This is a misconception advocated by a bunch of guru types misrepresenting Garn St Germain.  

@Linda Doane  I suggest you really get your advice from professionals as there are misconceptions in this thread.    

Hopefully that clears up a misconception regarding net worth.

For all of you BRRRR calculator masters out there, I have a quick question for y'all.When it comes to "Total Cash Needed at Purchase" I believe this is deceiving. At first I was thinking all i needed for actual cash t...

There are of course exceptions and plenty of properties that crush it but I think there is a bit of a misconception.  

Reading your response just unscrambled every misconception I had about wholesaling REO properties.

I would highly suggest at this point that you sit down with a tax professional to clear up some of the misconceptions that have come up in this thread. 

Having the need of a LLC is a common misconception as a necessary requirement for  for small time investors.

Check out: The Most Common Misconceptions of Investing in Real Estate

Not to mention, there are a lot of people who have a misconception of what a bridge loan is that could use some clarity.For those who don't know, a bridge loan is interim financing, that most often, bridges the gap of an immediate need for money while the borrower waits for either the sale of a property or more permanent financing to step in.Where borrowers most often fail to understand how bridge financing works is in situations where they have a need for money, but do not have the exit strategy lined up yet.