All Forum Posts by: Evans Murray

Thanks for all the excellent information! This was my first investment property and I truly appreciate all the support. I ran into the same situation with my new lender but luckily he called me before ordering the appraisal. So I decided to take the conservative route and wait the 6 months to get the best rates and terms (Fannie/Freddie). Thanks again!

Hi BP!

I bought and rehabbed a property back in July 2019 and I financed the whole deal with my HELOCS. The property rented out after a couple of days on the market and I'm trying to do a cash out refinance so I can pay off my HELOCS and repeat the process over again. The lender I selected said that he could do the cash out refi and close in about 30 days. After paying for the appraisal and going through underwriting, my lender said that I will have to wait 6 months because of a Conventional rule called delayed financing. He also said that apparently this is a Freddie and Fannie guideline. I wish he would have told me before I paid for the appraisal. Anyways, I'm I met another lender that's saying he can do the refi without a seasoning period. I don't want to pay for another appraisal and have the same thing happen again. Does anyone know about a Conventional Rule called delayed financing? Also, since I practically did a cash purchase for the property, why would I have to go through a seasoning period? I appreciate all input in this matter. Thanks!

Yes, I've been a  licensed agent for about a year and a half but I never dealt with a  scenario like this before. I thought the lien had to be paid for first but I didn't realize that the title company would take care of this out of the seller proceeds. This makes perfect sense! Also, this is my first investment property and I really appreciate  your response. Thanks!

I found this amazing deal on 3bds and 2ba w/garage for $53,700 but the seller has a home equity loan on it for $18k. The house needs some TLC but the ARV is around $120k. I personally know the seller and she desperately wants to get rid of the property. I was about to put it under contract today and that's when she told me about the loan. Does anyone have suggestions on how we can make the deal work? I thought about paying off the $18k out of the $53,700 for the purchase of the property then pay her the difference. But I want to be sure that I protect my interest in case she defaults. Any suggestions? Thanks!

Thanks for the reply. I will check with the title company to get estimates for the other costs.

I am considering purchasing a property using the BRRRR strategy. It's a 3bds, 2ba and I plan on offering $50k for the property. To finance the deal, I will use my HELOC which should cover the cost of the property and the rehab. Since I'm not using a traditional mortgage to finance the property, how should I calculate the closing cost with the BRRRR calculator?