Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 3 years ago,

User Stats

70
Posts
39
Votes
Scott Winter
  • Costa Mesa, CA
39
Votes |
70
Posts

Lenders...what's the deal with the seasoning period?

Scott Winter
  • Costa Mesa, CA
Posted

So, I'm staring at David Greene's BRRRR book right now pg 232...Seasoning Period 

"Many lenders don't want to finance something right after an investor buys it. This is because they want to make sure the property is stable, rented, and wasn't a "fire sale" situation.  This is one of the methods lenders use to protect their investment."  

Can someone explain the reasoning behind why seasoning periods exist or specifically how it protects the investment?

I'm in a situation where I'll be ready to refi in about 2 months of owning the property.  BRR_ ... 

I can only see my perspective, and my perspective says, "it sure would be nice to pull my money back out for the next project."  And it seems like lenders are dying for our business, but have a rule that I have to own the property for another month (some want 6 months!)?  It just seems arbitrary, so please help me to understand so I don't call every lender in the country.

Loading replies...