into it.

      0Reply
    • Shiloh LundahlPro Member
      Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
      2mo

      @Sabrina Morgan so what amount are the banks offering to give you right now and what amount did you want to get out of the refinance?

      480-206-1209Podcast Guest on Show #287
      1Reply
  • Brook Janis
    Lender · Metro Detroit · Member since 2024 · 17 posts · 4 votes
    2mo

    That's actually one of the reasons investors work with us at Level Up Capital.

    We have access to multiple DSCR and investor-focused lenders, and some of them offer little to no seasoning requirements or will use the current appraised value rather than just the acquisition cost—provided the deal meets the lender's guidelines. That can be a huge advantage for BRRRR investors looking to recycle capital quickly.

    Every lender is a little different when it comes to seasoning, LTV, credit score, rehab documentation, and whether the property was purchased with cash, so we typically shop the scenario instead of forcing it into one program.

    If you'd like, send me a DM, and I'd be happy to see which of our lending partners would be the best fit for you! 

    1Reply
  • Mandy Sears
    Member since 2024 · 1 post · 1 vote
    2mo

    Hi,

    Many conventional lenders will limit the cash-out refinance to 75–80% of the acquisition cost, especially when there is little or no seasoning period. However, some DSCR and investor-focused lenders may allow refinancing based on the appraised value rather than the purchase price, depending on the property's condition, improvements made, and the overall deal structure.

    We've helped investors using BRRRR strategies with programs that offer:
    • Appraisal-based cash-out options
    • Limited or no seasoning requirements in certain cases
    • DSCR and investor loan programs
    • Financing for single-family and small multifamily investment properties

    Every lender has different guidelines, so the details of the purchase, rehab, and timeline can make a big difference. If you'd like, feel free to share some additional details about the property and timeline, and I'd be happy to point you in the right direction.

    Best of luck with the project!

    1Reply
  • Sabrina Morgan
    OP
    Member since 2024 · 24 posts · 8 votes
    2mo

    I would like to recoup my cash.  $240k.

    0Reply
  • Mills Thumser
    Lender · Member since 2025 · 36 posts · 7 votes
    2mo

    Hey Sabrina! I'd love to connect to get further details on the project and see if we could be a fit. 

    We'll start with the Fix and Flip loan then transition into the DSCR loan once renovations are completed. Even better, we will immediately take the NEW value of the property with NO seasoning!

    0Reply
  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 661 posts · 239 votes
    2mo
    Quote from @Sabrina Morgan:

    Hello,

    I'm purchasing a pre-foreclosure with cash using a BRRRR strategy. The lenders I've found will only refinance up to 80% of my acquisition cost, but I'm looking for a lender that will lend based on the property's appraised value so I can recover more of my capital for future projects.

    Does anyone have recommendations for lenders that offer appraisal-based cash-out refinances with little or no seasoning requirement for investment properties?

    Thank you!



    I posted in the general area, so hopefully it's okay that I'm posting here.  I don't see a way to remove my other post.

    You're asking one of the most important questions in the BRRRR strategy—the refinance is where many deals either succeed or fall short.

    Many lenders cap refinances at a percentage of your original acquisition cost or require a seasoning period (often six to twelve months), which can limit how much capital you recover. However, there are lenders that will consider lending based on the current appraised value after the renovation, provided the property, borrower, and loan meet their underwriting guidelines.

    From a lender's perspective, the key factors are typically:

    • The after-repair appraised value (ARV)
    • The quality and extent of the completed renovations
    • The property's rental income (for DSCR loans)
    • Your experience and liquidity
    • Any applicable seasoning requirements

    If maximizing capital recovery is your goal, it's worth discussing your exit strategy with a lender before you purchase the property so you know exactly what the refinance guidelines will be.

    We work with investors nationwide and regularly review BRRRR scenarios. If you'd like, we'd be happy to take a look at your deal, discuss the property's projected value, and determine whether there's a refinance solution that aligns with your strategy. We can also provide preliminary terms upfront so you know what to expect before moving forward.

    Best of luck with your project, and congratulations on finding a pre-foreclosure opportunity!

    JCREIG Capital Funding
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  • Sabrina Morgan
    OP
    Member since 2024 · 24 posts · 8 votes
    2mo

    Thanks J.

    I have already purchased it.  It closed escrow today.

    0Reply
  • Jeffrey Abraham
    Lender · United States · Member since 2020 · 177 posts · 26 votes
    2mo

    Many DSCR and private lenders offer delayed financing or appraisal-based cash-out refinances with little or no seasoning, but the guidelines vary by lender. If your numbers support the appraised value, it's worth working with a mortgage broker who has access to multiple investor loan programs instead of just one lender. Good luck with your BRRRR project!

    0Reply
  • Jeffrey Abraham
    Lender · United States · Member since 2020 · 177 posts · 26 votes
    2mo

    Congrats!!!

