I have a down payment... next step with hard money lender?

[Benjamin Von Blon]

As it says, I have money for a down payment. Right now I want to do fix/flips.  I relocated about a month ago and am without a job.  I have talked with a couple of local lenders over the phone, but haven't found one that will fund a rehab project through conventional financing because I am not working.  I have been looking into HMLs and I think it is a route I would feel comfortable going.  From going through different websites it seems like I need to have a property in contract before pursuing the loan.  This is a little backwards from when we bought our primary residence a few years ago when the realtor wanted us to go through the mortgage broker first to determine how much we could finance.

A second question I have about transactions with HMLs is how do I receive the money?  Is it escrowed? Are there draws? Do I need to set up a separate bank account for it?  I am guessing some of these may vary on the amount and lender.