Question on refi

[Rashawn Dally]

I have a property under contract that I am hoping to close on in the next week. I am using a hard money loan to obtain and rehab the home. Should I wait for the rehab to be completed to refi or is there better options to get out of the hard money loan as soon as possible? 

[Carlos Valencia]

Hi Rashawn, 

Most of our clients use the hard money to purchase the home and rehab. Then they will refi if they cannot sell the property in time before their Hard Money note is due or if they decide to keep the property as long term. Do you think the rehab will take too long? how long do you expect the property to be ready? Keep in mind that if your using a conventional loan to refi the property also needs to be livable it can be to the studs another thing to consider before refinancing. This will depend on what kind of loan product your trying to use to replace the Hard Money loan. As a flipper the goal is to get rid of the property asap so you don't lose too much profit margin during the rehab and hold. Hopefully you can complete the rehab as fast as possible and the market has the demand for your property to sell fast. 

@Albert Bui @Matthew Kwan