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Updated almost 4 years ago,
Working Around the Seasoning Requirement
So, I"m a new investor and I'm trying to wrap my head around the seasoning requirement. Near as I've been able to ascertain, the best bet to work around it is to find a portfolio lender that doesn't have that requirement. Seems like that'd work out in the BRRRR model where the financial lending is all between the property owner and the bank. That being said, what about flips? If I purchase a property to flip, how can I direct a potential buyer to a certain lender? Otherwise, wouldn't I have to hold the property 6-12 months before selling it?
When I scroll through the BP Podcasts and see titles like "150 Deals at Age 22", "How a 25 Year Old Bought $1M of Real Estate in 1 Year", 0 to $1m Net Worth in Five Years", etc., that tells me one of two things. Either a lot of people had a pile of cash lying around to buy A LOT of properties in quick succession or there's a piece of the financing puzzle I'm missing. In most instances, I'm betting its the latter and not the former.
Any advice on working around the seasoning requirement and how different financing strategies play in? Are there resources anyone would recommend checking out so I can better educate myself?
Thanks in advance!