Would like to syndicate with family and friends, but how?

[Justin Young]

Aloha BP!

Recently, I've gotten in touch with a few wholesalers and someone to manage the rehabs for me when I'm ready. The thing about that is, I AM READY but I don't have enough capital to for the purchase price plus rehab costs. My options are 1) Wait and save, save, save until I can purchase a property or 2) Create a credibility packet to show to my friends and family in hopes that they feel confident enough to lend me money. I know many people here on BP suggest that I build a reputation first then start to ask for money but that would take me at least another year to have enough funds to do so on my own. I've been speaking with my friends and family about my RE goals so they are aware of what I'm trying to do. The difficult part for me would be speaking with them about lending. Any advice from fellow members will be greatly appreciated. ALOHA!

[Kristopher Hanks]

@Account Closed That's not true. You do not need gargantuan profits to make this model work. What is the difference between getting loans on ten houses that only cash flow $100 to $200 per month and having ten people pay cash for ten houses and they cash flow $1,000 per month?? In the end you divide the profit based on your equity percentage, or if you are smart you put the profit back into the next investment and keep growing. Same thing with a flip. If you have ten people put up the money to buy the property and ten people put up the rehab money you pay zero interest to a hard money lender. Now you can do multiple projects instead of just one at a time. There are many different ways to do these investments. If money is holding you up and this option can get you in the game, why not try it. I would rather have 10% of a $100,000 than $0 because I could not get the money together to get the deals done.