typical flip process via HML?

[Brett Chien]

Can someone walk me through the process of a typical flip deal via HML assuming:

property: 80k

rehab: 20k

ARV: 150k

cash on hand: 50k

Do I put 50k down first to purchase the property and then get an appraisal for the rehab, borrow 20k (rehab) + remaining 30k from HML?

[Andrew Postell]

@Brett Chien normally the HML will want to do some type of appraisal/evaluation of the value themselves. Before closing or anything. Then based on their determination of value they will lend you something like 70% or 75% of the ARV. You can certainly bring as much as you own money as you want. In general, they will probably want some type of initial investment from you if it's your first time working with them. But I have seen some HMLs not need any money out of your pocket if you can buy and renovate below those thresholds.

Hope this makes sense how I am describing it.