Told I have own property for 6 months before refi

[Adam Wallace]

I'm new to REI, but have done many other endeavors. I bought 2 houses and rehabbed them for cash. My plan, of course, was to refi and take out what cash I could and continue to leverage it. I started talking to lenders and was told by commercial lenders (all of them I talked to) that they would loan on LTV (ranging from 75-85%) where the value was the purchase price plus rehab cost. So, I asked my mortgage lender about a traditional mortgage and the terms are pretty favorable, but since I already own the house I was told I have to own the property for 6 months before we can do what is essentially a cash out refi. There are probably some creative things I can do regarding what entity is buying what house, but it seems like it shouldn't be that complicated.

What am I missing regarding these financing options? Thanks!

[Steve Vaughan]

Originally posted by @Adam Wallace:

So, I asked my mortgage lender about a traditional mortgage and the terms are pretty favorable, but since I already own the house I was told I have to own the property for 6 months before we can do what is essentially a cash out refi.  

What am I missing regarding these financing options? Thanks!

What's missing is the S for Seasoning in BRRSRR.  Not you're fault.  A gross injustice IMO.

It also leaves out HF for High Fees of the refi, but I digress.

6 month seasoning is min, 12 months is common.   Spread the word.