Working Around the Seasoning Requirement

[Adam Blevins]

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!

[Gretchen Guarino]

Hey Adam! There are definitely portfolio lenders who will refinance a rental property with no seasoning requirement. Fix and Flip financing loans are generally 12 month bridge loans with interest only payments. The lenders will finance the purchase and the rehab. The name of the game to to renovate the property and then sell it as fast as possible. The buyer of a flip would be responsible for finding their own financing and there is no seasoning requirement for a purchase. 

I have access to portfolio lenders. Feel free to message/connect directly if you want more info. I am more than happy to explain this in more detail.