Most people will have it saved from working or other sources or will team up with one or more like-minded partners who will combine forces and share in the profits from a project.I will say that it is very dangerous to go into using hard money to flip homes if you don't have funds set aside to complete your rehab as quickly as possible. 

Seller finance, lease options, Deed of Trust, land contract can be dangerous and costly if they aren't executed correctly.

I would not consider any city on the top 100 most dangerous cities list.

Puerto RicoPuerto Rico has the advantage of financing a property as US territory.

Neighborhood HOAs are a danger because they can disallow short-term rentals, and then you have to pivot to another strategy or sell.I can't remember which podcast it was, but a guest mentioned the HOA changed neighborhood amenities to owner-only unless you used the in-house property manager who charged a very high percentage for the area.I just don't love HOAs

@PJ Boxel, you are in uncharted territory! 

You have to be genuine and get to know everyone by name.Also understand that this was a very dangerous area in the past that has been "cleaned up" and people will feel differently about what's going on around them.

A prepayment penalty accelerates profit, which is danger territory with respect to Dodd-Frank.Only mortgage insurance can 'protect' your investment.If you plan to extend this type of financing on a regular basis, you should consider getting a license as a loan originator or hire a loan originator.You actually lucked out that this person caught the potentially illegal terms of the loan. 

This is uncharted territory for me, so I have no idea what to expect, and we're supposed to be closing this week!!!

.  ;-)This is why OOS is such a danger for OOS investors and especially newbees.