Hello I am trying to start my own business as a real estate investor. How can I find someone to invest in me to give me 70% of the appraisal value.I will make a contract with the investor and after fixing the home up place it on the market and after sell give the invest not only what he inves in me but 15% more which cause him to get back 85% of investment back. i am a great seller just need the cash to start. What can i do.
My best advice is just to start talking to people. You’d be amazed at how many people have money sitting in their IRA’s or 401k’s that are earning them virtually nothing. Tell them that you will offer them 15% on their money, if they let you use it for “x” amount of months. YOu may have to make their interest payments to them on a monthly basis if they request it.
Since you’re new, and probably cannot personally guarantee the money, make sure you have a formal Promissory Note completed, and place a lien on the property in their name for the total amount of money that will be owed to them in the end. That way, if something happens to you, they still have their interest protected.
Don’t take their money until you have a deal to invest in. You don’t want it sitting in your bank account without it being used in an investment.
One question…are you buying properties from other investor’s? This may not be the most cost efficient form of investing for you at this stage of the game. Just a thought.
When I first got started I used a partner
How I found a partner was by putting an ad in the paper I got alot of calls. I did a few with some and one I kept on using
I said some thing like this
I have 100k house under contract for 65k need ONE partner to split profit CALL NOW opportunity will go fast Laura 123-4567
The split was worth it because he coached me and taught me for a while
so just consider the split as college tuition.
When you do a profit split like that, does the partners name need to be on the contract? What does the partner pay you? Half all the costs? Do they give you cash? How does this work? Thanks, Amy