cash out for rehab on hard money loans?

hi there My brother and I are partners in Ferris Properies and new to this forum as well as investing. my investing goal for starting out is going to be straight cosmetic flipping/rehabbing.

for my first property, im not going to have the $5 - $10K needed for the rehab costs out of pocket. are there hard money lender that will finance 100% of the rehab without me having to take funds from my own pocket.

i asked this question to one of my potential hard money lenders and their reply was that i had two options, one is to get a money buddy in on the deal to fund the daily cash expenses and rehab costs to pay contractors etc. the other was to get a line of equity from a bank etc. well my credit score wont support standard credit guidline to get a LOC. nor do i have any liquid assetts or equity to throw on the table. how should i proceed or are there any lenders you can reccomend to me that will fund the purchase price PLUS the rehab costs at closing? even a escrow account would be helpful if need be.

thanks in advance.

ps i looked everywhere for a search button with no luck! :frowning:

Brent Ferris

Most established HML will require you to pay initial costs for repairs up front and take draws, so you normally have to have $10k-$20k available to you - eiother your own money - or a money buddy.

There are some lenders - especially just private investors, few established lenders - who will fund more of it up front either the entire HML or the acquisition cost plus enough for the initial stage of repairs…

Thanks for the clarification. we just recently had a lender out of Las Vegas (, offer me 100% of the purchase and 100% of the rehab, but we had to reject it due to foundation estimates coming in last minute, throwing the budget out of wack.

I didnt want to sound like a newbie to the lender since they were kind enough to approve us for the loan. But I really was wondering if they were going to fund the entire purchase plus rehab at closing or fund the purchase then set up a draw. I guess the only way to know for sure is to ask since each lender is unique.

thanks for the input im looking forward to learning much more through this forum!