Residential Real Estate Broker · Bethalto, IL · Member since 2016 · 9 posts · 2 votes
Hi everyone I am new to bigger pockets!
I have flipped some properties recently to build up a cash account. I am recently looking to purchase properties all cash and then get long term financing to buy the next property. I was curious if there is a seasoning period or LTV max to where I can refinance as soon as possible.
Lender · PA · Member since 2016 · 214 posts · 140 votes
9y
@Jonathan Woelfel a good strategy to pick up! From what I've seen, a seasoning period of 6-12 months varies from lender to lender. LTV ranges between 60-75%, I've seen 80% before but again it depends on location and lender.
Both are things to explore and find out prior to purchase, I think. Simply call up banks and lenders and ask these questions, then pick the best ones!
Lender · PA · Member since 2016 · 214 posts · 140 votes
9y
@Jonathan Woelfel a good strategy to pick up! From what I've seen, a seasoning period of 6-12 months varies from lender to lender. LTV ranges between 60-75%, I've seen 80% before but again it depends on location and lender.
Both are things to explore and find out prior to purchase, I think. Simply call up banks and lenders and ask these questions, then pick the best ones!
Real Estate Agent · Chicago, IL · Member since 2015 · 238 posts · 101 votes
9y
@Jonathan Woelfel Every lender is different. But typically you can expect 6-12 months of a seasoning period.
This may be a mute point for you but I'm going to tell you anyway because I got burned by this. Make sure that however you're currently holding the property doesn't change during the seasoning period. In my case, I owned my 2-Flat under my LLC name then quit claimed to my personal name (long story don't ask lol). Even though I'm a single member LLC and can prove that I'm the owner of said LLC, it didn't matter. The seasoning period reset when I made that change. Woops!
I would recommend "Prospect Mortgage." Not sure if they're in your area, but they're worth checking out. They were the only ones that didn't make me re-start the seasoning period. And the customer service was great overall. Good luck!
If you are buying these cash you do not need to wait. It depends on how much cash you are trying to take out but you can finance right away using something called delayed financing. Just PM me if you want more info.