There are many reasons behind this, but are all to protect the Borrower from coming out upside down on the deal.

The issue is how much we can borrow?

In addition to what Joel mentioned financing is very different and more difficult for less qualified borrowers.

All of them, without exception funded their deposits with their own money (usually 25% deposits and they borrow the rest from banks).

Some advices to borrowers: never pay any upfront fees to any private lenders.

Your $140K will get one or maaaaybe two BRRRRs off the ground, but if you can borrow hard money, you'll be able to execute multiple BRRRRs at once.

However, I didn't read this sentence (or at least had a different understanding of what it meant, if I did) "the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC".  

For your Collateral, don't borrow from your relatives,you won't pay them back for 10 to 20 years.

There are stipulations for the borrower, but they are essentially the same loan program as other investor loans. 

Also depending on what your rate is in your primary a HELOC may be better than a cash-out refinance as you then do not need to borrow the full amount at a much higher rate.