• 17
  • Dec

By Grayson Wester, Corridor Funding           

With rising home values and strong demand in many markets across the country, real estate investors are shifting their strategy for building long-term wealth from fix-and-flip to Buy, Rehab, Rent, Refinance and Repeat (BRRRR).

            The first step to any successful BRRRR investment is getting the financing you need to transition out of a short-term rehab or fix and flip loan.  Refinancing with a 30-year fixed rate mortgage is an ideal solution, offering lower interest rates and the payment terms that allow investors to keep existing rental properties and continue to purchase new ones.  


            The only problem is, getting a qualified 30-year mortgage on an investment home from a bank isn’t always easy. A bank wants to ensure that your loan is secured with your personal income, even if you already have rental income that offsets your payments on the loan.

            When it comes to a traditional bank mortgage, your W2 income is everything. That’s why bank loan officers review your tax returns, paystubs and other documentation, and why they’re less likely to approve your loan if you’re newly self-employed or have inconsistent income.

            Another disadvantage to traditional bank loans is how much time it takes to close. Traditional bank loans can take 3 to 4 months, which can put a real estate investor in a bind as they move from a short-term renovation loan to conventional long-term financing.


            That’s where the Corridor Funding 30-Year Fixed Rate Loan comes in. This loan offers several advantages to help BRRRR investors acquire, hold and rent residential properties. 

            The Corridor Funding 30-Year Loan is similar in many ways to a conventional 30-year bank loan. It’s fully amortized like a 30-year bank loan, with no balloon payments at the end of the loan.

            But unlike a bank, Corridor Funding uses only a few criteria to determine your eligibility: the loan to value ratio (LTV), comparable rental property income, the borrower’s credit score, and reasonable cash reserves on hand to take care of unforeseen maintenance needs. No income verification is necessary. Since our products are designed specifically for real estate investors, we understand your goals and the value of the property as a rental. A bank is strictly focused on your personal financial resources as a guarantee for your loan, regardless of how much rental income the property brings in.

            While banks offer slightly lower interest rates, that doesn’t help you if you can’t get the loan. Corridor Funding is currently offering competitive interest rates starting at 5.5%, with a maximum loan-to-value of 80% for rate-and-term refinances (75% Loan-To-Value for cash-out refinances). As of the date of this post, these loans are closing in 3 to 4 weeks on average, much faster than the 3 to 4 months
that a traditional mortgage takes.

            A few additional differences make Corridor Funding’s 30-Year Fixed Rate Loan a smart choice. First, securing financing through Corridor Funding instead of a bank means that your new investment property mortgage will not be reflected on your credit report, so your debt-to-income ratio isn’t negatively impacted.

            Corridor Funding can also issue these loans to business entities, including LLCs and corporations, while most banks will only lend to individuals.

             Perhaps one of the biggest advantages of working with a reputable private money lender like Corridor Funding is that we’re here to meet the unique needs of the real estate investor. We’re in your corner. We understand your business model, your goals and the conditions you need to be successful. If you plan to buy an investment property anytime in the next 12 months, reach out to us now to start talking to one of our loan originators.

            Building relationships with our clients is important to us – after all, 84% of our business comes from repeat clients.  Your Corridor Funding loan originator is standing by to strategize with you, to walk through the process with you, to help you make the best choice for your situation – and to do it all again when you’re ready to acquire your next property.

            Your success in building a rental portfolio comes down to the financing you’re able to secure.  Whatever your real estate investing goals, let Corridor Funding connect you with the right funding to grow your portfolio.


  1. After purchasing and fixing up a property for use as a rental, refinancing into a 30-Year Fixed Rate Loan is an excellent long-term wealth building strategy.
  2. Corridor Funding now offers 30-Year loans with interest rates starting at 5.5%, 80% Loan-to-Value ratio (up to 75% LTV for cash-out refinance), with no impact on your credit score by increasing your debt-to-income ratio.
  3.  The most important criteria considered for these loans: 1) Loan to value ratio, 2) what comparable rental properties are renting for in the area, 3) the borrower’s credit score, and 4) having some cash reserves on hand to take care of unforeseen maintenance needs.
  4. Closing your loan with Corridor Funding takes 3-4 weeks on average instead of 3-4 months with most banks.
  5. Get a reputable hard money lender on your team well in advance of purchasing an investment property.