Rookie questions about hard money

[Grant Kemp]

I'm hopeful you guys won't mind looking over a deal with me as I'm having to learn from the absolute ground up with hard money loans and all that fun. Some of these numbers are made up and rounded off just for easier calculation, but I need help understanding the ins and outs of a hard money transaction

home purchase price: $30,000
Repairs: $5,000
ARV: $52,000 (as verified by comps)

Looking to get into the home with hard money and refi out of it as a rental. I need to get into this with no money out of my pocket if at all possible.

I talked to my loan officer and he said that it doesn't look like holding costs would be covered by the refi. That only the purchase price and improvements would be

Questions:
-What does the hard money on something like this look like? From what I understand, I'll be looking at maybe 15% interest and 5 points on the back end? What would that make my repayment structure look like?
- How long does the hard money purchase need to "season" before I can refi
- what would the holding costs be? Are hard money payments set up to be interest only still? meaning it'd be about ~500/mo for 6 months, till the entire loan was due?
- Can I take holding costs out in hard money as well? if the seasoning is 6 months, that'd be ~3000 (even without this being covered by the refi, I would be able to repay that in 6 mo.)
- At what LTV does the deal occur regardless of my own qualifications? If at all possible I want this done under my company's name and not my own

I'm fervently searching and reading up on HML, but I thought this post might be the best help I could ask for from you guys. Thank you so much!

[Jon Holdman]

Originally posted by Ann Contorno:

I'm convinced of it! Jon Holdman knows EVERYTHING!!!

Not hardly. But I have made plenty of mistakes. I did one rehab with hard money and use a credit card for some of the rehab. When I went to do the refi, my credit score was lower than when I had first bought the property. The mortgage broker attributed that to the new money on that card, since nothing else significant had changed.