Hard Money Partnership

[Ryan Weimer]

Seeking some advice on a partnership using a hard money lender...

I'm going to fund the purchase price (via HML), while my partner will manage and fund the rehab out of pocket. Strange thing is some of the HML's are requiring he be on the loan and I don't understand why... This complicates the partnership as it dilutes the value I can bring by assuming the risk.

In my experience so far there are HML's that also fund the rehab and some that do not, so how is it any different in underwriting's eyes if I just never take a draw with an outfit that includes the rehab funds? This seems arbitrary to me...

Thanks in advance, really appreciate anyone that can add some insight here!