BRRRR-Delayed Finance Exception-How to Get Rehab Budget on HUD-1

[Tim Broxholm]

Hi fellow investors! 

I just got a house under contract and based on the recent EP of the podcast the guest shared he was able to use delayed finance exception by getting the rehab costs on HUD-1. The guest said that you can wait the 6 month seasoning period and get 75% LTV on the ARV -OR- take 100% of what's on the HUD-1. For this project, it makes the most sense to utilize the delayed finance exception

I wanted to see if anyone could share the mechanics of this process. 

We are entering the inspection period and I'll be purchasing all-cash via private money, then funding the rehab.  Rehab should take 8-10 weeks, and I am working with a lender to make sure ducks are in a row.

Any advice or coaching would be greatly valued! 

[Alexander Felice]

@Tim Broxholm whats the question?

provide an invoice from your contractor for the rehab, same for insurance.

you'll pay them both up front and in full at closing.

title will put them on line 120 and disperse them accordingly

@Wayne Brooks is correct that a lot of people have trouble with this.

also it's 75% LTV or 100% HUD1 whichever is LESS. If your HUD1 is higher than 75% you'll get money stuck in the deal