Commercial Lending for Residential Properties

[Eddy Jerez]

I bought a fourplex and rehabbed with cash with the intention of BRRRR. Just completed rehab and 2/4 rented out in a week. The problem is that lenders will not refi/lend as I intended to refi to my personal name to leverage residential loan terms and interest because they require a seasoning period. I need that cash to repeat the transactions as there are many to be made in this market, San Juan, Puerto Rico, however, all lenders have told me that the transaction has to season from 6 months to 12 months. They literally told me they have rules against flipping...?.. Waiting is killing me. Since the property is free and clear and fully rehabbed, I am considering approaching through the commercial lending division. I would try asset-based lending to pull money using the property as collateral as short-term money. It could be less expensive than hard money. Can anybody share ideas or views on this approach? The money would be used to BRRRR again while the first one seasons so that I can refi that money out.