Seasonal Period for loan

[Derek Schmidt]

Hello!

Does anyone know of any lender that does not have a seasonal period? If so, what is the catch?

Thank you!

[Andrew Postell]

@Derek Schmidt you should always work with a lender that has NO SEASONING. At least, this is what I would highly recommend. You can do whatever you want to do of course...but we need no seasoning or else the BRRRR method wouldn't work. Now, sometimes people don't STRUCTURE their deals correctly and that can be a problem.  But in most cases, you can certainly structure your acquisition to accommodate having NO SEASONING when you go to the refinance.  

When I first got started investing in real estate 20+ years ago the first few lenders I went to told me that the BRRRR method was "illegal"....and that's why they couldn't give me a loan. There are over 8,000 lenders in the US and I thought that all lenders were the same - and they are not. It's not "foolproof" but I would highly suggest networking with other real estate investors in your market to see who they are using for lenders with the BRRRR method. That will at least get you in the right direction. Once you get in front of some potential lenders, ask them these questions:

Questions for Lenders

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
2. When do you start using “After Repair Value” on my property? (also needs to be immediately)
3. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
4. What is my minimum down payment required? (if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
5. How many loans can I have with you?
6. Can I change title to my LLC?
7. Do you sell your mortgages?
8. What is your loan minimum?
9. Can you explain to me what your reserve requirements are?

Hope all of that makes sense but feel free to post anything else that you may need. Thanks!