BRRRR Strategy and seasoning requirements...

[Michael Slusher]

I wanted to add another question regarding BRRRR that I can't seem to find the answer to.

I called 5 portfolio lenders and all of them say that there is 6-12 month seasoning requirement for re-finance to use After Repair Value(ARV). They all say they have to use the purchase price not the ARV for the refinance if the seasoning requirement is not met. Can you please explain to me how to make this work without the seasoning requirement?

Example:

Purchase Price: $100K, Off Market, Foreclosure auction, or MLS

Renovations: $50k

After Repair Value: $200K

So based on 75% LTV, $150k

I should be able to get all or most of my money out. However all lenders I have talked to say it takes 6-12 months seasoning requirement before they can use ARV.

Please explain how this strategy can work faster to purchase more rentals.

Thanks,

Mike