California investors know the feeling: you’re sitting on a property that’s doubled in value over the past few years, but all your capital is locked in the walls. Meanwhile, new deals are hitting the market—and you can’t move on them without liquidity.
That’s where a hard money cash-out refinance comes in. Instead of selling or waiting months for a bank loan, you use your existing equity to pull cash quickly—and put that money back to work.
At Lending Bee, we see equity private lending as one of the most underutilized tools for investors looking to scale. Done right, it allows you to leverage yesterday’s gains into tomorrow’s opportunities.
What Is a Hard Money Cash-Out Refinance?
A cash-out refinance replaces your current loan with a new one that’s based on your property’s current market value—not your original purchase price.
With a hard money cash-out refinance, a private lender like Lending Bee provides short-term financing secured by your equity. The loan allows you to:
- Pay off any existing liens or mortgages
- Pull out a percentage of your built-up equity as cash
- Use those funds for acquisitions, renovations, or debt consolidation
Unlike banks, private lenders don’t need months of underwriting or endless documentation. If the property has equity, we can fund—often in 5–7 days.
When Does a Hard Money Cash-Out Refinance Make Sense?
Here are the most common (and smartest) scenarios for using equity this way:
1. You Need Cash Fast for a New Deal
You’ve spotted a distressed property with big upside, but all your liquidity is tied up. A cash-out refinance gives you the capital to act without waiting for a sale or bank approval.
2. You Want to Scale Multiple Projects
Instead of selling one property to fund the next, you leverage equity from a stabilized asset to run two deals in parallel. This is how seasoned investors accelerate growth.
3. Your Property Appreciated Sharply
If you bought a property for $400K and it’s now worth $700K, that’s $300K in potential working capital. A private lender can let you access a portion of that appreciation without selling.
4. You Need Bridge Financing Before Bank Refi
Sometimes you’re not ready for a DSCR or conventional refinance (maybe you need 6 months of rent history). A hard money cash-out loan bridges the gap until you qualify.
5. Debt Consolidation or Partner Buyouts
If you need to buy out a partner, pay off higher-interest debt, or restructure ownership, a cash-out refinance is often the fastest and cleanest way.
How Much Cash Can You Pull Out?
Most private lenders will advance up to 65–70% of current market value (LTV).
Example:
- Property value today: $600,000
- Current loan balance: $250,000
- 70% LTV = $420,000 new loan
- After paying off the $250K balance, you walk away with $170,000 cash.
That’s liquidity you can use for your next acquisition or rehab.
Pros of Using a Hard Money Cash-Out Refinance
- ✅ Speed – Funding in as little as a week
- ✅ Flexibility – No income verification, no tax returns required
- ✅ Unlocks Idle Equity – Turns appreciation into usable capital
- ✅ Bridge to Bank Debt – Keeps projects moving until long-term financing is ready
Cons to Consider
- ❌ Higher Rates & Fees – Hard money is more expensive than bank debt
- ❌ Short-Term Structure – Loans usually 6–12 months
- ❌ Requires Exit Strategy – You’ll need to sell, refinance, or pay off within term
That’s why planning ahead matters. The best investors go in knowing exactly how they’ll repay the hard money loan once the cash has been deployed.
How to Use Your Cash-Out Wisely
- Fund New Deals That Outperform the Loan Cost
If you borrow at 10–11% but earn 20–30% ROI on a flip, the math works. - Rehab and Increase Value
Use the funds to improve properties you already own, boosting both ARV and rent rolls. - Bridge Into Permanent Financing
Stabilize the property with tenants, then refinance into a 30-year DSCR loan. - Grow Your Portfolio
Instead of one deal every 12 months, run 2–3 in parallel and compound your profits.
Why Investors Choose Equity Private Lending Over Banks
Banks want:
- W-2 income proof
- Tax returns
- Clean properties
- 30–60 days of underwriting
Private lenders want:
- Equity
- A clear exit plan
- Borrowers who can execute
That’s why equity private lending is the go-to move for serious investors who can’t afford to sit on the sidelines while opportunities pass by.
Lending Bee’s Approach to Cash-Out Refinances
We help California investors tap into equity quickly and safely. Here’s how we make it work:
- Direct private capital (no committees)
- In-house underwriting for speed
- Cash-out loans up to 70% of market value
- Funding in 5–7 days
- Flexible terms designed to bridge into your next exit
Whether you’re pulling cash for your next acquisition, a portfolio expansion, or a partner buyout, we’ll help you structure the right loan around your strategy.
A hard money cash-out refinance isn’t for everyone. But for investors with strong equity and new opportunities on the horizon, it can be the fastest way to scale without selling—or waiting on a slow bank.
When you know your numbers and have a clear plan, tapping into your equity through private lending can turn yesterday’s gains into tomorrow’s portfolio.
Want to Unlock Equity in Your Property?
We’ll review your deal and send cash-out refinance terms within 24 hours. Apply here.