Refinance a private mortgage without seasoning at 100% LTC

[Chris Gould]

I'm acquiring a property at 65% of ARV using a private mortgage (secured against the property) and then want to immediately refinance the property using a conventional mortgage through a normal bank to pay off the private mortgage. Only issue is that I'm being told I can only get a refinance loan for 80% of the purchase price. Because my private mortgage is for 100% of my acquisitions cost, this means I have to leave 20% in the deal. Is there some way around this??

[Chris Gould]

Update, spoke to @Andrew Postell over at Guaranteed Rate, he let me know that my strategy could work as long as I acquire the property with a mortgage and ensure the mortgage gets recorded as a lien against the property. Love BP for helping me right the right answers! Creativity people!