Private Lending HELP

[Jordan Black]

So I am very new to this and I am very interested in the BRRRR method. I have spoken to the bank, who carries my own mortgage, on what I can and cannot buy through them. They very clearly laid out that they will not fund very distressed properties. Now, I dive into Private lending research and see that you can borrow from other lenders outside of the bank and they can potentially Fund the purchase and the Reno. THIS IS GREAT, its not my money! I feel like I know some people who can probably help me out with Lending on my first deal, but I have some questions that I cannot seem to answer no matter how many podcast and forums I read.

Here it goes (hypothetical),

- I ask this lender to loan me $80,000. $50,000 to purchase the property and $30,000 to rehab the property. he/she has agreed to loan me the money with 10% interest. (question 1, do you begin paying Principal and interest on Month 1 unless otherwise negotiated?)

- After 2 Months, once its all together, we rent out the home to bring in some cash flow while still paying the Lender Principal and Interest.

- After 1 year we go to refinance and the Home appraises for $100,000. THIS IS WHERE I GET CONFUSED (question 2, is the lender making his money on the interest we paid him throughout the year only? and then we just give him his $80,000 back after we refinance? or do we pay the interest throughout the year and pay him 10% on the $80,000 resulting in an additional $8,000?

- Second Confusing Part for me, if the bank will only pay out a LTV of 70%, then I will have to pay he/she the remaining balance out of pocket?

PLEASE HELP!  I AM READY TO JUMP IN ON MY FIRST DEAL BUT DO'NT FULLY UNDERSTAND PAYING A PRIVATE LENDER.

THANK YOU!!!