Personal Loans for purchase and rehab?

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Recently, in working to start up my investing business, I stumbled onto the idea of using large personal loans for funding purchases and rehabs of rental properties. Once tenants are in place, I would refinance to a privately-held 30-year fixed loan.

Has anyone used large personal loans say in the range of $400,000, to acquire and rehab real estate? What has been your experience?

The deal would have to include extracting the funds put into the deal originally, plus carrying costs of the personal loan, in my mind.