i know the hunt for a profitable property is the hard part but i think we just need some guidence on where to look!?!?!

Also, I know that due diligence is extremely important in finding a deal that will be profitable.

since lenders don't like too many loans with an investor, and since i plan on buying several hundred over the next few years, i thought it might be easier to go private.i would buy with cash and rehab. afterwards i would refi to pull out investment and some profit, not going over 80%LTV, with new 1st. explain to lien holder that i would be selling doing a wrap to create cash flow. be up front with them.just wondering if this is plausible. i would love to get opinions or any other ideas for accomplishing this.jim

Also How can I make sure that I am protected, and get my share of the profits?

You have no room for a profit.

Now I have no choice but to make it work.Fortunately I did have some reserves at the time, but they're dwindling fast. i figure I can make it about 3-4 months with what I have left, but -knock on wood- as long as I can get this house sold within that time, I get my money back, and I make a healthy profit.

Put 6K in it for updates and when we divorced sold it for a 100k profit split 55/45.

I'm pretty sure that Ryan is correct about the usury laws, and anyway if you charge so much interest that the investor who's borrowing it can't make a profit you'll end up with a bunch of property that you don't want.I've made some HMLs and I've never charged anywhere near those numbers, although with points and fees I make sure I'm NETTING a very nice return.For those kinds of numbers you have to become a "payday" lender.

Is this correct, and what can I do to break out of this cycle so I can generate the profit I'm looking for?

The more it positive cashflows (makes you a profit), the better a deal it is, from a cashflow analysis perspective.Of course, there are many other "perspectives" to real estate investing, but they are off this topic.Ben