Understanding Private Money Loans

[Account Closed]

Hey BP,

My wife and I are self-employed and have a nice savings but because of our taxes (we expense A LOT of things) we're having trouble with conventional loans so we started looking at Private Money Lenders. 

We're looking to buy our first investment property... a duplex, live in one unit, rehab the other then rent that one out while we rehab our unit. Does it make sense to use a Private Money Loan to purchase the property and then refi with a long term conventional loan after 1 year?

Thanks!

Martin 

[John Horner]

@Chris Mason hit it on the head.  Been through the same thing myself.  Of course nobody wants to pay a lot of taxes, but when you're self employed those tax returns are the only proof you have of income.