BRRRR Lenders without Seasoning Period

[William Barr]

Hello!

I am looking for a lender to use for BRRRR deals that will allow me to refinance without a "seasoning period" on the original mortgage. I know that the typical time period to refinance is 6-12 months, but I've heard of people finding some lenders/banks that will allow the investor to refinance as soon as the property is rehabbed and rented.

Where should I be looking for these type lenders?

Thank you!

[Andrew Postell]

@William Barr wow, so glad I found this post. Rule #1 when using the BRRRR strategy - NEVER work with a lender that requires ANY seasoning.  None.  Have to have it.  I need to refinance RIGHT away in order to get the BRRRR strategy to work.  Now, maybe there's some structuring issues on how you might purchase the property - which is why we should be getting PREQUALIFIED before we purchase a property.  That way I know how to structure the transaction so I don't face any seasoning. But an option needs to be shown to me how I can refinance right away.  I'll include the normal list of questions I tell everyone to ask their lenders when they are interviewing them to find out if they are "investor friendly" or not but I actually wrote an entire post on that subject that you can find HERE.  Feel free to read up on it and let me know if you have any other questions on this topic.  Thanks for posting!

Questions for Lenders

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
2. When do you start using “After Repair Value” on my property? (also needs to be immediately)
3. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
4. What is my minimum down payment required? (if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
5. How many loans can I have with you?
6. Can I change title to my LLC?
7. Do you sell your mortgages?
8. What is your loan minimum?
9. Can you explain to me what your reserve requirements are?