Before 6 months refinance

[Jonathan Tavarez]

I got a financing strategy question. When I buy a property all cash, I need to wait 6 months to do a cash refinance and get my money out BUT somehow if I get a hard money loan to buy a property (technically not my cash) the mortgage broker can refinance me out of the hard money loan with a bank the day after closing. So, I asked the mortgage broker how exactly that works/why is it that for the cash refinance I need to wait 6 months but to "refinance" out of the hard money there is no waiting period? He explained that there are 2 conditions that, if satisfied, we can refinance before 6 months. First condition is that no actual cash is given out at closing and second is that there needs to be a deed transfer (or similar). This got me wondering, is there a way to do all this without working with a hard money lender? For example, can I set up an LLC with a bank account, put my cash in the LLC and then do a loan against the LLC that is then refinanced under my name and the LLC gets paid? I'm just looking for a way to not have the money stuck in the deal for 6 months.

[Erik Estrada]

I agree with Jason, 

You can do a rate and term refinance if you choose to use hard money (no seasoning requirement). 

You can also do a delayed purchase refinance, usually about 75-80% of the purchase price + rehab cost or appraised value (whichever is lower), (no seasoning requirement) 

Lastly you can do 3-months seasoning with a DSCR cash out refinance and use the new appraised value