Alternatives to waiting for the hold period after BRRRR?

[Ross Yeager]

I just purchased an all cash deal that I'm rehabbing and will have an ARV that I'll be able to finance and get back my initial investment (LTV 75%). I purchased the property and fixed it up all in cash, but in order to finance it to get my investment back, I believe I'll need to wait the minimum settle time which is ~6 months. I was able to purchase and rehab within a few weeks time, and I'd like to take advantage of that and move on to the next property. Is there anything I can do here to get financed sooner than the typical 6 month settle period? I realize I can just wait it out and cashflow nicely, but I'd like to get the ball rolling on additional properties here at the beginning (happy to hear arguments for/against that too, btw).

The solution I was thinking of was to do some sort of intermediate loan with private money until the 6 month period is over and then go with traditional lending at that time.  I'm sure there are other creative ways to do this, so figured I'd ask!

[Jay Hinrichs]

Originally posted by @Steve Vaughan:

Originally posted by @Jay Hinrichs:

Originally posted by @Steve Vaughan:

I have a generic sounding s-corp I use as my PM co.  I record deeds of trusts in the amount of PP and rehab using it as the mortgagee.  I do this so there is no 'cash-out', just a rate and term refi.  The cash out is what necessitates seasoning from what I understand.  Remove that.

I haven't refinanced any of these, I mostly use them to appear encumbered if anybody pokes around. If I do decide to refi my latest BRR bought with cash, I will post a thread about my experience. Another reason I am waiting is so my pre-rehab purchase of the house 50 days ago doesn't end up being the appraiser's best comp.

As a side note, 6 months isn't forever.  Begin the process about 6 weeks prior. You will survive.

 good underwriter looking at your tax returns will see you own the debt and the asset.. probably gets bounced.. 

this is what HML did pre 08 all of our loans went to buy and hold folks and we did rate and term refi.. but we were a true third party lender .. its was a great gig while it lasted my average turn on my loans was 92 days.. and the buyers not only had no money in the deal they got refi proceeds usually 5 to 8k a house and they would do 4 and a time.. now they were suppose to take the refi proceeds and put them in their reserve account.. but alas the reserve account ended up having Jets skis in them instead maybe a new car.. or that trip they wanted to take.. etc etc.. anything but where it was suppose to go.. but I am with you if you can refi in 6 months just start the process and wait and see what you get.. bridge loan will defeat the purpose UNLESS you have a smokin deal and its worth spending 5 to 10k from a guy like me to bridge you .. IE you got a deal that has some great upside so the cost to get it is easily absorbed .. but generally not the case for most investors.. best to just wait and refi once.

 My best guess is you're right (of course!). I bet my shady self-encumbrance gets bounced, but that's ok.  I may have to re-convey to get it done or just not bother.  I will post about my experience when I decide to do one.  Taking bets now. Odds are 3:1 against. Who's in?

Ya know what I have my mortgage bankers CE this Monday… and well I am the token hard money mortgage banker in the group the other 75 all do conventional fannie Freddie stuff.  I will ask this as a case study and see what they say.. I mean 74 mortgage brokers should know and the person who runs the CE class is highly experienced..   stanby for news