Private Lending & BRRR: There's (one helluva) a catch!

[Rabih El-Khoury]

The only way BRRR with private money works is if the cash-out re-financing amount is equal to or greater than the money put it by the investor + their expected interest.

Here's the catch: roughly speaking, if the investor is expecting 10% ROI, you're looking at an after-repair-value that's 40%-50% of the purchase price of the distressed property (+closing fees if you're using the investor for that too). What are the odds of finding those kind of properties?!?!?

Do you agree or am I missing something?