How to Fund Your First (or Next) BRRRR Deal Without Draining Your Savings 

The BRRRR method is one of the most powerful wealth-building strategies in real estate, but only if you have the capital to execute it correctly. This strategy, which stands for Buy, Rehab, Rent, Refinance, Repeat, allows investors to acquire properties, increase their value, and then pull out their initial investment to use on the next deal. It is a brilliant way to scale a portfolio. 

However, funding a BRRRR deal isn't just about covering the purchase price. You must also account for rehab costs, holding expenses, and staying liquid until you can refinance. Underestimating these costs can jeopardize the entire cycle. In this post, we will break down smart, strategic ways to fund your first or next BRRRR deal without overleveraging your personal finances or draining your savings. 

Understanding the Full Cost of a BRRRR Deal 

A successful BRRRR project begins with a comprehensive budget. Many new investors focus solely on the purchase price and the estimated renovation costs, but several other expenses can quickly add up. Overlooking these can turn a promising deal into a financial strain. 

Common overlooked expenses include: 

• Closing Costs: Fees for the purchase and the refinance. 

• Insurance: Builder's risk during rehab and landlord insurance afterward. 

• Holding Costs: Utilities, taxes, and loan payments during the renovation and rental phases. 

• Property Management: Fees for tenant placement and ongoing management if you outsource. 

• Appraisals: Costs for both the initial purchase and the final refinance appraisal. 

Underestimating your total funding needs can sabotage the entire BRRRR cycle. If you run out of cash mid-rehab, you might have to halt the project, leading to delays that increase your holding costs. These delays can also impact your ability to secure a tenant and refinance on schedule. Planning for market shifts or unexpected repair issues is crucial for protecting your investment and ensuring a smooth process. 

Traditional Funding Options (And Their Limitations) 

Investors have historically relied on a few common funding sources for BRRRR deals. While these can be effective, they each come with limitations that can make them less than ideal, especially for new investors or those looking to scale quickly. 

• Hard Money Loans: These are short-term, asset-based loans known for quick closings. They are a popular choice for financing the purchase and rehab. However, they come with high interest rates and fees. This option becomes risky if your refinance gets delayed, as the mounting interest can eat into your profits. 

• Bank Loans: Traditional banks and portfolio lenders offer more favorable terms, but their underwriting process is strict and slow. They often require significant experience, a strong credit history, and substantial personal assets, creating a barrier for many aspiring investors. 

• Private Lenders: Funding from private individuals can be flexible, with terms negotiated directly between you and the lender. This option, however, often requires pre-existing relationships or networking. The rates can also be higher than traditional financing, depending on the lender’s risk assessment. 

While these methods have their place, there’s a better way to fill the funding gaps, especially if you are new to real estate or looking to scale your portfolio efficiently. 

How Business Credit Can Fund Your BRRRR Deal 

One of the most underutilized tools for real estate investors is business credit. When structured correctly, it provides a flexible and low-cost source of capital that can be used throughout the BRRRR process. You can use business credit for real estate investing without the constraints of hard money or the slow pace of banks. 

Business credit cards with 0% introductory interest rates can be used for: 

• Rehab Expenses: Pay for materials, contractors, and other renovation costs without incurring interest during the rehab phase. 

• Down Payments: Use balance transfers or payment processors to access cash from your credit lines for a down payment. 

• Holding Costs: Cover utilities, insurance, and other carrying costs while you are waiting for the property to be rented and refinanced. 

A significant advantage of this approach is that business credit does not report to your personal credit profile when structured correctly. This allows you to finance a BRRRR property while keeping your personal cash and credit lines untouched and your credit score protected. 

A Smart Funding Partner for Real Estate Investors 

Navigating the world of business credit can seem complex, but you do not have to do it alone. A specialized coaching program can provide a clear roadmap to securing the capital you need. This is where a partner dedicated to your funding success becomes invaluable. 

With Fund&Grow’s business funding program, you will learn how to access high-limit 0% interest credit strategically and responsibly. Many of our real estate clients use this funding to cover upfront BRRRR costs, from property acquisition to renovations, without draining their personal savings or waiting on a bank’s timeline. Our program is designed to work alongside your investment strategy, not slow it down.  

Get Funded and BRRRR with Confidence 

Successfully executing the BRRRR method comes down to having the right strategy and the right capital. Flexible, fast, and low-cost funding gives you a powerful advantage, allowing you to move on opportunities and manage projects with less risk.  

Whether this is your first deal or your tenth, having the right funding in place can make or break your success. With a solid financial plan, you can execute your projects with the confidence needed to build a thriving real estate portfolio. 

About the Author:

Ari Page is the Founder and CEO of Fund&Grow, helping entrepreneurs, investors, and small business owners secure up to $250,000 in 0% interest business credit cards. Since 2007, he has grown Fund&Grow into an Inc. 5000 company, securing nearly $2 billion in business credit cards for thousands of clients. With 6,000+ 4.9-star reviews and an A+ BBB rating, Fund&Grow is a trusted leader in business funding. Ari is also the author of Fund&Grow: Easy & Affordable Ways to Get Money for Your Business and a passionate advocate for mindset, success, and the Law of Attraction. He lives in Spring Hill, FL, inspiring others to grow their businesses and achieve financial freedom.