@Robert Burns, note investing is a great way to establish passive cashflow but as Wayne mentions there is a lot of learning and front-end due diligence required.

@Adam JuodisDear Adamwith all due respect, how many properties do you own?  

Thomas S.Greg, thanks for sharing your story and helping me to see that people are different and I need to respect those differences.

It is currently an established STR with 8 years of history.  

@Getachew Hundera,Another source of private lenders is anyone with whom you establish a personal relationship (prerequisite to private lending per the SEC) who would consider investing in your deal.Essentially, it could be anyone who is nervous about the risk and volatility of the stock or other markets and is looking for a safer investment secured by real property.Learn how to attract and engage private lenders other than your family and your current friends and associates.

There are some sites like fciexchange.com and some othersI haven't bought any note yet, but have a vision of buying only first mortgage notes to start with and only in judicial states with respect to LTVs and market value.

There are not many established contractor flippers in our market so it's interesting to me that you have one that needs capital for projects.

With a moment to reflect and the opportunity for some hindsight, I don't think I would call any one of my deals thus far a complete home run with respect to gaining immediate equity or monster cash flow.My first deal is probably the laggard of the bunch.  

They suggested 85 cents on the dollar.So, let's say they spend $100k on the building improvements (furniture, equipment not included).They want that to count as $85k toward the purchase of the building at that future improved value.So future value could be established as 420k + 100k = $520k.50% ownership would cost $260k, minus their credit of $85k = They would contribute $175k cash to obtain 50%.Is 85% credit the right number? 

I respect the fact that a tenant needs to be able to lock their door, but this seems like one step away from changing a light bulb.