Using Private Lender for BRRRR

[Michael Mathis]

I know this may sound ridiculous but I just did a brrrr in Houston and i am very new,  I used my own money, was wondering how I can do this with a private lender and how they get their money back in a reasonable time.

  The way it worked was after rehab you refi to conventional loan and then you have to let it (season) for at least a year before you can capture the equity which will require you to refi again.  I purchased the house at 61 put 48 in it with hard money loan, which I put 16k down to get this started.

Then when It came to refi the ARV is now 132. I had to put another 9500 down to complete transaction to conventional loan. I did not get to capture my equity and use it because it has to season.

How would this have worked with a Private lender giving me the down payment and then me giving him the money back in a timely manner with interest.

Any help would be appreciated.

[Carson Wilcox]

that sucks.  But sometimes a lesson costs.  As long as you remember that none of these companies are UNICEF... they are in it for $.. Some are scam BS... others are great...   You learned your lesson!  Now take that knowledge and attack the next deal.