Refinancing a Hard Money Loan

[Jamil Cole]

Hi all. New member here to BP. 

So I found a deal on a Single Family Residence. Its selling for 120K after estimated closing costs, cash only, in a neighborhood that is valued at lowest price 250k. Needs work roughly 35k. 

I want to purchase not as just an investment but as my primary residence. All the math checks out. The issue I am having is the financing. 

I am a licensed realtor so I ran my own comps and I went with bottom prices. Avg price for the neighborhood is roughly 300k.

The financing is a bit of a mystery to me in wholesaling sense as I am mainly accustomed to conv, fha... etc. 

From what I've read here you can get a HML to buy the cash only property, and then refinance. Very exciting! BUT, after further research i find that most banks have a seasoning period of roughly 6 months... not so exciting. at 12-15% interest a month on the HML thats killer.

so for the TL;DR

I want to Buy and repair Cash only property roughly 155k. Then Refinance said property with a standard 30 year loan Asap after repairs. Is this possible? What pitfalls am I failing to see? best and worst case scenarios?

P.S. 

I also worked for years as a contractor and have many relations in the construction field to make the repairs happen quickly.

[Chris Mason]

Originally posted by @Jamil Cole:

so for the TL;DR

I want to Buy and repair Cash only property roughly 155k. Then Refinance said property with a standard 30 year loan Asap after repairs. Is this possible? What pitfalls am I failing to see? best and worst case scenarios?

Refinancing out of hard money, and into Fannie money, has no seasoning period, provided you aren't looking to pull cash out. Rate/term refinance only.

REI and BP members are asking about cash out refinances 9 times out of 10, hence everyone thinking there is a seasoning requirement. You're that 10th person out of 10 that's just happy to be out of hard money. 

One thing to check for is if your current HML has a prepayment penalty.

Touch base with @Melvin List, he lends down in Florida.