I then thought of the idea to offer they a fixed rate if they private lended me cash on a short term (5-10 year) period.

This arrangement has worked well for both of us.However, we now have several projects that will be running concurrently, and the builder is facing cash flow challenges with making the monthly interest payments.

Purchase price: $588,000 Cash invested: $8,000 1988 build duplex What made you interested in investing in this type of deal?

Purchase price: $588,000 Cash invested: $8,000 1988 build duplex What made you interested in investing in this type of deal?

Possibly we could invest for appreciation only if it's close to breakeven with not too much negative cash flow and the upside appreciation is very promising.

Becoming a Key Principal (KP) in other people’s commercial real estate deals is a great way to shelter your income, participate in several deal at the same time, minimize / spread out risk, capture equity w/ a preferred double-digit return at a discount cash-out-of-pocket investment. 

@Joseph Chiofalo just helped a referral with a high LTV cash out refinance.

You would need to put the home in oyur name which could have tax consequences then you are getting a loan to buy an asset which most likely will not cash flow.

Most sellers are not looking for a chunk of cash they are looking to solve a problem.If I was starting today I would be going directly to these owners who have listed their properties and have conversations.

Loan rates on the ReFi have prohibited us from building a bunch more 3-4 unit properties recently, just kills the CF of the deal, but going all-cash on the purchase & construction still pencils.