All Forum Posts by: Michael Slusher

I was listening to a Podcast and one of the sponsors was B2R Finance and it redirected me to this site for Finance of America, https://www.foacommercial.com/?redir=b2r

Anyone use this company for the BRRRR strategy. Says only 90 day seasoning requirement for refinance up to 75%. Below is copied from the site. May have found the holy grail...Any insights???

@David Prince I agree...I would like to scale my rental portfolio quicker if possible so any strategies would be greatly appreciated.  I guess I could go back to flipping if needed and only keep 1 or 2 rentals per year which would spread out risk but I would like to purchase more than 2 rentals per year if possible.

I wanted to add another question regarding BRRRR that I can't seem to find the answer to.

I called 5 portfolio lenders and all of them say that there is 6-12 month seasoning requirement for re-finance to use After Repair Value(ARV). They all say they have to use the purchase price not the ARV for the refinance if the seasoning requirement is not met. Can you please explain to me how to make this work without the seasoning requirement?

Example:

Purchase Price: $100K, Off Market, Foreclosure auction, or MLS

Renovations: $50k

After Repair Value: $200K

So based on 75% LTV, $150k

I should be able to get all or most of my money out. However all lenders I have talked to say it takes 6-12 months seasoning requirement before they can use ARV.

Please explain how this strategy can work faster to purchase more rentals.

Thanks,

Mike

I wanted to add another question regarding BRRRR. I called 5 portfolio lenders and all of them say that there is 6-12 month seasoning requirement for re-finance to use ARV. They all say they have to use the purchase price not the After Repair Value. Can you please explain to me how to make this work without the seasoning requirement?

Example:  

Purchase at Foreclosure auction or MLS for $100K

Renovations: $50k

After Repair Value: $200K

So based on your 75% LTV, $150k

I should be able to get all or most of my money out. However all lenders I have talked to say it takes 6-12 months seasoning requirement before they can use ARV.

Please explain how this strategy can work faster to purchase more rentals.

Thanks,

Mike

Wow...thank you all for the info.  I will reach out to a few of the options provided.

Appreciate all the responses.

Hello All,

I am having a tough time finding/choosing a portfolio lender in Tacoma, WA or surrounding areas. I currently bank with Harborstone Credit Union and I found they do keep some of their home loans in house but not all. I was wondering if I should continue to bank with them or move accounts to another lender. I would really like to start purchasing from Foreclosure auction and need a lender with little to no seasoning and willing to loan 70%-80% of ARV using BRRRR strategy.

Background:  I flipped 10+ properties prior to the 2008/2009 meltdown and I had several rentals properties.  I am now back on my feet and want to start buying rentals mostly in the Puget Sound area and want to establish a relationship with a local Portfolio lender.

Any direction would be greatly appreciated.

Thanks,

Mike