Mortgage from private lender

[John Thaxton]

I have a property under contract in a cash deal. I would like to put a mortgage on it as soon as I can to free up cash for follow-on opportunities. I am familiar with the cash out financing rules if I try to finance with a bank.

My question is are there any impediments to financing with a private lender immediately after closing? For example, let's say the house is 70, rehab 17, ARV 100. Rent for 1150. If the lender was willing, could I finance 70 (100% purchase price, 70% ARV) and then possibly do a rate and terms refi soon after?

Seems like the answer would be yes, whatever the lender would agree to, within reason, but I'm learning there are sometimes issues I haven't thought of that could affect my best laid plans.

[Kyle Hipp]

You can do whatever your private lender agrees to. I had a similiar deal this summer. I used a private lender to fund the entire purchase price in June. I paid for remodel out of my funds and now I am close to refinancing with the bank on the property which will pay back my private lender and my rehab money put in and a little extra.