I am a beginning real estate investor with big ideas, and am seeking out information on the best way to go about starting up a group of investors.
For the past few months I have been studying up on real estate investing, and although I would still consider myself a beginner, I know I am ready to make my first investment. My problem now is financing.
In thinking about how to circumvent the financial aspect of investing, since I don’t have 30-40,000 dollars to cover down payment / closing / legal fees, I have come up with the idea to begin a small circle of investors among trusted friends and associates.
My problem is now how to go about starting up this group of investors. If anyone has any good resources about where I can read up on such endeavors, or could point me in the right direction, I would greatly appreciate it. I am not looking for a handout here, only a shove in the direction to where I can feed myself with information about starting a group of investors for real estate investment purposes.
Thank you in advance for taking the time to read and reply to this message. Your sharing of knowledge is greatly appreciated.
Welcome LethalWeapon
Probably the easiest method would be to find some friends/family/trusted associates that want to invest WITH you. Then form an LLC or a corporation with each person as a member/director/shareholder of the entity.
For more information on what the best entity is please read some of the articles to the left. Also, you will probably want to consult an attorney that has expertise in the field for help.
Carlittle is right. Invest with people that are like minded and surround yourself with people who think outside of the box. Go slow and make good decisions together. There are also a lot of ways to buy property with no money down…you should explore these as well. Look at the Robert Allen book No Money Down and do a google search with those words and you will find all kinds of ways to buy property with no money.
Good Luck
Depending on credit score, down to 600 FICO stated can go to 100% LTV and some lenders will allow seller to pay up to 6% for closing costs…this would make it so you have minimal costs to you.,
Do you have a local “property investors’ association” or anything like that? They are a good source of networking and you may find you can join an established group, rather than form your own.
Be very careful with family members and ensure that they understand the risks and benefits and aren’t just “trusting you” - as mistakes could be costly and it would be awful to have that cause divisions. The divisions are less likely if they understand the mechanisms and rationale.
