I can tell they are both on top of their game.

The borrowers think they're getting a loan when in reality they're funding investor games in the secondary market.

Refi after construction.These numbers consider only the portion of costs of the HEL attributable to the land purchase, not the payoff of the HELOC (which we took out to buy the Seaside condo).Cash In:                     $66,166 (Cash, 1 year of debt service of HEL, debt service of const. loan, furnishing)Amount Financed:      $548,000 (home equity loan + construction loan + closing costs)Total Cost of build:     $614,166ARV:                               $850,000 (or rather "after construction value")Refi                                $637,500 (75% of value + closing costs)                                        Cash Out                       $89,500New payment             $4500/month (54,000/year)Estimated Cash Flow (pre-tax numbers, so actual mileage may vary)airBNB year 1:            $70,000     (net income $16,000)airBNB year 2:            $100,000   (net income $46,000)airBNB year3+:           $120,000   (net income $66,000)ROI (construction year):    0ROI Year 1 of STR:              24.2% ROI Year 2 of STR:              69.5% ROI Year 3+ of STR:            99.7% Did I calculate these ROI numbers right? 

While sophistication of your equity partners (private money lenders) will vary between residential and commercial, the principle of raising private capital is the same.You need to develop your own system which allows a constant stream of PML even when you don't need the funds and/or don't have an active deal under contract.For example; I raise private capital by offering free educational workshops for people with self-directed IRAs.

Yet it's all a zero sum game, so think about it from winners & losers.

The truth is, they will keep playing games and milk you for every penny they can, then they will leave the house a mess and cost more with cleaning, repairs, and vacancy.

Looking to get into the BRRRR game and trying to estimate how much renovations will cost for an average distressed 2-3 bedroom home roughly 1200 square feet or less.

And given syndications are a marketing game more than a real estate game, it begins to give you real marketing content to share with the world to help drive new leads for future deals.

Alternative route I chose, I will leverage my duplex (purchased 4 years ago) equity through house hacking to have skin in the game on next flip.

I think real estate investors in the game just become confident as to handle new challenges and they call that being experienced - Just like parenting: you think you are experienced with changing diapers, but the child is growing-kindergaten-grade one-baseball/soccer- soon teenage and the jazz goes on - grandparent