It can also help cover HELOC payments if you find a property with solid equity potential.

Instead of putting your whole venture at risk through a single partner, I suggest you build a team of employees and develop solid succession planning.

You don't have to spend a fortune and buy a house directly on the beach to do well, but your starting price point for a viable option in this market is around $350-$450k for a solid 2-3 bedroom oceanfront condo or around $500k for a 3-4 bedroom house within walking distance of the beach. 

(if the buyer wants a more solid commitment)Once a buyer has spent money they are somewhat vested in buying the property and that gives additional negotiating power to the seller.

Maybe you could help us then, is there any source or evidence besides his own word that he isn’t just using the $100 starter kit money we purchase to fund all these loans in a Ponzi scheme?

If its a solid investment:You can bank on the market and the status of the major economy.

Sounds like a solid find.

@Tyler Garza Your strategy is a solid start, but avoid using a corporation for rentals due to double taxation and fewer deductions.

City-Data and Census.gov are solid resources, and sites like Rentometer can give you a good sense of rental prices.After that, I narrow it down to neighborhoods with strong fundamentals—good schools, low crime, and convenient amenities.

I negotiate at 70% ARV so the deals I bring are solid and I'd love to work with one single corporate cash buyer that is able to close  on several deals a month.