New Investor here...
I have been researching and educating myself a lot recently on the popular BRRR strategy which I plan on using for my second investment property. However, before I dive in I've been trying to line up all my resources before I purchase a single family house. I've got a realtor in place, contractor, and a private lender all lined up and interested in working together.
I now need to find a bank that will refinance the home after the 6-12 month seasoning period. Any hints or strategies on the best way to find the right deal? What types of questions should I be asking? Basically I want to avoid being stuck with a home 12 months down the road and want to have a couple solid leads on the refinance portion of the strategy before I buy.
I know that networking and calling around is going to be necessary but once I have them on the phone or in a meeting what should I be asking? Thanks for all the help.
You are right @Andrew Jacoby , calling and interviewing. Let them know your intentions with the property and they all should have options, just a matter of determining whats the best fit for you.
@Andrew Jacoby , discuss with your bank if the seasoning period is even mandatory. You being a new investor, it very well be a mandated policy by the bank however I have discussed with my banker in Florida, and he explained to me that this is simply common practice however there was nothing in writing that mandated a seasoning period and he, as a senior loan officer could make the decision to refinance once he recognized the property was stable enough to handle the higher mortgage from the refinance.
In my situation, I had owned the property for over a year however I was consistently raising the rents as I renovated each unit (multi family - 7 units). Once I finalized the last unit, I immediately refinanced at an appraisal which was based on the final income. keep in mind, the property had only been producing its highest yield for 1 month and my banker was happy to refinance.
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