I would actively look at the broker/local investor route as it is easier and helps you be more efficient esp. at this stage of the RE cycle where everyone is demanding more than what their property is worth.

When I go to finance, if I cash flow recycle the money I'll have approx $3660 in reserves if nothing breaks in that year, which I expect. 

Say I borrow 10,000, I pay the full 10% even though I only use the money for four months The private lender is making about 30 to 40% a year by constantly recycling the moneyThere is a ton of IRA money out there that people can start a self directed IRAI like trustetc.com and penscotrust.com@Dmitriy FomichenkoMight want to respond to this

Most people need to sell before they buy their next place, so they get locked into the RE cycle in that they may sell high, but then they have to buy high too.

We are mainly isolating our searches to the following criteria for Holds and Flips...For Holds, we are looking to begin with a few properties that tick the following boxes:Able to purchase below market valueHave potential for Forced AppreciationAble to increase rentAble to recycle the deposit into the next purchaseCashflow positive (pre-tax)Weekly rent is approx. double the (buy price divided by 10); eg, $300/wk : $150,000 costFor Flips, we are looking for properties that will provide us with the following:Able to purchase below market valueHave potential for Forced AppreciationGrowth areas (5% or more)

And the other partner was a Garbage man who owned Garbage companies in multiple cities in CA.. and re cycle centers  both very accomplished but very different in their investing style strategy.. suffice it to say the fortune 500 president was all about OPM.. the Garbage man was all about CASH..  

Again I prefer a fund over investing in individual notes due to be better diversification and also not having to do all the constant due diligence of recycling a portfolio. 

I love how the investment capital is recycled with this strategy. 

By purchasing properties where you are able to grow the value (raise rental income, reduce expenses & do value add improvements) you have the ability to recycle your cash via the BRRRR method. 

These are what I like to call recycled product, which usually has a 5 - 8 year shelf life or in better terms the game of hot potatoes- who or which investor is getting stuck holding the bag.