BRRRR - Seasoning Period - Refinance

[Sean Beyrouthy]

Hello all! I am an investor in Delaware county right outside of Philadelphia. I currently have two rentals properties near Widener University and looking for my third. I know finding a full BRRRR in the current real estate environment is near impossible, but I was curious how investors currently doing the BRRRR method are able to get out of their hard/private money and have the bank acknowledge the new value of the rehabbed house before the 1-year seasoning period?

All the banks I have talked to will only give me financing on the LTC rather then the LTV of the rehabbed house if it is before the 1-year seasoning period, thus I am not able to get as much money on the back end as I would like or I have to wait a whole year to refinance out.

Is anyone else having this issue? Would love to get some insight, feel free to message me as well, always looking for new connections. 

[John Chong]

You can get out of the hard/private money with only 3-6+ months seasoning with a DSCR loan. No need to wait for 1 year of seasoning. PA can be a little tricky because of the PPP laws if its under a certain loan amount.