Wait time to refinance when using private lend first?

[Philip Tice]

Grandmother has no retirement. Looking to help her out and buy her house from her accomplishing two things: paying off her remaining balance of ~$30,000 on the mortgage, and giving her enough of a monthly annuity from my pocket so she can retire. I would allow her to live in the home for the rest of her life with no payment ($400/mo currently) and give her another ~$400/mo in an annuity type payment. This will help her AND give me a large sum of cash to use in other ventures. Just have a couple of questions.

I believe the property is lowball valued around $150k. I want to offer her about $60k for the property using a private lender, and then turn around and refinance for 80% of the value of the property. At $150k valuation, that’s $120k cash. Less the $60k plus a private lender fee, and I’m sitting around $55k cash.

1. I have a private lender interested, but I’m not sure what a good interest rate or fee would be since this is my first time using a private lender. I’ve seen 10-12% a lot but want confirmation on that versus a flat fee of say $3k.

2. How quickly am I able to refinance the property after I use the private lender, and should I get pre-approved before I sign a contract with the private lender?