Delayed financing w/ for more than original purchase price?

[Ryan Daigle]

I'm investigating delayed financing options for a BRRRR property and have run into a little hiccup - wondering how others have dealt with this. Basically, unless you're willing to wait for a 6 month seasoning period, it seems like the requirements are that your delayed financing loan amount cannot exceed your original cash purchase price (plus escrows, closing costs, etc...). This seems quite limiting if you're trying to BRRRR a property in under 6 months since so much of the out of pocket expense are the rehab costs which you aren't able to refi out of.

Is it really as black and white of a choice as 1) wait 6 months to pull out the full 75% LTV or 2) if under 6 months only pull out the original cash purchase amount?

I heard a podcast this weekend with a guest from Ridge Lending Group that seemed to imply if you documented something the right way on your closing statement that they could then let you do a delayed financing for the purchase price plus rehab costs (still under 6 months). Does that sound familiar to anybody?

Thanks for everybody in this forum already for even getting me to this point!

[Perry Farella]

Ryan,

There is a great rehab loan for small investors of single family homes called HomeStyle. All with 15% down based on purchase price + rehab dollars using ARV from the start AND projecting future rent to allow you to get 75% of the future rent as extra income to qualify for the loan; 30 term, rates around 6% these days, no pre-payment penalty so you can sell when ready and repeat. No worries about 6 months seasoning etc. I use it for my clients on large and small rehabs. I write about in my blog link on my signature. Happy to anseer questions anytime.