How do I get a mortgage to pay off HELOC before the 6 mo period?

Question

Hello, I'm trying to use BRRR method. I'm new at this whole thing.

I just used  a HELOC to buy a wholesale single family. purchase and rehab cost me $60,000. I want to pay off that HELOC (which is at 7.5%) with a new mortgage. However, after doing this I discovered there's a 6 month "seasoning period." I didn't know about this before I did it.

Anyway, I heard there's a way to create an LLC, put the home under the LLC, and then turn around and refinance immediately. Does anyone know how to do this, or have any guidance on where I can look to learn more about this?

Is there any other method to refinance immediately rather than waiting the 6 months?

Wayne Brooks · Answer

You do Not want to put it in an llc....that eliminates conventional 30 year fixed rate financing. Just wait the 6 months. A couple of extra points interest on $50k for a few months is peanuts compared to the alternative.

Corby Goade · Answer

Read up on Delayed Financing- I've done it a few times, you can cash out right away if you buy and structure a deal properly.

Pete Stone · Answer

Guys thanks for your input. This is very helpful

Curtis Rouse Jr · Answer

@Pete Stone

I would agree with @Wayne Brooks on this because putting in a LLC would definitely be less amortization and possbily higher rate depending on your lender. If you're worried about the liability issue, there is no need for an LLC, just get an umbrella insurance policy that will cover you (basically same thing as LLC). Most lenders require 6 - 12 month seasoning period so this will be hard to work around and find. What kind of ARV are you looking at on this deal and have you already talked with some banks/local appraisers about the valuation once renovated?

How do I get a mortgage to pay off HELOC before the 6 mo period?

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