Ok, right off the bat, I know Solo 401K’s cannot directly borrow using a recourse loan.

A good lender evaluates a borrower’s risk of defaulting on his/her obligations.

And so what's it to you if I want to borrow 20 in hard money to fund a deal?

At the end of the day, it would be up to the borrower to take action if he or she didn't like your payoff number.

(Note: I should have done a second lien on the property between Justin, Amber, and I for the $4,000 plus interest that I borrowed...but I didn't because we were what I thought at the time, friends) Now fast-forward to November 2019, the house has been completely rehabbed ( new roof, Windows, siding, flooring, doors, HVAC, Electrical, Plumbing ... basically the whole nine yards at a budget that no other contractor in their right mind would have ever remotely considered)  and my realtor performs a new CMA which brought to light a new comp that  brings up our ARV to a new listing price of $54,900!

One thing that is still unclear to me is how people doing this strategy are continually able to borrow money from banks when their debt amount increases also. 

I have been having trouble with the hard money lenders I have reached out to as most say the amount I'm trying to borrow is below their minimum requirements.Any help or suggestions would be greatly appreciated!!

@Chad RohlfsenHey Chad,I have borrowed Farmland equity to purchase properties.

I have done 80% LTV 30 year cash out refi's for borrowers with credit over 750.

When the economy slowed down, some submprime borrowers may  lose jobs and cannot make mortgage payment.