Way to pay back lenders

[C'era Oliveira]

Hi!

I'm thinking about investing in rental properties in Las Vegas. My brother is going to start off as my lender since this is my first time (lending around 20-40K). However, he is requiring a $700 income stream which is also my requirement that I was looking for. I was thinking that we could find a home that profits $1400 so that we can split. Even if I find a home that generates $1400 (which might not be possible), I will also have to factor in paying him back. Then I thought that I could purchase 2 properties in order to generate more cash flow for the both of us.

How would I pay him back and generate cash flow for the both of us?

Help!

Thanks!

[Christopher Brainard]

Hi C'era,

I think you need to do a little more research before you dive into investing. If I understand correctly, your brother wants to invest ~30k and wants $700 a month profit returned to him. It sounds like you want to do some sort of buy and hold, but that's like 28% interest. In Las Vegas, 30k isn't going to scratch the surface of a deal either, you'd need to secure at least a conventional loan for the balance and you're still probably only at maybe $150k in purchasing power (with two loans to pay now). If you're looking to make a little cash with low overhead, I would look into wholesaling. 

-Christopher