One more reason why people should stop looking for the easy path to building wealth.Increase earnings, reduce expenses, save, and invest.

WHEN (yes I mean WHEN not if because over 30+yrs it happens many times) when the market has a drop for whatever reason be it a bad election, war tensions, someone sneezed on there terminal and HFT's went bazerk selling, whatever the cause, WHEN the market drops you get a "Margin CALL" and next thing ya know there not just selling off those leveraged positions BUT there selling em off in the drop, at the lowest price, amplifying losses, all those returns going out the window in moments.     

The reason why I ask is because that could determine what loan options are available to you (and interest rates). 

It's open for interpretation, but if it went in front of a judge, they would look at the reasonableness of the situation. 

Reason being HML's are typically short term loans that are interest only.

This was the single reason for their failure and could have been prevented, even during the GFC.

Simply put, we start off with the As Repaired/Completed Value (ARV), then subtract from that number a reasonable profit, the rehab cost (scope of work), which we've gotten good at, a contingency reserve for any "unexpecteds", our cost of capital/carrying costs (interest and costs of the leverage used), and our costs/fees on the buy and sell sides of a flip.

Pretty reasonable cost too. 

Any reason why you need a "private person" here? 

The only reason he did it was because it led to additional work.