I need some private money advice.

[Curtis Deckard]

Hi all.  I need some advice.  I have been trying to get my real estate investing started and I just seem to continue to sputter.  I do have one unit and that is doing fine.  However, I had a private investor whom has access to plenty of money that she wants to invest to help me get my real estate off the ground.  She actually brought me a couple properties that could be great for both of us.  My question is, what is the best way for her to help and both of us make some money.  I've thought about having her pay cash for them and I pay her like a conventional mortgage or making the down payment and having me just pay off her down payment with interest.  She is 78 so a 20 year payment would not work.  She is family so trust (in this case) is no problem.  Anyone have some advice or ideas that are "out of the box"? I'm looking for anything that will help me and make her a little money also.  Thanks in advance to any ideas.

[Ron Flatt]

I was and still am with an investor, (family) who was complaining about her return on at bank.  She has rentals of her own but did not want to buy more.  I made up a promissory note, it is signed by both of us.  She can ask for her money at anytime and I will get it to her within 90 days.

She gets her 6% and I add enough to round up the amount to the next even $100, just to make it lower the principal a little each month.  Last year she was talking about wanting a new car and she had just lost her husband.  I had just sold a property and offered to pay her off.  She declined, said she would use her cash in the bank, she wanted my 6%.  

It is an easy deal for us both. The key is make sure you buy the property right, use the BRRR strategy. She gets a first on the property for 18-24 months. You refinance, then offer to pay her back with refinance money. If she wants to move on to the next one or two properties, just continue as long as it is beneficial for you both.