Yes Leslie, hard money folks want you to have some skin in the game, so you have a vested interest in seeing the project through, instead of just walking away if things go bad. Particularly if you have no experience, they generally will charge higher interest and pts as well. It's not easy getting started...I know it all too well. I have only done two rehabs and I at least had the luxury of borrowing from my 401k to get me rolling. But still the hard money lender I used would only lend at 60% ARV and they funded the construction in arrears. But I will say that after only two projects (both successful) they are willing to lend up to 65% on the next one and now they are comfortable with how I run my numbers and finish my projects. I am just telling you this because I want you to try to look at the glass half full. I don't know if you have access to any retirement accts or family/friends that may want a piece of the action as well. And if the deal is a DEAL then a hard money person will know it. They may be willing to be a little more creative and structure the deal in a way that will fund 100% but they take half of the profits as well. There are ways to get it started but it will take a lot of looking, offers and the ability to overcome some rejection in the beginning.
Best of luck to you.
Gary
