Hi guys hope you all well and growing your business.
I usually buy single faimily homes from the auction at low price since they need tons of rehabs (the ones I pick), Im trying to implememt the BRRRR strategy, contacted couple of banks the problem is since Im trying to refi in less than a year they would give up to 70% of the purchase price and no apprisal at this stage (onw bank offered 3 months delayed purchase I think thats whats called but not sure).
The problem Im having is they depend on the purchase price which is low as compared to the ARV and wont send appraisal till 1 year and I neither have lots of cash to keep in one or two deals and wait for one year nor do hard money.
Trying to refi as soon as Im done with the rehab if possible which most of the time takes me 1 month max on average size house.
Any recommendations would be appriciated.
Wish you all the best of luck.
You need to establish the right relationship with the right local bank. Where I work and at most larger banks for the first 6 months it's all about purchase price and after 6 months you can refi based on the appraised value.
If you have the track record and your ARV's are right I would either go in person or call local banks or credit unions. A lot of places will tell you no, but that one yes will get all your cash out and open a lot of doors.
Thanks alot for your advice
Hello @Baraa Yassin
From my research I have seen at least 6 month minimum seasoning period.
I would be happy to help research banks if you need any help.
@ mike taravella
Thanks for your reply I sent you a message.
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