LOL ANd for the borrower VERY EXPENSIVE.. which equates to some equity ... 

Present it to them as a return on their money deal - “I’ll pay you 8% on your money while I’m borrowing it”  or whatever, and  pay them out of the cash flow on the deal until you can qualify for a refi into your name when you would pay them off.  

Where can I go to borrow money to give the contractor in order to get the project started?

They are asking 950K.Gross rents: 100,800Utilities: 3KInsurance: 7KProperty taxes are roughly 10K for each 450K in value.Repair/Maintenance: Don't have figures yet but I'm assuming it'll average out around 10K a year.The lender I am speaking with also requires me to also include an 8% vacancy rate and a 5% management fee whether I have those or not.With an interest rate of 8.15% and 20 year amortization, I can't get close to a 1.2 DSCR until my amount borrowed is down to about 450K. 

My borrower also had to document that he has no knowledge of farming and no intention of farming and that was easy because he was engineer with a good paying job. 

It can’t show up on the 1098/1099 since it wasn’t charged to the borrower… so what do you classify it as?

For example, you might borrow $200,000 at 12% interest so you can buy a house for $140,000 and spend $60,000 on renovations.

Don't borrow or cash out from the retirement account. 

You need to refer to your 203k Borrower's Acknowledgement Form. 

On the other hand, this lender is also very picky, for example they require 100% liquidity of the borrower, meaning someone would need $3m liquid to get this $3m refi (& you don't get to count loan proceeds towards that liquidity).