Refi before 6 months on a BRRRR

[Jeffrey Evans]

I was under the assumption that I could refi out of my hard money anytime but I am told I have to wait 6 months to do so and get cash out.  If I don't want cash out I can do it sooner, but defeats the whole purpose.  Feels hard to grow the portfolio very fast having to wait.    

Just curious what others are doing in regards to this.  

thanks for any input 

[David M.]

@Jeffrey Evans

Yep..  As mentioned, the loans need to "stay alive" for 6 payments otherwise the lender is hit with a penalty.  Think about it..  How would you like it if you lent out a bunch of money, expecting to get some percentage for 30 yeras (or more like I think its 6yrs) to find your money returned to you in a couple of months?  It just screws everything up...

There are many other posts like this. I don't recall them coming up with an easy solution.  I believe this is one reason why the "originial" brrrr strategy called for buying cash.

Sorry.  Good luck.