Private Lending Pre-payment penalties?

[David Mayeranderson]

For my next Buy & Hold, I've determined that I can likely get a better deal with an all cash purchase from a wholesaler, rather that from the MLS. If I use a private lender to fund and have the property rented and ready to refi into a lower interest conventional loan, am I likely to encounter a pre-payment penalty from the private lender if I can refi within a few months?

[Jay Hurst]

I cannot speak for all private lender's but we do not have a pre-payment penalty. We actually start the process of the conventional refinance right away so the borrower does not have to pay the higher rate private rate we are charging for any longer then they have to. We tend to get our loan paid off with a conventional loan within 30-45 day.