What is the best way to find investors for my joint venture? I am in houston Tx Thanks
There are a plethra of different ways to find people to invest with you. Friends and family is a good start, but that can be tough. You can go to the seller and ask them to participate in the capitalization of your purchase. If the deal is big enough, >$5 million you can pursue equity financing. They’ll require a certain return, usually 10% or above, plue an ownership interest in the business in the form of a percentage of the cash flows or capital gains from the sale of the building. LJ Melody/CB Richard Ellis has an office in Houston if your deals are big enough and you have some experience. If you’re just wanting to operate on a much smaller scale I would think that you wouldn’t need to be giving up equity in the form of a joint venture. Good luck!
I might also suggest attending your local REI Club. Go prepared with Biz Cards, flyers about the deal, and more importantly let it be known what is in it for the potential partner.
For a list of local clubs go here: http://www.reiclub.com/real-estate-clubs.php
You’ll typically package the deal and include all of the numbers, including financing, what you’re doing,etc. If you don’t have an investor network already, then you need to meet one with a network and pitch it.
Depending on the size of the deal, you’ll need to provide details and follow up due diligence to their agents, financial advisors, lawyers, partners, etc. The more deals you’ve done and success you’ve had, the easier. If you haven’t done anything, then smart investors will be weary unless you have an experienced partner.
I am in Houston also. We just had a meeting of the RICH (Realty Investors, Club. Houston) yesterday. RICH is the largest REI club in Houston. They meet the first Saturday of each month. It starts off at 8:30am with what they call the deal-a-minute. You get up tell the specifics of your deal and there are 400 people sitting there to hear your pitch. Pretty much anybody doing deals in Houston is there.
There is also a website for the club where you can place ads for investors etc.
I am assuming that when you say investors you mean Money… If so when I needed extra cash I would run an ad in the newspaper offering a specific rate of return using real property as colateral…
If you are looking for Partners you may want to check and make certain you’re not violating any state or federal laws regarding solicitation for investments…
The tax guy out of Santa Barbara I have spoken about has a course on putting together syndicates… You may want to look into that…
Good Luck
Michael Quarles
Thank you all. Thanks bluemoon I am checking out the RICHS group right now thank yall
To clarify,“state laws”, means to follow securities laws. include registering your security. I was at a short session about securities. If the deal goes well, the partners are often happy. If it goes down and you havent been following securities laws, you’re up a river.
To “paper up” your deal, you’ll need a form U-7 from nasaa.org or use a service like ppmdoctors.com. Texas law is 7 TexAdminCode 109.13. Federal is 504 RegulationD 230.501-230.508.
I’m going to contact the lawyer who spoke at our class so I can write a blog article on it.
Best way to find investors? Look at Craigslist ads looking for sellers, groups like CASHFLOW or mastermind groups, pick up the phone and start calling. What area of Houston are you looking in? I grew up in League City.
Sascha
I live in katy but rehab homes in the katy and memorial area.