FAQs

We are here to make this process as simple as possible for borrowers and brokers. If you don’t see your question answered below, give us a call or email and we’ll get you an answer.

What sort of loans does BRRRRLOANS provide?

BRRRRLOANS is a nationwide lender to investors seeking business purpose loans secured by non-owner occupied real estate. Otherwise known as asset-based loans, commercial loans, or investor loans, every mortgage that we provide is based on limited documentation of assets, employment, and income. Vest in an entity for no additional cost and rest assured our loan will not report to credit agencies.

Every loan we provide is either an Interest-Only (IO) Bridge Loan or a 30yr “No Doc” Rental Loan. Each can be used for a single-asset or multi-collateral purchase or refinance loan. However, an IO Bridge Loan is the only structure to offer rehab financing as well.

Visit our Loan Programs for additional information.

What is the difference between a fix and flip loan and a new construction loan?

A Fix-N-Flip loan is used to finance the purchase and renovation of an existing structure that will remain intact for the duration of our loan. In almost all cases, the scope of work for a Fix-N-Flip does not involve any alterations to the foundation or architectural layout of the subject property. Minor extensions or square foot additions may be permissible within the context of a Fix-N-Flip loan on case-by-case basis, subject to Lender’s review of the Borrower’s experience and track record.

As defined in our underwriting guidelines, a new construction loan is any loan for which the funded renovation budget comprises fifty percent (50%) or more of the total loan amount. This, however, is not an all-encompassing definition. A lender may exercise discretion in defining a project as new construction or fix-n-flip on a case-by-case basis.

Can I apply online?

Yes, To get started, simply select Apply Now at the top of your screen to navigate through our interactive web application in minutes. Upon completing the required fields, you will be prompted to upload a number of supporting documents based on the answers provided. To upload an item, simply drag and drop it into the appropriate slot. Though not required, accompanying one’s loan submission with as many of the requested documents as possible will expedite our review. Either way, our team is instantly notified of each submission and will contact the applicant within hours of receiving it to discuss the next steps.

What Types Of Documents Should I Expect To Provide For All Loan Types?

Execution is the application of the preparation. Apply seamlessly with the following information ready at hand.

  • How did you hear about us? (e.g., tradeshow, referral, etc.)
  • Borrower / Vesting Entity:
  • Name, email address, phone number
  • Entity type (e.g., LLC, S-Corp, LLP, etc.)
  • State of formation
  • EIN Number
  • Applicant Information:
  • Credit
  • Mid FICO score
  • 3 active trade lines – Yes or No
  • Number of mortgage rates within the past 12 months
  • Foreclosure/bankruptcy activity within the past 24 months – Yes or No
  • US citizen – Yes or No
  • Country of origin (non-citizens only)
  • Visa status
  • Liquidity
  • Applicant Experience – (per guarantor):
  • Number of Fix-N-Flips or Fix-N-Holds completed within the past 3 years
  • Number of rental properties owned
  • Target Closing Date

What Information Should I Have Ready When Applying For Bridge / Fix-N-Flip Loans?

Along with the information and documents needed for All Loan Types, the following information will be necessary along with a Bridge/Fix-N-Flip Loan:

  • Transaction type
  • Fix-N-Flip
  • Purchase price
  • Renovation budget amount
  • Description of any structural work planned (if applicable)
  • After-Repair Value
  • Experience
  • Number of projects comparable in scope completed within the past 3 years
  • Note a GC License or any other relevant experience
  • Purchase
  • Purchase price
  • Refinance or Cash Out Refinance
  • Date of purchase
  • Purchase price
  • Cost of improvements made post-purchase
  • Payoff amount
  • Maturity date of existing loan
  • Reason(s) for refinancing with a bridge loan
  • Exit strategy
$500,000,000
in Total Lending
1,975
Projects Completed
500
Repeat Borrowers

What Information Should I Have Ready When Applying For 30 Year Rental loans?

Along with the information and documents needed for All Loan Types, the following information will be necessary along with a 30 Year Rental Loan:

  • Transaction type
  • Purchase
  • Purchase price
  • Refinance or Cash Out Refinance
  • Date of purchase
  • Purchase price
  • Cost of improvements made post-purchase
  • Payoff amount
  • Maturity date of existing loan
  • Desired Loan Amount
  • Target Closing Date
  • Property type
  • Number of units
  • Number of buildings
  • Number of lots
  • Mixed Use Properties Only
  • If mixed use, what is the commercial use?
  • If mixed use, what is the unit breakdown (e.g. 2 ground floor commercial / 12 residential)
  • Property address
  • As-Is Value
  • Property Income & Expenses
  • Gross Rent per month (refinance)
  • Fair Market Rent (purchase)
  • Annual Property tax
  • Annual Homeowner’s Insurance (HOI) premium
  • Annual Flood Insurance premium (if applicable)
  • Annual HOA fee (if applicable)

Are you a direct lender?

