Quick Close with Hard Money Then Refi into Conventional

[Jeremy Kuchenbecker]

Looking at a property where the seller wants a quick close - by Feb 28 (11 days). With no contract on the house he cant close anyway but I want my offer to be accepted and as clean as possible. 

Price: 160k Rent: 1,950/month 

I generally go through a portfolio lender but am unsure if they can close that quick. I've never used hard money but this may be my only option. I would expect to hold the hard money loan for under 30 days as I would look to refi it immediately after closing. Is this possible? and what would my carrying costs be using traditional LTV on a hard money loan (I'm not familiar with what that would be)? Also would there be any points or additional closing costs associate with the hard money loan? Thanks in advance!

[Andrew Postell]

@Jeremy Kuchenbecker yes, you can start the refinance process on day 1 of owning an investment property with a hard money loan. Hard Money Loans (HML) will usually charge you at least 1 point in the beginning and 1 point at the end with 10%-16% interest in between. Meaning, if you borrower $100k for 1 month, 1 point in the beginning = $1,000 on top of all other closing costs, 15% interest for 30 days, and then another $1000 again when you pay their loan back to them (when you complete the refinance). HML will usually only lend you 70% of the After Repair Value on a property. Hope this helps but feel free to ask more questions if you need. Thanks!