How to get private family money for buy and hold properties?

[Rizwan Alam]

Okay so this is a tough question and I read some of the other similar threads here and most of you believe this is quite impossible.

Here's the thing, I have some cash saved up and I will be buying 2 houses out of which one is making 1K a month and one is a rehab project which should also bring in 1K a month.

The thing is I've got some people with some money in my family and they would happily invest if I can guarantee a profit to them and if I can show them a couple examples. Another thing is they don't care about owning a property or having the hassle of chasing tenants so the following would be my deal. Another thing to note is in my religion they don't like interest so what ever money I borrow I would have to make them some sort of a partner.

• Ask $20K ( The property won't just be 20K I will also be investing some)
• I will be the owner of the property. (Yes they will be okay with this.)
• I will guarantee their money back no matter what.
• Guaranteed ROI = 25K Total
• Payments = 500 x 5
• They can ask their money back at anytime at this point we will sell the property and give their money back.

Or is it better to make them a minority partner of the property instead so I'm not the only one responsible for damages.

Also how do we structure such a deal in legal terms.

I know it's a tough question but let's try answering it, but if not the. I guess Fix n' Flip is the only option where you can borrow someone else's money.