Getting out of a hard money loan by refinancing

[Kate Reese]

Hi BP community!

I’d like to preface this by saying I currently have no investment properties, just a curious future investor!

I’ve done a lot of research lately about Hard Money lenders. I know they can be incredibly risky, but also a great tool if used correctly!

My question is, if you get a HML to contribute 90%, meaning you'd put 10% down, is it possible at the end of the term when you have to pay back the lender, you refinance the property he/she helped finance?

Further, say you have a majority of the money owed available, (accumulated through cash flow/other savings), Is it possible to refinance the equity you've accumulated over the year to pay back portion of the HML you do not have?

Thank you in advance!