Many times they just do plain vanilla lending.

I included stats on percent unleveraged purchases and that many of those fairly low percent cash purchases in fact use unseen leverage HML, private lending, etc and some are short term cash holds such as a flip or a brrrr that gets financed not long after purchase.  

These people are not necessarily in the business of lending money and loans from them can be negotiated in any number of ways.

A huge number of properties we have looked at would have issues on this front.It can lead to an opportunity to improve the value of a property if you can buy it with an illegal area, get that area legalised and then sell on with a higher value that the bank would lend against, but it's not clear cut and it seems though that there are almost two levels of 'legalisation' - we were able to register all of the annex on the plans and could fully incorporate a portion of it but there is another portion that is too close to the back boundary wall that should only be used for things like storage and not ever for habitation. 2) During the purchase process be careful, amongst other issues with this property we had the situation where the seller's lawyer was not actually a lawyer (having been struck off).

He wanted me to paypal him 750 so that he would send the 20k needed to bridge the gap in the loan.While Facebook can be great to connect with institutional loan officers, mortgage brokers, etc.., true private money is a little more difficult in my humble opinion.

I also still have 60% of my line available, along with current savings to do another deal.With respect to paying off the seller note, I have been working with a number of people discussing private lending.

This isn't a lending requirement but have some boots on the ground other than just the construction company.

Do you have any recommendations on a lending source for a property such as this?

Loan amount is essentially unchanged since the loan is just under 2 years old.I thought the lending process was absolutely obnoxious last time around so I was wondering if anyone had any good referrals or recommendations.

I make my money lending money to investors.