When you refinance closely prior to a sale the IRS often interprets that as a way of taking profit that would normally be taxable. 

This was my first year as an newbie investor and HOLY **** I got 3x the amount back than I normally would.

@Robert TuckerHow are private loans normally structured?

They have more skin in the game then you do.Make sure you get clear title.

I normally don't weigh in on introduction threads, but I thought of something you might want to consider.

It seems to me that if the investor has enough skin in the game and the ARV is sufficient, that mitigates a lot of the risk. 

Bank financing is normally ready in 30 days, but it takes roughly another 30 days to get the city to stamp off all the other documentation.

Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

So the normal calculation is Appraised value * 70/80% - existing mortgage/leins = HELOC amount.

We don't normally talk about a borrowers success and profitability, but we absolutely need our borrowers to be successful and profitable.