Investment property loans › BRRRR loans
BRRRR Loans
Your cash is stuck in the last deal, and the next one will not wait.A bank gives you an answer. As your loan broker, I give you options.
You bought it, rehabbed it and rented it. It is a great property. And every dollar you had is now sitting inside its walls while the next deal is on the market this week. I’m Kevin Kermeen, and I place BRRRR loans for investors who want to buy, rehab, rent, refinance and do it again. The BRRRR method works when the refinance is planned on the day you buy, so I line up the short-term BRRRR financing and look ahead to the long-term BRRRR refinance with capital partners from my network of 200+. DON’T beg the bank!
7 days a week (Arizona Time)
- 200+capital partners
- $150,000program minimum
- 2 loansplanned together
- 3 to 5 daysfor term sheets
How BRRRR Loans Work
BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. BRRRR loans are really two loans, planned as one strategy.
Phase one: buy and rehab
Short-term money funds the purchase and the renovation, often with the rehab budget released in draws as the work is inspected. It is built for a property that needs work, not one that is already finished.
Phase two: the BRRRR refinance
Once the property is renovated and rented, a long-term rental loan, often a DSCR loan, replaces the short-term debt. It is sized on the new value and the new rent, which is how your cash can come back out.
Why planning both matters
A buy with no refinance plan is just expensive debt. Before you close the first loan, I look at what the second one will need: the value after the work, the rent, how long the partner wants you to own it first and your credit.
Repeat: the BRRRR method at work
When the BRRRR method works, the cash that comes out of one property becomes the down payment on the next. Each deal you complete makes the next file stronger.
On This Page
BRRRR Loans Stories You Might Be Living
Every investor who calls me about BRRRR loans has lived a version of one of these. If yours sounds familiar, the plan may be sound. The financing might be the missing piece.
STUCK CASH
Your money is inside the walls of the last property
The rehab came out beautiful and the tenant signed on the first showing. But you paid cash, or close to it, and now you are house rich and cash poor. The next deal is perfect, and you cannot touch it.
What changes when you bring it to me: A BRRRR refinance can turn the value you created into cash for the next property, sized on the finished value and the rent. I show you what the numbers support before you commit, so you know what is realistic before you make an offer on the next one.
THE WAITING GAME
The bank says come back in a year
You asked your bank about refinancing the property you just finished. They told you to wait, as if the value you added does not count until a calendar says so. Meanwhile, the next deal goes to someone else.
What changes when you bring it to me: Capital partners set different rules for how long you need to own a property before a refinance, and some are friendlier to BRRRR investors than others. I match your file to the ones that fit your timeline and tell you at the start what each one needs.
THE PLAN WITH NO SECOND LOAN
You found the first loan, and nobody asked about the second
You lined up money for the purchase and the rehab, and it felt like a win. Then you realized nobody had checked whether the finished property would qualify for long-term debt, and the whole plan depends on it.
What changes when you bring it to me: With BRRRR financing, I look at both loans before you close the first one. If the rent will not support the refinance, I would rather tell you now, while you can still change the plan, than after your cash is already in the property.
☂️ Banks hand out umbrellas when the sun is shining, not when you are weathering the storm.
7 days a week (Arizona Time)
Are BRRRR Loans the Right Fit?
BRRRR loans fit when
- You are buying a property that needs work
- You plan to rent it, not sell it
- You want to pull your cash back out for the next deal
- The finished rent should support a long-term rental loan
- You have reserves to carry the property during the work
Look at another program when
- You plan to sell after the work: see fix and flip loans
- The property is already rented and stable: see DSCR loans
- You want several rentals under one loan: see buy and hold loans
- You are behind on the current note: see the investment property foreclosure bailout
- You plan to live in the property
How BRRRR Loans Work With Me
One conversation, one plan for both loans and a broker who stays on your file from the purchase to the refinance.
- You call or apply. Call Kevin 7 days a week (Arizona Time) at (480) 915-8690, or start the BRRRR application. Bring the price, the rehab budget, the value after the work and the rent you expect. Estimates are fine.
- I plan both loans. I look at the purchase and the refinance together, and I tell you straight whether the numbers support the whole cycle.
- I match the deal. I take one complete file to the capital partners from my 200+ network whose guidelines fit your property, your experience and your refinance plan.
- You compare term sheets. 3 to 5 days
Expect term sheets in 3 to 5 days. I walk you through each one in plain English: draws, costs, conditions and what the refinance will need. - Buy, rehab and rent. You close the first loan, the rehab funds follow the work and you place a tenant. I stay in touch so the refinance file is ready when you are.
- Refinance and repeat. Days, not months
The BRRRR refinance replaces the short-term loan with long-term rental debt. Investor loans like these close in days, not months, and some loans are approved and funded in 24 to 72 hours on select programs.
7 days a week (Arizona Time)
What You Will Need for BRRRR Financing
Have these ready and your BRRRR file can go to the right capital partners without anyone asking you twice. Missing something? Apply anyway and upload the rest later.
