I.e. 50% progress is a no-no, as is any percent based draws.  

Private money loans are typically set up between 8-12 percent.

Once you have the money and ready to exercise your option to purchase first try to talk to seller to see if they would be open to owner finance it for you with that 20 percent down since you will have shown them that you are a responsible renter.

It does seem like the rates may be lower, but I have excellent credit and didn't like the look of lifetime PMI that's now on the FHA loans.

My partner funded the initial 20 percent down and I funded the rehab.

real estate done right is a lifetime great gig.. wholesaling rarely is.. some will do it for years. 

@Jeff CampbellThe percent rules are only rules of them.  

It is supposed to be a lifetime lease done with the previous owners.

Depending on factors like how long they held the investment, the capital gains rate can be 0, 12 or 15 percent of their investment.Because they do passive investing, investors do not have to pay a self-employment tax bill.

@Jonah Walker stop trying to time the market and  stop overthinking. 10- 15% net caps are to be had, who cares about up or down a percent or two,,,,,,, Just connect with those that do deals vs analyzing,Good Luck