Yes – BRRRRLOANS is a nationwide direct lender. Every loan we close is in the name of BRRRRLOANS, an affiliate entity in which we hold an equity position, or the name of the Trust through which we contribute to a mortgage pool and subsequent securitization.

How does a conventional loan differ from a BRRRRLOAN?

BRRRRLOANS – whether it be a Bridge Loan or 30 Year No Doc Rental Loan – are non-consumer, asset based loans. Both types are designed for entity vesting and neither reports to personal credit; two features that conventional loans cannot offer. Qualifying for a BRRRRLOAN is simply a matter of meeting the minimum credit score, credit history, and liquidity requirements. Since we do not require tax returns, personal income documentation, or employment verification, we can qualify an applicant in less than 10 minutes. Pre-approval for a conventional loan, by contrast, takes numerous days or even weeks to receive.

As an asset based lender, the goal of our underwriting process is to verify the project details provided to us at the time of application via third party reports (e.g., appraisal) and a short list of supporting application documents (e.g., purchase contract, lease(s)). Once the credit profile of the guarantor(s) and property value of the collateral is confirmed, the Borrower can close within days – and sometimes hours – of clearing our needs list. To scale our business, we need you to scale yours; and we need you to do it with a BRRRRLOAN every step of the way. By design, the concept a BRRRRLOAN renders that of an exposure limit obsolete. Whereas conventional lenders are collectively limited to simultaneously financing 10 investment properties for a given borrower (see Fannie Mae Rule B2-2-03), we can lend an unlimited amount of capital across an unlimited number of loans to any one borrower.

Qualifying for a conventional loan is contingent upon the Debt-To-Income (DTI) of each applicant, as well as the credit and financial profile of each prospective guarantor. To determine whether an applicant qualifies, every qualified mortgage lender requires the taking of a tedious application (Form 1003) and subsequent verification of the information provided. In effect, pre-approval is subject to the Lender’s receipt and review of three months of paystubs, asset statements, the past three (3) years of tax returns, as well as leases, mortgage statements, and insurance declarations for all properties listed on the applicant’s Schedule E. For an experienced real estate investor with a long REO Schedule, using up one of the ten conventional loans (s)he is allotted at any one time on a 1-4 unit is highly inefficient.

With respect to the role that one’s personal Debt-To-Income (DTI) plays in qualifying for a BRRRRLOAN, the answer is simple: none. As a provider of business purpose, commercial loans backed by income producing real estate, our a priori concern is the collateral’s ability to carry the debt it secures. An applicant’s DTI, however, provides us with little to no insight into whether a specific property is more likely than not to cover its operating expense, nor the circumstances under which it is likely to do so. Without adding depreciation back into the adjusted gross income of a savvy real estate investor – the default practice amongst conventional mortgage underwriters – the DTI metric paints a highly misleading image of an applicant’s ability to repay. To avoid confusing the matter, our philosophy is to disregard the metric altogether.

Are there any fees for investors?

The only upfront costs each applicant incurs is a $99.00 credit and background fee (per guarantor) and an appraisal fee, the amount of which is set by the individual appraiser or designated Appraisal Management Company (AMC). Typically, the appraisal fee is $550-$650 for a single-family, $700-$800 for a 2-4 Unit, and $2,000-$3,000 for a 5-20 Unit. Geographic location impacts the cost of the appraisal as well.

With respect to closing costs, the settlement statement usually lists a lender processing and document preparation fee. In the case of a Bridge Loan, there is usually a $1,495 processing fee and no document preparation fee. Rental loans typically require a $995 processing fee and $225 document preparation fee to be paid at closing on a per property basis. When simultaneously financing five (5) or more rental properties with us, each property typically requires a $995 processing fee and $225 document preparation fee. If a Borrower prefers a single lender fee to several line items, we can tailor the loan structure to accommodate this as well. Additionally, there is a lender origination fee payable at closing, the amount of which is dictated by the loan structure. Of course, if the Borrower selects a “no points” option, then there is no lender origination fee at all.

Ready to get started?

The next step starts here. Get in touch and a BRRRR professional will reach out to you to answer any of your questions and give you a customized rate quote for the loan you need.

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