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Are you a real estate investor who's familiar with the BRRR (Buy, Rehab, Rent, Refinance) strategy? If so, you might be interested to learn about the recent change in seasoning periods for refinancing.

For those who aren't familiar with the term, seasoning refers to the length of time a property must be owned before it can be refinanced. This is an important consideration for BRRR investors who rely on refinancing to pull their cash out of a property and move on to the next investment.

Historically, seasoning periods have varied depending on the lender and the type of loan being used. However, in recent years, there has been a trend towards shorter seasoning periods, with some lenders offering refinancing as soon as 3-6 months after purchase.

But now, the tide is turning. Many lenders are extending their seasoning periods to 12 months or more. This means that investors will need to hold onto their properties for a longer period of time before they can access the equity they've built up through rehab and rental income.

So why the change? There are a few factors at play here. For one thing, the housing market has been hot in recent years, with prices rising rapidly in many areas. Lenders may be concerned about the potential for over-leveraging and are therefore being more cautious about when they allow investors to access their equity.

Another factor is the increasing popularity of the BRRR strategy itself. As more and more investors adopt this approach, lenders may be looking for ways to manage their risk and ensure that they're not lending to investors who aren't truly committed to the long-term success of their properties.

Whatever the reasons behind the change, it's important for BRRR investors to be aware of these new seasoning periods and to adjust their strategies accordingly. If you're planning on using refinancing to pull cash out of your properties, you'll need to be prepared to hold onto them for a longer period of time.

Of course, longer seasoning periods also have their benefits. For one thing, they give investors more time to build up equity and improve their properties, which can ultimately lead to higher appraisals and more favorable refinancing terms.

In addition, longer seasoning periods may actually help to stabilize the housing market by discouraging speculative investors who are looking to make a quick buck and move on to the next deal. By requiring investors to hold onto their properties for a certain period of time, lenders can help to ensure that they're working with investors who are truly committed to the long-term success of their investments.

So, what's the bottom line? If you're a BRRR investor, you need to be aware of these new seasoning periods and adjust your strategies accordingly. While longer seasoning periods may be frustrating in the short-term, they may ultimately be beneficial for the long-term health of the housing market and your own investment portfolio.