BRRRR cash out refi with less than 6 months seasoning

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BRRRR cash out refi with less than 6 months seasoning

Jeremy RhodesPro Member
Member since 2019 · 35 posts · 12 votes

Can anyone direct me to lenders who have less than 6 months seasoning period for cash out refinancing a BRRRR? I live in Michigan and am trying to line up a cash out refi.

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Alexander FelicePro Member
Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
7y

Delayed finance. 

you can remove the 6 month seasoning but you're only able to finance what's on the HUD-1

I've written about it here 

https://www.biggerpockets.com/blog/work-with-lenders-brrrr-method

and talked about it on podcast 301. 

it's got it's pros and cons, but it will do what you asked. 

[email protected]Podcast Guest on Show #301
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  • Tim Johnson
    Lender · Grand Rapids, MI · Member since 2018 · 703 posts · 446 votes
    7y

    Did you do any rehab or value add?

    How is title- personal name or llc?

    0Reply
  • Jeremy RhodesPro Member
    OP
    Member since 2019 · 35 posts · 12 votes
    7y

    @Tim Johnson

    I bought cash and rehabbed. $~25k in repairs when we are all done. $45k purchase + $25k repairs. Similar comps at $120k.

    0Reply
  • Jeremy RhodesPro Member
    OP
    Member since 2019 · 35 posts · 12 votes
    7y

    @Tim Johnson

    Currently titled personal.

    0Reply
  • Alexander FelicePro Member
    Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
    7y

    Delayed finance. 

    you can remove the 6 month seasoning but you're only able to finance what's on the HUD-1

    I've written about it here 

    https://www.biggerpockets.com/blog/work-with-lenders-brrrr-method

    and talked about it on podcast 301. 

    it's got it's pros and cons, but it will do what you asked. 

    [email protected]Podcast Guest on Show #301
    3Reply
  • Jeremy RhodesPro Member
    OP
    Member since 2019 · 35 posts · 12 votes
    7y

    @Alexander Felice

    I’ve looked at the delayed financing. The current deal I have would mallow me to pull more equity out via a cash out. Looks like with delayed I can only use real expenses and not allow me capitalize on “buying right”.

    0Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    7y

    @Jeremy Rhodes There are "commercial"/portfolio programs out there with only 90 day title seasoning requirements to cash out based on new appraised value rather than be restricted to costs on the HUD under the delayed financing technique.

    [email protected]818-606-8823
    Investor Property Loan5307 Reviews
    WebsiteView Page
    1Reply
  • Jeremy RhodesPro Member
    OP
    Member since 2019 · 35 posts · 12 votes
    7y

    @Alex Bekeza

    That is exactly what I’m looking for. Thank you.

    0Reply
  • Schnepp Pete
    Gilbert, AZ · Member since 2014 · 2 posts · 0 votes
    7y

    I just did a delayed finance similar to you. Conventional guidelines allowed them to lend 75% of appraised value 

    0Reply
  • Kalee Hergert
    Member since 2019 · 2 posts · 0 votes
    7y

    I'm kind of looking at this same scenario right now. We talked to a commercial lender at a credit union and they don't have the 6 month waiting period, but they amortize over 20 years (not 30) and 1 point higher. They will let you pull out 80%... but it's not quite as good of a deal as the conventional side of the financing, because the 20 year amortization really slims your monthly cash flow. We are debating just waiting the 6 months so you can pull out almost as much cash, and cash flow more per month. 

    0Reply
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