Clarity on Hard Money and Refinancing

[David Ashby]

2 questions regarding hard money for experienced BP members. I am getting different answers from lenders regarding selling and holding after a flip.

1. Are there seasoning rules that force a property to be owned for 4 months before it can be sold out of a hard money loan? Meaning if I have the property ready in two months and a closing within 90 days to sell, will the seller be able to buy the property (get financing) at the appraised ARV?

2. Refinancing out of a hard money loan- are there really 12 months seasoning requirements before I could re-finance out of a hard money loan if I want to hold the property? This would force me to stay in a hard money loan for 12 months which would kill me.

Any advice would be greatly appreciated.

Thanks

Mike