BRRRR/Lending - can you sidestep the seasoning?

[Daniel Judge]

Seeking the knowledge/advice of some seasoned lenders and/or BRRRR investors. I vaguely recall hearing about a trick that some BRRRR investors have used when it comes to the purchase and later refinance. It involved including the costs of renovation at the time of purchase on the HUD and placing those funds into an escrow account that can then be drawn from for the renovations. The trick is that this allowed the investor to then refinance early (not have to wait a 6-12 month seasoning period). Is anyone familiar with this method? If so, can you elaborate on the finer details? Thank you!