(most hard money loans require 10-15% down depending on the split between purchase price and rehab). but that is both (1) risky and (2) expensive, as you're paying interest every month on 100% of the borrowed funds. private money is fine, you're just bearing a lot of risk and also involving the relationship in your very first deal. 

There are more details here if interested.I will not tell anyone to do or not to, that is a choice that you will have to make and also it is a choice to work it or not, like any system.

You have two things going on, and they are unrelated for tax purposes:1. doing rehab and paying contractors2. borrowing money from a HM lender

@Joshua Lanzieri when renovating older properties there are almost always negative surprises.Go watch any HGTV renovation show and most of them will have this as a cliff-hanger, forcing the choice of either going over budget or cutting back elsewhere.10% overruns happen often, but 50% is NOT acceptable!

To borrow against a free and clear portfolio in a creative deal.

An experienced broker with lots of choices at the palm of their hand is probably the best bet.

I.e. take over the project, or is it that investors have no choice but to wait for syndicator to do something.

I explained to the lender that I didn't want to borrow funds for the rehab just to buy.

You have three choices...transfer the property and keep the loan in tact hoping they won't trigger due on sale, refinance into a loan that allows it, or simply leave things as they are. 

I borrowed the $25k down payment from my parents at 8% and got the deal done.