I understand that Hard Money provides you with quick money, but these are short term loans. I figured that you aquire a Hard Money Loan, refinance, and pay back the HML or some other exist strategy. How are people using HML and how can they be beneficial. Thank you in advance for the help.
HML can be used for many reasons. The two most common:
Purchase and rehab a property. Once the rehab is done, then refi or sell and use the proceeds to pay off the HML
If you have a fantastic deal which is perfect to wholesale, but perhaps it is an REO or some other type of situation where you cannot assign it, or do a double-close (you have to close immediately or lose the deal, but your end buyer can’t close for seven more days, for example). So you use the HML to close, then quickly resale to the end investor.