Using private funds to buy investment property and then doing delayed financing

[Nicholas A.]

I’m trying to buy a $150K investment property from a wholesaler. I plan to use $120K from my parents (not as a gift, but as a private loan) and $30K of my own money. I want to wire the money directly to the title company to avoid it hitting my account. Then, once the property is purchased, I want to get a mortgage (delayed financing) to pull out most of the $150K and repay my parents, keeping the remaining equity in my name.

However, the lender warned that if the $120K shows in my account and is traced to my parents, it could be a problem since gift funds aren’t allowed for investment purchases.

So I’m trying to find out:

Can this be done?

How should the private loan from my parents be structured so it doesn’t disqualify me?

if anybody can assist I would be open to working with them for the loan.

Anyone with experience doing delayed financing for investment properties or using private funds—please weigh in.