Hard money

[Thorney Gibson]

So Im searching the forums but cant find the answer yet. I know hard money loans are the last thing you really want to go to. My question is tho if you buy and rehab a house with hard money and after the house is finished what options do you have after that? Do you get a normal house loan and refinance the house? Do you just put it up forsale with that loan in place? Like I said I know hard money is the last thing you want to do, but Im just curious and cant find the answer just yet.

Hope Im wording this right for what Im asking.

[Steve L.]

Hard money is not the last thing I want to do. Hard money is a lot cheaper than a money partner who wants 50/50 if you buy right.

Usually hard money loans last from 3 months to 2 years. Usually they are interest only with a balloon payment.

Typically your job is to fix the property and put it back into good condition as fast as possible. The exit strategies from there are simple: resell it, refinance it, or pay it off.

Refinancing is difficult right due to some seasoning requirements, you will probably need to own the property 6-12 months before you can take cash-out on a refi from a big bank.