If a HML gives you a term sheet you have a deal. Ask them how much money they have active in properties. This will give you an idea if the size of the business. Most have millions active in rehabs at any one time. Most require skin in the game. The lowest I've seen is $20k from the investor. You can get the $20k from an equity partner, private money or another HML if you don't have it.
If the ARV is $300k and the purchase price is $150k with $75k of rehab/holding costs you can expect financing costs on a 6 month flip to be $30k. If you sell with an agent at 6% you put out $20k to make $40k in 6 months. HML got a 20% return on their money and you got 100% return. Too bad you can't live on $20k in six months so you probably have keep working or do three rehabs at a time.
