Ask them all for references to General Contractors who have worked well on 203K loans with other borrowers they've worked with in the past.

The borrower is still the owner.At sheriff sale, foreclosure auction you have the opportunity to bid on a property and essentially become the owner in whatever state it's in (the borrower may still be occupying etc).An REO is a property that the bank took back at auction and now owns.

Borrow the money and either pay him an interest rate or determine an equity split that you both agree on. $100K does sound low if you're going to purchase and rehab though.

That way, if the borrower(s) default they simply take the property back and hire a team of professionals to step in and replace the failed investor so the asset continues to churn out cash flow. 

Would the lender allow you to set up an LLC, borrower the money through the new LLC with a personal guarantee so you have a partnership agreement at closing?

 I have another friend, actually the person that introduced me to BP who is also a Pro member like me @Delmas Gibson that has questions as well about being able to borrow or get funding when one owns an LLC. 

Just networking alone will not find you the best borrowers.

Bankruptcy is a bugger when a borrower files.My question is...

If you have any questions, post them here and tag me.Quick Example:Purchase: $125kRepairs: $20kARV: $200kPoints: 3Interest: 13%Fees: $1,030Total Cash to Close: $5,380Monthly Interest only Pmts: $1,585Total Financing Costs (3 months): $5,380+$1,585+$1,585+$1,585=$10,135Cashout Refi at 75% of ARV = $150k$145k (Borrowed Amt) + $10,135 (Points + 3 months Interest) +$2,100 (Est Title Closing Costs) + $2,900 (Est Utilities + Prop Tax) = $160,135 Total Investment - $150k Cashout Refi = $10,135 Total Cash Invested in PropertyIf you are use the Buy Rehab Rent Refi Repeat method that is promoted on this site you can buy rental properties for just $10,135 for a property worth $200k (or roughly 5% down with no PMI).

Hard money: “The Pros and Cons”Pro-All CASH Transaction-Quick Closing Times (<14days)-All “Rehab Cost” are covered in Loan-Lower Leverage for Buyer and more Liquidity-Flexibility to buy Distressed and Value-Add Properties-Loan based on Property and underwritten so Borrower is Profitable-Does not show up on Credit Report-No "DTI" (Debit to Income Ratio)CON-Higher interest rate than Bank-Shorter Repayment Schedule (<12 months)-More conservative evaluation of the Property’s Value-Not doing your research and working with a “Bait and Switch” Lender (check out our post on this)Real Estate is one of the most dependable and powerful ways to grow your wealth.