True or False: Private Funding as a model only works with BRRR?
Unlike a bank, a private investor (not a hard money lender) is looking to get their principle+interest within a very short period of time, 1-5 years. Whether they're getting interest only at first or a one-shot balloon payment at the end of the deal term, it doesn't matter: what matters here is that it is a short period of time.
With private investors looking at anywhere between 7%-12% ROI, there is no way a property investment can afford that kind of investor return unless it (1) a BRRR play or (2) a flip. In other words, you're typical buy and hold won't accumulate enough cash flow.
True or False?