Lender Increased Seasoning Period

[Ron West]

Hey everyone!

I purchased my first property 2 months ago. Things have been going great so far. The tenant was already in place, rent was at market price and with zero rehab I have 50% equity. This property was purchased from another investor that was looking to get into storage units. I used a local bank with 20% down and was told 2-4 payments would be my seasoning period. I reached out to ask about using my equity to continue and his response was now 6 months for the seasoning.

I know this is not a get rich quick game and I am definitely learning from my mistakes but here is where I am at. I have started creating my team and systems so yesterday my realtor informed me of some listings that were not listed yet (coolest thing that’s happened so far) but I need to tap into that equity or look into hard money. So would it be unethical for me to go to another local bank and refinance/transfer the loan to them? Just need some advice on this and maybe some options. Thanks everyone and I look forward to the comments.

[Stephanie P.]

Originally posted by @Ron West:

Hey everyone!

I purchased my first property 2 months ago. Things have been going great so far. The tenant was already in place, rent was at market price and with zero rehab I have 50% equity. This property was purchased from another investor that was looking to get into storage units. I used a local bank with 20% down and was told 2-4 payments would be my seasoning period. I reached out to ask about using my equity to continue and his response was now 6 months for the seasoning.

I know this is not a get rich quick game and I am definitely learning from my mistakes but here is where I am at. I have started creating my team and systems so yesterday my realtor informed me of some listings that were not listed yet (coolest thing that’s happened so far) but I need to tap into that equity or look into hard money. So would it be unethical for me to go to another local bank and refinance/transfer the loan to them? Just need some advice on this and maybe some options. Thanks everyone and I look forward to the comments.

There are portfolio lenders/brokers that will charge you more than a conventional loan, but won't make you wait the traditional minimum of 6 months (there are no seasoning 3 month seasoning options).  The conventional money is cheaper.  The portfolio money is faster.  Your call.