Private Lending with no BRRR? Confused?

[Vishal Amin]

Hi,

How would a private lending deal work with no BRRR? I understand when you are doing a BRRR and getting that appreciated value to cash out refinance and eventually pay the private lender back with interest, by creating forced equity. This makes sense to go the private lending route.

But...

For Example: Purchasing a turn-key home for $150K which is under market value, the private lender would pay the down payment ($30k). In the current market condition, it is hard to refinance at a lower rate. The buyer would eventually have to come up with the $30k + interest.

The buyer would only have to rely on the appreciation of the house also in this market condition might take a long time to appreciate.

I am looking for some clarification on this part.