Has anybody refinanced a project after using a hardmoney loan

Financing, Hard Money Lenders, Private Money
1

Good day,

I found a rehab project in NYC and I wanted to use a hard money lender. The deal looks good, but I wanted to have two exit strategies available. My first strategy would be to buy, fix and sell the property. My second strategy would be to buy, fix and refinance the property, so that I can rent and receive a net cash flow of 2,500(give or take).

Has anyone ever used a hard money loan then refinanced after the project was completed? If so, what is an approximate time I would face to complete the refinance if I went that route?

The details are listed below:

3 family unit
ARV 325,000
Purchase 177,000
Rehab cost 30,000
taxes 3000 per year

Thanks in advance!

2

yes, the trick is to make sure the first appraislal is accurte,and the area isn’t full of bank owned properties at the time,otherwise comps even a couple of months later can drop by thousands causing you to have to bring mroe money to the table on refinance

3

Before you jump in a pool, you want to know where the exits are first!!

So line up a lender that will refinance you out, BEFORE you buy! Do you need 3 month? 6 month? or even 1 year of title seasoning before you can refinance?

Will they let you do cash out or just rate&term…

4

Andy/WCRT,

Thanks for information! I will do more research before I get into this deal.