How to start acquiring rental units with private lenders.

[Mahmood Abdul-Rahim]

Hi BP community! 

I was hoping to get some advice about something. I'm looking into getting into the buying rehabbing renting and refinancing strategy in South Florida.

My challenge is that I don't have any assets or any savings to speak of. I work full-time as a Electronics design engineer, and have been doing it for about 2 years now.

My short-term goal in a nutshell is to acquire as many cash flowing properties as I can. I'd like to start out with single family rentals, and move up to multi-family units.

 Right now I'm renting an apartment for about $1,000 a month and it seems like a big waste. I'd much rather use that money to pay interest on a private loan for three months which I can use to purchase and Rehab a property. Then cash out refinance enough to where I have equity in the property, but I can also pay back the principal on the loan in addition to a 12% to 20% return on my lenders investment. And repeat the process until I have enough properties with enough equity in them to where I can open a business line of credit and use my own cash to continue to grow my business.

My question is, how can I find private money lenders who are willing to work with me in this way?

Also, does private money lending count as a cash transaction? The reason I ask is because, I want to know if I run into any issues later on when I'm trying to Cash out refinance.

What's the best way for me to position myself to take advantage of these kinds of opportunities.

I'm looking forward to your comments and suggestions! Thank you