Assuming you get a private loan to finance the purchase then do a term refi to get the capital outlay back out it usually isn't a great cash flow place.

Hi Ray,Are you in need of private funding for your projects?

Howwever, there are many other funding sources out there that can be used to fund deals that do not require 90 days title seasoning, such as hard money loans, private investor funds, self directed IRA's or retirement funds, and other less conventional funding sources.

Another option is to get a second mortgage taking the first down below 20%, the payment on that loan could be less than the PMI, you'd probably need private money, if you have other assets another bank might work with you. :)

I've tried MANY and ended up with salesforce mainly because it's the most powerful and flexible for any sort of customization or automation that you need.

So, I buy with [private] cash and rehab to move-in ready condition.

Some investors use it to filter prospects, some private lenders use it as a threshold for their terms, etc but other than that, it's just an indicator.When I analyse a project, I always work backward from the minimum profit I want to make....next is ARV.....from there, I calculate all other expenses (including closing costs on the purchase and sale) and work down to the bottom line.I use a private lender that doesn't know or care about the 70% rule so I don't use the rule.

Im looking to start investing in real estate and I thinking maybe using a hard or private money lender to start out with.

Tell him you're a customer not a Realtor. :)

As to pre-payment penalties, you need to check state laws concerning residential or private financing transactions.