How are some ways I can pay back a private lender?

[Paul Deliso]

Hello BP,

I am sitting on some capital and am currently looking to buy my first multifamily. Depending on the price of the property I come across and deal it turns out to be (using the BP calculator) will determine if I ; A) FHA the property or B) use my capital for costs. Now if I go with B is some cases I am going to need a private lender who I have a lot of friends that trust me and know that I am trustworthy and receiving money is something I am confident I can get if needed to help me close a deal.

          So my question is what are some ways I can pay back my lender? This is what is in my head and correct me if I am wrong, but I was thinking if I receive the property then give it about 2-3 years refinance the house and pull out equity (obviously by using the calculator that the equity amount will be enough on year 3) and use that to pay back the money that was lent to me.

Is that a smart option to present to my private lender? and if there are any other ways I am willing to listen.

Thankyou.