Aside from that, it sounds like my operation is quite a bit smaller than what you and your network operate with, but properties that are wholesaled are usually all cash or hard money, so the initial funding aspect usually isn't a roadblock.

I would invest in ugly houses that need lots of rehab work to build the equity and refi spreads needed to offset the work and preserve most/all of my initial capital.

Not only the initial fees, but there are also liquidity requirements, i.e. $300k loan needs to show $15k liquid assets, and draws typically require you to pay contractors and obtain a lien release before you can be reimbursed for the money you paid contractor.While I know there are a lot of people who use low money down loans to get started, it is risky.  

Actually, you were on the right track initially.

It's been generating an average monthly profit of $1,000.

We basically want property to generate some cash flow and long term appreciation.

And those also only have a limited ability at best to generate a balance sheet, which you generally want to include on a 1065 return.came here looking for answers to exactly this question, and David is correct re: why.

You've overcome the initial hurdle.

I started talking to him about the minimum amount to invest, since I didn't know him or his company and he initially asked for $2,000 usd.

Let’s say that the sale generates $300k profit for simplicity.