Renovation Cost

[Benjamin Larance]

I am about to start my first fix and flip.  I have spoken to a private money lender who is interested in my project.  I will provide "out of pocket" money for the renovation (30 - 40K).  He will provide 100% financing for the "as is" property.  He requires the renovation money to be held in escrow. 

I am not necessarily opposed to this stipulation but wanted to ask my colleagues in the industry if there are pitfalls associated with this strategy that I am not considering.

Benjamin (Benji) Larance