Private money question

[Andrew Galeano]

Hey everyone,

So im currently thinking of putting a single family property under contract.

Here are the numbers

Purchase Price: $155,000

Rehab: $70,000

Arv: 325,000

I recently House hacked my first property in New Jersey.

Because of this, I am limited on money to invest.

I am planning to use Private $ loan for the full purchase and rehab @ 10%.

My biggest fear is if the property gets appraised for less than the 325k Comps i get from my realtor (which I will also do due dillegence and confirm those #’s) and I am unable to cash out refi.

Does anyone know the process of private $ and How I would be able to convert to a conventional loan if im unable to cash out refi and pay the Private Lender his $ ?

**I do not have the property under contract still must do an inspection + get a estimate on repairs from a GC, so even though I feel the repairs would come in less, thats pretty much the most im willing to go unless theres room for negotiation on the purchase price **