Fix-and Flip (Rehab costs, Downpayment)

[William Silva]

Hello BiggerPockets,

Thank you in advance for any input you might have.

I plan on purchasing a distressed property with hard money. 

2 questions.... 

1) How can I obtain 100% financing for the down payment as well as the rehab costs?

2) If I close under a LLC, once the home is fixed and rented, can I cash out refinance into a conventional loan (for better terms)? Following that Refi, I'd like to switch the deed back over to the LLC.

Is this all attainable, or am I living in a fairy tale? 

[Mike Klarman]

Your first ask is a fairy-tale.  No 100% programs unless you can show like 30 completed projects last 24 - 36 months.  You are going to put up something.  These days, if a newbie has good credit - 730+ - I can offer them 85%/90% of the purchase depending on the type of area the house is in.  You'll get 100% of the rehab funds in an escrow account that can be drawn upon by the contractor as work is completed.

Your second ask is exactly what people do in the 3rd R of the BRRRR method. You can refinance and cash out for 75% of the appraised value after the work is completed.

So you have one foot in fairy tale land and one foot grounded in reality.