BRRRR refinancing step - getting past the seasoning period

[Craig Latham]

My partner and I just closed on our first deal (3 plex property in Cleveland) after a year of education and 6 months of analyzing and making offers. Its been fun and now we are learning more than we ever have by jumping in. We are now faced with a hurdle to our strategy and are looking to see what others have done in similar cases. We purchased the property cash and planned to BRRRR the property to repeat..... The property sits in one of our names, but we have a LLC. We would like to transfer the property to our LLC and then refinance or take out of line of credit. I am having difficulty finding a lender that will lend even a 70% LTV to our business without taking the lessor of the appraised value or purchase price prior to a 1 year seasoning. We had hoped for 70% LTV on the ARV. Should I keep the property in my name and do a residential HELOC or refinance against it or are there better alternatives to BRRRR to avoid the 1 year seasoning?

[James Wise]

Originally posted by @Sam Marquez:

Hey all - jumping in as I'm looking into this as well. If you can't refi in an LLC as @James Wise mentioned, how do you protect yourself from liability?

 A strong insurance policy is the best method. On top of that you've got to remember that you cannot eliminate risk in this business. One must be acceptable to some form of risk whenever they choose to invest. Also worth noting that so long as your properties are not in violation of housing codes that risk is relatively small.