Every BRRRR file
- Property address, type and number of units
- The purchase contract, or a mortgage statement if you already own it
- Property photos, inside and out
- LLC or corporation documents, if you buy through an entity
- Last two months of bank statements for cash to close and reserves
- A credit report with scores, and a government ID
- A personal financial statement and a schedule of real estate you own
The project and the refinance
- A rehab budget and scope of work
- Your estimate of the value after the work
- The rent you expect once it is finished, and the lease when you have one
- Annual property taxes, insurance and any HOA dues
- Projects you have finished in the last three years
- Your refinance timing and plan
BRRRR loans are for investment property only. If you or a family member will live in the property, it is not a BRRRR file, and I will point you in a better direction.
What Capital Partners Look At on BRRRR Loans
Every capital partner has its own box, but most ask the same questions about a BRRRR deal. Knowing them before you apply saves time and surprises.
- The buy: what you pay compared to the as-is value
- The budget: a realistic scope of work and a contractor who can deliver it
- The finished value: what the property should be worth after the work
- The rent: whether it supports the long-term loan payment
- Ownership time: how long a partner wants you to own it before a refinance
- Credit and reserves: scores, plus cash to carry the property during the work
- Experience: first-time investors fit some programs, and a track record opens more
- Title and location: some partners lend only to an LLC, and many only in certain states
A weak spot does not end the deal. It changes which capital partners fit, which is why I review every file before it goes out. For how rental income and expenses are reported, see IRS Publication 527 on residential rental property, and for the rental market, see the U.S. Census Bureau Housing Vacancies and Homeownership survey.
Run the BRRRR math before you buy
Purchase, rehab, rent, the refinance and your cash left in the deal, in one place. Bring the result when you call me.
Want to see real deals? See my Just Funded deals
Why Investors Use a Broker for BRRRR Loans
A bank gives you an answer. As your loan broker, I give you options.
A bank can only offer its own loan, and it rarely plans the second one. I am a nationwide commercial loan broker, and I work for you, not the lender. My job is to know which capital partners fit each phase of the BRRRR method right now, and to present your plan so both loans get a fair look. DON’T beg the bank!
“Bring me the property and the plan. I will tell you what the purchase and the refinance support, what it will take and which of the 200+ capital partners I work with fit each step.”
A fit if you
- Need $150,000 or more for the project
- Have a property under contract or a real target
- Plan to rent and refinance, not sell
- Want options, not one take-it-or-leave-it offer
Not a fit if you
- Need less than $150,000
- Plan to live in the property
- Want a promise of approval before anyone sees the file
- Are not ready to share documents
Other Investor Programs
Every strategy needs a different loan. See all six on my investment property loans page, or jump to the one that fits.
Buy and Hold Loans
Best for: Long-term rentals, one or several under one loan
Investment Property Foreclosure Bailout
Best for: Behind on an investment property note
Duplex, Triplex and Fourplex Loans
Best for: Buying or refinancing a duplex, triplex or fourplex
Need to grab a property first? See my bridge loans, or browse every option on my loan programs page.
7 days a week (Arizona Time)
BRRRR Loans FAQ
What are BRRRR loans?
BRRRR loans finance the BRRRR method: buy, rehab, rent, refinance and repeat. A short-term loan funds the purchase and the renovation, then a long-term rental loan replaces it once the property is finished and rented.
How does the BRRRR refinance work?
Once the property is renovated and rented, a long-term rental loan, often a DSCR loan, pays off the short-term loan. It is sized on the new value, the rent and your credit, which is how some of your cash can come back out.
How long do I have to own the property before refinancing?
It depends on the capital partner. Ownership rules before a refinance vary, and some partners are friendlier to BRRRR investors than others. I match your file to partners whose rules fit your timeline.
Can I do BRRRR financing on my first project?
Often, yes. Some capital partners work with first-time investors, while others want a track record. A solid deal, a realistic budget and reserves matter most.
What is the minimum loan amount?
My BRRRR loans start at $150,000. For a smaller deal, call Kevin (480) 915-8690 to discuss your situation, and I will tell you honestly whether I can help.
What if the rent will not support the refinance?
Then the plan needs to change, and I would rather you know before you buy. Options include a different property, a different budget, or selling instead with a fix and flip loan.
How long do BRRRR loans take?
Expect term sheets in 3 to 5 days. Loans like these close in days, not months, and some loans are approved and funded in 24 to 72 hours on select programs. The valuation, title and your documents set the pace.
What happens if the rehab runs over budget?
Tell me early. Many capital partners hold back the rehab budget and release it in draws as work is inspected, so overruns usually come out of your reserves. That is why I ask about cash reserves before the first loan closes, and why the BRRRR refinance plan should leave room for surprises.
Is approval certain if I apply?
No. Every file is subject to credit approval, and rates and terms depend on the property, the project and your file. What I promise is a personal review and a straight answer.
Ready to Talk About Your BRRRR Loans?
A bank gives you an answer. As your loan broker, I give you options.
Tell me about the property and the plan. I review every BRRRR file personally and give you a straight answer on both loans before you commit to the first one. DON’T beg the bank!
☂️ Banks hand out umbrellas when the sun is shining, not when you are weathering the storm.
7 days a week (Arizona Time)
Subject to credit approval. Terms vary. This is not a commitment to lend. BRRRR loans are for non-owner-occupied investment property only.