What to expect using hard money?

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I have some questions. I found a 6 plex for $400,000, it is turn/key, fully occupied, and selling about $80,000-$100,000 less than market value because the seller is motivated. The current gross rents are $5,193 per month. The seller doesn't want to do seller financing and I do not have the 25% down payment. My thought is to go Hard Money Loan. So my main question is what would I need to expect, in detail, if I used a hard money loan to finance it and refi-ed in a year?  What would the cost of financing be? Are there any other strategies y'all would use? Thanks for any and all imput!

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Hi Don -

I am fairly new as well, just setting up shop with a hard money lender, but here's the numbers I was quoted, maybe it will help...

Purchase Price - $275k, Renovations - $100k, ARV at $485k. So, not too far from your ballparks... 90% LTV

Origination Fee - $7500 + Processing fee $500 (rate - 10.5%)

Down Payment - $37,500

Monthly Interest - $3k

 Does that help?

@Don Ellestad

You can take a short term bridge loan if the property doesn't need rehab. Hard money lenders offer this product. The interest rate would depend on the LTV, your credit score, and experience.

It's important to note that at 6 units the property would likely be considered a multifamily residence. It's a different loan product than that offered against 1-4 units. 

I would say not to be so naive and think they're motivated enough to leave $100,000 on the table. Get the home inspection, a full title search search and survey. Sometimes the issue is not cosmetic. He could have a boundary issue and be going threw litigation for encroachment. He could have unpermitted construction that doesn't allow him to legal claim square footage, illegal living space, foundation issues etc... The unseen issues are endless. 

As far as hard money, what you need to be certain of is that your numbers are correct, and that you are sure you can qualify to refinance after a year. The reason they call it hard money is because it is easy to borrow, but hard to pay back.