BRRRR - Trouble getting Financing

[Mark Delosreyes]

I am getting ready to purchase a commercial property that has apartments upstairs and businesses downstairs - already fully occupied. We are buying off market, and feel like we are getting a good deal. We are buying this property with our LOC, so a "cash" purchase. However, we want to refinance right away, pay off the LOC + repairs, and take some cash out to purchase more properties (BRRRR method). Most banks are telling me they will only lend 75% of the purchase price + repairs. I'm pretty confident this property will appraise for more than doubled our purchase price. I've talked to most of the local banks, and they are giving me the same answer - 75-80% of purchase price + rehab. Is there no way around the "seasoning period"? Also, are there any lenders out there that would lend me 75% LTV on the appraised value, with decent terms? Thanks!

[Andrew Syrios]

Many banks have a seasoning requirement, i.e. you have to own the property for so long before they will refinance at appraised values. Most won't lend on appraised value right away unless you at least put some rehab money into it. You should ask these banks about their seasoning requirements. Hopefully you can find one that is rather short and use them.