The Step-by-Step Guide to Using Private Lending for BRRRR Deals

If you're trying to scale your rental portfolio fast, the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) is a go-to strategy. But here's the catch: you need serious upfront capital—especially for the first two steps. That’s where private lending comes in.

At Alvear Lending, we help investors like you secure fast, flexible financing for BRRRR deals. Here's how to make it work, step by step.

Step 1: Buy with a Fix & Flip Loan

Private money is perfect for acquiring distressed or undervalued properties. With a Fix & Flip loan from Alvear Lending, you can:

• Finance up to 90% of the purchase price

• Fund 100% of rehab costs

• Close quickly—usually in 10–14 days

These loans are short-term (12–18 months), interest-only, and designed to give you breathing room while you add value to the property.

Step 2: Rehab with the Same Loan

Your Fix & Flip loan isn't just for buying—it also covers your renovation budget. You’ll draw from rehab funds in stages, based on progress. That keeps your out-of-pocket costs low while you upgrade the property.

Pro tip: Keep rehab focused on value-add items like kitchens, bathrooms, flooring, and mechanicals. Cosmetic upgrades are great, but forced appreciation is the goal.

Step 3: Rent It Out

Once renovations are done, it’s time to lease the property. Getting a solid tenant in place with a market-rate lease is key—this helps with your refinance later.

Tip: Make sure your lease terms and rent amount are well documented. Lenders will want to verify this during the DSCR loan process.

Step 4: Refinance with a DSCR Loan

Here’s where private lending really shines. Alvear Lending offers DSCR (Debt-Service Coverage Ratio) loans that look at the property’s cash flow—not your personal income.

Why Use a DSCR Loan?

DSCR loans are hands-down the best way to scale as a rental investor. Instead of jumping through hoops with tax returns and pay stubs, you qualify based on how much income the property generates. That means:

• No personal income verification

• Close in an LLC

• Works great for full-time investors

• Easier to rinse and repeat

If your property cash-flows (usually a DSCR of 1.0 or higher), you can pull out equity to pay off the Fix & Flip loan—and possibly fund your next project.

Long-Term Strategy Tip

As your portfolio grows, your strategy can evolve. Once you’ve built up around 10 rental properties, you may be able to refinance your DSCR loans into a portfolio loan with a community or regional bank. Portfolio lenders often offer better long-term rates and terms, especially if you’ve proven your track record.

Think of DSCR loans as the bridge to build your empire—fast and flexible. Once you're established, you can look at more traditional options to optimize your portfolio.

Step 5: Repeat the Process

Once you’ve refinanced, you’ve got your original capital back (or close to it). Now you’re ready to repeat the process. That’s how investors build wealth with BRRRR—one property at a time.

Why Use Alvear Lending?

We specialize in helping real estate investors move fast. Whether you’re flipping your first home or refinancing your tenth rental, we’ve got the products and partnerships to get it done.

• Fast closings

• Competitive rates

• Friendly, experienced team

Schedule a Call

Ready to start your next BRRRR deal?

Schedule a call with Alvear Lending and let’s get you funded.