Refinance portion of BRRRR

[Ricky McCoy]

Hi all, 

New investor here with some questions on the refinance portion of the BRRRR strategy. Most banks that carry Fannie/Freddie loans have a seasoning period of 6 months which is a long when you have carrying costs. Any ways around this? I've found a couple of options, but not sure how legit they are:

-Delayed financing prior to 6 months, but only based on purchase price and closing costs, not ARV which isn't ideal.

-Cash out Refi with a private lender who has higher rates/fees

-One of my friends buys a property in the name of his LLC, rehabs it, then sells it to his spouse. Which apparently is a way around the seasoning period

Thoughts? Thanks!

[River Sava]

Hey Ricky -

Some DSCR lenders have short seasoning periods (including under 3 months) which could be a great option to explore. Note that there may be nuances depending on the specific seasoning period. Happy to chat further if you have questions.