How do Hard Money lenders react to flips going over budget?

[Charlie John]

Hey BP,

I am currently working on a fix and flip where the budget started at 80k before demo and figuring out what to do (old house with funky floor plan). 

Purchase was 80k. House is 3/2 bath 1800 sq ft. Reno budget is now at 170k to finish it. All in position of 250k. 

This is my first major rehab and I just didn't know what I was getting into! I have done two other, mostly cosmetic flips before this. Once we started demo, the numbers exploded as I went over each line item that needed upgrading. 

Although it was an extremely stressful conversation, my private lender (family friend) has the capital to fund it and is going to help so we can finish the project. Since he funded the purchase and the first 80k in rehab ,  we are both kind of tied together on it. he is nervous about the house not selling for more than 250-275. The comps tell me 300-325. 

I am curious how hard money lenders or even private money lenders would react to their rehabber doubling their budget? 

Thanks for your feedback!