Flip or Flop question I can't figure out.

[Mel Hayes]

So last night I'm watching Flip or Flop on HGTV and I noticed he got a hard money loan to fund one of his deals.  I was a little surprised by this considering that the show has been on for 11 years and he's flipped tons of houses, I thought he'd have tons of cash for his deals.  The purchase price was $1m so maybe he just didn't want to put that much cash in the deal?  Would there be a reason you could fund your own deal but still get a hard money loan?

Thanks

[Michael Glist]

So there are times where investors will have their cash tied up in other projects which make it so they seek out financing. 

If you have a million dollars but are working on 4 flips flips and a 5th one comes to your attention and don't have all the cash for #5 instead of loosing out on the 5th flip you would seek out financing. 

Very common when you start to do multiple flips at once.