Investor · NJ · Member since 2019 · 80 posts · 71 votes
Hey BP folks! Wanted to know if anyone has a good contact for a cash-out-refinance lender who has a shorter than 6 month seasoning period in the Cincinnati area. We are working on our first BRRRR deal, and I am trying to get my ducks in a row for the exit. We bought in cash, and are hoping for at least 70% LTV. Would appreciate any suggestions! Thanks!
Hey BP folks! Wanted to know if anyone has a good contact for a cash-out-refinance lender who has a shorter than 6 month seasoning period in the Cincinnati area. We are working on our first BRRRR deal, and I am trying to get my ducks in a row for the exit. We bought in cash, and are hoping for at least 70% LTV. Would appreciate any suggestions! Thanks!
Hi Timothy, most Lenders require the seasoning period if you want to do a new valuation. I have used a HML that had rates at 5.5% on a 30 year fixed, and refinanced within 6 months for one of my places in Columbus. Global Integrity Finance, give them a call.
Hi @Ashley Cross! Purchased at $32.5K, ARV should end up in the $120-130K range. Was hoping to not have to season it for full 6 months to pull money out since we bought in cash.
@Steven Foster Wilson - Thank you for the recommendation sir I will give them a shout tomorrow morning!
You got a great deal! If you are pulling equity Fannie/Freddie guidelines require 6 months seasoning. You would be limited to the $32.5k + closing cost within 6 months. Those are great terms for a HML. If their fees end up being higher than you want to pay I can give you a quote for a conventional c/o refi. Best of luck to you!
@Ashley Cross - Thanks Ashley. I will do some shopping around and get back to you. Looking to ultimately pull out 70% of ARV on the back end so we can repeat the process. If we have to wait the 6 months it won't be the end of the world, but will just slow us down on getting the next one. Got a couple recommendations from this post in inbox, so I will be making some calls tomorrow! Thanks again!
@Timothy Boyd the only person I know that has done these loans in the past is Darrin Carey at Dayton Capital Partners. He was at least at one time doing 3 month seasoning BRRRR loans. Not sure if he still does them but that's one option to check out!
We work with some smaller banks up in the Dayton area that have no seasoning requirements. Granted we have a relationship with them at this point, but would be good to look around for some smaller banks that keep their loans in house, then they can loan without the typical Fannie/Freddie guidelines. We buy with cash, fix and finance and typically pull all cash back out after we have the tenant (normally 2-3 months). We do pay slightly higher rates - 4.25 and 20 years right now, but the ability to immediately pull all the money back out and our long term relationship is worth it.
Thanks Matthew. Sounds like a plan. I have some phone calls to make tomorrow based on the recommendations, and I'll make myself a list of the local banks and credit unions to call them too. Really appreciate the advice from you and others. I'll let you all know how it goes!
@Account Closed. I'm working with JJ Panewicz with Rapid Mortgage Company and he's told me he can do a cash out refi with no seasoning period. JJ services all of Ohio. I plan to use him once I'm at the refinance step of my BRRRR. I can provide more of his information if you're interested.
Hi Shyd! Yes that would be great if you can send me his contact info. I am going to call all these folks today and tomorrow and try to figure out what the best option is. Thanks so much!
@Account Closed Not this really answers your questions but something I have went through myself. I use to get frustrated with the 6 month seasoning period, but considering most the time you have renovations and need to lease up a property, by the time you start the refinance process, usually they take 2 months to complete right now with appraisals being so behind schedule, the 6 months is not long to wait it out! My lender will start the process around 4 months and then we close after the 6 month mark.
Hey Joseph. Yes, worst case it'll just be the 6 months and that won't kill us. Talked to some folks last week and am hopeful we can get it sooner, but we'll see. I'll definitely keep you all posted!