HML - How to Come Up w/ Out of Pocket Costs

[Shana Patrick]

Hello BP family!

My business partner (my longtime boyfriend) and I are joining together to flip our first home in the Tristate area.

We are looking to get a HML, however we've realized that whether we are doing a loan that covers 80% of the Total Costs or 70% of the ARV we are left with a huge out of pocket expense.

My question is how do people usually come up with the money for the other 20-30%?

Do people take out an additional loan?

Please note that we are a young couple with middle class income. We do not have any 401k's or IRA's to take money out of, and our families are not loaded with cash to borrow from.

I'm just trying to understand because I highly doubt everyone doing HML's have that much money to just put up like that.

I look forward to hearing from you all!

Thank you,

Shana