I'm might emphasize the following features of the deal to make the family member feel as at ease as possible EARLY in the conversation in order to get them to lower their defenses caused by previously mentioned stigma to be open to hearing the rest of your pitch:- Compare your suggested rate (8%-10%) to average return in the stock market (8%) then to a 10 yr CD or 10 yr Treasury Note which have (1-2% and 2.15% respectively). - Have THEM hold the title, physically, if possible. - How & When they get their money back?

Here is a more indepth explanation regarding holding requirements that I copied from our website: 1031 Exchange Holding Guidelines for Like-Kind Replacement PropertyWhile the Department of the Treasury Regulations and numerous rulings make it very clear that the Investor must have the intent to hold his property for rental, investment or use in a trade or business, they fail to define exactly how long an Investor needs to hold his relinquished or replacement property in order to qualify for a tax-deferred like-kind exchange pursuant to Section 1031 of the Internal Revenue Code or Section 1.1031 of the Treasury Regulations.

RESCUING THE BAIL-OUT (a RE Professional Perspective)An opposition to the Emergency Economic Stabilization ActBy Fred AshleyThe Emergency Economic Stabilization Act of 2008, or Bailout Plan is a law authorizing the United States Secretary of the Treasury to spend up to $700 billion to purchase distressed assets, especially mortgage-backed securities, from the nation's banks.

If you don't want to take the time to learn the rules buy US treasuries

Wells Fargo recently put out a report detailing the correlation between the inversion of the 10yr vs 1yr Treasury and predicting recessions.

Look at the US treasury yields, that's a great indicator of the fragile state of the market.So you're telling me that the AVERAGE, new and/or young investor or family is going to be able to easily find and obtain deals with seller financing?

From there, you can move from asking the question you asked in this thread to asking more nuanced ones that impact those variables and from which you can actually act, "Do you think residential interest rates will continue to track the 10y treasury if it's forced higher?"

There's very little profit and you're betting on interest rate risk as well as creditworthiness of tenant AAA vs BBB, etc.Are you looking to park cash and take a slight premium to Treasuries?

Your property will most likely need to be in top condition, in a primary market, and have great cash flow history.I just got a quote from an agency Lender yesterday: 80% LTV, 30 year fixed rate  at 5.38% (Treasury + 230bps), 30 yr AM, 15 year Yield Maintenance, 1.25X DSCR.  5-50 units, $2-10MM range.

Treasury securities, or “T-bills,” with a one-year maturity).