Funding Strategy — Using My HELOC for 100% EMD, Then Refinancing with Hard Money at C

[Kwok Wong]

Hey everyone,

I’d love to get some experienced eyes on a strategy I’m testing.

I’m actively flipping properties and recently had this idea to strengthen my offers and scale faster:

• Use my personal HELOC to fund a large (or 100%) Earnest Money Deposit to make my offer stand out.
• Once under contract, I’d line up a Hard Money Lender for the purchase and rehab.
• At closing, the HML funds would reimburse my HELOC, allowing me to reuse that liquidity for the next deal’s EMD.

On paper, this seems like a way to:

Present stronger offers and outcompete buyers.

Recycle capital faster between multiple deals.

Keep momentum going even with limited cash.

But I’m curious about the real-world execution and pitfalls:

1. Has anyone here actually done this (HELOC → EMD → HML → repay HELOC)?
2. Any title/escrow or lender issues with tracing funds this way?
3. How do you protect yourself if the HML delays or the deal falls through?
4. Would you disclose to the lender that the EMD came from a HELOC, or frame it differently?
5. Are there smarter ways to structure this same “strong offer + liquidity recycling” concept?

Can this work to scale flips safely?

Appreciate any wisdom or stories from those who’ve done this in the real life.