@Bruny C. I'm currently in the process of using this strategy to aquire properties. I will use the hard money to purchase and rehab the property. Then I will get the property rented and refinance the property with a conventional mortgage. I just make sure the numbers work for me and I'm super conservative with all of my numbers. You should know what lender you want to refinance with and what's their criteria.
Hard money is a great tool when used properly. You have to make sure your numbers make sense and you need to have an exit plan. You also need to think about worst case scenario with our economy where it is, it won't be all roses and butterflies forever.
What do your numbers look like? How long do you expect to have the HML? What's your exit strategy? Worst case scenario?
@Bruny C. I'm currently in the process of using this strategy to aquire properties. I will use the hard money to purchase and rehab the property. Then I will get the property rented and refinance the property with a conventional mortgage. I just make sure the numbers work for me and I'm super conservative with all of my numbers. You should know what lender you want to refinance with and what's their criteria.
@Oleg Shalumov The properties I'm looking at don't require extensive rehab that will take a long time to complete, I've factored in ample time of holding cost and I have a good amount of reserves, not enough to pay the HML off but I can borrow the rest to pay off the loan if need be.
@Bruny C. As long as you run your numbers and are confident in the deal it's definitely a great way to grow. Since payments are interest only and made monthly it behooves you to complete the rehab and get a tenant as quickly as possible, therefore they are paying for your monthly mortgage until you can refinance into a loan that allows you to cash flow it better. Good luck.