Where does check go after cash-out refi goes through?

[Jimmy Suszynski]

I am preparing to complete a cash-out refi on a BRRRR property. It *should* be enough to get every penny back (not accounting for my own sweat and tears, unfortunately). A good portion of those pennies came from a personal loan I took out to buy the foreclosure with "cash".

I am getting ready to close on a fix and flip property. I have enough to buy it with cash but planned to take hard money up for the rehab funds.

After doing some math, it would be cheaper to use the money owed on the personal loan to do the rehab with than it would be to borrow from a hard money lender. When the refinance goes through, do banks typically pay off the associated debt or do they cut you a check and let you allocate it as needed? I have the personal loan and a balance on a 0% credit card to payoff with the refi proceeds.

The refinance is set to go through at the end of January and I have enough cash/credit between myself and my partner to get the rehab started and carry us well into February without issue.