How To Pay Private Money Back On Cash Deal

[Kevin Dickson]

Hey Guys,

There is a deal on the market for a little over $300K on an abandoned property that I am EXTREMELY interested in and the seller only wants cash. I am pretty confident and I can ask my immediate circle for a loan to acquire the property. I have already been in talks with a lender on a construction loan, but my question is: How do you pull that cash back out to pay back the $300K private money?

Let's say I get it for $300K, I put $200K in it appraises for $600K. When I refinance into a traditional 30 year fixed, the bank will only loan 75% or 80% LTV ($120K or $150K).

Long story less long, if you all were to find a $300K deal that you loved, how would you go about paying back the private money you received to acquire the property?