Hard Money Lenders - Whats the repayment like? and how to refinance to pay them off?

[Blake Morris]

All,

When getting a loan from a hard money lender I have some questions. First, let me apologize if this can be found on a past forum discussion.

When you get a loan from a hard money lender what is the purchase process like? Do they give you the money that you need and it then becomes a cash purchase using the services of a realtor (if desired)? I am assuming you would get title insurance? Do attorneys come into play to handle the amortization payments? What about escrow? Since you are the owner...someone has to record the deed so just not quite sure how that process would work. There seems to still be costs involved even if you were given all the cash to be a cash buyer.

Secondly, after you get the property and want to pay off the high interest from a hard money lender. do most of you all use a HELOC? or a traditional mortgage?

For some one who has little capital it still seems like you would have to come up with 20 percent either now or later. Because the refi or HELOC wouldn't loan up to 100 percent. I am just struggling to come up with a scenario where hard money lending makes sense.