Written by David Dodge  

Are you eager to dive into real estate investing but worried about the upfront costs? What if you could purchase investment properties with no money down? In this comprehensive guide, I’ll walk you through how to achieve 100% financing for single-family homes using the powerful BRRRR method: Buy, Rehab, Rent, Refinance, Repeat. Whether you’re a beginner or a seasoned investor, this strategy can help you build your real estate portfolio fast—without draining your bank account. Let’s break it down!

Why 100% Financing Matters

For many new investors, the biggest obstacle is the down payment. Traditional loans often require 20-30% upfront, which can tie up your cash and limit your ability to scale. By leveraging 100% financing through loans or creative strategies, you free up capital to pursue more deals and grow your portfolio faster. This approach allows you to maximize your investment potential while minimizing personal financial risk. Here’s how to make it happen.

The BRRRR Method Explained

The BRRRR method is a proven real estate investing strategy that stands for:

• Buy: Purchase a property, ideally at a discount, to maximize value.
• Rehab: Renovate the property to increase its market value and appeal.
• Rent: Lease the property to tenants to generate consistent cash flow.
• Refinance: Secure a new loan based on the property’s improved value to pay off initial financing.
• Repeat: Use the freed-up capital to buy your next property and continue the cycle.

I explain this in my full video:

Strategies for 100% Financing

Let’s dive into six powerful strategies to achieve 100% financing for your BRRRR deals, enabling you to acquire properties without dipping into your personal savings.

1. FHA Loans: Low Down Payment for Owner-Occupants

If you’re willing to live in the property for at least one year, FHA loans are an excellent option for beginners. These government-backed loans require just 3.5% down, and you can often negotiate for the seller to cover closing costs or use gift funds to cover the down payment entirely. Here’s how it fits into the BRRRR framework:

• Buy: Purchase a fixer-upper single-family home at a discount.
• Rehab: Renovate the property while living there to boost its value.
• Rent: Move out after the one-year requirement and rent the property to tenants.
• Refinance: Switch to a conventional loan based on the property’s new appraised value.
• Repeat: Use the cash from refinancing to fund your next deal.

This approach allows you to enter the real estate market with minimal out-of-pocket costs while building equity through forced appreciation.

2. Hard Money Loans: Financing for Fixer-Uppers

For non-owner-occupied properties, hard money loans from private lenders can cover 100% of the purchase and rehab costs—provided the deal shows strong profit potential. These loans come with higher interest rates and shorter terms, but they’re ideal for distressed properties that need significant repairs. Here’s the process:

• Buy: Acquire a discounted, distressed property with strong upside potential.
• Rehab: Use loan funds to renovate and increase the property’s value.
• Rent: Lease the property to tenants to generate income.
• Refinance: Secure a conventional loan with better terms to pay off the high-interest hard money loan.
• Repeat: Move on to the next deal with the freed-up capital.

To find hard money lenders, attend local real estate meetups, network with investors, or explore platforms like Real Estate Skool (link in resources below). Be sure to vet lenders carefully to ensure favorable terms.

3. Seller Financing: Negotiating with Motivated Sellers

Seller financing is a creative way to bypass traditional lenders and work directly with property owners. Motivated sellers—such as tired landlords, retirees, or those looking to offload properties quickly—may agree to finance 100% of the purchase price. You can negotiate flexible terms, such as low or no down payment, to make the deal work. Here’s how it aligns with BRRRR:

• Buy: Purchase the property with seller financing, often with minimal upfront costs.
• Rehab: Renovate to boost the property’s value and appeal.
• Rent: Lease it to tenants for consistent cash flow.
• Refinance: Obtain a conventional loan to pay off the seller’s financing.
• Repeat: Use the proceeds to fund your next investment.

Find motivated sellers through targeted marketing or platforms like Discount Property Leads (link below). Building relationships with sellers is key to negotiating favorable terms.

4. Partnering with Investors: Leverage Their Capital

If you lack cash or credit, partnering with an investor can be a game-changer. You bring the deal—finding and analyzing the property—while your partner provides the funding. You then split the profits based on your agreement. The BRRRR process looks like this:

• Buy: Use your partner’s funds to purchase the property.
• Rehab: Renovate with their capital to increase value.
• Rent: Lease the property to generate rental income.
• Refinance: Pull out cash to repay your partner or fund future deals.
• Repeat: Continue the cycle with new properties.

Connect with potential partners through networking events, real estate investment groups, or Real Estate Skool. Transparency and clear agreements are essential to successful partnerships.

5. Portfolio Loans: Tap Into Your Portfolio’s Strength

Portfolio loans from local banks or credit unions are tailored for investors with multiple properties. These lenders may finance 100% of a purchase based on the strength of your existing real estate portfolio, making them ideal for scaling your investments. This strategy aligns perfectly with the refinance step of BRRRR, allowing you to pull out capital for your next deal. Here’s how it works:

• Buy: Purchase a property using a portfolio loan.

• Rehab: Renovate to increase the property’s value.

• Rent: Lease it to tenants for cash flow.

• Refinance: Use the portfolio loan’s flexibility to refinance and pull out equity.

• Repeat: Reinvest the capital into new properties.

Reach out to local banks or credit unions to explore portfolio loan options. Building relationships with lenders can unlock better terms over time.

6. Lease-Option Deals: Control Without Ownership

A lease-option deal lets you lease a property with the option to buy it later, giving you control without an immediate down payment. This strategy is ideal for investors who want to test a property before committing to ownership. Negotiate lease payments that cover the seller’s mortgage, then:

• Buy: Secure the option to purchase at a set price, locking in future value.

• Rehab: Renovate during the lease period if permitted by the agreement.

• Rent: Sublease the property to tenants (check local laws to ensure compliance).

• Refinance: Purchase the property and refinance into a conventional loan.

• Repeat: Use the cash to pursue more deals.

Lease options require careful negotiation and legal review to ensure the terms are favorable. Consult with a real estate attorney to draft airtight agreements.

Risks to Watch For

While 100% financing opens doors to real estate investing, it’s not without risks. To succeed with the BRRRR method and protect your financial future:

• Run the Numbers Diligently: Ensure the property will generate sufficient cash flow or profit after accounting for repairs, taxes, insurance, vacancies, and unexpected costs. Use conservative estimates to avoid surprises.

• Avoid Overleveraging: Taking on too much debt can strain your finances, especially if market conditions shift or repairs exceed your budget.

• Plan for Refinancing: Confirm the property will appraise high enough to refinance and cover your initial loans. Work with appraisers and lenders to understand local market trends.

• Build a Safety Net: Maintain reserves for unexpected expenses, such as emergency repairs or tenant turnover.

• Work with Experts: Platforms like Real Estate Skool can connect you with mentors, courses, and resources to avoid common pitfalls and refine your strategy.

Take Action and Build Your Real Estate Empire

The BRRRR method, paired with 100% financing strategies, unlocks a world of opportunities for aspiring real estate investors. By using FHA loans, hard money, seller financing, partnerships, portfolio loans, or lease-options, you can acquire properties without draining your savings, scale your portfolio, and achieve financial freedom. Success lies in diligent planning, disciplined execution, and continuous learning. Start small, master one deal at a time, and watch your wealth grow as you repeat the process.

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