BRRRR and Seasoning Period

[Tyler Wehrung]

Hello BP!

I have an accepted offer on my first property that I am purchasing with all cash. My strategy was to purchase with cash, rehab, rent, refinance. I just recently learned about the "seasoning" period which from what I've read can vary between six months to a year. Within this period you can only refinance for the current value of property or the sale price - whichever is lower (I would hope the latter is always true and in my case it is) and this is called delayed financing. I've heard/read a lot about BRRR, but I've not heard anyone mention this seasoning period before. I'm wondering if there is a way around it or if its just something you have to accept, wait it out, then continue on? If that is the case, I'm thinking about the delayed financing option to at least get 80% of my money back to put in other deals so I'm not sitting on the sidelines for a year. I'm interested to hear thoughts from you more experienced investors. If you need any additional details, feel free to ask. Any info is greatly appreciated!

Thanks in advance,

Tyler

[Andrew Postell]

@Brent Coombs oh, good catch. That link is referring to cash out loans when you own the property and you had it up for sale yourself.  This rule doesn't apply if you are doing a "rate/term" refinance.  This also doesn't apply if the previous owner had it up for sale and you bought it from them.  I know, it's not very clear on this explanation but the "up for sale" thing is only if the borrower (you) has the home listed for sale under his/her name.  And this only applies to cash out refinances.  Hope this helps.