As they say, your network will be your net-worth.7.

However, the investor owes more on the mortgage than the properties are currently worth.

and is that worth the effort?

I'm a licensed general contractor in columbus oh. the design is different than the construction. value engineering and design is well worth it. if you want my help I consult for a fixed fee and I have overseas architects that could save you some money for sure.

The hard money loans typically will require a pay off in 12 months or 18 months or something like that. 

As others have commented - DSCR Loans tend to be a great solution for people in your exact scenario - fed up and tired of giant hassle and paperwork for conventional or bank financing - not worth the often pretty small benefit in rate or terms.Check out this article I published last year on BiggerPockets on what to expect documentation wise for DSCR Loans - they have become a nice blend between solid underwriting and doc sets needed, but not too much (and not too little like notorious "no doc" loans)https://www.biggerpockets.com/blog/what-documents-do-you-nee...

Loan officers know a lot about how to get money to buy houses, while property checkers decide how much homes are worth.

Will your house be worth less because there will be bigger and better new builds near by? 

Are borrowers who utilize these funds typically involved in flipping properties?

If applicants don't meet these criteria, then we would typically allow them to use a US-based guarantor with an income of at least 80x the monthly rent.One more thing- Don't make exceptions based on personal stories!