At 7.5%, it doesn't sound like hard money financing but you also have a very low down payment there around 5%. 3.

I was just asked this question today and did some research.I came across HelloFax.com, they seem like the best overall solution that is also the most cost effective.Great integration with DropBox which is actually how I found them.

Another option is you could get a construction/bridge loan.My sense is thebuilder wants money upfront and insurance is saying no - which is typical in commercial deals where contractor does not get paid until work is done - none of this upfront stuff except for some mobilization costs.

But you are effectively putting yourself into more debtThere is good debt, and bad debtStudent loans are IMO bad debt - yes you get a degree that gives you a good paying job, but it costs you money every month to hold that debtReal Estate debt if used properly can be good debt.

So far, nobody has shown how it works or what billing is or cost of electricity.  

Worked really well and it didn't cost me anything.

And if it did happen, the lender will simply fix the "botched paperwork" and proceed, A lawsuit will cost your friend $25,000 plus paying the arrears on the loan with no guarantee of success.

Hi Melvin,Origination charges = 0 [Covered completely with lender credits]Services you cannot shop for = 2725 [This is the VA funding Fee]Services you can shop for AKA title work = 1723Total Loan Costs A+B+C = 4448Taxes and government fees = 3279 & G Prepaids and initial Escrow at closing = 10007Total cost including escrow = 14455

The LLC will be renting the property from my father and he is willing to share some of the cost for the rehab and upgrades.  

Construction costs are up about 40% over the last 4 years.