BRRR Strategy UK: Why Auction Investors Win | Dominic Farrell
REAL EXPERIENCE. REAL RESULTS. OVER 18 YEARS
Dominic Farrell and the Distressed Assets team are recognized experts in sourcing high-yield residential and commercial property via UK auctions. With over 18 years of experience, we specialise in navigating the distressed assets arena, delivering a demonstrable, tangible track record for investors seeking to buy property below market value (BMV).
Most property investors chase properties that are clean, tidy and easy to buy. That is exactly why most property investors get average results.
The BRRR strategy, Buy, Refurbish, Refinance, Rent, is not complicated. But it only works properly when you buy right. And buying right, in my experience of over 18 years purchasing at UK property auctions, means being willing to go where other investors will not.
The value is in problem properties. The ones that need work. The ones that make timid buyers walk away at the viewing. Fix those, and the numbers become very interesting indeed.
Here is a real, verifiable example from January 2026.
The BRRR Team
Claire Farrell
Former Director of Legal at Balfour Beatty Construction, Senior Lecturer in Property & Construction Law at Leeds Beckett University & A Practising Property & Construction Solicitor with 25 Years’ Experience, & a Property Investor.
Dominic Farrell
A BSc in Economics and an MBA (Defence), property investor/developer and the author of the UK’s No.1 bestselling property book about auctions, Property Auctions: Repossessions, Bankruptcies and Bargain Properties (4th Edition 2026)
Josh Lee
CeMap – Mortgage & Bridging Finance. Specialist – The UK Adviser Ltd authorised and regulated by the Financial Conduct Authority (Ref:798920)
The BRRR Renovation
The Renovation
Once the keys were in hand, Tuna Fish Property came in and undertook the full renovation. The transformation was impressive. The downstairs has been completely overhauled. The rear garden, which had been neglected, is now a genuine selling point.
The total cost of the full renovation, including exterior painting? £15,000.
That is not a typo.
The Numbers
Let us look at where this mentee now stands:
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Purchase price: £135,000 before fees and stamp duty
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Renovation cost: £15,000
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Total invested: £150,000
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Comparable sold opposite: £220,000
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Current estimated value: £240,000–£260,000
That is between £90,000 and £110,000 of forced value. Created not by luck or a rising market, but by buying a problem property at the right price and fixing it properly.
He now goes to a lender, refinances against the new value, pulls his capital back out, and either holds the property as a rental or repeats the process. That is BRRR working exactly as it should.
How We Do It
Why Auction Is the Right Vehicle for the BRRR Strategy in the UK
You will not force value like this buying through an estate agent at full market value. Retail prices do not leave room for it.
Auction is different. Distressed sellers, repossessions, probate sales, properties that need work, these end up at auction precisely because they are harder to sell through the conventional route. That is where the opportunity sits.
A comparable house on the same street sold for £220,000. My mentee paid £135,000. The discount came directly from the fact that other buyers saw the work required and walked away.
He saw the same potential. He assessed the renovation cost accurately. He did not walk away.
This is the core principle I have built my entire methodology around, and the one that runs through every edition of my book. The herd avoids problem properties. That is precisely why problem properties are where the money is.
BRRR - The Video
The mentees are a dad and son team from London. They already have invetsment properties in London and Manchester, and cam to us to buy below market value at auction. Once this property is completed, it will be managed by Tuna Fish Property and they will be looking for the next BRRR property.
The Dominic Farrell Approach: 18 Years, One Consistent Process
I have been buying at UK property auctions for over 18 years. In that time I have developed a repeatable process for filtering auction lots, assessing problem properties, and identifying where forced value can be created. That process is what I teach.
Through Distressed Assets, I run a mentorship programme and one-day intensive courses in London and live online. My team includes Claire Farrell, a former Director of Legal at Balfour Beatty and a practising solicitor with 25 years of experience, and Joshua Lee, a CeMap-qualified mortgage and bridging finance specialist. Between us, we cover every stage of the BRRR process, from identifying the lot to funding the refinance.
My book, Property Auctions: Repossessions, Bankruptcies and Bargain Properties, is now in its fourth edition and remains the UK's number one bestselling guide to buying at property auction. Everything in it is drawn from direct, hands-on experience, not theory.
The Liverpool deal in this article is not a highlight reel moment. It is a straightforward example of the process working as it should.
The Key BRRR Point
BRRR gets talked about constantly in UK property investment circles. Most people who try it get mediocre results because they apply the strategy to easy, presentable properties where everyone is competing and end up paying too much.
The strategy works when you combine it with the right buying method. Problem properties, avoided by the herd, purchased at auction below market value. That is where the real numbers come from.
This Liverpool deal is not exceptional. It is what happens when you buy well, renovate efficiently, and stick to a clear strategy.
If you want to understand how to find and assess these opportunities properly, that is exactly what I cover on my one-day intensive course in-person in London or live online (it's interactive)
The next date is can be found on the property auctions courses page. Tickets are just £97.
