Originally posted by @Killa Kam:
@Taylor L.
Thank you for the insight. That was going to be my next question. Since HMLs generally go for around 8 months I was wondering how refinancing would work with both the seller finance and HML being on relatively short payback periods.
My end goal was to refinance and cash out both the seller and the HML with a lower interest rate loan from a bank and benefit from the possible built up equity in the properties and use that to invest again. But that's just my goal I haven't sat down with any professionals to crunch the numbers, until I knew that using a HML and seller finance together was a possible feat.
Most hard money lenders will want to be only lien on property, so most of them are out. There may be some individuals private lenders who would take a 2nd position lien but probably not a company that lends.
You definitely want to think about how you would refinance out of hard money. That might be difficult because you would really end up having no equity in the deal unless there is a major value add somewhere.
