Refinancing Hard Money Loans with a Conventional

3 Replies

Hi Everyone,

In the past I've purchased properties to buy and hold with conventional financing but I'm thinking of implementing the BRRR strategy to scale things a bit. For those of you that have actually executed the BRRR strategy, how do you get around the guidelines that state that if you want to cash out based on the "new appraised value", it will have to be after 6 months in order to refi conventional? I say conventional because I assume that would be the least expensive way to refi.

Does this mean I have carry the hard money loan for at least six months? Seems very expensive to me if that's the case. Is there an alternative? Any guidance would be amazing.

Thank you in advance for the insight.



Yes, plan to carry for six months.  You can start the refinance before the six months are completely up. 

Or you can buy with cash (HELOC or other funds) and do a "delayed refinance" and get your money back before the six months.

@Jose Corbera

You will always go according to the new appraised value. With delayed financing (which is only available when you pay cash for the property) you are subject to a maximum loan amount of your initial investment. As mentioned with cash out financing, you can start the process prior to 6 months, but can't cashout until you hit that mark plus a day. You can always refinance the hard money loan without any seasoning and go according to appraised value and just not get any cash back.