What is bad is having the gurus collect money from armies of inexperienced, unknowledgeable and under capitalized wanna be investors who then seduce desperate home sellers (who have no idea what they’ve agreed to) into selling their homes without understanding the consequences.  

Additionally, your brother would inherit your cost basis in the property, which could result in significant capital gains tax if he sells the property later.

I do agree raising outside capital can help with scaling.

hi, did either of you end up working with flooring capital? 

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

At its most simple we’re separating the appreciation/capital buildup benefit from the cash flow benefit.  

If you are not well capitalized, meaning you can not pay off the loan if called, stay away from sub to.  

How much capital do you have?

The wholesale fee, would be capital for my next real estate investment. 

Expect to spend another ~$8K for that.If you are planning to close all-cash and bring enough cash with you for operating expenses and rehab, you are looking at a minimum capital raise of about $3M and that is for a cheap 32 unit.