Not sure your area that you're investing in, but the perfect BRRRR are kind of hard to come by now in the recent years.. so have the expectations to leave some type of money in the deal..Big thing that I've ran into and I've seen other investors run into is running out of money doing the BRRRR.. as some or most times you have to leave a bit of money in the deal, folks usually run out of cash to continue to do deals.. especially in the recent years..But good news is.. as you're holding and cashflowing on the deals, there is always opportunity to recapture the equity, not to mention tax benefits etc..I also see some pitfalls in investors getting desparate for deals, so they get lenient on their number etc.. as they do i see some get backwards on some deals...

@Chris Seveney - Do you mean basically what happens if the property ends up losing us money after sale?

 - Are you using funds from a hard money to pay off the hard money loan?

I know investors who invested the minimum amount with us and much more with another group...They ended up losing money with the other group. 

I am currently in a very high interest hard money mortgage that balloons in September 2025.

So the tenant used the Pauper's Affidavit to appeal claiming they had no money correct? 

It seems like banks lend more money to people paying more income tax.

This becomes especially critical in the current environment where you can earn 5% on your money easily and aren't tying up cash until the project is completed.2.

Count your own money and forget about theirs. 

I am trying to raise money from Friends and Family for putting together the down payment needs.