New member trying to swim - Is this correct?

[Charles Mullins]

Hi everyone, just joined recently and have been listening to a podcast almost daily.  I wanted to see if what I think is correct is truly correct and accurate.

My situation - We have enough for 20% down on roughly a 80-90k loan.  We are looking to buy initially a rental condo for my daughter for college (approximately 1.25 hours away).  After she is done with college we are looking to turn it into a rental unit.  This will be our first rental unit at least for now.

Outcome - What we are running into is we may need 30% down due to investors and we just lost another deal to an all cash buyer.

My Question/HELP please - How do we counter this?  Is it possible to get a private lender?  Is private lending and hard money the same?  Is the below Scenario normal?

Scenario - We want to buy a condo for 100k.  We have 20k saved for a down payment.  Instead of staring with a conventional loan we use private lending (haven't even started looking yet).  After we secure the property we immediately (<45/60 days) finance/refinance?? from a private loan to a conventional loan.  The loan value would be approximately 80k, 20k cash, x cash for the private loan.

Is the above a good strategy or something that is a correct approach? 

Thank you in advance. 

[Bob Okenwa]

Private money will typically come from an individual you know (family member, friend, acquaintance, etc.) while hard money lenders are typically professional lenders/people that are licensed to do so. You're strategy is fine as long as you're able to refinance out of the HML or private loan. Some banks want to have the property seasoned for a set amount of time before doing a refinance so be sure to research that on the front end.