All Forum Posts by: Stefan D.

@Trevor Aydelott That's great, hope you get delayed financing to work, I'd love to hear about it if you did.  I spoke to 3 lenders who said they couldn't do it, but there's obviously got to be lenders out there still doing it...

@Trevor Aydelott. Everything except for the refinance went great, thanks for asking.  Rehab came in under budget and it's been rented.  Unfortunately I wasn't able to use Andrew's method - my title company botched the closing, and the lender I use with 90 days of seasoning stopped doing those kinds of loans with the pandemic/recession.  I plan on refinancing with a conventional mortgage in July, and then giving Andrew's method another shot on the next property.

@Ashley Petersen It should be possible if you borrow some money and do a few long distance BRRRR's a year, with single family homes around 100k - if you count the equity you're building. For example, if you build 20k in equity on each deal, and do 3 deals a year you'd be making $60k in equity. Your cashflow is obviously less than $5k a month but you'd be building up to it. Good luck!

@Marky Suazo Hey Marky, a lot of the nationwide lenders that used to do 90 day seasoning pulled their loans or raised their rates with all the recent financial uncertainty.  I was in the middle of a refi with Finance of America when they decided to stop doing that kind of loan, now I'm going to wait until July for a conventional mortgage.  You might want to talk to investors in Memphis to see if they know of any local banks that can help you out.

@Paul Herrmann

Congrats on getting the deal Paul.  I'll DM you some lenders

@Andrew Postell

For #2, is that an actual escrow I'll use to pay for rehab, or is that a "theoretical" escrow, and I'll just wire $55k?

@Andrew Postell Hey Andrew, I'm trying to do this on a house I'm closing on this week.  My title co seems a bit confused.  The house plus closing is $55k, I want the lien to be $95k.  Will I need to wire $55k, or will I need to wire $95k, and have the title co send me a check for the remainder?  

Thanks for all the great info!

@Andrew Postell

Thanks so much for taking the time.  I'm actually closing on a house on Wednesday, and I'm going to try to make this work!  

Thank you Andrew, that was absolute gold!  

Just to make sure I understand it: The funds need to start out in the LLC's bank account right? And the house is purchased under your name (for a conventional mortgage)?

There's a lot to figure out there: The legalize for the loan, etc.  Is this something people usually hire a lawyer or other professional to do, or do you see people figure it all out on their own?  (I'm all for DIY, but I wouldn't want to make any costly mistakes)

Since I'm still getting some interest on this post, I'm going to post an update:

I spoke to three lenders in Sep 2019, and they all said delayed financing, with adding my rehab to the ALTA or HUD was no longer possible.

Instead, I used a non conventional mortgage with a 90 day seasoning period, that does 75% of the appraised value.  PM me if you want my lender, they are nationwide, with a minimum appraised value of 100k.

It might still be possible to use a version of "delayed financing" by reselling the property to another LLC you own, at the price of Purchase + Rehab, that way you can refi with a higher purchase price. You have to close twice, I don't know all the details of this method but hopefully this points you in the right direction.