    0Reply
  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 649 votes
    2mo

    It's a matter of seasoning.  You are in the waiting period, sometimes called the elimination period in insurance.  You are waiting for the benefit period to kick in.  You bought a 200k house that you think is worth every penny of 300k right now.  You wanna go to the lender and get 80% of that 300k and get a loan for 240k which is 40k right in your pocket.  Boy if that was a thing...

    Once the property is seasoned, then you can go into a delayed bridge loan in which case there will be an appraisal and a value established and an ARV established and you can get terms based of these values not your purchase price.

    If you want to realize the gain immediately, buy and then sell the property.  If you are willing to wait, then you can start the process with fresh values.

    0Reply
  • Corinna Negron
    Member since 2026 · 129 posts · 21 votes
    2mo
    Quote from @Sabrina Morgan:

    Hello,

    I'm purchasing a pre-foreclosure with cash using a BRRRR strategy. The lenders I've found will only refinance up to 80% of my acquisition cost, but I'm looking for a lender that will lend based on the property's appraised value so I can recover more of my capital for future projects.

    Does anyone have recommendations for lenders that offer appraisal-based cash-out refinances with little or no seasoning requirement for investment properties?

    Thank you!



    I posted in the general area, so hopefully it's okay that I'm posting here.  I don't see a way to remove my other post.

    Sabrina, there are lenders that will consider cash-out refinances based on the current appraised value with limited or no seasoning, but it depends on the overall deal structure—not just the appraisal itself.

    We've successfully reviewed similar BRRRR scenarios where the acquisition basis, rehab, and exit strategy created sufficient equity to support a higher refinance.

    If you're comfortable sharing a few details (purchase price, rehab budget, current appraised value, and property location), I'd be happy to see whether your project could qualify. Feel free to send me a DM.


    0Reply
  • Corinna Negron
    Member since 2026 · 129 posts · 21 votes
    2mo
    Quote from @Sabrina Morgan:

    Hello,

    I'm purchasing a pre-foreclosure with cash using a BRRRR strategy. The lenders I've found will only refinance up to 80% of my acquisition cost, but I'm looking for a lender that will lend based on the property's appraised value so I can recover more of my capital for future projects.

    Does anyone have recommendations for lenders that offer appraisal-based cash-out refinances with little or no seasoning requirement for investment properties?

    Thank you!



    I posted in the general area, so hopefully it's okay that I'm posting here.  I don't see a way to remove my other post.


     Congratulations on finding the opportunity. Some lenders evaluate refinance requests differently depending on the property's current appraised value, renovation status, rental income, and overall deal structure. We'd be happy to review your scenario to see if it fits our lending criteria. Feel free to send me a direct message with the details.




    1Reply
  • Tim SwierczekPro Member
    Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
    2mo
    Quote from @Sabrina Morgan:

    Hello,

    I'm purchasing a pre-foreclosure with cash using a BRRRR strategy. The lenders I've found will only refinance up to 80% of my acquisition cost, but I'm looking for a lender that will lend based on the property's appraised value so I can recover more of my capital for future projects.

    Does anyone have recommendations for lenders that offer appraisal-based cash-out refinances with little or no seasoning requirement for investment properties?

    Thank you!



    I posted in the general area, so hopefully it's okay that I'm posting here.  I don't see a way to remove my other post.


    I have multiple ARV cash out options for BRRRR investors. I have a couple that require no seasoning and a many that will do it at 6 months

    1Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    2mo

    Appraisal based cash out refis with little to no seasoning are definitely out there in the DSCR space, that's a big part of what makes DSCR useful for BRRRR specifically, but the terms and seasoning requirements vary a lot lender to lender.

    Since the whole point of BRRRR is recovering as much capital as possible for the next deal, it's worth sizing up your refi exit before you even close on the pre-foreclosure, not after the rehab's done. That way you know going in roughly what you'll be able to pull back out based on projected ARV, rather than finding out after the fact that a lender's seasoning or LTV requirements don't get you where you need to be.

    I built a DSCR pricing tool that lets you model that out ahead of time, you can plug in your projected ARV and loan amount to see what a cash out refi would actually look like, and track how pricing shifts as you get closer to completion. Might be worth running your numbers through it before you commit to the purchase so you're not caught off guard on the back end. Link's in my signature if you want to check it out.

    @Sabrina Morgan

    [email protected]818-606-8823
    Investor Property Loan5306 Reviews
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    1Reply
  • Sabrina Morgan
    OP
    Member since 2024 · 24 posts · 8 votes
    2mo

    Thank you Alex!  I love the calculator.

    1Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    2mo

    @Sabrina Morgan Love to hear that! Keep in mind we can also help with high leverage purchase and rehab. (90% of purchase + 100% of rehab capped at 75% of ARV).

    [email protected]818-606-8823
    Investor Property Loan5306 Reviews
    WebsiteView Page
    0Reply
  • Josiah Garcia
    Member since 2026 · 230 posts · 35 votes
    2mo
    What market are you targeting for this deal? We're pulling pre-foreclosure data in several states and have seen some lenders flex past 80% when the after-repair value is solid happy to share what we're finding if it's somewhere we're active.
    0Reply
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