Can I Buy & Hold using Hard Money???

[April A.]

Is it possible to refinance as an exit strategy from hard money loan?
My strategy is to buy & hold as I'm more comfortable managing property. My yearly income & my credit is pretty good.

What do I need to be mindful of?

[Ann Bellamy]

I'm going to assume a different scenario. I'm going to assume you want to buy a property using hard money, with a planned exit strategy of refi'ing conventional. And that the reason you want to buy using hard money instead of conventional is that the property is empty, and/or in disrepair.

Yes, you can. We lend on properties with an exit strategy of refi, although not in your area, so this is not an offer, simply an example.

You should be prepared to show that you are refinanceable. You will need to provide your credit score and a pro-forma that shows enough income from the property. If you also provide an appraisal that shows an as-repaired value, that will help. If the refinance is a commercial loan, a letter from a loan officer that you have a relationship with will help. At the end of the day, the lender will have to believe that the property and the person (you) are financeable.