Hard money loans for primary residence Texas?

[Christian Puentes]

Hello everyone, im in a current situation where I have done a few deals and I want to start looking for my own place. My strategy was to find a property using a wholesaler and buy it using a hardmoney lender, when the property is rehabbed I would then do a cash out refinance and pay off the hard money lender. once the hard money lender is paid off I would then move into the property. However in the past deals that I've done using hard money lender there is always a non homestead affidavit in the closing documents and im worried that if I did use this strategy I could get into some troubles. which to me makes no sense, if the hard money lender is paid off and I never lived in the property for the entirety of the lona then why would they care if I use the home as my primary residence(my opinion).

I know many will say that it is best to just use a conventional loan but homes have gotten more expensive. the reason why Im playing around with this idea is because some of the deals that I have done were purchased at good price and with enough equity left in the deal that if I did do a cashout refi I would be leaving about 10k invested in the property. aside from that after the cashout refi I would have a loan/mortgage payment that is very affordable to me and in a desirable location.

any thoughts on this? they would be greatly appreciated.

[Ethan G.]

If hard money lender paid off before you move in, there is no issue. Also you could potentially form an LLC, use that to get the hard money loan and then rent the place from the LLC so it is not your homestead even though you are able to live there before you refinance with conventional loan.