Using hard money loans for cash offers

[Jacob Hollen]

Will hard money lender‘s lend money for turnkey or properties that need minimal repairs or do they need to be properties that actually need a full rehab? I’m trying to see if putting in lowball offers and refinancing after acquiring the property would be a plausible method to acquiring undervalued property? 

[Tom S.]

@Jacob Hollen  For conventional lenders the loan goes off of the appraisal or purchase price, whichever is lower.  When you purchase a particular property, it resets the appraisal value.  Yes, in 6-12 months they can order another appraisal and it would go off comparable homes in the area.  But for an immediate refinance, it will go off the recent purchase price, especially if you're not doing anything to force appreciation like a major rehab.