Fix and Flip loan with Rehab 100% question

[Hyeseong Park]

I have done 2 flips with my cash only so far and I'm trying to finally go with fix and flip loans to buy multiple houses. Usually these fix and flip lenders do ARC up to 85%~90% & rehab 100%, so I know I have to pay some downpayment for purchasing houses. 

But I recently reached out to one broker and he said once I purchase house with borrowing money, I still have to pay for whole rehab amount at the beginning to handyman and when everything is done, I get money from the lender for whole rehab payment. Is this normal?

Or I dont know if this paying whole rehab price from my pocket first and get paid from lender at last is depending on lenders. 

And if not so, is there any way that I can get paid from lenders for rehab payment at the same time as what I get for purchasing houses?

[Steve Hiltabiddle]

@Hyeseong Park yes, lender will hold the reno funds till after they see progress on the renovation,  then will reimburse to cover that work.  They want to protect their investment (their funds) and there are way too many stories of contractors getting paid up front and never being seen again.  So expect down money on the purchase and draws against the renovation budget as work is completed and reviewed by the lender.  Each lender will have their own process.   Good luck