(BRRR) Buy Refurbish Refinance Rent
Loans & Mortgages

For the initial purchase, you will typically need a 15-25% deposit for the bridging loan, which can come from your own cash sources or a private investor. The lender will require this deposit to minimise their risk.

We have several lenders that can lend 85% for light refurbishment projects. For larger projects such as a heavy refurbishment, you will need a deposit of 25% initially, but the lender can then provide 100% of the funding for the works.

Alternatively, we have arranged deals with 100% finance on the purchase, where the client could offer additional security over another property where there was enough equity to give the lender comfort to go to 100% of the purchase price. This area can get complicated so it is best to discuss on a case-by-case basis.

If you believe the property investor trainers; you can pull out or recycle all of your money and repeat, repeat, repeat forever.

These trainers are selling you a course that can cost thousands of pounds and they want to make it sound as easy as it can be!

However, we have seen cases we’ve refinanced, where the client has managed to recycle all of their deposit for the next deal, but this is only possible if your initial purchase price is a good one. You can then add significant value to the property through the renovation. 

It is possible and we have seen these deals, but it’s not easy; like all vocations in life “Hard work pays off!”

Buy it right – It is extremely hard to add value to a property if the initial purchase price was high. There is a great quote from Sir Alan Sugar “The profit is in the purchasing”.
In a hot property market, it’s difficult to buy below market value; but for unmodernised, run-down properties, the market for a cash 4-week purchase (using bridging finance) becomes more achievable to obtain a bargain.

Add value – This is the key. The works undertaken must be of high quality and to such a level that the finished property’s value has increased to allow the funds you have invested to be recycled.

Deliver on time and to budget – If the project takes more time the bridging loan costs increase, and any cost that overrun dilute the increased value you are seeking to achieve.
We have financed properties where we didn’t recognise the finished property from the original we financed at the start. The WOW factor had been achieved, more space had been added, the project was delivered on time & to budget and the result was a large increase in value for the client.

We do see real-life cases we have refinanced, where the client has managed to recycle all of their deposit for the next deal, but it is not easy and like any career involves hard work and dedication.

From a loan application process perspective, we are able to obtain a credit decision for a BRRR loan within a few hours. This will assist you to secure the property.

The whole purchase can be completed within 4 weeks. We ask clients to keep in contact with us as the renovation is carried out, so we can start the application for the buy-to-let mortgage in plenty of time and get the bridging loan repaid at the earliest possible time.

An investment carries some element of risk but if correctly carried out, then this strategy has proven to be very profitable for property investors. The key success factors are:

1. Buy a bargain – These properties usually don’t attract many buyers because of their conditions, so make an offer below the market value and say you can complete in 4 weeks.
2. Add value in the refurbishment process and get a good contractor to carry out the work.
3. Use a broker/adviser that knows the process inside & out, to make sure you can refinance as soon as the property is finished.

Our advisers offer a free consultation, so please give us a call or use the “Get in Touch With Us” form at the end of this page