Private lender to bank refinance: obstacles?

[Andrew Curro]

Hi BP,

I'm formulating my options for financing an owner occupied 2-4 unit in upstate New York. I found a lending service (Bankers Healthcare Group) specific for health care professionals (I will be a physician assistant next May). Given the many benefits of buying a property with cash, my plan is to use a private loan from this company and/or from family/friends to buy the property and then refinance the property using a bank loan, thereby paying off the private lender/s and getting better terms. I'm wondering what types of obstacles/constraints I might run into with this plan. Thanks all!

Andy