Direct answer
How this hard money option works
A hard money refinance can replace eligible property debt when a maturity, balloon payment, incomplete renovation, vacancy, credit event or documentation issue makes bank refinancing impractical. Approval still requires sufficient value, a supportable payoff and a realistic exit.
A refinance should solve a defined problem rather than merely postpone it. The file must explain what will improve and how the balance will be repaid.
Net proceeds are affected by payoff, liens, taxes, closing costs, reserves and approved construction holdbacks.
Cash-out is evaluated separately under value, seasoning, condition, use-of-proceeds and lender constraints.