If someone is short on experience, they need to have more of their own money (skin in the game) into the deal, and a very solid deal. 

I suspect they make a good amount of their revenue on flipping dreamers who risk the 3k.but if you think about it from Do hard monies point of view for sure they are going to be ultra conservative I don't blame them and they are only going to fund screaming deals where the borrower has Zero skin in the game other than the  3k and 600 fee and there are most likely other little fee's like title and escrow.. but show me a beginner who can land screaming deals.. sure some will stumble on them. but in my 40 years of lending HM most beginners have no clue as to what a deal is.and therefore this company is killing it making 3600 on turn downs.. pretty sweet if you can get away with it. 

Your cash on cash return is 3%.Look, I think the name of the game for the BRRRR crowd (and more experienced people should stop be dead in my tracks if I'm wrong) should be as follows:As little skin in the game as possible (e.g. none of your money or a small down payment)Buying for cash flow - to reinvest into the rehab part of BRRRR or into the next propertyBuying undervalued properties to provide value (make your money when you buy the deal)When the stock market provides 10-15% in a year, and you're making 3%, did you put $160,000 into the right investment?

Originally posted by @Teage Staunton:Most of the traditional bank, credit union and portfolio lender you talk to will require you put down 20-25%, some even 30-40% down, as your skin in the game.

At the end of the day you won't have skin in the game.  

Agents either develop a thick skin or find another way to make a living

As they say, there are multiple ways to skin the cat.

Here are my options as I see them: BRRRing SFR sounds great, but it will take a significant amount of time to build up enough cash flow to replace my current income.Flipping average priced ($200-250k ARV) homes sounds like the best way to achieve my current income, but will not contribute to overall wealth.Mid-sized apartment complexes sounds like an interesting route to achieve both income and wealth, but it requires a significant chunk of my own (skin in the game) capital - leaving me with little capital to pursue options #1 or #2 on the side.

On cash-out refinance now: Most banks will only allow you to cash-out 75%-80% of the appraised value, meaning that you have to leave 25% to 20% in the property (skin in the game).

But at the end of the day you're still purchasing a deal under market value and have no skin in the game.If you ask me it sounds like you're the one trying to take advantage of them; not the other way around...