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The Buy Refurbish Rent Refinance (B.R.R.R) Strategy


This is a common strategy popularly known as a way of recycling your cash and here’s why. .

  • Buy a property in need of a refurbishment that you can add value to

  • Carry out the Refurbishment on the property increasing the value

  • Once the refurbishment is completed you secure the Rent by getting a tenant to move in

  • Once you are complete you get a surveyor to value the property

  • The property should have increased in value enough to pull all or most of your initial money back out through Refinancing and you benefit from the rental income as cashflow


To finance these types of deals you will likely use cash or a bridge (bridging loan).


Cash is generally the method most often used, some people use savings, borrow from friends and family or look for Angel Investors. This is a form of short-term lending and in any case should be dealt with legally.



Bridging finance is expensive and generally speaking its purpose is to be used over short timescales, for example; You purchase, you refurb then you re-finance onto a standard mortgage product and pay down the bridging loan, within a matter a couple of months.


The bridging companies will likely assess risk and your credibility and past experience of projects etc.


Cash is often king with these property projects, as bridging takes time.

The desired outcome is to be able to buy a property, carry out a refurb and get a high enough valuation that you can refinance at the new higher value and pay off the bridge loan and other costs and also pull most of your money back out (your capital or cash in the deal).


This would mean you have a property with a mortgage but you have little actual capital involved because effectively the money you put in (deposit and refurbishment and legal costs) you were able to get back when you refinanced onto a mortgage product.



Build Your Own Portfolio & Recycle Your Cash


You can utilise this strategy in a number of ways, if you have a medium sized pot of money to play with you can use the B.R.R.R strategy to recycle your cash and grow a portfolio of properties much more quickly than using traditional finance. (buy to let mortgage)


Using the traditional buy to let mortgage to purchase means you cannot re-finance post refurb (on most products). There is typically a 6-month rule meaning you can not re-finance for at least 6 months after taking out a mortgage.


A standard mortgage is a long-term finance product and should not be used for anything other than it’s purpose.


Doing this allows people to invest and grow a portfolio much more quickly. It enables you to re-invest your initial capital over and over again into multiple properties, assuming you pull out most of your original capital input when you refinance onto a mortgage of course.


Please note this is not financial advice

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