How is private (hard money) lending different from a bank loan?

We are asset-based, which means we underwrite the property, its equity, and your business plan rather than your personal income and tax returns. That lets us fund in days instead of the 30 to 60+ days a bank takes, on short interest-only terms built around a flip, refinance, or sale. You pay a higher rate than a bank in exchange for speed, flexibility, and certainty on deals a bank cannot fund in time.

How fast can you close?

Fix and flip and residential bridge loans typically close in 5 to 7 days once we have your basics. Rental (DSCR) loans usually take 2 to 3 weeks because of the appraisal and rent verification, and SBA financing runs 30 to 90 days. The biggest variable is how quickly title, insurance, and your documents come together.

Do you check credit, and is there a minimum score?

We do run credit, but on our asset-based loans it carries far less weight than at a bank, and weaker credit can often be offset with a larger down payment or lower leverage. There is no personal income test on these programs. Credit matters most on long-term rental loans, where we look for a 640 minimum and it affects your rate and leverage.

Do I need to provide income documents or tax returns?

Generally no. Our bridge, fix and flip, and construction loans qualify off the property and your equity, and our DSCR rental loans qualify off the property's rent, so we do not ask for W-2s or pay stubs. We will want to see bank statements or proof of reserves. SBA and conventional investment loans are the exceptions and are fully documented.

What do you need to give me a quote?

Just the basics of the deal: the property address or type, the purchase price or current value, your rehab budget, the loan amount, and your exit plan. We can often pre-qualify you over the phone or through a short application and issue a proof-of-funds letter before you are even under contract.

What is a point, and how do your rates compare to a bank?

A point is an upfront fee equal to 1% of the loan amount, and origination on private loans typically runs 1 to 3 points. Our rates are higher than a bank, generally in the high single digits to low teens depending on the program, because the loans are short, fast, and flexible. When you compare offers, weigh the rate and the points together as your true cost of capital.

Direct private lending in most states

Call us anytime at 512-617-9400

Apply now

Strategy · 6 min read

Financing the BRRRR Method: Buy, Rehab, Rent, Refinance, Repeat

The short answer

How to finance the BRRRR method: a short-term rehab loan to buy and renovate, then a DSCR refinance that pulls your cash back out for the next deal.

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat — a strategy for building a rental portfolio while recycling the same down payment across multiple deals. The whole model lives or dies on financing, so getting the two loans right is everything.

Stage 1-2: Buy and Rehab

Start with a short-term fix and flip / bridge loan that funds up to 90% of purchase and up to 100% of rehab. You force appreciation by renovating a property bought below market, the same way a flipper does, but you intend to keep it.

Stage 3: Rent

Place a tenant and establish the market rent. That rent figure is what your long-term loan will qualify on, so a signed lease at a strong number directly improves your refinance.

Stage 4: Refinance

Replace the short-term loan with a long-term DSCR loan based on the new, higher value and the rent. Because DSCR qualifies on the property, you can pull your original capital back out (a cash-out refinance) without your personal debt-to-income ratio limiting you.

Stage 5: Repeat

With your capital recovered, you do it again. The constraint becomes deal flow and underwriting capacity, not cash. A portfolio loan can later roll several BRRRR properties into one blanket loan with a single payment.

Why one lender for both legs helps

Running the bridge and the DSCR refinance through the same lender keeps the timeline tight and avoids surprises at the handoff, the moment most BRRRR deals stall.

Frequently asked

What does BRRRR stand for?

Buy, Rehab, Rent, Refinance, Repeat, a strategy for building a rental portfolio while recycling the same capital across deals.

What loans do you use for BRRRR?

A short-term fix and flip or bridge loan for the buy and rehab, then a long-term DSCR loan to refinance and pull your capital back out.

Can you pull all your money back out with BRRRR?

Sometimes. A cash-out DSCR refinance can return much or all of your capital if the property's new value and rent support it.

Rates, leverage, and timelines mentioned in this guide are typical figures, subject to underwriting and market conditions. Not a commitment to lend. Nothing here is legal, tax, or investment advice.

Related programs

Fix and Flip Rental / DSCR Portfolio Loans

Compare your options

DSCR Loan vs Hard Money Loan Hard Money vs Private Money

Ready to put this to work?

Get real terms, usually same day. No obligation, no hard credit pull to start.

Apply now Talk to us