Getting Out of a Hard Money Loan

Getting Out of a Hard Money Loan

Member since 2019 · 3 posts · 1 vote

I currently have a rental for college kids and am looking to expand to more/multi tenant. I am interested in the hard money loan idea. Easy money to get started, don't need to deal with a big bank etc.  What are the best exist strategies? Obviously I do not want to be paying 15-25% long term. I want to buy a property at discount, use the equity and pull that money back out, but that would require refinancing with a bank which I am trying to avoid in the first place. How have you done it?

Thanks! 

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  • Member since 2018 · 259 posts · 159 votes
    7y

    Exit from a hard money loan

    . pay off the loan with cash
    . offer family friends investment at conv rates (its better then savings)
    . refinance with a conv lender.

  • Lender · Arlington, TX · Member since 2018 · 465 posts · 184 votes
    7y
    Originally posted by @Nate Heffner:

    I currently have a rental for college kids and am looking to expand to more/multi tenant. I am interested in the hard money loan idea. Easy money to get started, don't need to deal with a big bank etc.  What are the best exist strategies? Obviously I do not want to be paying 15-25% long term. I want to buy a property at discount, use the equity and pull that money back out, but that would require refinancing with a bank which I am trying to avoid in the first place. How have you done it?

    Thanks! 

     If you want to avoid big bank loans you could look into hard money loans for buy and hold. They will be more expensive then conventional but some hard money lenders offer buy and hold loans that ate longer term at more affordable rates then the typical short term flip loan.

  • Lender · Denver, CO · Member since 2017 · 348 posts · 143 votes
    7y

    There are long term hard money loans that are 30 year fixed rates that are 6-9% 30 year fixed rates that can be done. You can buy rehab and refinance into a long term getting up to 75% cash out and repeat the process. 

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