Quote from @Jules Aton: When I did a seller finance deal years ago on what would become a long term rental I bankrolled the rehab funds then re-financed when it was finished.

  :)  Many Indians send money back home to repay people that bankrolled their studies in Canada. 

His subscribers are only succeeding at 1% of enrollees, and they have a bank roll to invest.

This of course depends on your starting bank roll - but if its like mine (under 100k) - Im trying to put as little as possible into it on top of initial equity and fees.this will likely chew a big hole in your ROI  (now if you are looking to improve value with a cash out refi or a great prospect comes along that needs combo new plumbing, roof, windows, foundation repair, etc - well just make sure you know what youre getting into and/or have a good contractor and finger on the pulse of the market when estimating the ARV YOURSELF - couple missed items and you risk having a bad first investment and not doing it again).    7) dont be scared be ambitious ( i should heed my own advice sometimes) 8) define numbers goals within your target areas.  

and that price point is high for a 150k bankroll.  

I'm not bankrolling a large portfolio so the popular option to gouge smaller managers for a minimum $100/mo isn't a biz model I'm willing to support. 

They might not be able to finance the entire purchase amount like other investors using hard money or private money, but they have been doing it long enough to build up a bankroll that can pay for down payments and repairs.Final ThoughtsThe 70% rule is more of a guideline, not a hard-and-fast rule.

But if you wanted to do an entire project with cash, I'd say you'd not want the entire project cost (purchase + rehab) to exceed 100k so your choice in projects is much more limited and also now if something goes wrong like the GC sucks or the market crashes, you are leveraged out 85% of your entire bankroll.  

Hello Raphael, Its best to use Hard money for fix and flips until you can grow your bank roll.

Your first few deals not only get your bank roll going but they also set you off on the right foot if you have success.