Does using a Hard Money Loan create Cash Out Refi Issues?

[Austin Jones]

I've just completed the renovation on my 4th BRRRR Property and we placed a tenant in the property last week - it is my 6th property.

The issue I have is that I only have enough capital to do one deal at a time.  One reason I have avoided Hard Money is that when refinancing my property to pull my cash out and go the next one, my lender has always asked for verification of funds used to purchase the home originally.  Will using Hard Money cause any issues there?  Does anyone have experience with this when not waiting the 6 month seasoning period?

Thank you in advance!

Austin Jones

[Derek Dombeck]

Our landlord clients use us specifically as a Bridge type loan to allow them to purchase, renovate, and stabilize a property before they get bank financing. It has been working great. I don't know why a bank would care, because they are getting the loan AFTER the risky part of the transaction is over.