ARV Financing (As Completed Value) - Don't Get it!

[Char Rosa]

I am novice real estate investor and trying to sponge up all available strategies...especially financing strategies. This community is the best and want to leverage the expertise and experience here.

I know there is ARV-based financing for residential investment properties but need to understand how the lender actually lends money based on ARV.

Example scenario for numbers sake (not necessarily a real scenario):

$100,000 Purchase price

$10,000 Rehab costs

$170,000 As completed (as repaired) value

Private lender says they loan at 65%ARV or up to $110,500 in this example.

BUT...the lender says they STILL require apprx. 20% (of purchase price) borrower injection from me or about $20,000.....the 'skin in the game' requirement from most lenders.

My questions:

1. In the end, can someone who has gone through this lender process before tell me what the base loan amount would be from this above example (not including the various closing, lender fees, etc. yet)?

2. How did you arrive at this base loan amount?

3.  Is there any such thing as coming to a transaction with NO money down (100% financing) when a lender is the money source? I thought ARV financing was supposed to do this (under the right conditions) ?

I haven't actually talked to a lender yet about a particular transaction but I know this sort of financing is out there and I wish to understand it before I go to a lender (if a private money lender turns out to be my last resort).

Thank you!