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BRRRR loan financing.
Short-term acquisition and rehab, structured from day one to refinance cleanly into long-term debt. The bridge and the exit are planned together instead of discovered in sequence.
How it works
Two loans that have to agree with each other.
BRRRR is buy, rehab, rent, refinance, repeat, and it runs on two loans rather than one: a short-term facility that buys and renovates the property, then a long-term refinance that pays it off once the property is rented. The bridge loan here is the same instrument as the fix and flip product, sized against purchase and rehab together.
The part that goes wrong is not usually the bridge, it is the handoff. A refinance lender qualifies the property on its new appraised value and, for a rental, on whether the rent covers the payment. If the bridge loan's numbers and the refinance lender's requirements were never checked against each other, the exit that looked fine on a spreadsheet turns into cash trapped in the deal.
So the bridge is underwritten with the refinance already in view: what value the finished property needs to appraise at, what seasoning period the refinance lender will require before it lends against that value rather than the purchase price, and what rent the property needs to carry the new payment.
None of that changes what the bridge loan itself needs to close: a purchase contract, a real scope of work, and an exit. It changes how that file gets built, so the refinance is a formality rather than a negotiation that starts after the rehab is already finished.
What to bring
What this needs from you.
Required
- A signed purchase contract on the property being acquired.
- A scope of work with a budget for the rehab, priced by a real contractor.
- A plan for the exit refinance, including the lender or the type of long-term debt intended.
- A realistic rent estimate for the property once it is finished, since the refinance will qualify on it.
- An entity in good standing. This is investment rental property financing, not owner-occupied.
Terms, plainly
The whole box, before you ask.
Most lenders make you get on a call to learn this. Here it is.
| Amount | $25,000 to $750,000 |
|---|---|
| Coverage | Up to 100% of purchase and rehab when the deal supports it |
| Rate and points | Set by credit, experience and the deal. Your number is in the term sheet. |
| Decision | 24 to 48 hours from a complete submission |
| Time to close | 7 to 12 days, subject to title clearance |
| Refinance exit | Structured at the outset against expected value and seasoning, not discovered after |
| Prepayment | No penalty. Refinance whenever the property is ready. |
| Property types | Non-owner-occupied residential, 1 to 4 units, and small multifamily |
Questions
Answered without the phone call.
Do you make the refinance loan too, or only the bridge?
This is the bridge: the acquisition and rehab facility. The refinance can be a DSCR loan here, or a lender of your choosing, provided the bridge was underwritten against terms that lender will actually accept.
What is seasoning, and why does it matter?
The time a refinance lender requires you to own a property before lending against its new value rather than what you paid. It commonly runs three to twelve months and it is worth confirming with the refinance lender before you buy, not after.
What if the refinance appraisal comes in low?
Then less cash comes back out and some may stay in the deal, which is a normal BRRRR outcome rather than a failure. It is also the reason the exit gets planned against a conservative value up front rather than an optimistic one.
Can I do a BRRRR on my first deal?
Yes, with a real contractor's budget and a credible exit. Deal count matters less than whether the scope of work was ever going to hold.
Is BRRRR only for single-family rentals?
No. Small multifamily works the same way, and a two- to four-unit property often has an easier refinance because it qualifies on rent from more than one door.
Guides
Written to go with this program.
BRRRR seasoning: how long before you can refinance at the new value
Seasoning is the rule that decides whether you get your capital back in month four or month twelve. Confirm it before you buy, not after the rehab is done.
DSCR loan or conventional: which one fits the deal
Two ways to hold a rental long term. One underwrites the property, the other underwrites you. The right answer depends on facts you can check today.
BRRRR financing: how the two loans actually fit together
BRRRR needs a bridge loan and a refinance that agree with each other. Here is how the pieces connect, and where the cash gets trapped.
Who uses this
Depending on who you are.
Where
Lending is nationwide.
Lending is nationwide. The states below have their own page because they are where the most deals come from, not because they are the only places money goes. If your property is somewhere else, submit it anyway; the terms do not change with the postmark.
New Jersey, Pennsylvania, New York, Texas, Ohio, Indiana, North Carolina, South Carolina, Virginia, Maryland, Delaware. See all markets.
Submit a deal
Let's price it.
No credit pull, no obligation, and a real answer either way. If it is not a fit I will tell you why, and usually who to call instead.
- Terms in 24 to 48 hours
- Written, not verbal
- One person, start to finish
$25K to $750K · 7 to 12 days