Looking to refinance quicker (BRRRR)

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Looking to refinance quicker (BRRRR)

John Lopez
Investor · Charlotte, NC · Member since 2015 · 28 posts · 15 votes

Greetings, 

I am about to begin a BRRRR project. I am closing with a cash purchase and I expect to complete the renovations and have the unit rented within 60 days.

My current lender will do a cash out refinance 6 months after purchase (with a conventional 30-year), but I've heard of some banks being able to do that a little quicker.  Does anyone know of any finance options that get my cash out quicker?  The home is located in the Charlotte, NC market. 

Thanks,

John    

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Account Closed
Rental Property Investor · Orlando, FL · Member since 2016 · 463 posts · 220 votes
9y

If you bought and rehabbed all cash (i.e. didn't take out a loan) you can use the "delayed financing exception" to refinance sooner than 6 months. Look into it- it's quite common. If your lender doesn't know about it or do it, call other banks.

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  • Ritch Bonisa
    Specialist · Indianapolis, IN · Member since 2016 · 841 posts · 480 votes
    9y

    I don't know about the options.  I could pass along a few good hard money lenders.

    0Reply
  • John Mathewson
    Developer · Hobart, IN · Member since 2014 · 773 posts · 225 votes
    9y

    @John Lopez I would recommend you talk to Ridge Lending. The seem to be pretty good at the refinance depending on how you purchased it. 

    0Reply
  • Jacob Ghena
    Realtor · Medford, OR · Member since 2016 · 26 posts · 14 votes
    9y
    Pretty sure that is a conventional guideline....you will need a portfolio lender who doesn't have title seasoning requirements.
    0Reply
  • John Lopez
    OP
    Investor · Charlotte, NC · Member since 2015 · 28 posts · 15 votes
    9y

    @Jacob Ghena,

    I just did a quick read through the Fannie Mae guidelines. It appears that you are right.  If I want to stick with conventional I will need to wait 6 mo (per B2-1.2-03 Cash-Out Refinance) Thanks.   

    0Reply
  • John Lopez
    OP
    Investor · Charlotte, NC · Member since 2015 · 28 posts · 15 votes
    9y

    @John Mathewson I will check out Ridge Lending.  Thanks

    1Reply
  • John Mathewson
    Developer · Hobart, IN · Member since 2014 · 773 posts · 225 votes
    9y

    @John Lopez Anytime let me know if you have any other questions on it. 

    0Reply
  • John Lopez
    OP
    Investor · Charlotte, NC · Member since 2015 · 28 posts · 15 votes
    9y

    @Ritch Bonisa Thanks, but I don't need hard money on this one.  I'm looking for long term, low rate financing. 

    0Reply
  • Dante Pirouz
    Investor · Almont, MI · Member since 2015 · 360 posts · 302 votes
    9y

    MB Bank can do 30 days seasoning...ask @Jerry Padilla

    1Reply
  • Account Closed
    Rental Property Investor · Orlando, FL · Member since 2016 · 463 posts · 220 votes
    9y

    If you bought and rehabbed all cash (i.e. didn't take out a loan) you can use the "delayed financing exception" to refinance sooner than 6 months. Look into it- it's quite common. If your lender doesn't know about it or do it, call other banks.

    2Reply
  • Shaun Weekes
    Loan Officer / Processor / Life & Health Agent · Rancho Cucamonga, CA · Member since 2014 · 1k+ posts · 757 votes
    9y

    @John Lopez,

    As mentioned by @Account Closed delayed financing is going to be an option if you buy the home with cash. You will be able to use new appraised value but you need to close before the six months is up. You'll also only be able to get 70% LTV on a cash out on an SFR or 65% on 2-4 units as opposed to waiting for 6 months the regular way.

    I hope this helps and have a great day Sir.

    0Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    9y

    @John Lopez Can your conventional lender start the refinance process and close on the 180th day or do you have to wait until the 180th day to start the process?

    If you can start the process before it might be worth the wait considering all of the points and fees you will be paying on a commercial loan.  Let's say you have it rented within 60-90 days like you mentioned, it takes 45-60 days for a refi to go through anyway.

    0Reply
  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    9y

    @John Lopez As many have pointed out, if you buy with cash (i.e. NO lien against the property), then you can do a Delayed Financing within the 1st 6 months. The loan will be based on a new appraisal, but you will be limited to the lower of the purchase price OR the purchase LTV.

    What every you do, DO NOT put the property title in LLC. With recent guideline changes, you will not be able to do a cash-out refi using conventional if its in LLC, even after 6 months. New guidelines require that 6 month seasoning in YOUR name.

    [email protected]571-200-6180
    0Reply
  • Narmina G.
    Private Money Lender · San Francisco, CA · Member since 2015 · 113 posts · 28 votes
    9y

    Hi @John Lopez,

    You might want to look into refinancing using a private money lender. You could refi and cash out right after rehab @75% LTV (no seasoning) and use the new value.

    John Lopez

    John Lopez

    0Reply
  • Pete Edmonson
    Specialist · Annandale, MN · Member since 2016 · 14 posts · 5 votes
    9y

    When using the Brrrr method, I'm trying to avoid (or cut down on) the double closing costs of purchasing the home, rehabing and then refi'ing in 6 months. What is the best way to do that using conventional financing?

    0Reply
  • Jerry PadillaBusiness Member
    Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes
    9y

    @Dante Pirouz Thsnk you for the mention! 

    @John Lopez Ic purchasing with cash - you can refinance within 6 months, but you are limited to cashing out up to a max of the purchase price. If you are looking to get more than that, you can start the process earlier than 6 months and close at the 6 month mark. If you purchase the property originally with a mortgage, than you have to wait until the 6 month mark. 

    [email protected]585-204-6923
    PrimeLending 4.8582 Reviews
    WebsiteView Page
    0Reply
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