Question Regard an Hard Money Lending Procedure

[Dee Xixi]

When are you using a hard money lender for a purchase, do you pay for the appraisal done first on the property or you put an offer and let the lender accept it before waste $500 on an appraisal? Anyone with experience please comment. Thanks.

Second part of my question

1-Do you put the home under your name or your LLC?
2-How the refinance process works?

[Jon Holdman]

The buyer/borrower will pay for an appraisal, at least on every deal I've ever done. Its typically done after you have an accepted offer.

Refi's will be very difficult if its in an LLC. Be sure you have your ducks in a row and have the refi approved in the LLC before you put the property into one. Some hard money lenders require using an LLC, but they expect you to sell, not refi.

The refi is straightforward. You own a property with a loan. You find a lender who will do the refi with the terms you want. They appraise it, fund the loan, you close and the HML gets paid off. The trick is that you usually want to use a new value. Finding a lender who will do that is difficult.