Help me define loan terms on private money.

[Garrett Diegel]

We are in the process of closing on a short sale 3-plex. Hopefully we will have an approval by the end of September. My question now is how to correctly define the loan terms for our private money loan. I know there are an infinite number of ways to define terms but I'm just looking for a "what would you do" in this case in regards to loan terms / structure.

Here is the what and why. I left out all the number because I didn't think we need them all to define loan terms (However the length and interest rate would effect this. We can assume here that the numbers work and the property provides cash flow)

Purchase Price: $127,000

We are proceeding with private money due to a foreclosure that will be at the 7 year mark in less than 2 years. 

My goal would be to purchase this property with private funding and then refi when we are outside of our 7 year foreclosure mark. 

Possible loan terms at this time would be 100% financing / 0 down / 30 year note / 6%-7% 

Short Term Goal 2-5 Years : To be able to refi this property with another lender, remove equity, and purchase a second property as soon as possible. 

Thank you in advance.