I have slowly built a portfolio of 23 SFHs in West Florida. After obtaining a spreader loan (basically a blanket Loan) I continued to buy properties cash or hard money. When applying to add the new purchases to my spreader loan (promised that I could during the original courtship by the lender) they broke it to me that average seasoning for "commercial cash-out/refinance deals" was a minimum of 24 months before appraised value can be borrowed against. This limits me to the 70% of the purchase price, not the appraised value (ARV). This 24 month seasoning was quoted as "industry standard" in which I am skeptical. Does anyone else have knowledge of this "standard"?
I've recently did two refi's, both within 60 days of original purchase price. Commercial loan, 70% of appraised value..
These properties needed about 20k in work..
I called 25 banks before I found these guys. Everyone else wanted to do 70% of purchase price- but even these banks would have let me do it within 2 months of purchasing the property.
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