Financing To Keep Moving While Waiting For Seasoning Periods

[Darrell Essex]

Hello all,

so I'm a couple BRRRRs with a lease options in and the issue I'm having is Fannie Mae and Freddie Mac both need a 12 month seasoning period and so-far all the DSCR 30 yr I've found do 6-12 months seasoning. I've gotten both my houses rehabbed and rented in 2 months leaving me and my contractors waiting 4 months for the next project since I'm waiting to cash out to get the initial down payment back. Just need an infusion of cash to fund rehab costs while my initial funds are locked in equity until seasoning is done. I'd be able to acquire fix and flip loans from the money I used to rehab previous properties from the fix and flip loan reimbursements. Does anyone have a solution on a type of line of credit that's not a heloc, or a dscr cash out refinance that is maybe 3 months seasoning so I can keep the train moving in the express lane instead of making a ton of stops. I looked into small business lines of credit today but they will lend 10-15% of annual revenue which where I'm at now is only 68k so obviously I can't do much with a 6k line of credit to fund some rehab phases. Just trying to see if anyone has any creative options I haven't heard of yet. Can't find out what's out there if you don't ask for solutions to problems lol.

[Jay Hurst]

Quote from @Brian G.:

@Jay Hurst in your example are most people buying the $100k property and investing the $25k with HML and/or cash? You aren't financing the initial acquisition/rehab correct?

 @Brian G. Either cash or HML. and we do finance the HML as well but only in Texas.