Real Estate Investor Package Help

[Matt Jorgensen]

I am looking to reach out to some friends and family members about investing in real estate.  I want to present a professional package to them.  My thoughts were to ask for between $50k and $200k with a 3-5 year promissary note and offer between 6-8% interest only payments monthly.  I would use the funds to buy distressed properties for cash.  I would then fix them up, get a renter in place, and do a cash out refi in 3-5 years to pay back my investors.  I would then have a mortgage on the property and I will hold and have it cash flow for years to come.  Should I include investors on the mortgage (short term) or get short term life insurance and use them as the beneficiary?  Any other thoughts or suggestions on this plan to make this attractive to investors and myself?

[Matt Jorgensen]

@Thomas Rutkowski and @Loren Clive

I currently have two rental properties that were purchased through traditional financing and are cash flowing nicely.  I own a wholesale flooring materials company so I can buy flooring, bathroom, and other housing materials at low prices direct from manufacturers.  I believe you can have 4 houses outside your personal home that can be bought through traditional financing but I am working on a game plan from how to get houses 5-10 in the next 3 and a half years.