Can you cash out a conventional loan?

[James Allen]

Hey Guys,

This may be an obvious question but I'm struggling to find the answer. My brother and I may be potentially going in on a future deal together (Buy, Fix and Flip). He has some cash (around $40,000) and I will generate leads and target a potential great deal to invest in. 

My Question is this: If we were to purchase a house and we are trying to pay all cash in order to get the lowest price possible from the seller. Is a Conventional loan from a bank or any other bank loan impossible to cash out or would we have to go through the route of a hard or soft money lender/OPM for the rest of the money? Trying to see if we could go for lower rates overall.

Also, my second question is if it is possible, is it true that the banks not allow you to purchase the property anyways if its in need of repair or if the offer we make is way below the fair market value?