Fact check my understanding about hard money lenders/brrrr

[Arturo Romero]

Hello bigger pockets forum!

I am a new investor (no property’s yet) but I’ve been studying real estate investing for over a year now.

My understanding of hard money lenders and their process goes as follows:

1.You get a hard money loan for the price of the house and the rehab costs.

2. You rehab the home within a certain amount of time being 6 to 12 months on a high interest loan with two or three points.

3. You cash out refinance and being that your estimated ARV is correct, you pay back your hard money lender and use the rest of the money to invest in another property..

Is there something I’m missing? Is there any fees or costs that I’m missing?