If your borrower is not paying you, it’s likely they are not paying other bills.

We use 10% of the loan as a rule of thumb.Even though we can usually fund almost 100% of a flip, there are still many unforeseen issues that will arise.We just don’t want a borrower to get in over their heads. 

You will notice that they only fund less than 70% of ARV and the borrowers have skin in the game.

Many hard money lenders are happy to educate you about their program for free so you can refer borrowers to them.  

And yes, non-tax considerations matter as well, such as your ability to borrow money or your student loans.

How much skin in the game is the borrower providing?

Most of the time in these situations these borrowers are high net worth and think big picture vs. counting the pennies. 

Loan is NOT in our name but in the name of the original borrowers.

Sometimes my title company will allow me to do them simultaneously without any funding.... which is ideal.The hard money lenders I am working with wont allow funding for the acquisition of the LLC because they are wanting to be sure the take-out loan for the investor is 100% set in the borrowers name.

When you move out of the city, the debt on the current house will negatively affect your ability to borrow to purchase a different place.