Refinancing out of Hard Money
Hey BP,
closing in 27 days on my first hard money deal. Six month minimum, 30% down, 11% interest only. Loan will be for $245,000 (in California) 4/1 in poor repair with a second parcel fenced flat buildable about half acre.
I’d love opinions on my deal, but that’s not why I am here.
I am curious what to expect when it becomes time to refinance out of the high interest loan?
Specifically how does LTV work?
let's say appraised ARV is $500,000 and I am invested $350,000 (full purchase price) + $60,000 (renovation)
Do I have to leave 20% in like a conventional loan? as in my renovation dollars will be stuck in the deal? Will I need to bring more dollars to close if I end up invested in the property 85% of ARV? Help my with my most preferable exit strategy
Lastly, how challenging is financing out of hard money?