Should a Private Lender use a loan to capitalize the investment?

[Harry Williams]

I have the opportunity to finance an experienced house flipper in my area. I was referred by a trusted contact who does deals with him. While I have cash of my own, I also have access to a Portfolio Loan for 3.5% interest. The houses we are looking to flip have an ARV of around $500,000 - $600,000 and a 20% profit margin. Needless to say, it's about a $450,000 investment for the lender. Should I finance the home purchase, rehab, and holding costs with the Portfolio Loan or a mixture with cash?

Thanks