@Michael Kiley you made a great point about the money vs time comparison. For those who think they can do it with zero money (only to find out the true upfront costs with a lot of hard money) and other fee's, that are often never discussed, when people talk about borrowing 'quick cash' from HML's and Private Lenders. People often overlook the possibility of JV-ing a deal. Yes it comes down to trust but if one person has the resource of time and the other has the resource of finances, those are often ways for newbies to get into the game and build some wealth with little or truly no money out of pocket. I feel many people steer away from this concept for the wrong reasons. "my name isn't on the deed" or "I'm not getting all the profit" those are often the ones that are in it for the wrong reasons all together anyway though.
To confirm @Michael Kistner's statement, there are plenty of HML's that have very short, if any, seasoning periods.
If you have the cash to purchase a property and are feeling like more of a late fall BRR temp in New England and not the mid winter BRRRR (my seasonal jokes are horrible, I'm sorry) here's one I've considered. You could potentially drop up to two of the R's (renovate & rent).
This would work when buying a rental property that doesn't need a lot of work, at a discount. While closing the deal with your own cash, get the process started with a HML who has no seasoning period. Close the deal today, refinance the deal tomorrow into a shorter ARM. Refinance once more into a conventional mortgage once your seasoning period with your normal lender passes.
This is certainly not a situation I see happening very often but on the right deal I could see this as a possibility. Has anyone done anything similar before in as quick of a turn (say within 1 week of purchasing)?
