Thankful for @Todd Pultz on this post. Tellin' like it is brother! We're all going to have obstacles, and this post sounds like a lot of people that ran into an obstacle (or several) and just threw there hands up and walked away or threw a hissy fit because its not as easy as it was advertised. I think all of us need to realize that the first time you do this (what I'm experiencing now), its going to be a learning experience and its not going to be perfect. I'm just getting started and have had my share of obstacles so far, and am still working through them. I will say BP makes it sound easier than I initially thought, but the truth is that if it was that easy, everyone would do it.
Speaking from experience (or lack thereof) as somebody who is going through his first BRRRR right now, it's definitely much harder than expected. From hearing podcasts and reading books and whatnot, the impression was that there is literally just money laying around in the form of private money lenders saying "take my money and do things with it." That was not the case. Basically Hard and Private money lenders (especially in this climate) do not want to lend to someone with experience. So having cash was my first obstacle. Instead of throwing in the towel, my wife and I buckled down on expenses and within a year we had enough that would do a BRRRR just using our own cash.
So now its finding the deal. The whole time I was saving up money, I set a goal that everyday I would go on Facebook and put posts in groups saying I was a cash buyer looking for property. This led to me finding an awesome agent, as well as several dozen wholesalers. I was upfront and told them that I don't have the funds to purchase now, but would like to start getting on their lists so I could start analyzing deals they were bringing in. Deal Flow box checked and I'm gaining experience in analyzing deals. This way, when a property came up, and I had my funds, I could immediately pull the trigger.
That happened a few weeks ago. I saw the deal, called the wholesaler, told him I wanted it, done deal. At this stage, I'm working through the rehab, which has been a learning experience as well. At the end, since I'm not borrowing money, I'll likely take out a HELOC for the next house and snowball things that way. If I was borrowing money for the deal, I'd use delayed financing so I can pull money back out as soon as the rehab is done. I've already spoke with lenders that would do this and include the rehab. I found them as a result of hustle and constant networking while I was building up my funds.
I guess what I'm trying to say is that its very possible to BRRRR and get all your money out and then some. Even if you leave money in the deal, as long as it's below 20% of ARV, what's the big problem? Essentially you got a property for less than typical money down, and created a few bucks in equity. And to reiterate a former post, its just hustle and hard work, and not letting an obstacle/objection stop you, but finding a solution to it. If you're not solutions-focused, you're going to have a hard time with any aspect of RE, and you should probably just stick to stocks or MLS purchases.
