How do I go about finding people or companys that might want to invest with me. I have been using Hard money lenders but would like to find someone else with less strings.
I am also very interested in this topic.
first I’m confused what you mean by “less strings” than a hard money lender,I have hard money fund the deal, when I’m through rehabbing I have someone come out to make sure it was rehabbed as I had outlined in my budget, and then I get a check for the rehab escrow,the only ‘strings’ I can think of is that I do the rehab I budgeted for (and the rehab the appraisal was based on.
Now the fees are high with hard money, but I also use private money and they are also high with private money.
To answer your question, my mortgage broker, who works nearly exclusively with investors, has both private money and hard money contacts and we just see who has money at the best terms when we go to make a purchase.
Hey SKYKINGRH finding private money can be a daunting task. I will tell you what I have done that may help you. First of all if you have done deals with hard money lenders you have a track record. Start to casually mention to all your friends and family that you invest in real estate and provide higher returns on their money. Always ask them if they know someone who may be interested in investing. You will be surprised how many people will say ’ I’m interested"
Next go to private money blueprint’s website and download the free power point presentation. It’s a presentation to present to your private money potentials. This is a great tool that I used and you can customize it to your business. Once you get the presentation the way you want it put an add in the paper as well as on Craigslist that your having an investing seminar. Get people to come and listen to your presentation. Keep a detailed log of all your potential investors and just follow up with them.
Always try to get formal sit down appointments with potential investors so you can explain exactly how your program works and you can understand exactly how they want to invest. Always be flexible and understand what they want. These small steps worked for me. Always remember people with money usually know other people with money so be honest and responsive with your investors and the money will begin to come in! Good luck!
An idea that I have tried out mysef with great success.
Have your real estate agent run a list of Sold properties for cash in the area that you are interested in investing, than contact these cash buyers and see if they are interested in partnering or loan you money. Some will partner, and some will loan, but they will be easier to work with and with less guidelines than regular hard money lenders. After a couple of successfull ventures this way, the word of mouth will spread and more cash investors will actually be looking for you. :biggrin
First of all you need to ask from your relatives for investment in your project and become a partner or something you would like them to be. Then you should seek you friends to make an investment . I think you will find some one.
You are looking for a private lender who isn’t already experienced in lending on real estate. I’ve found the more experienced private money lenders start charging like everyone else in the industry. I’ve had great success both for me and my private lenders just by going to people who aren’t lending on real estate. I explain the benefits, I explain their safety and risk in the deal, I explain what I can pay them and on what terms. I’ve taken many of them around to the properties and walked through telling them exactly what will be fixed and what it will cost, etc.
You’ve got to put new private real estate lenders at ease. Show them deals you’ve done. Share the numbers from those deals. Help them see why they should invest in you and your projects!