All Forum Posts by: Dakota Adney

@Daniel Portka I’m having the same issue right now. There is one strategy around the seasoning period. I’m in the process of trying to use it, but it’s a little complicated. It’s explained in detail here:

https://www.biggerpockets.com/forums/48/topics/460294-how-to-cash-out-1-4-unit-property

@Shaun Weekes I’m looking to get financing for the purchase price + rehab costs. To my knowledge, Delayed Financing would only recover the purchase price.

Hey BP Lenders!

Looking for an outside-of-the-box solution here:

My situation:

I'm in the process of constructing a solution to the 6 month seasoning period for a 30 year note in by BRRRR process. I purchased the property with cash, and I've only owned it two months, so I can't seem to find a 30 year note option.

Which led me to Rate and Term re-fi's. I understand there are no seasoning requirements. The problem is: I don't have a note on the property, so I'm technically not paying off an existing mortgage and therefore ineligible. 

My questions:

1) Can I file a note against my own property (with an LLC I own or a family member as the "lender") and therefore be eligible for a Rate and Term re-fi?

2) Are there any legitimacy qualifications for the "lender" being paid off? 

Extreme example: What if I have my grandma file a 15-year, owner-finance note with the county? I would immediately be eligible for rate and term re-fi, pay her back, and not wait 6 months. 

I'm late to this thread, but I have another angle that I'm considering: What if the property is owner-financed (i.e. the note is held by a private individual or an LLC, similar to a hard money lender). Can I rate and term re-fi this? Are the any qualifications for the legitimacy of the current mortgage holder? A simple example is: What if my dad holds a note on a property I own- Can I rate and term re-fi to pay him back?

@Ben Smith Adney Plumbing- 918-486-13oo

@Jerry Padilla. I have a similar situation to @Kumar Paj above: I recently acquired a property with hard money for $88K in June 2019 and put $15K into rehab. It is now July 2019 and the appraised value is $130K. If my property has a lien on it from the hard money, could I do a rate and term refi and can I get 75% of $130K?

Hey BP!

I'm in the middle of my first BRRRR deal. I'm about one week from completing the rehab and am starting to dive into the "rent, refinance, repeat" portion of BRRRR. I've spoken to my local bank about the re-fi terms, and shouldn't run into any kinks as I've had a relationship with them for years.

The property is on track to look great- I purchased it as an REO and the previous owners left the place the wreck. I have come up with an estimated ARV should be very close to 75% in, but the appraisal will tell all.

My question is:

Why does the BRRRR strategy list "rent" before "refinance"? It seems like I should refinance and have the property appraised while it is clean, empty, and newly remodeled. After I put a tenant in it, who knows what it might look like...

Why wouldn’t an investor (i.e. me) hold off on placing a tenant in order to ensure the appraisal comes in at top dollar?

Would love to hear what experienced BRRRR-ers think about this!

I'm a little late to this post, but great info. Thank you for sharing! I would love to see a video of the current market conditions if you have time to make another in the near future.