Private Lender covers the entire cost of the purchase including down payment, closing costs, rehab, etc... then combine all of that into one lump sum that is lent as a "mortgage"  with a predetermined interest rate.

I have borrowed and lent as a private lender.  

Email me (see signature) and I can send you a link to a public record document (a deed of trust) where I lent a person money for a seller financed purchase.

I currently have lent a local flipper $180k of that while I was getting ready to get my own thing going.

I have a friend who lent a couple 30K on a second, they owed $250K on the first (home worth roughly $250K) and they are current.

Ok, so my husband and I lent a couple grand to someone for some of the closing cost on a house.

Too many recent law changes there where investors now focus on the investor side only.Eric Michaels on here has lent a lot on hard money as have others.

I've both borrowed and lent as a private lender.

The lender will then sell the house to get back as much of the money it lent as possible.

Loans are lent as borrowers cannot hold that kind of money that Banks always do.