Take advantage of Fannie loans vs. using banks with no seasoning

[Ishviyan D.]

In terms of the BRRRR strategy, we know that Fannie / Freddie loans require a seasoning period of 6-12 months prior to doing a cash out refinance (4-10 loans max). This can certainly slow down the clip at which the investor gets his money back to reinvest. Portfolio lenders and commercial lenders that do no have a seasoning requirement nor a max number of loans, although their terms are not as desirable as Fannie / Freddie.

Here's my question: if the investor has not maxed out his Fannie / Freddie loan slots, is there any disadvantage to first dealing with a portfolio lender or commercial lender and conducting many BRRRRs in a short amount of time, taking that approach as far as you can, and then moving on to conventional Fannie / Freddie loans? Wouldn't this approach help you scale up the number of rental properties much faster, by avoiding the Fannie / Freddie roadblocks than can slow you down?