Frequently Asked Questions About the BRRR Strategy
What is BRRR stand for in UK property investment?
BRRR stands for Buy, Refurbish, Refinance, Rent. The strategy involves purchasing a property below market value, improving it through renovation, refinancing against the new higher value to recover your capital, and holding it as a rental. Done correctly, you can recycle the same pot of money into multiple deals — building a portfolio without continuously needing fresh capital.
Do I need a lot of money to use the BRRR strategy?
You need enough to cover the purchase, the renovation, and the holding costs while the refinance is arranged. The whole point of BRRR is that a successful refinance returns much of that capital to you, freeing it up for the next deal. The less you overpay on the way in, the more effectively this works.
Why is buying at auction better for BRRR than buying through an estate agent?
Auction gives you access to properties that are distressed, require work, or need a fast sale — exactly the type that generate the biggest gap between purchase price and post-renovation value. Estate agents sell at or close to market value. Auction is where the discounts are, particularly on problem properties that the mainstream market will not touch.
How do I know what a renovation will cost before I buy?
Experience and the right contacts. You need a reliable builder who can give you an accurate figure from a viewing before the auction. This is one of the most important skills to develop, and one of the things I work through with mentees before they bid on anything. Underestimating renovation costs is one of the most common and most expensive mistakes first-time BRRR investors make.
What is a realistic uplift using the BRRR strategy in the UK?
It varies by property and location, but the Liverpool example in this post illustrates what is achievable: £150,000 all in, with a post-renovation value of £240,000–£260,000. That is £90,000 to £110,000 of forced value. The key is buying the right property at the right price. Chasing these numbers on properties bought at or near market value will not work.
Can I use BRRR as a first-time property investor?
Yes, but the learning curve is steep if you go it alone. Getting the purchase price wrong, underestimating renovation costs, or choosing the wrong area can wipe out your returns entirely. Working with an experienced mentor who has been through the process many times shortens that curve considerably and reduces costly errors.
What type of properties work best for the BRRR strategy?
Problem properties avoided by other buyers. Cosmetic wrecks, probate properties, repossessions — anything that puts off the mainstream market but has strong underlying fundamentals. Location, layout, and local rental demand all matter. The cosmetic issues are not the problem. They are the opportunity.
How long does the BRRR process take in the UK?
From auction purchase to refinance, typically three to six months depending on the scale of the renovation and the lender's turnaround time. Bridging finance is commonly used to fund the purchase and works, with a standard buy-to-let mortgage arranged once the property is habitable and revalued. Joshua Lee, our in-house bridging and mortgage specialist, advises my mentees on the most appropriate funding structure for each deal.
BRRR, without the Renovation
"Today I got a survey on my first property bought through working with Dominic. I paid £75,000 and my
goal was to do a “no money left in” deal. To achieve my goal, I needed the value to come back at £100,000
(borrowing 75% against a £100,000 valuation means I would get my original £75,000 investment back).
Well to my surprise the surveyor came back with a valuation of not £100,000, but £120,000. That means
I’m now able to borrow £120,000 x 75% = £90,000 from the bank. Put another way I’m getting all my original
£75,000 back plus an extra £15,000.
Put yet another way I’m getting all my original £75,000 back, paying for my mentorship fee in full, other
costs, such as stamp duty, plus getting cash back on a property that I didn’t refurbish, has been paying me
rent, has had no issues with tenants, and got a free EPC upgrade. But if you want to know the truth, that’s
not what I paid the fee for.
The real value for me is the countless meetings, phone calls and text messages where I was told what
was wrong with the property I was looking at, what to look for, and the major pitfalls to avoid in property,
so I can position myself for success, which comes as part of the mentorship.
That’s what I can take with me for the rest of my life. The £15,000 cash back is just confirmation (not that
I needed it) that I chose the right guy. As with anything in life the “price” is what you pay, and the “value”
is what you get. Those who can only see price will never benefit from the value.
Thank you, Dominic."
Conor Gallagher (London)
BRRR, with one of the Rs
“I bought my first-ever BRRR deal with Dom. I found him via his Distressed Assets website and felt drawn
to the concept of truly BMV properties.
Dom was so helpful throughout the process. He viewed the property for me, secured the price pre-auction, and helped me throughout the conveyancing and insurance
process.I bought the property for £75,000 and just got it revalued at £110,000 after 6 months, a
47% return.
I’ve not done any work to the property, and the existing tenant is long-term and has looked
after the property well."
Kishan P (London)
“I've been with Dom and his team since 2021, and have been extremely pleased with his advice, guidance,
and property expertise. I've made 3 property purchases through Dom so far, with more to come in
due course, the best so far being a purchase for £65,000 valued during raising a mortgage a few months
*later at £95,000, a 46% capital gain, with no renovation being required!
Dom has a killer combination of skills.
He has a way of cutting through the noise and speaking plainly and with focus, and he has been a real pleasure
to work with."
John Richardson (Surrey)
