Rental Property Loans
Rental Property Loans for the BRRRR Strategy (Fix-to-Rent)
For over 20 years, Noble Mortgage has helped real estate investors across Texas finance rental properties using the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy. Our experienced loan officers provide fast, flexible funding to help you buy and renovate distressed properties, then transition into long-term financing for rental income.
Texas BRRRR Strategy Loans Made Easy
Learn how Noble Mortgage helps investors finance, renovate, and refinance rental properties through our rental property loan program.
Rental Property Loan Snapshot
- Loan amounts: $50K to $2M
- LTC: Up to 100%
- LTV: Up to 75% ARV
- Close in as little as 7 business days
- Term: Interest-Only, 6-12 month terms
Looking for a streamlined approach to funding your purchase and rehab? Get started with our rental property loan and close your deal faster!
Rental Property Loans
What is a BRRRR Loan?
A BRRRR loan is financing designed to support the Buy, Rehab, Rent, Refinance, Repeat investment strategy used by real estate investors to build and scale their portfolio with rental properties.
BRRRR loans usually involve two separate loans:
- Purchase & Rehab Financing (Fix-to-Rent)
- Often, a short-term loan is provided through a hard money lender or private lender, such as Noble Mortgage, which can offer quick closing and flexible terms.
- Refinance Loan
- After the property is renovated and rented, investors refinance into a long-term conventional or DSCR loan.
Benefits of a BRRRR Loan:
- Quick access to funds
- Finance up to 100% of the purchase and rehab costs
- Refinance as soon as the repairs are finished and enjoy cashflow and appreciation
- Scale your portfolio with a repeatable investment strategy
How Fix-to-Rent Loans Work
Noble’s rental property (rehab-to-perm) loan program for investors is a two-step loan process used to purchase distressed residential real estate in need of repairs for long-term rentals. It provides up to 100% of the purchase price, repair money, and closing costs. After the property is repaired and leased, Noble assists in arranging a long-term traditional mortgage.
The loan amount is based on the property’s after-repaired value. Typically, a combination loan is used to acquire residential property that conventional lenders will not consider due to the condition. These loans typically close in 7 business days, and the investor must qualify for long-term financing.
Benefits of Our Fix-to-Rent Loans
- Quick Funding
- Noble Mortgage typically closes rental property loans within 7 business days.
- Smooth underwriting process compared to conventional loans
- Flexible loan terms
- Leverage your rental portfolio to create equity using our money!
BRRRR Strategy vs Fix-to-Rent Loans
BRRRR strategy and fix-to-rent loans describe different parts of the same process:
- BRRRR is the overall investment strategy
- Fix-to-Rent or Rental Property Loan is the short-term, hard money financing used in the first phase
Both are important pieces of building long-term rental property investments.
BRRRR/Rehab-to-Perm Loan Criteria
Property Types
1-4 single-family properties
Term
6-12 months
LTC
Up to 100%
Markets
Houston, Austin, San Antonio, and Dallas/Fort Worth, Texas
Rate
As low as 9.99%
Qualifying
Must be able to qualify for long-term financing
Loan Amounts
$50K-$2M
Fees
TBD
Recourse
Yes
Amortization
Interest-Only
LTV
Up to 75% of the “after-repaired” value
See how much you can qualify for. Use our hard money calculator or speak with one of our loan officers today!
How to Get Started:
- Make sure you meet the loan requirements
- Investors must qualify for long-term financing
- Credit score requirements vary for long-term financing from lender to lender
- Submit your application
- Get pre-approved! Learn more about the pre-qualification process.
Why Noble Mortgage is a 5-star Rated Texas BRRRR Hard Money Lender
Experienced
With over 20 years of experience, Noble has a rich history of helping real estate investors reach their financing goals with our hard money lending options.
Creative
Our team of experts are well-versed in finding creative and common-sense financing solutions for a variety of investment situations, helping investors build long-term wealth.
Fast
Lending our own money and servicing our own loans allows us to serve our customers quickly. We guarantee a FREE pre-approval within 2 business days and repair/construction draws within 3 business days.
Responsive
The Noble team will be with you from start to finish during the hard money loan process. We guarantee 100% transparency on all fees, to return your phone call within 1 business day, and updates on the progress of your loan every 2 business days.
Simple
Our loan process is straightforward, easy, seamless, and efficient, typically closing within 10 days. Learn more about our loan process.
Frequently Asked Questions
What is a BRRRR strategy and rehab-to-perm loan?
A BRRRR strategy loan is financing designed to support the Buy, Rehab, Rent, Refinance, Repeat investment strategy. This loan program enables real estate investors to purchase distressed properties in need of repair, renovate them to increase their value, rent out the properties, and then refinance them to extract equity for their next purchase.
Rehab-to-perm loans are the first step in the BRRRR strategy and provide short-term financing for the purchase and rehab of the property.
How do I know I won’t be stuck in the hard money loan?
Before closing the hard money loan, Noble Mortgage will pre-qualify you for a long-term loan to ensure you meet the requirements.
Why use hard money?
Most investors use hard money for its speed, convenience, leverage and to finance properties that conventional lenders will not. Hard money loans typically close in 7 business days and can fund up to 100% of both the purchase price and repair funds
How does the hard money loan program work?
Noble’s hard money loan program is designed for investors purchasing homes in disrepair and who want to leverage the property’s After-Repaired Value (ARV). We lend money to real estate investors to purchase and rehab real estate property in Texas. We typically close in 7 business days; however, we have closed a loan in 24 hours previously! Hard Money is available for both residential and commercial property in the first lien position.
What are the benefits of hard money loans?
Since hard money loans are provided by private lenders and backed by the ARV (after repair value) of your property, the borrower does not need to worry about low credit scores (if they’re flipping), large money down, strenuous underwriting or digging up old tax returns. Hard money loans offer funds more quickly and simply!
What's the difference between a hard money loan and a traditional loan?
Hard money loans do not require the same documentation as traditional loans. We are a private lender and therefore make all lending decisions in-house!
What is required to qualify for a hard money loan?
It depends on what the exit strategy is for the loan. Flipping a home simply requires some capital reserves to handle loan payments and money to get the project started.
We do not require a minimum credit score if you are flipping.
However, if the investor intends on refinancing the property to hold as a rental property, then they would need to qualify for long-term financing, which Noble can arrange in-house. These loans typically require a credit score of at least 650.
What is ARV?
ARV, or after-repair value, represents the current value plus the value added by any repairs or renovations. Read our blog post to learn more about ARV and how it’s determined.
Contact Us
We’re here to help! Contact us to discuss your needs.