I know there are some people out there who do this and put an assignment in place to be recorded if the loan defaults.As with so many things in REI, there are multiple ways to skin the cat, and it has a lot to do with your level of risk and your partial investor's level of risk.I do teach a 4 hour live class on this. 

Hi Kyle,This is the most common question I get asked.Don't waste your time because nobody in their right mind is going to fund 100% of your project.In order to get into new deals, build, buy, flip etc. you need to have some skin in the game.A bridge loan to get the cash out of the property on the market is possible, that can then help get you the cash needed and start this new build.

It's just not mentally healthy to wait for a pending issue.

If you want to buy rehab and flip homes.. then this is part of the process. if you to thin skinned to deal with it then maybe flipping is not for you..

It’s important to balance cash-out refinance with maintaining healthy cash flow from rent.Mismanaging the Rehab Process:Delays in the rehab phase can eat into your profits.

They know better than anyone.......Oh, and you can also get some of the better deals when buying those properties, as long as you have a good idea of the potential extent and cost of the repairs and plug that (with a healthy contingency) into your proforma. 

Having someone local who has skin in the game and experience would be valuable.

Buying distressed & fixing yourself gives you the full intel on the quality of your product, buying 2 rather than 4 you can pay for better locations, then having reserves gives you a healthy peace of mind.

I want to know how much skin they have in the game, the loan, and their track record.

Doing this requires both a healthy inventory of deals way under market value and a large list of serious buyers.