Private Money Lender Wants Mortgage on Auction Property loan-how?

[Robert Huizar]

I have a very flexible private money lender who is willing to provide funds to acquire a house at auction.  The intention would be to perform any necessary rehab once the title has been cleared to get it rent-ready and then refinance the home to extract the investment along with some of the equity.  

I have found that many hard money lenders with rental 30-year type loans want a mortgage in place before they will refinance based on actual value, otherwise, they will only lend on the amount of purchase (we're buying 300k homes at 1/3 of the price).

So to set this up for a refi, how do we go about and represent the money loaned to aquire the property at auction as a mortgage after the fact if the title will be placed in my name immediately after the auction closes?  

Thank you for your creative help!

Robert