How to use Investor Money

[Thomas Butler]

Hi All,

I have been investing in real estate for a few years now and have a sound buy and hold strategy that produces solid returns.  Like everyone else here, building my buy and hold portfolio has been slow moving given the higher purchase price in my location.  I currently been getting 1 house per year, but really like to expand to turn this into a full time venture.  

Given my track record and proof of concept I have a attracted a few investors (family friends) who wanted to provide me money since stock returns have not been attractive.  The money they are offering is approx 10 to 20% of the purchase price, but I do not think they want to be on a mortgage.  They simply like a return stream.  

Like to hear some options or any advice you have as banks I have contacted view this as borrowed funds and will not allow me to apply this to a down payment.  I prefer to offer them a 7% return and pay it over a period of a 3 to 5 years so I can make a little cash flow and then pay them principal plus interest over this period.  Would love to hear your thoughts.