I am considering my first deal, and I want to use the BRRRR strategy or fix and flip. I have some cash saved up, but I would prefer to keep most of that cash as a contingency for the rehab. In general, will a HML finance both the purchase and the rehab?
@Drew Hunt Yes-ish. Most HML will fund some portion of the purchase as well as some portion of the rehab, generally up to a specific loan amount. That amount is sometimes a flat dollar amount based on you, your experience level and your own finances. Other times it's based on the estimated ARV of the property. There are plenty of other variations as well.
I have used a HML that would finance 65% of the ARV and didn't care how I divided it up between purchase and draws for the contractor.