Quote from @Brett Deas:
One thing you have to realize before doing that is you are essentially leveraging 100% of the property, in all terms that is very risky.
But since you know understand that start with the friends and family round. That is where everybody starts and truly all you need if you're not raising millions. One thing I will say is that if you are not comfortable yet going to your friend and family then you shouldn't be raising from strangers yet either. That is a step that a lot of people try to skip but never ends well.
Brett, I would argue that leveraging 100% of a property is not risky as long as you can control your variables. Make sure the property is purchased with long term, fixed-rate debt that cashflows from day one. For example, person A goes to buy a property worth $100k and puts down 30%, so they have a $70k loan. Person B finds a similar property for $70k but does not put down anything so they also have a loan for $70k. Who is taking on more risk? Person A is because they have $30k into the deal whereas Person B does not have anything into the deal. I think it comes down to deal, then debt, then equity. First, you find the deal, then you try and get 100% debt, and if you can't then you bring in equity.
