Refinancing out of a hard money

[Jaki Ollango]

Hi. Me again looking for guidance. We got a property to rehab and have a loan from hard money which is very expensive. Are there other lenders, even private who can refinance even though the property is still under renovation? Any examples or how do I find them? Just trying to find a cheaper rate. Lastly, have there been any spreadsheet templates shared for tracking expenses? I would not mind getting one and customizing it to fit my needs. Thank you.

[Dan Beaulieu]

@Jaki Ollango The difference between one lender's rate and another's may be the difference of just a few hundred dollars per month...If you were to refinance into another hard money loan, you would likely have thousands of dollars in closing costs all over again, and tons of hassle, and just wouldn't be worth it. Finish out the project as quickly as possible and put it on the market, or rent it out and refinance into conventional. Next time, you definitely want to know what the fees / payments will look like with the HML before closing the deal, and factor it into the deal. 99% of the time it will still be a lot cheaper than bringing on a partner and giving them equity. I do both in my personal investments...HM, private money, equity partners. As long as you have a solid plan and understanding of the numbers going in, you'll have clear expectations and the foundation for a successful project.

Best of luck!