Hard Money Loan Draws

[Sarah Robinson]

Hello all,

Ok so I am looking into flipping a house, but I don't have the money so I am probably going to end up using a Hard money loan or a private investor if I can find someone in my area willing to finance. I have been researching and it appears that for HML's I will have to pay for everything up front, and then be reimbursed afterward for the work done on the property (with a fee associated with every draw I pull for reimbursement). How exactly am I supposed to do this if I literally do not have $20,000 sitting in a bank account to do construction projects? If I had the money, I wouldn't be using a hard money loan in the first place. Can someone please explain this to me, please? I'm super confused...