How do I purchase with little money down using Hard Money?

[James H Webb III]

I just had a deal fall into my lap, however it fell before I was prepared to purchase! I looked into hard money lending to purchase this property as a BRRRR. The price is 105,000 the rehab is 40,000 and the hard money lender agreed to fund the rehab and purchase as long as I could put $38,000 down. Here is the issue....I only have $15,000 to comfortable put down. Does anyone know of a way to get hard money lending down payments decreased? Or any other way to creatively finance a BRRR property with limited down payment!? Thanks in advance and happy investing!

[Tom Shallcross]

@James H Webb III - even if you got the HML to come down to your 15k, you need reserves. How would you make the monthly payments? What if rehab ends up being 50k instead of 40k? Or your appraisal come back 15-20k light and you need to leave cash in the deal when you refi? You'll also most likely need to front some of the rehab money before your draws hit.

You need to partner with somebody who has funds or find someone where you've earned their trust and they are comfortable private lending to you. 

I commend you for wanting to get started and you should keep that overall attitude, but if you don't have the capital to make it happen, wait and there will be more deals in the future.