Hard Money Loan Refinance

[Marc Nunez]

So, I'm new to investing and having trouble on understanding the refi process with a hard money loan. To keep the numbers easy im looking to purchase a single family home at 600k and getting a the repair loan of 500k. My goal is to split this lot into two and build an adu on the lot where the home is at and duplex on the second half of the lot. I estimate that the original how with the adu would be 800k and the back lot at 700k, so combined at 1,500,00.

The issue that I cannot wrap my head around is the refi part since it would now be two separate lots, so i assume to separate refi's. The hard money loan cost would be 1,100,000 roughly. I'm just not sure how I would pay then back with refin. Since the first lot would just be worth 800k and i would get back 640k and the second lot would be 560k. What I am mainly lost in is that the first lot has a loan that it owes 1.1 mil but worth 800k and the second lot would technically be paid off(since the loan would be on the original parcel) and worth 700k.