Help with cash out refinancing

[Benjamin Dutil]

Hi BP community. I bought a 3-unit with cash borrowed from a friend at 4.5%. I wanted to implement the BRRR strategy right away. I bought the property at 60 cents on the dollar. I sought a cash out refi from my local Bank of America. They said I would have to wait 6 months until I apply for it. Is this common? Am I seeking funds from wrong place? Any and all information is greatly appreciated!

[Chris Mason]

Hi @Benjamin Dutil,

It sounds like this would fit into the Delayed Financing Exception, assuming that loan from a friend was documented/real/legit.

The bad news is you have some dialing for dollars to do for someone licensed in your state.

The good news is the phone calls can be incredibly quick & efficient: 

And from there you should be able to tell within like 30 seconds if it's worth continuing the conversation, no paperwork or handing over your SSN needed. 

The kind-of-meh news is that if you want to go over your initial purchase price on the cash out refinance, the 6 month wait is in fact applicable. 

For the lurkers, best execution of this is to have your lender coordinating with you closely on the initial purchase. How to structure it, what paperwork to generate/document at the point of purchase that an underwriter is later going to want to see, etc.