The BRRRR Strategy

The BRRRR Strategy — buy, renovate, rent, refinance, repeat — is a proven, cyclical strategy for real estate investors looking to scale their portfolios. With this method, you can buy multiple properties without tying up cash in a single deal. This empowers investors to build long-term wealth, maximize returns and accelerate portfolio growth, all while leveraging smart financing solutions. 

Whether you're new to real estate or seeking to grow your holdings, the BRRRR strategy offers a clear, repeatable path to success. With the right partners and funding, you can unlock the full potential of value-add properties and create a sustainable, income-generating investment business.

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The BRRRR Strategy, Step by Step

The BRRRR strategy breaks down the investment process into five steps designed to scale your portfolio. Understanding each phase is key to executing the strategy successfully and minimizing risk.

  • Find properties that offer strong upside potential, like distressed or undervalued properties in promising neighborhoods.

  • Add value to your property through strategic renovations that deliver the highest return on investment. 

  • Rent the property to quality tenants for steady cash flow.

  • Apply for a new loan based on the property's improved value and rental income, use the cash-out proceeds to pay off your short-term loan and recoup your investment.

  • With your capital back in hand, you're now ready to start the process again and continue building your portfolio.

How to Fund Each Stage of the BRRRR Method

Financing is the backbone of the BRRRR strategy. To maximize your returns and keep your capital working for you, it's critical to match each stage of the process with the right funding solution. The BRRRR strategy is a two-part financing play, with each stage requiring a specialized approach. 

Part 1: Acquisition and Renovation

The first two steps, buy and renovate, require fast, flexible capital. Rain City Capital’s Fix and Flip loans are designed for investors who want to leverage a property’s after-repair value (ARV) to cover both the purchase and renovation costs. These loans are ideal for quick closings and property improvements, making them a great fit for the BRRRR strategy. While most investors choose this approach, using cash as collateral is also an option to assist in the purchase process.

Part 2: Refinance and Hold

Once the property is renovated and rented, the next step is to transition to stable, long-term financing. Refinancing to our DSCR Loan is the ideal solution. This loan qualifies based on the property's new rental income, and its generous cash-out policies will allow you to pull your initial capital out and set up the property for ongoing cash flow.

The right lender can make or break your BRRRR experience. Rain City Capital understands the entire BRRRR lifecycle, from acquisition to refinancing. Partnering with us will set you up for a successful venture with both short-term and long-term loan solutions tailored to your needs.

Rain City Capital: Your BRRRR Lending Partner

As one of the nation's leading relationship-focused BRRRR loan lenders, we support your growth as you scale your portfolio with:

  • Fast, flexible funding: Move quickly on deals with streamlined approvals and funding based on ARV.

  • One-stop solutions: Finance both acquisition and renovation with a single lender, then seamlessly transition to long-term financing.

  • Milestone-based draws: Access renovation funds as you complete project phases, keeping your cash flow healthy.

  • Investor-focused expertise: Work with a team that understands the BRRRR strategy and supports both first-time and experienced investors.

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  1. Quick preapproval: Start by submitting your project details online or speaking with our team. We provide fast preapproval so you can confidently pursue new investment opportunities.

  2. Acquisition and renovation financing: Rain City Capital offers flexible, short-term loans to fund both the purchase and renovation of your property. Our BRRRR strategy loans are based on the property’s future value (ARV), giving you the capital you need to buy and improve distressed or undervalued assets. We also offer a cash as collateral program for BRRRR investors. 

  3. Streamlined draw process: You set the pace for your project. As you complete each renovation milestone, you can request a draw to access funds and keep your project moving forward. Our efficient process ensures you get the money you need, when you need it — helping you avoid delays and stay on schedule.

  4. Transition to long-term financing: Once your property is renovated and rented, Rain City Capital helps you refinance into a long-term loan, such as a DSCR loan, based on the property’s new rental income. This transition allows you to pull your original capital out and repeat the BRRRR cycle.

  5. Ongoing support: Our team guides you through every stage, from acquisition to refinance, ensuring a smooth experience and setting you up for future portfolio growth.

Unlocking the Power of the BRRRR Method With Rain City Capital

The BRRRR method is a proven, repeatable strategy for building long-term wealth and scaling your real estate portfolio. By mastering each phase, leveraging the right financing and partnering with Rain City Capital, you can maximize returns and minimize risk. Here's a look at our BRRRR lending process.

Ready to Put the BRRRR Strategy to Work for You?

Whether you’re just starting out or looking to accelerate your growth, the key to BRRRR success is precision, preparation and the right team. Connect with Rain City Capital to fund your next investment and experience a smoother, more profitable path to portfolio growth.