BRRRR V.S HELOC repeat

[Amanda Smith]

Per the Buy Rehab Rent REFINANCE Repeat method, my question after speaking to a lender and told it takes 6 months to be on title to refinace, then I spoke to my bank who states you can access the equity after everything is transferred. what is the biggest or main reason for refi vs heloc and repeat? Thanks in advance!

[Todd Rasmussen]

@Amanda Smith

Lenders that don't require seasoning are non conforming lenders. I would take advantage of your ability to access freddie fannie backed loans by using a different strategy. You can put the rehab funds into escrow at the time of purchase. Once they are on the hud you can refinance them out without seasoning by using the delayed financing exception. You can also have an individual or entity lien the property for what you want to refi out. Instead of being a cash out refi, it will qualify as a rate term refi at that point and not be subject to seasoning.