Hard Money Refinancing Question

Real Estate Investing Real Estate Financing
1

Hi All,

I invested in several properties with my own $$ in the past, but now, I’m planning to utilize some other financing strategies by using Hard Money for another investment property.

However, I am confused as other forums have mentioned that hard money loan can be refinanced right away, but some say you can only refinance after the rehab is complete.

For e.g. let’s say I purchase a property at 60K, 5K needed for rehab work. The ARV of the property is 100K. Which means I’m going to have to borrow 65K from the hard money lender. Once I close on this deal, I’d like to refinance it right away maybe within 30 days to avoid the high interest payments. Is this even possible? However, the rehab work won’t be completed at this time.

Any advice would be great.

Thanks.

2

The only option for refinancing immediately based on appraised value (not purchase price) is a Fannie/Freddie loan. They will go 75% of appraisal with no cash out (so if you have equity above your 65% loan, they won’t give it to you).

Almost every other lender requires one year “seasoning” to refi based on appraised value, not purchase price.