He just has to have access to it - beg borrow or steal.  

The easiest way to borrow like this is to find an experienced local hard money lender, usually at a real estate club, and pay them to prepare the loan documents and perform the origination for you.

Our lending programs require the borrower to come in with 20-25%.

Finance it for 75% of purchase price..... so you put in 80, borrow 60 back out.... use that to finish the house... with a budget back up to 140 for fixing and any overages.The way I would do it (which might not be available to you), would be to purchase it with cash, then use interest deferred credit cards to finish it quickly and get it on the market... but this is not the best option for everyone.One caution:  Be very careful using sqft for the value.  

These sweatshops that only do VA IRRRLs will have a better interest rate than anyone doing purchase mortgages because their operating expenses are so low - VA IRRRLs are barely underwritten, no appraisal, no income calculation, no verification of savings, credit report optional (only time you are likely to be able to borrow $500k without a credit pull!)

I mean at 100k and under in Memphis is any of those 55% of the people who rented would buy their mortgage tax and insurance is less than rent... and this still does not happenthe guide lines still require credit and verification and that's were the borrowers struggle in these areas.if they did not investor would never ever buy a rental in Memphis everyone at those price points would be homeowners would make zero sense to rent.

It sounds like you have some savings, but if it still isn't enough, rather than refi your current properties, you could borrow from your TSP or partner with someone else if that isn't a possibility.Also, you may be able to find seller financing.  

I would have to borrow heavily from family to get $200k cash (at 6%-9%) to close the deal to transfer the deed. 

Do you borrow money to do these or all cash?

Currently he borrowed money from a private investor due to his credit history .