Refinancing confusion How do hard money lenders make a profit
I've read books and watched vlogs about the BRRRR strategy. The Lord sent me a hard money lender who said something that through a wrench in my understanding of how this works. I thought I'd be able to refinance based on 70-80% of my ARV which would cover the loan amount plus a fee to my hard money lender and put some money in my pocket. She said that's not necessarily true. She said sometimes the bank will only refinance based on what you owe (which would be 60k). What don't I get? I told her I'd be paying the interest but she said she doesn't make money that way because the interest is paid to the bank she borrows the money from. How do you get your hard money lenders paid? Please explain.