The banks "seasoning" period

[Noah McPherson]

Good morning BP,

I was reading this article Felipe Mejia posted about BRRRR for beginners, and it said this about the seasoning period.

Is this typically true? I've never done a BRRRR, but from what I understood, if I used a HML or private lender, I could refinance out immediately when the bank takes over. Can someone clarify? If it is necessary for the property to be rented for 6-12 months before refinancing, what are some ways around that. Let's say I did a 3-4 month rehab. How can I refi as soon as the rehab is complete?

[Andrew Postell]

@Noah McPherson oh man, no, No, NO!  We do NOT work with lenders with any seasoning requirement - ever.  I mean, I guess you can work with whomever you want but if a lender is telling you that you have to wait 6 months to a year to get value - THEN GO TO ANOTHER LENDER. There are plenty of lenders that do not require you to be on title for any amount of time and will give you full After Repair Value (ARV).

Now I will say that sometimes the way the deal is STRUCTURED will come in to play (like if you purchase the property entirely in cash or if you have multiple partners) but even in those scenarios you don't have to wait.  But you should most certainly be interviewing lenders before you pull the trigger on a property to get the proper information on how they lend money.  I wrote an entire post on this topic that you can read HERE.  Let me know if you have any other questions on it.  Here to help.