An appraisal is the only thing you should ever pay for before you close the loan.4) After the appraisal comes back you will get a document that outlines the amount to be borrower and all fees that will be relating to the loan (I would suggest to ask for an example of this document when you are searching for an HML so you will know what fees are going to show up).5) Close the loan at a title company of your choice.6) Begin work and make draws on any repair balance.

I think that was my draw on Florida where there was some houses there that were short money.

We have a few tourist attractions but not sure if the draw would be worth it.

I started this discussion to draw in the interest of everyone new and hopefully get more tips and tricks besides the beginners guide on everything and some real experience from others.

Hi Kent - is there a reason you wouldn't get a lawyer to draw one up for you? 

Purchase price: $40,000 Cash invested: $70,000 Sale price: $170,000 Increased the vale in the market by $20,000Purchased Hard Money 85% purchase 100% rehab 1st draw provided What made you interested in investing in this type of deal?

@Stephen Valder There is no code language that draws a bright line. 

I went to the store, met the owner and paid for his guy to come measure and present the drawings.

The draw back to these loans is that they are more paperwork heavy than the other "portfolio" types of loans....but if you have ever received a loan on your primary home, it's likely that you will go through the same type of paperwork here with conventional lending.

Some states will allow you to manage without a license as long as you are an employee of the owner, meaning you draw a salary and not a commission.