Some of those banks will also have retail operations, but generally you will get a better rate/fee combo through wholesale (the dozen loans per month mortgage broker gets volume discounts) than if you called that exact bank or lender directly (average consumer gets 1 mortgage every 3-7 years + marketing budget needs to be baked in).

I know of one that invests in notes, the discount and due diligence really helps reduce the risk, but of course any investment carries a degree of risk.

You should manage yourself or ask for a 2% discount.

If you purchase a property in the Midwest for $30k at a "20 cap", and you get lucky that CapEx doesn't kill you, and lets assume that you earn $500/month of true cash flow even after 10 years of holding (this would probably never happen, but I am giving your statement every possible benefit of the doubt).Or, you purchased a $500k property in Northern California at a "3.5 cap", this was bought at a true market cap -- no discount.

The property does need a bit of work, and think I can get it at a discount from the motivated seller.

If you go to a Home Depot they have a Contractor Relations desk - You can ask the manager for a 10% discount on a large purchase - I've done this a couple of times and had success!

There are a few funds that invest in notes, which offers good downside protection due to the discount the fund is able to buy the note at relative to the properties value.

@Miles StanleyI agree with @Brent Coombs the idea of BRRRR is to get most of your Cash back to start a new purchase.The goal in BRRRR is to purchase distressed properties at a discount, force appreciation (rehab) and use as little of your own cash in the process. 

Look for properties that are distressed and need work, if you buy at a discount and fix it up you should be able to cashflow just fine!

(I was thinking about a payment to the student, opposed to a discount on the rent.