Setup private investor? Anyone know how.

General Real Estate Investing
1

Ok I’m in the doctors chair and I’m telling him about my need for investment money and if he knew anyone that would like to earn 12-18% on their money secured by real estate let me know. Well at the end of our conversation he says he has 30,000 he could invest with me.
Great! Now What?
What is the process (paperwork) you use to get this money into your hands.

2

What is 30K going to do for you? It’s not enough. How are you going to buy, fix and sel with that littleoney? Get someone else. He’s jerking you.

EH

3

Thanks Hunter but you didn�t answer the question.

What if I had five more doctors with 30,000 and 200,000 of my own would that be enough…? I might be knew at this investor business thing but even with 30,000 an opportunity could be out there.

Now can you or someone shed light on the topic?

Thanks
What

4

Any amount of money is good to invest with. If you have 10 investors with 20-30k each, you’re doing well. We have a private investor agreement that was drawn up by a lawyer. It states our responsibilities and theirs.

Some investors use land trusts to invest the money with while others give the private money investors a promissory note. I’ve also seen investors give them a lien on the property with a note once you find the one you want. I was thinking of loaning money to an investor through my Self-Directed IRA and he’d back it with a note.

Read this REIclub article on working with private money. http://www.reiclub.com/articles/fund-deals-private-lending

5

Thanks Austin

I’ll take a look at that article.

What

6

That’s called a syndicate and you get file with the sec. Your post only mention ONE investor Not 30. That’s what I was answering.

EH

7

Have the doctor open the account with a third party administrator (TPA), www.theentrustgroup.com, he transfer the money to the TPA. You structure the LP " TPA FBO (for the benefit of) the doctors IRA". The TPA signs the documents, and the doctor signs read and approved. They send a check to you for the money

8

Even one investor is fine, though. Free money is good even if it’s $5k. It’s $5k you didn’t have to spend and can use as leverage.