Refinancing, Seasoning Issues, and hard money lenders

Financing, Hard Money Lenders, Private Money
1

Hello to all and good day,

If you are obtaining an hard money loan, should you opt to have a loan term due within a six month to 1 year period to
a) avoid seasoning issues when you resell?
b) allow for refinancing the property?

In addition, do lenders have issues refinancing loans that were provided by hard money lenders?

I inquire about this due to understand that properties sell at different rates due to a particular market. If I purchase a property and I have a difficult time reselling the property and the hard money lender loan is about to be due, I feel that my best exit strategy will be to refinance and pay the hard money lender…
c) Is this a good exit strategy?
d) can anyone provide more or better exit strategies?

Thanks again fellow wealth pursuers for reading this post

Great day to all

2

Get the longest term available with a short pre-payment penalty. If you can’t sell the deal by the term date then any exit strategy is a good one.

3

The length of time a property has to season before a lender will use the new appraised value varies from lender to lender. Some wont do it in the first year, some make you wait 6 months, some will take the higher appraised value regardless of how long you have owned the property. Greenpoint is one lender who has no seasoning requirements for refinances so you can refinance immediately and take cash out that way without selling the property.

4

Thanks for the response DHLC and thailanddave, please have a good day and happy investing