Hard money loans based on ARV with smaller “down payment”

[Jesse Lynch]

Hi BP!

I've successfully flipped a couple houses partnering with my mom, but she is now retired finds herself too risk-adverse to use a HELOC as we did in the past, and truthfully she is quite content with her retirement financial situation.

Which leads me to now. I am at the early stages of my solo investing career, I have $10k for down payment, and have been preapproved for about $200k FHA (3,5% down) or $155k Conventional (5%) down.

I would really love to either flip to gain a bit more capital or use the BRRRR method, depending on the numbers, but I think my best chances in this market(Twin Cities, MN metro) will be to have a cash offer or hard money, as it seems the value add here comes from property distress, which isn't exactly FHA/conventional friendly.

As an example, are there hard money lenders in Minnesota that would lend $170k for purchase and rehab based on an ARV of $270k, if I only have $10k cash?

How does my cash come into play? Is there a traditional “money down” situation with hard money?

Thank you so much for any input!

Jesse